As per a new report published by Fact.MR, a market research and competitive intelligence provider, the global biofuels market is anticipated to exceed a valuation of around US$ 141 Bn by 2021. Under the likely scenario, the market can register a CAGR of around 4.8% over the projection period of 2021 to 2031. North America accounts for nearly 35% of global biofuel demand.
Several shipping companies across the globe have started using biofuel to showcase their clean operational performance.
Mitsui O.S.K. Lines (MOL) and NYK Group, two of Japan’s largest shipping companies, have shown their interest in using an alternate fuel such as biofuel in their operations.
In a trial engaging Euro Marine Logistics, one of MOL’s subsidiaries, 370 tons of biofuel was loaded on City of Oslo, an 11-year old vessel. The biofuel was provided by GoodFuels.
NYK, on the other hand, conducted a biodiesel test in partnership with Anglo American, a mining company.
Such developments suggests strong prospects for biofuel demand in shipping applications.
Key Takeaways from Market Study
· North America and Latin America together command over 55% of global biofuel revenue owing to their large production base.
· The market in both, East Asia and Middle East and Africa is expected to witness a CAGR of over 6% during the forecast period.
· Revenue through biodiesel is expected to increase 170 BPS during 2021 – 2031.
· Corn-based biofuel accounts for over one-third of global demand; however, demand for vegetable oil and other feedstocks is expected to grow at a faster pace.
· Land transport application of biofuel remained dominant with more than 90% share. However, demand in shipping applications is expected to surge over the coming years.
· Top five players manufacturing biofuel accounted for 21% market share in 2020.
“Research & development on biofuel-based automotive engines promises significant revenue addition in the years to come. Volkswagen’s recent announcement to phase out fossil fuel-based vehicle production and conducting research on biofuel-based automotive suggests growth prospects for biofuel suppliers.” says a Senior Research analyst.
Considering policymakers’ interest in alternative fuel, biofuel companies should steadily increase their production capacity. Besides, concentration of production base in the U.S. and Brazil makes the industry trade-dependent. Companies’ initiative to open production bases in other countries can lead to a significant growth in demand over the coming years.