Market Dynamics
The global biofuel additives market valued at USD 3,506.48 million in 2019 and is estimated to grow at a CAGR of 12.96 %% over the forecast period to reach a USD *** million by 2027. EU greenhouse gas emission reduction targets, government initiatives and targets to increase the use of biofuel consumption in the fast growing economies such as China and India to provide robust demand for the biofuel and its additives. However, Low energy output of biofuels will act as restraint to some extent and thus to impact negatively demand of biofuel additives. In addition electric vehicles growth will remain as the restraints to the market growth during the short and medium term. Growing biofuel production capacities and latest updates in the production technologies have been decreasing the production cost of biofuels and hence aiding to decrease the prices of biofuels, this trend showcases the is positively impacting the biofuel additive demand . For the past few years liquid biofuels have been the leading renewable solution for the transport sector. They have experienced sustained growth over the past 16 years. Since 2000 - 2017, biofuel production has increased 10 times from 16 billion litres to 143 billion litres. Bioethanol is the largest biofuel and hence, the largest renewable fuel in the global transport sector. Biodiesel is also quite significant in production while advanced/other biofuels are gaining prominence recently. USA and Brazil are the largest biofuel and bioethanol producers globally with a production share of 87% whereas biodiesel production share is evenly distributed between Asia, Americas and Europe. Some of the key players in the global biofuel additives market include Baker Hughes, Dweatherford International, Halliburton, 3M and fixwell.
Market Dynamics
Drivers
- EU greenhouse gas emission reduction targets to drive biofuels and its additives market
- Growth in the China and India Biofuel consumption aided by government initiatives
Restraints
- High cost associated with the operations
- Electric vehicles growth in future.
EU greenhouse gas emission reduction targets to drive biofuels and its additives market
In 2018, the European Union (EU) set its climate and energy objectives for 2030. They included a greenhouse gas (GHG) reduction of at least 40% and a minimum of a 32% share of renewable energy consumption across all sectors. GHG emissions in the European transportation sector have declined by only 3.8% since 2008, compared to an 18% decrease, or more, in all other sectors. indicating that the de carbonization of transportation should be a priority for the future. Biofuels are one of the options considered to increase renewable energy and decrease the carbon intensity of the transportation sector. Through the use of directives and national legislation, the EU has incentivized both the adoption of conventional food-based biofuels and advanced biofuels, which are made from non-food feed stocks. Such incentives date to 2009, when the EU Renewable Energy Directive (RED) mandated that by 2020, 10% of energy used in the transportation sector should come from renewable energy sources. There have been significant measures in place to support advanced alternative fuels among the European countries like Denmark, Germany, Italy, the Netherlands, Sweden and the United Kingdom. Hence these measures to drive the advanced alternatives use such as biofuels , and hence biofuels additives demand in the region.
Geographical Analysis
The Global biofuel additives market consists of North America, South America, Europe, Asia Pacific, and Middle-East & Africa.
North America dominates the global biofuel additives market owing to the high presence of the biodiesel production industry, increasing adoption of biodiesel as an alternative by the government and consumer and increasing exports of biofuel to the developing countries like India, Mexico. Followed by North America, Europe dominates the global biofuel additives market due to increasing government initiatives towards utilization of blended gasoline, pure biodiesel in transportation, aviation to decrease the greenhouse gases released through gasoline powered vehicles. According to the Renewable Energy Directive II policy, 26% of renewable energy share from energy consumed by the electricity, heating & cooling and transportation sectors should be achieved by 2030. Further increasing consumption of biodiesel and bio ethanol by the refineries located across the region to meet the union mandate of attaining 27% of renewable energy consumption. Asia Pacific is expected to grow at a forecast period in the global biofuel additives market owing to increasing government incentive programs by countries such as China and India towards establishments and developments of biofuel production plants to meet the global regional demand for bio diesel & bio ethanol. The Chinese government has initiated plans to increase the domestic production of biofuels to 12.7 billion liters of ethanol and 2,3 billion liters of biodiesel by 2020 providing equal market growth for biofuel additives in transportation and distribution of biofuels. Increasing policies by the developing nations to boost the domestic production and consumption of biodiesel, bioethanol to decrease the GHG’s and to meet the growing global demand for biofuels is further expected to boost the market for biofuel additives during the forecast period. The major policies and incentives provided by the Indian government to boost the domestic production of biofuels includes National Biofuel Mission, Ethanol Blended Program, Biodiesel Blended Program, and Ministry of New and Renewable Energy.
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: info@datamintelligence.com
Tel: +1 877 441 4866
Website: www.datamintelligence.com
