The business world has been in a pandemic mode for more than a year. While no one could have forecast how the year 2020 would play out, it’s evident that few market trends continue to drive fundamental shifts in the renewable energy market. Though the energy transition is firmly underway, several market trends continue to evolve and drive growth in the renewable fuel industry, especially the biofuels market segment.
After five years of solid growth, the demand for biofuels declined in 2020, mainly due to the pandemic and its impact on transport activities. In 2021, the global biofuels market slowly regained its momentum, becoming the most sought-after fuel source due to the rise in mandates around reducing greenhouse emissions and the shift towards using sustainable forms of energy. Biofuel producers in the US and Europe initiated a rapid rise in production to tackle the demand but faced challenges due to the shortage of raw materials and inefficient production plans.
With research revealing that the demand for biofuels is poised to increase in the new normal, players across economies are devising plans to achieve a fivefold increase in biofuel production capacity by 2024. Infiniti Research serves clients in all major power and clean energy sectors, including solar, wind, biofuels, and geothermal. Contact our market research experts to gain insights into our solution portfolio.
Top 3 Mega Trends Redefining the Biofuels Sector
Having worked with the market leaders and Fortune 500 renewable energy companies, we understand the challenges impacting growth in this sector. Request a free proposal to learn how our customized market intelligence solutions can help you achieve rapid growth.
Accelerating technological breakthroughs
Like the other industries, technology evolution has significantly transformed the production processes in the biofuels sector. As biofuels production technology continues to advance, both for mature processes, such as ethanol and biodiesel, and new processes, such as renewable jet fuel and cellulosic biofuels, it is expected that this sector will witness massive growth over the next five years.
Environmental concern and resource scarcity
A growing emphasis on renewable fuels is a response to climate change, increasing greenhouse gases, and security of supply concerns. Rising environmental concerns worldwide have become a new trend transforming the global renewable energy market. Since biodiesels meet the green agenda, businesses are witnessing accelerated market growth with new opportunities paving their way into the market.
The global demand for biofuels is set to increase along with the recovery of the global economy. Request a free brochure to learn how we help players in the biofuels market understand market trends, risks, and opportunities.
Industry disruptions and growth shifts
The coronavirus outbreak sent shock waves across industries, crushing the global oil demand due to a reduction in transport & shipping activities. Since businesses were finding it difficult to recover to pre-crisis levels, oil plants and refineries in the US and Europe faced a wave of closures. The plateauing fuel demand, new fuel regulations, and increasing competition further accelerated the closure of processing plants globally. These factors have prompted businesses to convert oil plants to biodiesel production units to tackle challenges and expand production and supply.
Given the dynamism in this market segment, biofuel manufacturers must assess how their business environment will evolve over the next five years and analyze their company’s position in different scenarios. Infiniti’s customized, comprehensive portfolio of business solutions for the biofuels and renewable energy sector aims to support futuristic growth strategies and map out the risks and opportunities involved in the long run.
Businesses need to determine the future direction, how the markets are affected by technological advancement, and gauge its impact on their strategies. While the responses may vary based on the geography and regional regulations, we believe biofuel manufacturers can’t afford to wait as the next year is crucial for regaining value and market position. Request more info to learn how we help players in this growing market segment.