Boston, Feb. 03, 2026 (GLOBE NEWSWIRE) -- According to the latest BCC Research report, “Biofuels: Global Markets,” the market is expected to grow from $150.9 billion in 2025 to $194.7 billion by the end of 2030, at a compound annual growth rate (CAGR) of 5.2% from 2025 through 2030.
The report provides a comprehensive analysis of the global biofuels market, segmented by fuel type, end-use industry and region. It offers detailed market size estimates in both value and volume, along with insights into competitive intelligence, including market shares of leading companies and their revenue contributions. Additionally, the report explores market dynamics, emerging technologies and global developments shaping the biofuel industry.
Beyond market data, the report delves into critical aspects, such as technological advances, economic forces, and regulatory frameworks across different countries. It includes strategic tools like Porter’s Five Forces and SWOT analysis to evaluate industry competitiveness and growth opportunities. Furthermore, it highlights ESG considerations, sustainability policies and technical standards, providing a holistic view of biofuel production and utilization trends across various sectors.
The factors driving the market’s growth include:
Expanding Agricultural Output Driving Feedstock Availability: Biofuels are primarily produced from crops such as corn, sugarcane and soybeans. As global agricultural production increases, there is greater availability of these feedstocks. This expansion ensures a steady supply of raw materials for biofuel production, reducing costs and supporting scalability. Countries investing in modern farming techniques and high yield crops further strengthen this driver.
Rapid Expansion in Sustainable Aviation Fuel (SAF) Industry: The aviation sector is under pressure to reduce carbon emissions, and SAF has emerged as a critical solution. Airlines and governments are committing to net-zero targets, leading to significant investments in SAF production. Biofuels derived from waste oils, biomass, and other renewable sources are key components of SAF, driving strong demand and accelerating technological advancements in this area.
Growing Demand for Marine Fuels: The shipping industry is also transitioning to cleaner energy sources to comply with international regulations, such as IMO 2020, which limits sulfur emissions. Biofuels offer a viable alternative to traditional marine fuels, reducing greenhouse gas emissions and advancing sustainability goals. This trend is particularly strong in regions with large maritime trade volumes.
Utilization of Agro-Biomass and Non-Food Feedstocks: To avoid competition with food crops, the industry is increasingly using agro-residues, forestry waste, and non-food feedstocks such as algae and municipal solid waste. These sources are abundant, cost-effective, and environmentally friendly. This shift not only addresses food security concerns but also supports circular economy principles by converting waste into energy.
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Report Synopsis
| Report Metric | Details |
| Base year considered | 2024 |
| Forecast period considered | 2025-2030 |
| Base year market size | $145.9 billion |
| Market size forecast | $194.7 billion |
| Growth rate | CAGR of 5.2% from 2025 to 2030 |
| Segments covered | Biofuel Type, End-Use Industry and Region |
| Regions covered | North America, South America, Asia-Pacific (APAC), Europe, and the Middle East and Africa (MEA) |
| Market drivers |
|
Innovations:
- Neste has a total renewable fuel production capacity of 5.5 million tons and aims to achieve 6.8 million tons of production capacity by the end of 2027.
- The U.S. and Brazil constitute the world's largest ethanol production market. The U.S. accounts for 46.9% of global ethanol production and ranks first, followed by Brazil, which ranks second with 24.9%.
- A $400 million investment by a leading U.S. investor, Bain Capital, in a Hong Kong-based EcoCeres ranked among the largest ESG-related transactions in the APAC. This investment aims to scale up EcoCeres’s international business and advance renewable energy technologies.
- The increasing focus of the U.S., the largest ethanol producer, toward biodiesel and renewable diesel represents the growing demand and investment in second and third-generation biofuels.
Emerging startups:
- TERRAGIA
- ICODOS
- GREEN2X
Impact of AI on the Biofuels Market
AI is gradually transforming the biofuels industry, even though adoption is currently low. Its applications are expanding across areas such as feedstock optimization and real-time crop monitoring, helping improve efficiency and sustainability. In biorefineries, AI-powered sensors, IoT, and machine learning enable automated control of critical variables such as pressure, temperature, humidity, and chemical composition. Global investment in bioenergy is projected to grow by 13% in 2025, signaling recognition of AI as a key driver of innovation in this sector.
For an in-depth analysis of AI’s impact on this sector, explore the complete AI Impact on the Biofuels Market - BCC Pulse Report
The report addresses the following questions:
- What are the projected market size and growth rate?
- The estimated market size of the biofuels market is $194.7 billion by the end of 2030. The CAGR is 5.2%.
- What factors are driving the growth of the market?
- Key drivers include:
- Expanding agricultural output, driving feedstock availability.
- Rapid expansion in the sustainable aviation fuels (SAF) industry.
- What are the challenges and opportunities of the market?
- Key challenges include:
- High capital and production costs in the biofuel industry.
- Limited infrastructure for advanced biofuels.
- Food versus fuel conflict.
- Key opportunities include:
- Growing demand for marine fuels.
- Utilization of agro-biomass and non-food feedstocks.
- Which market segments are covered in the report?
- By fuel type, end-use industry, and region.
- Which fuel type segment will be dominant through 2030?
- The ethanol segment will continue to dominate the market by the end of 2030. Ethanol has a long history of blending with gasoline and leads to significant reductions in GHG emissions in the transportation sector. Additionally, it provides economic sustainability driven by government regulations and policy support.
- Which region has the largest market share?
- North America is a leading region in terms of demand contribution to the global biofuels market. The U.S. is the largest producer of ethanol in the world, and significant investment and regulatory support, such as the RFS and the IRA, are strengthening the region’s biofuel production and consumption.
Market leaders include:
- ADM
- APEIRON BIOENERGY
- BP P.L.C.
- CARGILL INC
- CHEVRON (CHEVRON RENEWABLE ENERGY GROUP)
- FUTUREFUEL CORP.
- GREEN PLAINS INC.
- HF SINCLAIR CORP.
- NESTE
- POET LLC.
- THE ANDERSONS INC.
- TOTALENERGIES
- VALERO
- VERBIO SE
- WILMAR INTERNATIONAL LTD.
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