The global biofuels market size was calculated at USD 132.13 billion in 2024 and is predicted to attain around USD 257.6 billion by 2034, expanding at a CAGR of 6.9% from 2025 to 2034.
Highlights of the Biofuels Market
- North America led the global market.
- Asia Pacific will gain a significant share of the market over the studied period of 2025 to 2034.
- By application, the transportation segment accounted for a considerable share of the market in 2024.
- By application, the aviation application segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
- By form, the liquid biofuel form segment registered its dominance over the global market in 2024.
- By feedstock, the others segment, involving rice, wheat, and potatoes, held a dominant presence in the market in 2024. By product, the others segment, including propanol, butanol, methanol, and biogas, dominated the global market in 2024.
Industry Valuation and Growth Rate Projection
| Industry Worth |
Details |
| Market Size in 2025 |
USD 141 Billion |
| Market Size by 2034 |
USD 257.6 Billion |
| Market Growth Rate from 2025 to 2034 |
CAGR of 6.9% |
The biofuels market talks about biofuels, which are liquids produced by utilizing renewable biological sources. The application of biofuels is not just limited to transportation fuels, but they can also be used for heating, electricity initiation, and industrial developments. The automotive sector, in particular, uses biofuels largely.
The soaring need for cutting back emissions of carbon dioxide is driving the market largely. For instance, the U.S. stands in the second largest place with regards to chemical production. Hence, initiatives taken by the government keeping in mind the sustainability needs might bring a remarkable change. The U.S. Department of Energy’s Bioenergy Technologies Office (BETO) has declared funding the Maximizing Algal System Yield (MASY), which will further assist the research and development of applied algal systems while producing biofuels at a reasonable cost.
Biofuels Market: Stats and Figures
- As per the U.S. Energy Information Administration, the total capacity of biodiesel production in the United States was 1.6 billion gallons by 2022.
- In 2020, the overall European Union production of biofuels was 20 billion liters per year, of which 15 billion liters were biodiesel and 5 billion liters were bioethanol.
- In 2022, biofuels embodied over 3.5% of worldwide transport energy demand, primarily for road transport. The use of biofuels has expanded at closely 6% a year for the past 5 years, except in COVID-19 pandemic of 2020.
- Biofuels produced from wastes, remains, and dedicated crops make up approximately 40% of the biofuels used up in 2030 in the NZE Scenario, up from an assessed 9% in 2021.
How AI Has Benefitted the Market
- AI is transforming the downswing of waste and environment friendliness. The integration of machine learning (ML) and artificial intelligence (AI) with renewable energy resources, including biomass, biofuels, engines, and solar power, has changed the energy industry for good.
- Data analysis: The AI algorithms can analyze the entire supply chain of biofuels while letting the producers keep their eye on the biofuel production.
- Machine learning: Due to the use of ML, predicting biomass properties, picking out feedstock optimally, and enhancing energy adaptation measures is possible.
- Combustion systems: The overall performance and fuel proficiency of combustion systems has improved because of AI and ML integration.
Industry Leader Announcements
- Heikki Malinen, President and CEO at Neste:
Highlighting the importance of biofuels in aviation, Malinen said, “It is clear that we need to continue making progress in mitigating climate change and addressing aviation’s climate impact. Neste is fully committed to supporting its customers in the aviation industry to reduce their greenhouse gas emissions, and this milestone underlines that commitment.”
Geographical Insights
The global biofuels market is experiencing significant growth, with North America maintaining its position as the dominant region while Europe emerges as the fastest-growing market. In the APAC region, China stands out as a driver of growth in the space.
North America
In the biofuels market, North America held a dominant presence in 2024. This prevalence can be attributed to the necessary initiatives taken up by the government.
- In 2023, the US Department of Energy handed over $118 million for 17 projects to expand the biofuels and help meeting the transportation necessities in America.
Europe
The market in Europe keeps growing as it continues to address the need for sustainable fuel alternatives.
- In 2022, the European Union put forward an idea to upsurge the share of energy from renewable sources in the gross final consumption of energy to 45% by 2030, as a part of the REPowerEU plan.
APAC
The APAC region is expected to grow swiftly in the market in the next few years.
- According to a forecast from Argus Consulting, APAC’s Sustainable Aviation Fuel or SAF production dimensions are likely to reach 3.5 million metric tons per year.
Recent Developments:
- A Memorandum of Agreement (MoA) is signed by FatHopes Energy with AmSpec Group to boost the efficacy and quantifiability of sustainable aviation fuel (SAF) production throughout the APAC region.
- Virgin Australia and Qatar Airways have formed a partnership along with Renewable Developments Australia (RDA) to work on a project that will embark on delivering a domestic Sustainable Aviation Fuel (SAF) production service in the Charters Towers Region, North Queensland.
Competitive Landscape
The biofuels market is exceedingly competitive, with leading companies such as ADM, Valero, Chevron Corporation (Chevron Renewable Energy Group), Borregaard AS, Aemetis, Inc., Raizen, and Futurefuel Corporation holding the highest market share. Up-and-coming biofuel corporations also play a decisive role by nurturing a dynamic and advancing competitive topography.
The market is dominated by several biofuel companies renowned for their significant contributions to cancer research and treatment. Based on the latest data, the top three leading companies are:
- Company Name: Chevron Corporation (CVX)
- Year of Incorporation: 1984
- Headquarters: Houston, United States
Chevron Corporation (CVX) witnessed a gross profit of $56,926,000 in 2024.
- Company Name: Valero Energy Corporation (VLO)
- Year of Incorporation: 1980
- Headquarters: San Antonio, United States
The gross profit of Valero Energy Corporation (VLO) took a massive sprint of $12,889,000 in 2023 from $3,082,000 in 2021.
- Company Name: Archer-Daniels-Midland Company (ADM)
- Year of Incorporation: 1923
- Headquarters: Chicago, United States
The total revenue of Archer-Daniels-Midland Company (ADM) was $85,530,000 in 2024.
