Next generation biofuels Market Growth, Size, Share, Trends, and Forecast 2032

According to the report published by Zion Market Research, the global Next generation biofuels Market size was valued at USD 191.82 Billion in 2023 and is predicted to reach USD 1591.13 Billion by the end of 2032. The market is expected to grow with a CAGR of 26.50% during the forecast period. The report analyzes the global Next generation biofuels Market’s growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the Next generation biofuels Market industry.

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Global Next-generation biofuels Market: Overview

Next-generation biofuels are advanced biofuels that are prepared from sugar and vegetable oils. The distinguishing factor between these next generation biofuels is the source. The main feedstocks used for next-generation biofuels are agricultural & non-food crop residues and wastes procured from the forestry industry. Next-generation biofuels are capable of overcoming disadvantages of the first-generation biofuels and produce much higher quantities of biofuels with large environmental benefits at lower cost.

Biofuel production using next-generation technology can be developed using inedible biomass to produce commercially acceptable fuel. The next-generation biofuels reduce greenhouse gas emissions, thereby mitigating climate change. Gasification, pyrolysis, and torrefaction are different thermo-chemical processing methods that are currently in use for development of biofuels.

Global Next-generation biofuels Market: Growth Factors

The global next-generation biofuels market is driven by the rising demand for clean and sustainable energy along with the need for minimum impact on the environment. Increasing focus on producing low carbon development and favorable government policies enhancing the production of next-generation biofuels will propel the market growth. The next-generation biofuel production technology allows the manufacturing of commercially acceptable fuel that is developed with the help of inedible biomass. The key feedstocks that are used for next-generation biofuels are energy crops, wastes procured from the forestry industry, and algae.

Further, next-generation biofuels have significant growth opportunities as aviation fuel and automotive fuel. Growing concern about energy security has caused a shift in attention to renewable energy sources in response to rising oil prices. Rapid technological advancement in next-generation biofuels is expected to be preferred biofuel over first-generation biofuels owing to its production from non-food feedstock and agricultural residues. Moreover, government mandates and a rise in adoption of biofuels to reduce GHG emissions from vehicles as next-generation biofuels can considerably reduce vehicular emission, which propels the next-generation biofuels market growth.

On the other hand, the high cost involved in the production of biomass to biofuels conversion may hamper the demand for next-generation biofuels market growth. Furthermore, a growing focus on biofuel blends and favorable government policies for greener energy sources are expected to offer lucrative opportunities for market growth in the forecast period.

Due to the current outbreak of COVID-19, the global market is expected to be hit severely. To overcome the widespread COVID-19, the government has imposed a lockdown and various restrictions. This resulted in the temporary shutdown of manufacturing and processing activities along with restrictions on the import and export of non-essential goods across all manufacturing industries and power generation plants. These stringent regulations have decreased the demand for or next-generation biofuels from various end-user industries. Further, a temporary halt in the manufacturing of new power plants, grid networks, and new infrastructure is also experienced by the customers due to supply chain disruption and the unavailability of laborers. However, with the occurrence of pre pandemic conditions the market is expected to grow at a steady rate.

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Global Next-generation biofuels Market: Segmentation

The global next-generation biofuels market is carved based on process, raw material, biofuel type, application, and region.

Based on biofuel type, the global next-generation biofuels market is split into biodiesels, biogas, biobutanol, and others.

The process segment is bifurcated into the thermochemical process and biochemical process.

The raw materials used for next-generation biofuels are lignocellulose, jatropha, camelina, algae, and others.

The application segment consists of transportation, power generation, and others.

Next generation biofuels Market : Report Scope

Global Next-generation biofuels Market: Regional Analysis

North America region is estimated to hold the largest share in the global next-generation biofuels market during the forecast period. Increasing investment in research & development activities and rising concern about greenhouse emissions along with strict laws regarding the production of clean energy are advancing the growth of the market in this region. North America is expected to gain significant traction owing to the frequent rise in demand from countries like the US and Canada. On the other hand, the Asia Pacific region is predicted to grow at a faster pace and is expected to offer new growth opportunities for market growth. Some of the factors that are advancing the growth of the market in this region include rising oil prices and escalating concerns over energy security in the emerging market.

Global Next-generation biofuels Market: Competitive Players

The global next-generation biofuels market is highly concentrated, this is mainly due to the existence of several international players in the market.

• GranBio Investimentos S.A
• Joule United, Inc.
• POET-DSM Advanced Biofuels, LLC
• Algenol Biofuels
• Chemtex Group
• Enerkem, Gevo Inc.
• Abengoa S.A.
• Sundrop Fuels Inc.
• TerraVia Holdings, Inc. (Solazyme)

are some of the leading players that are functioning in the global next-generation biofuels market. Further, some leading players are focusing on technological advancement for increasing the application areas for biofuels to offer cost-effective products to customers.

The Global Next generation biofuels Market is segmented as follows:

By Process 

• thermochemical process
• biochemical process 

By Raw material 

• Lignocellulose 
• jatropha 
• camelina 
• algae 
• and others 

By Biofuel type 

• biodiesels
• biogas
• biobutanol
• and others

By Application 

• transportation 
• power generation 
• and others

Global Next-generation biofuels Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

What Reports Provides

• Full in-depth analysis of the parent market
• Important changes in market dynamics
• Segmentation details of the market
• Former, on-going, and projected market analysis in terms of volume and value
• Assessment of niche industry developments
• Market share analysis
• Key strategies of major players
• Emerging segments and regional markets
• Testimonials to companies in order to fortify their foothold in the market.