Increasing utilization of biochemical engineering processes resulting in a robust technological framework has enhanced commercial production thus offering lucrative opportunities for the growth of algae biofuel market
With rapidly gaining traction, the algae biofuel market is following a progressive track record of substantial rise in demand as the aquatic microorganism often categorized as a plant is capable of producing all green energy. The market is anticipated to experience an optimum growth rate with potential to gather a CAGR of 8.9%, marking overall market size worth 12 billion over the forecast period spanning from 2021 to 2028. Algae biofuel market provides products that are also known as algal biofuels. Algae-based biofuels are considered to be a promising solution to the global search for green, sustainable, and renewable fuel source and these products mainly include drop-in fuels derived from algae species such as Chlorella, Nitzschia, Botryococcus braunii and Crypthecodinium.
Algae is produced on a large-scale on non-arable lands using saltwater. Algae based biofuels are considered to have high energy efficient and environmentally friendly potential such as their ability to produce 30 times of the energy produced by crop-based biofuels. In addition, algae are also capable of recycling carbon from the atmosphere and generating near about 50% of the global oxygen.
The growth trajectory of the global algae biofuel market is tracked down from the past dating till today and with the anticipation of future progress highlighting the market attractiveness, core strengths and key trends. Growth inducing factors add to the scope of growth of the global algae biofuel market. some of the key influential drivers include rapidly strengthening research and development infrastructure along with increasing government efforts for commercial-scale algae biofuel production and the rising demand for renewables contributes to the growth of the global algae biofuel market over the forecast years.
Burgeoning demand for low-cost and reliable alternatives offering sustainable energy sources offsetting the acute vulnerability that is experienced by the petroleum supply chain is expected to accelerate the algae biofuel market growth through the forecast period. However, certain technological barriers coupled with the need for high capital investments are some of the restraining factors hampering the market growth.
Adroit Market Research report on the global algae biofuel market applies a holistic reference of market dynamics from 2018 to 2028, encompassing major details on growth influencers, restrains, opportunities and barrier points. The market has been evaluated for historic years 2018 to 2020 tracing the growth trends in the past with 2020 as the base year and the forecast years from 2021 to 2028 consisting of market estimations and future prospects.
The report covers a thorough analysis of the market traits and trends significant to the current status as well as from future perspective. With a further Porter’s five forces analysis and positioning of key players, the study delivers an in-depth market assessment identifying the prominent players and their strategic initiatives.
The algae biofuel market has a strong competitive environment among the pre-existing and veterans. The algae biofuel industry players are looking forward to acquire new marketspaces seizing a competitive edge among peers by forming mergers and business collaborations, with scientific experts and start-ups with potential to add innovation in order to expand the business presence and achieve advanced skillset.
Based on the type segment, the algae biofuel market is segregated into several classes including bioethanol, methane, jet fuel, green diesel, biodiesel, biogasoline, and others. The biodiesel segment is likely to dominate the market over the forecast period owing the extensive demand for sustainable alternatives to replace diesel and gasoline in the transportation sector. Rapidly modernizing automotive industry adopting sustainable and renewable choices coupled is boosting the demand for biodiesel sourced from algae.
North America and Europe are the two globally leading market spaces of the algae biofuel industry with significant demand for the biofuel products. North America dominates the market with a vast and robust R&D infrastructure supporting extensive research and technological advancements aligned with a strong government support in encouraging manufacturers to turn towards biofuel adoption.
Surge in government initiatives and involvement of players to rapidly scale-up commercial production of algae biofuel is contributing to the anticipated growth of the market in the region. Europe is another significant market with massive demand for renewable fuel sources and establishment of large players expanding the opportunistic landscape for the global algae biofuel market.
The major players of the global algae biofuels market are Reliance Life Sciences, Sapphire Energy, Culture Biosystems, Solix Biofuels,Origin Oils, Solazyme, Proviron, Blue Marble Production, Algenol, and Genifuels Algae Systems. The algae biofuels market portrays diverse placement of local as well as international market players taking bold initiatives to enhance the product portfolio by deploying innovative strategies and advanced technology systems. The determined market players are branching out to embark new business opportunities via collaboration with other partners.
Key Segments of the Global Algae Biofuels Market
Type Overview, 2018-2028 (USD Billion)
- Jet Fuel
- Green Diesel
Application Overview, 2018-2028 (USD Billion)
- Automotive and Transportation
- Aerospace and Defense
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and Africa