Global Automotive Biofuels Market Size study, by Feedstock (Corn, Sugarcane), Form (Solid, Liquid), Product (Biodiesel, Ethanol), Application (Transportation, Aviation) and Regional Forecasts 2022-2032

Global Automotive Biofuels Market is valued approximately at USD 99.53 billion in 2023 and is anticipated to grow with a robust CAGR of more than 11.3% over the forecast period 2024-2032. As the auto industry races to decarbonize and nations double down on their climate pledges, automotive biofuels are rapidly evolving into a mainstream propulsion solution. Extracted primarily from agricultural crops such as corn and sugarcane, these renewable fuels offer a cleaner-burning alternative to conventional fossil-derived fuels while leveraging existing infrastructure—making them an attractive transitional solution. Ethanol and biodiesel, the two most dominant types of automotive biofuels, are seeing increasing integration into fuel blends globally, especially in road transport, public transit, and even emerging aviation applications. This market’s expansion is catalyzed by a global push to achieve net-zero targets and mitigate the carbon footprint of one of the most polluting industries—transportation.

Several compelling forces are coalescing to drive market momentum. Governments in both developed and emerging economies are instituting aggressive biofuel mandates, subsidies, and blending targets to cut greenhouse gas emissions and reduce crude oil dependency. For instance, the U.S. Renewable Fuel Standard (RFS) and the EU’s Renewable Energy Directive (RED II) are incentivizing stakeholders across the automotive value chain to pivot toward biofuel-based energy systems. Additionally, continuous innovations in biomass conversion technologies and enzymatic hydrolysis are improving yield efficiencies, thus reducing the cost gap between biofuels and conventional fuels. Nonetheless, the market faces structural constraints such as feedstock price volatility, land-use conflicts, and infrastructure limitations for high-blend distribution.

Despite these headwinds, key industry players are doubling down on R&D efforts to engineer advanced biofuels with higher energy densities, greater blend compatibility, and broader environmental benefits. Companies are also entering into strategic collaborations with agritech firms and refineries to ensure feedstock security and production scalability. Moreover, second-generation biofuels—derived from non-food biomass such as algae, agricultural residues, and cellulosic materials—are steadily gaining traction as sustainable alternatives to mitigate the “food vs. fuel” debate. There’s also rising interest in drop-in biofuels that can seamlessly substitute conventional diesel and jet fuels without engine modifications, opening avenues into aviation and heavy-duty transportation segments.

In terms of industry adoption, the road transportation sector continues to be the most dominant consumer of biofuels, particularly in the Americas and parts of Asia. Meanwhile, aviation biofuels—though nascent—are experiencing significant interest as commercial airlines seek to meet IATA’s 2050 net-zero commitment. Automotive OEMs are gradually introducing flex-fuel vehicles capable of running on higher ethanol blends such as E85, particularly in markets like Brazil and the U.S. Additionally, rural and developing regions are utilizing solid and liquid biofuels as decentralized, affordable transport energy solutions. The rise of biofuel-compatible engines, especially in hybrid fleets, is expected to catalyze further penetration.

Regionally, North America captured the lion’s share of the global automotive biofuels market in 2023, driven by mature regulatory frameworks and large-scale corn-based ethanol production in the United States. Europe remains a powerhouse of biofuel innovation and adoption, with Germany, France, and the Netherlands spearheading biodiesel deployment and research in second-generation biofuels. Asia Pacific is projected to grow at the fastest pace, backed by aggressive energy diversification plans in India and China, coupled with expansive sugarcane cultivation for ethanol. Latin America—especially Brazil—is already a global leader in ethanol fuel and is ramping up biodiesel initiatives, while the Middle East & Africa region is expected to gradually embrace biofuels as a cleaner alternative amid rising environmental consciousness and economic diversification efforts.

Major market player included in this report are:
• POET LLC
• Archer Daniels Midland Company
• Neste Oyj
• Valero Energy Corporation
• Abengoa Bioenergy S.A.
• Green Plains Inc.
• Cargill Incorporated
• BP Biofuels
• Shell plc
• TotalEnergies SE
• Pacific Ethanol, Inc.
• Petrobras
• Raízen S.A.
• Wilmar International Limited
• Renewable Energy Group, Inc.

The detailed segments and sub-segment of the market are explained below:

By Feedstock:
• Corn
• Sugarcane

By Form:
• Solid
• Liquid

By Product:
• Biodiesel
• Ethanol

By Application:
• Transportation
• Aviation

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Years considered for the study are as follows:
• Historical year – 2022
• Base year – 2023
• Forecast period – 2024 to 2032

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2022 to 2032.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.

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