Global Algae Biofuel Market; By Application (Transportation and Others); and By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast: 2023-2032

Report Overview

The Algae Biofuel Market size is expected to be worth around USD 16,893.76 million by 2032 from USD 7,611 million in 2022, growing at a CAGR of 8.30% during the forecast period from 2022 to 2032.

This is due to a growing demand for bio-based fuels to replace fossil fuel products.

Global Algae Biofuel Market Scope:

Market Dynamics:

Algal biofuels are a great alternative to corn stover, corn stover, and corn because of their high yield. Algae require less carbon dioxide, water, and sunlight to stimulate their growth than other products like corn, soybeans, sugarcane, and sunflowers. Algae can also produce 5,000 to 20,000 gallons per cultivation area each year. These innovative factors are anticipated to drive market growth prospects in the future. The market for algae biofuels will also be driven by the increasing demand for renewable fuels.

Due to numerous research studies, consumers are becoming more aware of renewable energy sources. This allows them to recognize the need to switch from fossil fuels to alternative energy sources. According to the IEA, by 2026, the global volume of biofuels will rise by 27%. Respective government initiatives such as tax incentives and incentives for renewable energy usage, as well as funding for research and development in best practices or breakthrough technologies, are expected to encourage energy producers to adopt cleaner sources of energy. This is expected to boost market growth over the forecast period.

Biodiesel is a high-energy fuel that reduces energy security risks as well as the environmental impacts of using fossil fuels. Brazil, Germany, and America have introduced tax incentives to increase the production of biofuel production and lower the cost of biodiesel at pumps. For a certain amount of biodiesel production, countries like France, Germany, Spain, and Denmark allow full tax exclusion. Due to the high production costs, large-scale production of algal biofuels is difficult. This will likely limit market growth over the forecast period. The extraction of algae oil is another major problem faced by players in the production of the algae fuels market. Three main methods are currently used to extract algal oil: hexane, CO2 fluid, and oil expellers.

These technologies are efficient in producing algal oil but they are expensive and require high-energy consumption. This increases the price of the finished product. Market growth will be slowed by the inability of these processes to produce large quantities of low-cost fuels over the forecast analysis period. Manufacturers are encouraged to the capital investment in research and development activities to create low-cost renewable demand for fuels due to the growing demand for biofuels in heavy-duty trucks, commercial vehicles, and passenger cars. These factors are slated to provide new opportunities for transportation growth over the forecast period.

Regional Analysis

Due to the early investments of manufacturers in this market trend, North America is expected to be the largest regional market opportunity. North America dominated this market in 2021 with a market revenue share of more than 34.0%. Europe will likely follow the same pattern as North America due to increased awareness about well-known biofuels as transportation fuels. This product will be in high demand in North America for its manufacturing of bioethanol.

In Europe, however, it will be used primarily for biodiesel production rates. This market is expected to grow due to increased investments by both public and private entities in renewable source and bio-based energy resources in China, Japan, and India. Additionally, the changing dynamics of crude oil have created opportunities for investments in alternative fuel technologies in North America. Manufacturers continue to invest in R&D activities to maximize the photosynthetic efficiency and strains of algae. This trend is expected to increase market growth prospects over the forecast period.

The U.S. government has ordered a shift in biofuel production volume from food-based to microalgae-based plants. This is expected to increase the demand for biofuel over the same timeline. Market growth is expected to be boosted by favorable government policies in Europe that encourage energy generation from non-conventional resources. In order to reduce GHG emissions, the U.K. government plans to use biofuel to meet its aviation fuel requirements.

Blending aviation fuel can be made easier by using algae oil. It has a positive effect on an aircraft’s performance and lowers operating costs. These factors are expected to drive the regional market growth rates over the forecast period. Germany has a positive outlook regarding subsidies and incentives for manufacturers and research institutes involved in the production and use of sustainable bio-based fuel sources. This market is slated to index positive growth due to numerous R&D activities and robust engineering systems.

Application Analysis

Market segmentation and production of the algae biofuel market can be done based on two main aspects: transportation and industrial. Because of the potential of algae to replace jet fuel, petrol products, and diesel products, the transportation segment is expected to dominate this market. One-third of the world’s 2021 sustainable energy sources consumption was made up of petroleum fuels. This fuel demand is expected to increase at a CAGR exceeding 2.1% over the forecast period.

Due to the rapid growth of the automotive industry and technological innovations, the demand for sustainable raw materials such as algae is expected to rise. Manufacturers will need to increase their R&D investments to develop low-cost renewable fuels. This is due to the growing demand for biofuel in road transport applications such as small trucks, minivans, and light-duty vehicles. These factors will open up new markets for product launches and the growth in transport applications over the forecast period.

Key Market Segments:

Basis of Type:

• Bioethanol
• Biodiesel
• Methane
• Jet Fuel
• Biobutanol
• Biogasoline
• Green Diesel
• Others

Basis of Application:

• Transportation Sectors
• Aerospace and Aviation sector
• Others

Key Regions and Countries Covered in this Report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of the Middle East & Africa

Market Share & Key Players Analysis:

Reliance Industries and Algenol launched India’s first Algenol alga production platform in January 2015. in July 2013, Reliance Industries Ltd. launched a new facility that converts algae into oil. The goal was to produce 100 barrels per day over the next few years. Solix Biofuels Inc. and Solazyme Inc. are the major players in the industry. Origin Oils Inc., Sapphire Energy Inc., Sapphire Energy, Culture Biosystems Blue Marble Production, Algenol Proviron Genifuels, and Reliance Life Sciences, are key players in this industry.

Market Key Players:

• Solix Biofuels
• Solazyme Inc.
• Origin Oils Inc.
• Origin Clear Inc.
• Sapphire Energy
• SabrTech Inc.
• Cellana Inc.
• Culture Biosystems
• Blue Marble Production Inc.
• Algenol Proviron
• Algenol Biofuels Inc.
• Genifuels
• Reliance Life Sciences
• Reliance Industries Limited
• Proviron
• Algae Systems
• Other Key Players

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For the Global Algae Biofuel Market research study, the following years have been considered to estimate the market size: