From the period 2022 to 2028, the Global Bioenergy Market is expected to reach USD 157.9 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 7.3%.
Bioenergy is energy derived from renewable bio-based resources such as biofuel, biogas, biomass, and other bio-organic waste. This energy is largely generated from biowaste, which is easily available. Bioenergy is a promising renewable energy source for achieving global climate change goals as well as other environmental, social, and sustainability objectives. Bioenergy is made from agricultural waste, solid waste, liquid biofuels, and other feedstocks. Reduced landfills, energy security and reliability, cost savings, biodegradability, and enhanced air quality are just a few of the benefits of bioenergy. The establishment and development of the Global Bioenergy Market are aided by factors such as the execution of favorable and tight government rules and guidelines. Furthermore, as the market for alternative energy sources expands, so does the market for bioenergy. The worldwide Bioenergy business is being propelled forward by a spike in demand for energy derived from bio-based fuels in heat and power generation and transportation applications. In addition, from 2021 to 2030, strict government regulations targeted at lowering pollution from carbon-emitting fossil fuels in the transportation industry are likely to propel market growth.
At the start, the expense of establishing biofuel plants is substantial. Some governments contribute financially to the construction of these facilities. However, the plant's development and expansion will require financial assistance. The process of obtaining and storing feedstock is time-consuming and costly. The collection, sorting, processing, supply, and distribution of feedstock, the construction and operation of biogas and biomethane plants, and the sale and distribution of biogas and biomethane all necessitate financial assistance and laws. The plant's output must be considerable and steady in order to cover the installation and running expenditures. High production costs, increased demand for electric vehicles, and a limited number of fuel outlets are all market limitations.
Key Highlights from the Report
- The market is divided into Solid Biomass, Liquid Biofuel, Biogas, and Others based on product. Solid Biomass was the market leader in 2020. Bioenergy comes from biological elements like wood and dung, which are organic materials with chemical energy stored in them. Bioenergy capacity in 2020 is expected to be at 126.5 gigawatts (GW), up from 65.5 GW in 2010. According to the International Renewable Association, yearly global demand for biofuels is predicted to climb by 28% by 2026, reaching 186 billion liters. In 2020, compared to 2019, Bioenergy power generation rose by 53 TWH (+8%), accounting for more than 70% of global biofuel installed capacity. Biomass comes in many forms, including charcoal, wood fuel, pellets, agriculture crops, forestry wastes, and residues, municipal and industrial rubbish, biogas, biofuels, and so on. Forestry, agriculture, and waste management are the three main sources of supply.
- The market is divided into four categories based on feedstock: agricultural waste, wood waste, solid waste, and others. Solid Waste currently leads the worldwide Bioenergy Market, and this position is expected to hold during the projected period. The solid waste category dominated the global market in terms of share in 2020, owing to growth in solid waste output from residential, commercial, and industrial sectors, which can be increasingly used in Bioenergy generation. Furthermore, over the projected period, the market for solid waste is expected to develop due to the increased need for sustainable power, transportation fuels, and heat generation, among other factors.
- is the fastest regional segment in terms of growth. In Asia-Pacific, solid biomass is widely used. This sort of Bioenergy is used for a variety of purposes, including water heating and cooking. Furthermore, the government is incentivizing the usage of renewable energy sources, which is propelling the market forward. Biogas facilities are eligible for tax breaks and subsidies from governments in both developed and developing countries. This element is aiding the biogas industry's expansion.
This Market will be Driven by Rising Investments in Renewable Energy
Environmental restrictions are becoming more stringent around the world, prompting the power generation industry to use cleaner, more ecologically friendly energy sources. Major economies throughout the world are focusing on building renewable energy resources to lessen their reliance on fossil-fuel-based electricity generation. Renewable investment data show that the world's reliance on coal and other fossil fuels is dwindling, owing to increased investment in solar, wind, and geothermal energy. This energy is a major source of renewable energy, accounting for over half of global renewable energy consumption, and it has the potential to address a number of global challenges, including the finite availability of fossil fuels and related environmental concerns. It's the only renewable energy source that can be used in all three energy sectors: power, heating, and transportation. As a result, the majority of countries are considering investing in alternative energy sources. As a result, the global market will be driven during the forecast period.
Transportation Sector Growth Will Supplement Market Growth
Biofuels are mostly utilized in transportation as an alternative to petroleum-based fuels, and they are seen as a key component of important measures to increase fuel security, combat climate change, and support infrastructure development. Over the forecast period, an increased contribution from both conventional and advanced biofuels will be required to meet emission objectives established by various governments to decrease global warming and improve energy supply security. Aviation, on the other hand, is the second-largest energy consumer in the transportation business. The necessity for highly pure, chemically stable fuel is a major roadblock in aviation. However, numerous European companies have started producing jet fuel from Jatropha, and are expected to start supplying several major airlines soon.
With a market share of 36.10 percent in 2021, Europe is expected to gain the most market share. This is owing to the enormous consumer base and presence of major players in the region. Increased Bioenergy investments and Research and Development (R&D) by European Union member states to achieve future renewable energy requirements are also expected to help the Europe market's growth over the forecast period. Bioenergy is expected to be crucial in the coming decade to reach renewable energy targets by 2030, which is why EU member states have included it in their National Renewable Energy Action Plans (NREAPs).