Bioenergy Market Size Expected to Rise USD 642.71 billion at CAGR 8.0% by 2027
Fortune Business Insights
8 min read
Fortune Business Insights
Bioenergy Market to Reach USD 642.71 billion by 2027; Players Such as EnviTech and Drax Group to Focus on Capitalizing Government Incentives for Renewables: Fortune Business Insights™
Pune, India, March 08, 2023 (GLOBE NEWSWIRE) -- The global bioenergy market size was USD 344.90 billion in 2019. The market is expected to hit USD 642.71 billion by 2027 at a CAGR of 8.0% in the 2020-2027 period. This information is provided by Fortune Business Insights, in its report titled, “Bioenergy Market, 2020-2027.” Deepening commitment to the 2015 Paris Climate Change Agreement will be a critical factor augmenting the growth of this market.
Market Driver
Rapid Depletion of Fossil Fuels to Accelerate the Bioenergy Market Growth
The world overly dependent on fossil fuels to satisfy its energy demands. For example, in the US, fossil fuels accounted for 81.5% of the total energy consumption. Excessive reliance on exhaustible energy sources is causing their depletion rate to overtake their replenishment rate. The US Energy Information Administration (EIA) estimates that the current global stock of crude oil will be adequate to meet world’s oil demand till 2050. A report published by the Millennium Alliance for Humanity and the Biosphere (MAHB) states that coal will run out in 70 years, gas will be over in 40 years, and oil will be gone in the next 30 years. These stark projections are reinforcing the need for the global society to develop and actively embrace bioenergy sources and reduce dependence on conventional energy.
The Paris Agreement was a landmark moment in the fight against climate change as it contained actionable commitments by the top emission countries. These commitments were focused towards mitigating the extreme effects of climate change by reducing greenhouse gas (GHG) emissions and curbing global temperature increase below 2 degrees Celsius above pre-industrial levels. Currently, 197 countries, with the exception of Russia, Iran, and Turkey, have signed the agreement. In the quest to control emissions, countries are actively switching to bioenergy sources such as biomass and biofuels to meet their electricity requirements, since these sources can supply electricity to all end-use industries. Thus, expanding participation in the Paris Agreement will bode well for this market. According to the report, the global market value stood at USD 344.90 billion in 2019.
Bioenergy Market Scope:
Report Coverage
Details
Forecast Period
2020-2027
Forecast Period 2020 to 2027 CAGR
8.0%
2027 Value Projection
USD 642.71 Billion
Base Year
2019
Market Size in 2019
USD 344.90 Billion
Historical Data for
2016-2018
No. of Pages
140
Segments covered
Bioenergy Market Size, Share & COVID-19 Impact Analysis, By Product Type (Solid Biomass, Liquid Biofuel, Biogas, and Others), By Feedstock (Agricultural Waste, Wood and Woody Biomass, Solid Waste and Others), By Application (Power Generation, Heat Generation, Transportation, and Others) And Regional
Growth Drivers
Rapid Depletion of Fossil Fuels to Accelerate the Bioenergy Market Growth
Concerted Efforts to Reduce Carbon Emissions to Boost the Market in Asia Pacific
Covid-19 Impact:
The COVID-19 pandemic has created widespread uncertainty across the global economic spectrum. Many businesses are struggling to cope with the rapidly changing circumstances. Governments are modifying, altering, and developing new policies and measures to steer their countries out these challenging. We are also taking solid efforts to generate intelligent analysis on different markets and providing detailed assessment of the impact of this pandemic on your business.
The bioenergy market can be analyzed by various factors such as product type, feedstock, and application. In terms of product type, the market can be segmented into solid biomass, liquid biofuel, biogas, and others. Solid biomass includes materials such as wood, sawdust, and agricultural waste, which can be burned to produce heat or electricity. Liquid biofuel includes ethanol and biodiesel, which can be used as a substitute for gasoline and diesel fuel. Biogas is produced by the decomposition of organic matter such as sewage and agricultural waste, and can be used for power generation or as a fuel for vehicles.
In terms of feedstock, the market can be segmented into agricultural waste, wood and woody biomass, solid waste, and others. Agricultural waste includes crop residues, manure, and other byproducts of farming activities. Wood and woody biomass includes trees, branches, and other plant material. Solid waste includes municipal solid waste, construction waste, and other types of waste. Other feedstocks include algae, switchgrass, and other non-woody plants.
In terms of application, the bioenergy market can be segmented into power generation, heat generation, transportation, and others. Power generation involves using bioenergy sources to generate electricity, while heat generation involves using bioenergy sources to provide heat for buildings or other purposes. Transportation involves using biofuels to power vehicles, such as ethanol blended gasoline or biodiesel. Other applications include cooking and other industrial processes.
Overall, the bioenergy market is a complex and diverse industry with many different factors that can affect its growth and development. Understanding the various product types, feedstocks, and applications of bioenergy can help investors and industry participants make informed decisions about where to invest their time and resources.
Regional Insights
Booming economies of Asia Pacific, mainly India and China, who are also two of the largest emitters in the world, are taking decisive policy measures to curb emissions. In developed economies such as Japan, use of wood as biofuel is rising, increasing bioenergy consumption in the region. These factors enabled Asia Pacific to create a market for bioenergy with a size of USD 96.76 billion in 2019.
Countries in the European Union (EU) are actively adopting bio-energy as these energy sources are expected to speed up the EU’s shift towards renewables in the coming decade. North America, being one of the largest producers of liquid biofuels, is steadily fastening its hold on the bioenergy market share backed by significant increases in ethanol production in the US.
Widening Geographic Presence of Companies to Characterize Market Competition
With strengthening global commitment towards bio-based energy, key players in this market are exploring new avenues to expand their regional and global presence. Companies are also taking advantage of incentives offered governments for renewable energy projects to consolidate their position in the market.
Industry Developments:
Ductor, the Finnish-Swiss bioenergy company, announced the building of three biofertilizer-biogas plants in Poland’s Zachodniopomorskie region. Using poultry waste, the plants will produce renewable energy and organic nitrogen fertilizer, enhancing Poland’s shift towards circular economy.
San Francisco-based Brightmark expanded its dairy biogas project in Western New York under its “Yellowjacket” project. Partnering with six farms, the company will extract methane from dairy manure every day and produce renewable natural gas.
A List of Key Manufacturers Operating in the Global Market:
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