Advanced Biofuels

Global Advanced Biofuels Market to Reach US$965.1 Billion by 2030

The global market for Advanced Biofuels estimated at US$136.9 Billion in the year 2024, is expected to reach US$965.1 Billion by 2030, growing at a CAGR of 38.5% over the analysis period 2024-2030. Cellulosic Ethanol, one of the segments analyzed in the report, is expected to record a 38.5% CAGR and reach US$427.3 Billion by the end of the analysis period. Growth in the Biofuel segment is estimated at 33.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$36.0 Billion While China is Forecast to Grow at 36.4% CAGR

The Advanced Biofuels market in the U.S. is estimated at US$36.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$142.7 Billion by the year 2030 trailing a CAGR of 36.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 34.9% and 33.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 26.1% CAGR.

Global Advanced Biofuels Market – Key Trends & Drivers Summarized

Why Are Advanced Biofuels Emerging as a Strategic Pillar in the Transition to Low-Carbon Energy Systems?
Advanced biofuels—produced from non-food biomass, agricultural residues, waste oils, and lignocellulosic feedstocks—are gaining prominence as a next-generation solution to reduce greenhouse gas emissions in hard-to-abate sectors such as aviation, shipping, and long-haul road transport. Unlike conventional biofuels, which rely on food crops and have raised concerns around land use and food security, advanced biofuels offer a more sustainable pathway to decarbonization with a significantly lower environmental footprint.

As governments, corporations, and multilateral bodies intensify their net-zero commitments, advanced biofuels are being positioned as a critical component of renewable energy strategies. Their compatibility with existing fuel infrastructure and engines enables immediate integration, making them a near-term solution in the broader shift away from fossil-derived liquid fuels.

How Are Technological Innovations and Feedstock Diversification Enhancing Commercial Viability?
Advances in thermochemical and biochemical conversion processes—such as hydrothermal liquefaction, gasification, pyrolysis, and enzymatic hydrolysis—are improving yield efficiency, feedstock flexibility, and cost competitiveness. Integration of carbon capture, co-processing at existing refineries, and bio-refinery clustering is further optimizing scalability and reducing lifecycle emissions.

Feedstock diversification is accelerating, with increased utilization of algae, municipal solid waste, forestry residues, and industrial by-products. These non-edible, regionally abundant resources are enabling localized supply chains and reducing dependency on commodity-based inputs. Additionally, process innovations are expanding the range of final products, including drop-in fuels like renewable diesel, sustainable aviation fuel (SAF), and advanced ethanol.

Which End-Use Sectors and Regional Markets Are Catalyzing Demand for Advanced Biofuels?
Aviation is at the forefront of advanced biofuel demand, driven by regulatory mandates such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and SAF blending targets in the EU and U.S. The maritime sector is also exploring advanced biofuels as a decarbonization lever under IMO emission reduction guidelines. Long-haul trucking and industrial heat applications represent additional high-potential segments seeking alternatives to conventional fossil fuels.

North America and Europe lead in R&D investment, policy incentives, and commercial deployment, supported by regulatory mandates, emissions trading schemes, and tax credits. Asia-Pacific is emerging as a significant growth market, with China, India, and Japan investing in bio-refineries and waste-to-fuel infrastructure. Latin America, with its abundant biomass resources, is positioning itself as both a producer and exporter, while Africa is seeing early-stage development focused on energy access and rural job creation.

How Are Policy Frameworks, Infrastructure Readiness, and Carbon Accounting Standards Influencing Market Expansion?
Robust policy support remains central to scaling advanced biofuels, with governments introducing mandates, subsidies, and carbon pricing mechanisms to incentivize adoption. Regulatory clarity around lifecycle emissions accounting, sustainability certification, and feedstock traceability is critical to market credibility and investor confidence. Harmonization of standards across jurisdictions is also essential to facilitate global trade and certification alignment.

Infrastructure integration—particularly at airports, ports, and refineries—is being prioritized to reduce logistical bottlenecks and improve last-mile delivery of advanced fuels. Public-private partnerships, green financing, and corporate offtake agreements are emerging as key enablers of commercialization. Meanwhile, voluntary carbon markets and ESG-driven procurement strategies are driving corporate demand for low-carbon fuels with verifiable climate impact.

What Are the Factors Driving Growth in the Advanced Biofuels Market?
The advanced biofuels market is advancing rapidly as decarbonization imperatives, technological readiness, and supportive policy frameworks converge. Key growth drivers include rising demand in aviation and shipping, diversification of sustainable feedstocks, improved conversion technologies, and expanding investment pipelines. These factors are reinforcing advanced biofuels as a credible, scalable, and near-term solution for deep emissions reductions across transport and industrial sectors.

Looking ahead, the market’s trajectory will depend on how effectively stakeholders align innovation, infrastructure, and policy to scale deployment while ensuring environmental integrity. As global economies accelerate toward carbon neutrality, could advanced biofuels become the indispensable bridge between current fossil dependency and a future built on renewable, circular energy systems?

SCOPE OF STUDY:

The report analyzes the Advanced Biofuels market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Fuel Type (Cellulosic Ethanol, Biofuel, Biobutanol, BioDME, Other Fuel Types); Raw Material (Jatropha, Camelina, Algae, Simple Lignocellulose, Complex Lignocellulose, Other Raw Materials); Process Type (Biochemical Process, Thermochemical Process)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 37 Featured) -

• Abengoa Bioenergy
• Aemetis, Inc.
• Algenol Biofuels Inc.
• Bangchak Corporation Public Co. Ltd.
• BP p.l.c.
• Chemtex Group
• Clariant Produkte GmbH
• DuPont Industrial Biosciences
• Eni S.p.A.
• ExxonMobil Corporation
• Fiberight LLC
• Fujian Zhongde Energy Co. Ltd.
• Gevo, Inc.
• GranBio Investimentos S.A.
• Honeywell UOP
• INEOS Bio
• Iogen Corporation
• KiOR Inc.
• LanzaJet Inc.
• LanzaTech Inc.

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TARIFF IMPACT FACTOR
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