Biofuels industry is expected to advance due to increasing energy demand, policy mandates and pressure to reduce greenhouse gas emissions in developing and non-developed economies. Existing players will have an established platform for increased commercialization and business expansion across the various segments of biofuels value chain. Countries are focusing to increase the blending percentage of biofuels in fossil fuels. Moreover, production of advanced biofuels is on the rise owing to policy mandates. Increasing production of advanced biofuels is expected to abruptly revolutionize the biofuels industry and its value chain. It will help various public and private stakeholders to enhance their abilities for the production of biofuels and market it to the end user.
Financial barriers and expensive technologies for biofuels projects can be tackled by the involvement of private and public players both. Thus, they have an immense opportunity to expand their business throughout the value chain. One of the strategies can be the adoption of public private partnerships in developing economies. Moreover, use of new innovative technologies such as catalytic conversion, pyrolysis, and gasification, among others have proven their effectiveness for biofuels and reduced operational costs. Drop in fuels such as Hydrogenated Vegetable Oil (HVO) have their own major benefits.
Moreover, use of new innovative technologies such as catalytic conversion, pyrolysis, and gasification, among others have proven their effectiveness for biofuels and reduced operational costs. Drop in fuels such as Hydrogenated Vegetable Oil (HVO) have their own major benefits. Increasing production of second generation and third generation biofuels is a clear indicator that countries are focusing on the production and usage of advanced biofuels in order to drive sustainability and reduce operational costs.
Implementing biofuels project is a capital-intensive practice. Lower and lower-middle income countries lack a proper infrastructure for an integrated approach towards biofuels as compared to high income countries. Therefore, dependency on imports for biofuels has mainly been witnessed in developing economies such as India, Thailand, Myanmar, and Sri Lanka, among others. Challenges such as financial barriers and policy uncertainty towards biofuels make it more difficult for biofuels production. Moreover, depleting fossil fuel prices such as coal, natural gas, and petroleum, among others makes it more challenging for the biofuels producers and distributors to market the product profitably.
Growing population and urbanization are the main indicators for a surge in overall energy demand across the regions. The United Nations (UN) projects that the world population will surpass 8 billion by 2025 globally, which was approximately 7 billion in 2015. Higher growth rate is expected in Asia-Pacific, African and Latin American regions, whereas stabilization in the population growth is expected in North America and Europe.
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Europe dominated the global biofuels market in 2016 accounting for 36.18% of the global market. Furthermore, Asia Pacific is expected to be the fastest growing region for biofuels market, and is estimated to grow at a CAGR of 7.74% from 2017-2023 and reach $19.95 billion by 2023. Primary factors contributing to this immense growth can be attributed to the rise in population of the APAC region, which comprises of more than half of the total developing economies present globally. In addition to that, growing energy demand and pressure to cut greenhouse gas emissions will further propel the market for biofuels in the APAC region.
Growing brand loyalty by adopting an influential association with consumers and positioning themselves for an effective feedstock supply to continue production will be the key strategies for established players looking to maintain an advantage in this highly competitive market. Building co-operations with other companies, conducting research and educational collaborations for innovative solutions will solidify their position and propel the organizations towards success in the market.
UPCOMING INDUSTRY TRENDS 