Biorefinery Market Size
Global Biorefinery Market reached US$ 211.95 billion in 2024 and is expected to reach US$ 398.15 billion by 2032, growing with a CAGR of 8.2% during the forecast period 2025-2032.
Global population expansion, which is driving up energy consumption and accelerated climate change caused by rising GHG emissions are the primary market drivers driving growth. The globe is facing a major problem as a result of increased energy demand caused by an expanding global population. Furthermore, the rapid climate changes caused by increased GHG emissions pose a major threat to the environment.
Biorefinery is the most viable way to close the long-term gap between environmental sustainability and economic development. Neste Corporation announced intentions in January 2024 to boost the production and capacity of renewable diesel, as well as to build a sustainable aviation fuel (SAF) biorefinery facility in Rotterdam, Netherlands, as part of their low carbon fuel support expansion efforts. The growth of the biorefinery facility is expected to help achieve the company's goals.
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Market Scope
| Metrics | Details | |
| By Type | First Generation , Second Generation, Third Generation | |
| By Product | Energy-based, Material-based | |
| By Technology | Industrial, Physio-Chemical, Thermochemical | |
| By Region | North America, South America, Europe, Asia-Pacific, Middle East and Africa | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Market Dynamics
Rising Need for Sustainable Energy
The growing demand for sustainable energy sources is one of the primary drivers of the global biorefinery industry. The World Bank Group predicts that the global population will grow by 34% between 2015 and 2050, reaching 9.2 billion people. The speed of urbanization is rapidly increasing. People's incomes are rising, which has raised the need for energy. The International Agency for Renewable Energy (IRENA) has released figures indicating that the world's population will have grown by 2021, with a 48% increase in global energy demand. Currently, fossil fuels meet 80% of the world's energy needs.
High Capital Investment and Operational Costs
One major constraint on the global biorefinery market is the high capital investment and operational costs associated with establishing and operating biorefinery facilities. Unlike typical fossil-fuel-based refineries, biorefineries necessitate specialized technology for biomass processing, enzymatic conversion and bio-based product extraction, which dramatically raises the initial investment costs.
Furthermore, the uncertainty in biomass feedstock availability, supply chain logistics and preprocessing requirements raises operational expenses. Bio-based products are frequently more expensive than petroleum-based alternatives, making large-scale commercialization difficult in the absence of strong legislative support, subsidies or carbon pricing systems. This cost burden may stymie the growth of the biorefinery sector, particularly in areas with insufficient government incentives and infrastructure.
Market Segment Analysis
The global biorefinery market is segmented based on type, product, technology and region.
Cloud-based solution is expected to drive the market.
In 2024, the first generation category dominated the global biorefinery market. It is frequently possible to consume biomass that is directly linked to first-generation biofuels such as ethanol and biodiesel. Typically, GMO or regular yeast strains such as Saccharomyces cerevisiae digest C6 carbohydrates, primarily glucose, to generate ethanol.
First-generation bioethanol is produced from a small number of different feedstocks, primarily sugarcane or maize. In December 2023, Total Energies announced a new agreement with an agricultural industry leader to build a biorefinery in France that will use agricultural waste and non-food crops to produce biofuels and address the fossil fuels problem. This idea is directed in line with Total Energy's new initiative focus.
Market Geographical Share
Rising Government Expenditure in North America.
North America Biorefinery Market dominated global market owing to more government spending on projects to generate biofuels. US Department of Energy (DOE) announced in June 2022 that it will invest US$ 59 million to boost biofuel and bioproduct output in rural America. The funds will assist the government meet its Sustainable Aviation Fuel Grand Challenge goal of producing 35 billion gallons of aviation biofuel by 2050 and 3 billion gallons of aviation biofuel per year by 2030. Furthermore, the U.S. Biorefinery market had the biggest market share, while the Canada Biorefinery market was the fastest expanding market in the region.
Sustainability and Green Product Analysis
Biorefineries use biomass feedstocks such agricultural wastes, forestry waste and algae to create biofuels, biochemicals and biomaterials with lower environmental effect than fossil-based alternatives. Advanced biorefining technologies prioritize waste valorization, energy efficiency and low emissions, in line with global sustainability objectives such as the United Nations Sustainable Development Goals (SDGs) and net-zero carbon targets.
Companies are investing in environmentally friendly processing processes including enzymatic hydrolysis and microbial fermentation to reduce energy usage and chemical waste. Additionally, the incorporation of carbon capture and utilization (CCU) in biorefineries is gaining traction, significantly reducing greenhouse gas emissions and improving the sustainability of bio-based products.
Major Global Players
The major global players in the market include Abengoa, Cargill, Incorporated, Renewable Energy Group, Godavari Biorefineries Ltd., Wilmar International Ltd., TotalEnergies, Neste, Valero, Green Plains and Clariant AG.
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Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
