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Renewable Fuel Market

Renewable Fuel Market

Renewable Fuel Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



Jul - 2023



Report Code:


Segments Covered
  • By Type By Type Hydroelectric Power, Wind Power, Biofuel, Solar Energy, Geothermal Energy, Biomass Energy
  • By End Use By End Use Residential, Commercial, Industrial
  • By Application By Application Cooling & Heating Sector, Power Sector, Transportation Sector, Other Applications
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Base YearBase Year: 2022
Forecast YearsForecast Years: 2023 - 2030
Historical YearsHistorical Years: 2017 - 2021
Revenue 2022Revenue 2022: USD 925.1 Billion
Revenue 2030Revenue 2030: USD 1,713.4 Billion
Revenue CAGRRevenue CAGR (2023 - 2030): 8.01 %
Fastest Growing Region Fastest Growing Region (2023 - 2030) North America
Largest Region Largest Region (2022): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Renewable Fuel Market Share

The global Renewable Fuel Market is valued at USD 925.1 Billion in 2022 and is projected to reach a value of USD 1,713.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.01 % between 2023 and 2030.

Premium Insights

At the current rate of exploitation, specific biomass sources, for instance, are deemed unsustainable. Renewable energy is frequently used for electricity production, heating, and ventilation. The transition to low-carbon fuels and the prevalence of stringent environmental regulations in most developed nations have significantly boosted the renewable energy industry. In recent years, the installed capacity of renewable energy sources has increased in the energy generation market due to rising environmental concerns and pressure to reduce the detrimental effects of Greenhouse Gases (GHG). This has contributed significantly to expanding the solar and wind energy industries. For Instance, India's Government intends to have 175 GW of renewable energy sources installed by 2022, comprising 100 GW from the sun, 10 GW of biofuels, 60 % renewables, and 5 MW of small hydropower. Moreover, India's Ministry of New and Renewable Energy is aiming to finance $15 billion worth of energy from renewable sources by 2022.

Renewable Fuel Market Size, 2022 To 2030 (USD Billion)

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The total world production of vehicles increased by 3 percentage points to 80.2 billion in 2022, according to the International Motor Vehicle Manufacturers Association, up from 77.7 billion in 2020. The main drivers for the market are increasing automobile production, as well as growing demand for biofuels. The rise in EVs is expected to have a positive impact on the renewable fuel market by increasing the demand for renewable electricity, decreasing the demand for fossil fuels, fostering the growth of energy storage systems, and receiving policy support and incentives.

Key Highlights

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  • The Asia Pacific region accounted for the highest revenue share of around 30% in 2022.
  • North America is expected to witness the fastest CAGR between 2023 and 2030.
  • By fuel type, the bio-fuel segment contributed 38% of the market share in 2022.
  • By end-use, the industrial segment held a substantial share of the deployment model segment in revenue in 2022.
  • Based on Application, the transportation sector segment dominated the market and contributed more than 90% of the total revenue share in 2022.

In the form of subsidies and incentives, government support is one of the main drivers for the renewable fuel market. To promote the use of renewable fuels, a range of governments offer tax breaks and other financing incentives all over the world. The United States government has set renewable fuel production targets, in addition to offering a tax credit on the production and use of biofuels. For instance, the Renewable Fuel Standard (RFS) in the United States requires a specific volume of biofuels to be blended into transportation fuels. Similarly, the EU has set targets to use renewable energy sources as well as offering incentives for producing and using renewable fuels.

Economic Insights

The rise of renewable fuels has also opened opportunities for innovative business models and collaborations within the renewable fuel market. The government provides subsidies and incentives to market participants globally for Renewable Fuel. In 2021, the government of South Korea announces a transaction amounting to $43 billion. It is expected that the country will be the biggest offshore wind energy complex in the world by 2050, when it aims to become carbon neutral. The Agreement has been reached with 33 different parties, including the governments of regions and KEPCO as well as big business firms such as Doosan Heavy Industries & Construction and SKE&S. In January 2022 the Malaysian Palm Oil Board announced plans to introduce a nationwide B20 palm oil biofuel scheme before the end of this year. The biodiesel mandate for the transport sector, with a 20% palm oil component known as B20, was launched in January 2020, but it has been pushed back because of the influenza epidemic. As the industry continues to expand and advance, it is expected to play an increasingly important role in the global energy transition toward a more sustainable future.

