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Algae Biofuel Market By Types (Bioethanol, Biodiesel, Methane, Jet Fuel, Biobutanol, Biogasoline, Green Diesel, Others) By Application (Transportation, Aerospace, Other Applications) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global algae biofuel market report explores the critical analysis of the algae biofuel industry using key parameters. The report consists of investment strategies, the need for investments in the algae biofuel industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the algae biofuel industry and how economic and non-economic barriers are helping the algae biofuel market grow. Moreover, the report analyzes the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

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Key Highlights of the report

How are the major segments performing in the Algae Biofuel market?

  • In 2021, the transportation segment accounted for the largest share of the market as it is alternatives to traditional diesel and petrol products may be possible with algae. Further, increased environmental concerns combined with tightening GHG policies and increased sales of commercial and passenger cars are expected to feed the market
  • In 2021, the green diesel segment was anticipated to hold a prominent share in the global algae biofuel market as it is widely used due to traditional land-based crops cannot produce as much energy as hydroponic crops.

Which region dominated the Algae Biofuel market?

In 2021, the North American region was anticipated to hold a prominent share in the global algae biofuel market. This region is experiencing market growth due to increasing preferences for renewable energy sources and their successful implementation across various applications. Numerous regional start-ups have forayed into the algae biofuel market due to government initiatives to support algae biofuel research.

What is the competitive environment of the Algae Biofuel market?

The algae biofuel industry's competitive environment provides information on the entire economic profit made by suppliers and businesses, the sales and revenues created in this sector, the algae biofuel market share globally, the business organization summary, the introduction of new products, and the opportunities for the industrial algae biofuel market. For instance, in January 2015, as part of the new Algenol algae production platform, Reliance Industries and Algenol are rolling out the first platform in the country. Furthermore, in July 2013, as part of its plans to produce 100 barrels of oil every day in the future, Reliance Industries Ltd. launched a new facility to convert algae into oil.

Executive Summary

How are Governments' Initiatives being developed in Algae Biofuel Market?

Clean energy initiatives, such as government incentives for renewable energy production and usage, and funding for research & development in breakthrough technologies or best practices, are expected to boost the market for clean energy. Over the forecast period, government initiatives to add capacity and tax incentives are expected to boost the growth of the biodiesel market. Being a highly energy-efficient fuel, biodiesel reduces energy security risks and pollution levels associated with fossil fuel usage. Tax incentives have been introduced by countries such as Brazil, Germany, and the U.S. to boost biofuel production and reduce the price of biodiesel. Biodiesel production is tax-exempt in several European countries, including France, Italy, Germany, Spain, Denmark, and the Czech Republic.

Which are the key investments by the Algae Biofuel market players?

Leading players operating in the algae biofuel market focus on expanding algae biofuel production capacities. Apart from this, players are concentrating on strategic mergers and acquisitions, collaborations and creating awareness among the population. For instance, A USD 500 million clean cooking fund has been announced by the Energy Sector Management Assistance Programme of the World Bank. The fund will assist developing nations through technical assistance, study analyses, and investments.

Some major players in the algae biofuel market are Algenol, Blue Marble Production, Solazyme Inc., Sapphire Energy, Culture Biosystems, Origin Oils Inc., Proviron, Genifuels, Algae Systems, Solix Biofuels, Reliance Life Sciences

What are the Major Driving Factors for the Algae Biofuel Market?

A number of factors are anticipated to boost the algae biofuel market during the forecast period, including favorable initiatives, blending mandates by regulatory bodies, growing environmental concerns regarding fossil fuel usage and the need for biofuels, and the need for green and sustainable energy sources. Additionally, the algae biofuel industry is poised for rapid growth due to the growing demand for fuels in various end-use industries and the rise in green energy demand. Furthermore, the expansion of end-use industries is expected to drive market growth for algae biofuel due to the growing demand for low-cost fuels in the aviation industry.

What are the Major Risks for the Algae Biofuel Market?

Algae biofuel market growth is hindered by factors such as the need for increased capital investment and robust infrastructure and the technological barriers currently in place. Ongoing efforts to develop efficient and sustainable fuel substitutes to align with international initiatives toward carbon neutrality will likely provide novel opportunities to boost algae biofuel market growth. Further, not all manufacturers are willing to take on the risk of algal production because of a lack of knowledge about its cultivation. In a study conducted by the Center for Algae Biotechnology, California University, it was found that nutrient sourcing and utilization, strain isolation, production management, coproduct development, and fuel extraction pose challenges to algae biofuel production.