Top Market Trends

  1. Shifting Trend Towards Renewable Fuel: Renewable Fuel can be categorized as an energy transition strategy. The transition from conventional to Renewable Fuel is advantageous for all stakeholders in the value chain. From primary material to provider to end user, every stage or process involved benefits, as does the environment. Renewable Fuel benefits the manufacturing and industry sector by reducing their carbon footprint, as do the transportation, aviation, ventilation & heating, and power industries. The market's greatest obstacle is fluctuating values in terms of feedstock. However, growing public awareness of the need to reduce individual carbon footprints has created new market opportunities. In addition, because Renewable Fuel are less expensive than conventional fuels, the option to choose stimulates the market. Recently, the major companies have been concentrating on offering powers and advertising extensively by focusing on consumer benefits and cost-effectiveness. Continuous research and development activities are conducted to innovate, enhance, and investigate new opportunities in the field.
  2. The Growing Demand for Hydro-Processed Esters and Fatty Acids: In 2011, the American Society for Testing and Materials (ASTM) certified hydro-processed esters and fatty acids (HEFA) technology for bio-jet fuel production. HEFA utilizes oleochemical feedstocks, such as oils and lipids, to produce Renewable Fuel. Several commercial-scale facilities around the globe produce HEFA biojet, which accounts for a sizeable portion of the available commercial volumes of bio-jet fuels. However, the process also produces renewable diesel (HEFA-diesel) with a larger market and a higher selling price. Therefore, producers are concentrating on HEFA-diesel rather than HEFA-jet. By converting captured carbon dioxide (CO2) and renewable hydrogen into sustainable aviation fuel (SAF) using FT technology, Johnson Matthey introduced an innovative technology, HyCOgenTM, in January 2022. These developments in the renewable aviation fuel industry are anticipated to increase demand for FT technology over the forecast period. Companies like Boeing are evaluating the technical viability of high freezing point HEFA (HEFA+) aviation fuel to decarbonize the aviation industry. HEFA+ is a synthetic hydrocarbon derived from bio feedstock such as vegetable oil and refuse lipids.

Market Segmentation

The global Renewable Fuel market can be categorized on the following: Type, End Use, Application, and Regions. Based on Type, the market can be categorized into Hydroelectric Power, Wind Power, Biofuel, Solar Energy, Geothermal Energy, and Biomass Energy. Additionally, based on End Use, the market can be split between Residential, Commercial, and Industrial. Moreover, based on Application, the market can be fragmented into the Cooling & Heating Sector, Power Sector, Transportation Sector, and Other Applications. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Biofuel Sector to Dominate Global Market Because of its Numerous Advantages Over Other Renewable Fuel Sources

The biofuel segment held the largest market share in 2022 and is anticipated to grow rapidly over the forecast period. With increasing concerns over climate change and the need to reduce greenhouse gas emissions, biofuels are gaining prominence as a cleaner alternative to fossil fuels. Biofuels, such as ethanol and biodiesel, are derived from renewable sources like corn, sugarcane, and vegetable oils, making them an attractive option for reducing carbon emissions. Additionally, advancements in biofuel technology have made production more efficient and cost-effective, further driving the sector's growth. The biofuel sector is expected to continue its upward trajectory, playing a vital role in the transition towards a more sustainable energy future.

Based on Application

Transportation Sector to Account for a Higher Ratio of Sales Considering Significant Demand for Cleaner and More Sustainable Transportation Options

The transportation sector is set to dominate the global renewable fuel market due to increasing concerns about environmental sustainability and the need to reduce greenhouse gas emissions. With the growing demand for cleaner and more sustainable alternatives to traditional fossil fuels, renewable fuels such as biofuels, renewable natural gas, and hydrogen are gaining traction in the transportation industry. The sector's dominance can also be attributed to government policies and regulations promoting the use of renewable fuels, advancements in technology, and a shift towards electric vehicles and vehicles powered by renewable energy sources. As a result, the transportation sector will play a critical role in driving the growth and adoption of renewable fuels worldwide.

Based on End Use

Industrial Applications to Widen at the Maximum Pace Owing to Rising Number of Utility Projects

In 2022, the industrial sector dominated the market. Increasing demand for sustainable electricity is anticipated to increase the number of utility projects and propel the expansion of the PV modules market in the industrial sector. As of 2020, according to the Solar Energy Industries Association, there are over 37 GW of operational power facilities in the United States, with an additional 112 GW under construction. During the forecast period, these factors are anticipated to drive demand for solar PV panels in the industrial application segment. Introducing solar photovoltaic solar panels for residential use will increase product demand over the forecast period. In September 2022, Solaria, for instance, introduced a 430-Watt black solar panel for residential applications. The new panel is designated PowerXT 430R-PL and has a power conversion efficiency of 20.40%, with dimensions of 1,076 mm by 1,955 mm by 35 mm and a weight of 21.3 kilograms. Commercial solar PV panels have a duration of over 15 to 20 years. They can be used to power industrial structures in off-grid or remote areas and for pre-heating ventilation air and water heating in offices and other businesses.

Based on Region

Asia-Pacific to Lead Global Sales in Renewable Fuel Owing to Growing Demand for Power in Several Populated Economies

The Asia-Pacific region is currently the largest region in the global renewable fuel market. This can be attributed to several factors such as the rising demand for cleaner and more sustainable fuel alternatives due to environmental concerns. Additionally, countries in the Asia-Pacific region, like China and India, have been actively investing in renewable energy projects, including biofuels, to reduce dependency on fossil fuels. The region also benefits from abundant biomass resources and favorable government regulations, which have further propelled the growth of the renewable fuel market in this area. Furthermore, technological advancements and increasing government initiatives to promote renewable energy adoption have contributed to the dominance of the Asia-Pacific region in this sector.