Which is the key application in the Algae Biofuel market?

The transportation segment is expected to hold a prominent share in the global algae biofuel market during the forecast period. As a result of rising consumer income and technological advances, the automobile industry is expected to expand rapidly. Transportation is predicted to be the industry's dominant application category as it can replace conventional diesel and gasoline products. Petroleum products, including jet fuel, diesel, gasoline, and fuel oil, generate one-third of all energy consumed worldwide. As consumer income increases and technology advances, the automobile industry is predicted to grow rapidly and increase the demand for sustainable raw materials. Manufacturers are expected to increase their investment in R&D to improve low-cost renewable fuel sources in response to an increase in demand for transportation fuel.

How is the Algae Biofuel market performing in regions?

Due to significant petrochemical companies, North America is anticipated to dominate the algae biofuel market. North America has become a viable region for algal fuel research thanks to several government programs. The Bioenergy Technologies Office (BETO) encourages research and development (R&D) to reduce the cost of manufacturing bio-based products and algal fuels through its Advanced Algal Systems initiative. Collaboration is established with partners to develop new technologies and conduct interdisciplinary studies that might sustainably offer algal biomass fuel as a potential fuel source here in the United States.

Furthermore, the Europe market is anticipated to hold the largest revenue share in the global Algae Biofuel market during the forecast period. Growth in the European market is expected to be boosted by favorable government policies promoting non-conventional energy generation. As a way to reduce GHG emissions, the U.K. government plans to use biofuels for aviation fuels. Algae oil can be used to blend aviation fuel as it increases aircraft performance and lowers operating expenses. As a result, the market in the region is expected to grow over the forecast period.

What is the regulatory landscape for the Algae Biofuel market?

In order to achieve sustainable development goals, including poverty alleviation, energy security and other environmental targets, the U.S. government has mandated that biofuel production be moved from food crops to microalgae-based crops. As a climate-friendly crop, it can contribute to sustainable development goals.

What is the Market Size of Algae Biofuel regarding value?

The global algae biofuel market is anticipated to grow at a substantial CAGR of 8.30% in the upcoming years. The global algae biofuel industry was estimated to be worth USD 7.0 billion in 2021 and was expected to be worth USD 11.29 billion by 2028.

What are the major players planning for the future of the Algae Biofuel market?

In the forecast period, government initiatives for capacity expansion and tax incentives are expected to contribute to the biodiesel market's growth significantly. Since biodiesel is a highly energy-efficient fuel, it helps reduce the risks and pollution caused by fossil fuels. In order to increase the production of biofuels and lower the price of biodiesel at the pump, countries like Brazil, Germany, and the United States have implemented tax incentives. Furthermore, biodiesel production in European countries such as France, Italy, Germany, Spain, Denmark, and the Czech Republic is exempt from all taxes up to a certain amount.

Segmentation of Global Algae Biofuel Market-

Global Algae Biofuel Market – By Types

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

Global Algae Biofuel Market – By Application

  • Transportation
  • Aerospace
  • Other Applications

Global Algae Biofuel Market – By Region

  • North America
    • The US.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Algae Biofuel market

COVID-19 has had a substantial impact on the market due to the outbreak of the COVID-19 pandemic. The disruption of supply chains caused production activities to be disrupted in several countries, negatively impacting algal biofuels.

North America accounted for the most heightened share in the global algae biofuel market.

Increasing demand for renewable fuels, rising petrol and diesel prices, and increasing inclination towards eco-friendly lifestyles characterized by fewer or no adverse environmental and health effects.

The green diesel segment had a major share in the global market in 2021.

The transport segment had a major share in the global market.

Algae Biofuel Market Scope

Report Attribute Details
Market Value in 2021 USD 7.0 billion
Market Value in 2028 USD 11.29 billion
CAGR 8.30%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Oct 2022
Category:  Chemicals
Report ID:   60723
Report Format:   PDF
Pages:   120
Rating:    4.6 (60)
Delivery Time: 24 Hours to 48 Hours   
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