During the forecast period, the North American region will expand significantly. In 2020, North America's air passenger transport carried more than 397 million passengers, accounting for approximately 22.2% of the world's traffic. In 2020, most air passengers were from nations like the United States and Canada. The Bio-Energy Technologies Office (BETO) of the United States and the Department of Energy (DOE), with the support of the Office of Energy Efficiency and Renewable Energy (EERE), are working to expand the adoption of sustainable, domestically produced alternative fuels for transportation and aviation to promote the growth of the Renewable Fuel industry. The primary policy incentive to produce renewable aviation fuel in North America is the US Renewable Fuel Standard (RFS), which provides credits to fuel refiners and importers who incorporate Renewable Fuel into transportation fuel to meet Renewable Volume Obligation standards.

Competitive Landscape

Key industry participants are concentrating on technological advances and innovation to reduce the cost of renewable energy generation. In addition, industry participants are implementing several strategic initiatives to increase their market share. For instance, in July 2022, ACCIONA signed a contract with FORTIA to deliver over 1TWh of renewable electricity over 5 to 10 years and an energy management platform for large industrial consumers. The market for alternative aviation fuels is moderately fragmented. TotaEnergies SE, Neste Oyj, Swedish Biofuels AB, Gevo Inc., and SG Preston Company are (in no particular order) some of the market's main participants.

The key players in the global Renewable Fuel market include - Ocean Power Technologies (U.S.), NextEra Energy Inc. (U.S.), Enel Group (Italy), ONPOWER Business Energy (UK), Yingli Solar (China), Tocardo BV (Netherlands), SynTech Bioenergy (U.S.), Siemens AG (Germany), Canadian Solar Inc. (Canada), Invenergy LLC (U.S.), Geronimo Energy Holdings LLC (U.S.), Xcel Energy (U.S.), TATA Power (India), ABB Product Group Solar (Switzerland) among others.

Recent Market Developments

  • February 2022: Engie SA and Infinium Holdings, an American engineering firm, have announced a 500-million-euro initiative to produce renewable aviation and marine fuels in northern France. The project's ultimate investment decision is scheduled for the end of 2023, and commercial operations are anticipated to commence in 2026.
  • March 2022: Orange signed a corporate power purchase agreement (CPPA) with Total Quadran, which will supply Orange with 100 GWh/y of solar-generated electricity over 20 years and facilitate the development of 12 new 80 MW solar power facilities in France.
  • March 2022: The Inter-American Development Bank (IDB) Energy Hub and the International Renewable Energy Agency (IRENA) Climate Investment Platform have partnered to accelerate the shift from fossil fuels to renewable energy in Latin America and the Caribbean.

Segmentation of the Global Renewable Fuel Market

Parameter Details
Segments Covered

By Type

  • Hydroelectric Power
  • Wind Power
  • Biofuel
  • Solar Energy
  • Geothermal Energy
  • Biomass Energy

By End Use

  • Residential
  • Commercial
  • Industrial

By Application

  • Cooling & Heating Sector
  • Power Sector
  • Transportation Sector
  • Other Applications

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Ocean Power Technologies (U.S.)
  • NextEra Energy Inc. (U.S.)
  • Enel Group (Italy)
  • ONPOWER Business Energy (UK)
  • Yingli Solar (China)
  • Tocardo BV (Netherlands)
  • SynTech Bioenergy (U.S.)
  • Siemens AG (Germany)
  • Canadian Solar Inc. (Canada)
  • Invenergy LLC (U.S.)
  • Geronimo Energy Holdings LLC (U.S.)
  • Xcel Energy (U.S.)
  • TATA Power (India)
  • ABB Product Group Solar (Switzerland)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
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Frequently Asked Question
  • The global Renewable Fuel valued at USD 925.1 Billion in 2022 and is expected to reach USD 1,713.4 Billion in 2030 growing at a CAGR of 8.01 %.

  • The prominent players in the market are Ocean Power Technologies (U.S.), NextEra Energy Inc. (U.S.), Enel Group (Italy), ONPOWER Business Energy (UK), Yingli Solar (China), Tocardo BV (Netherlands), SynTech Bioenergy (U.S.), Siemens AG (Germany), Canadian Solar Inc. (Canada), Invenergy LLC (U.S.), Geronimo Energy Holdings LLC (U.S.), Xcel Energy (U.S.), TATA Power (India), ABB Product Group Solar (Switzerland).

  • The market is project to grow at a CAGR of 8.01 % between 2023 and 2030.

  • The driving factors of the Renewable Fuel include

    • Surge in demand for electricity

  • Asia Pacific was the leading regional segment of the Renewable Fuel in 2022.