The biorefinery market is expected to grow from an estimated USD 212.05 billion in 2024 to USD 314.62 billion by 2029, at a CAGR of 8.2% during the forecast period. Biorefineries are at the forefront of efforts to reduce greenhouse gas (GHG) emissions as renewable biomass is converted into biofuels and bio-based products. Biorefining is one of the directions adopted by governments and firms, which strive to reduce their carbon footprint and achieve net-zero emission targets. Rapid decreases in fossil fuel usage and the development of more sustainable alternatives for the production of energy, chemicals, and materials require biorefineries to form the backbone of much of this development.
Scope of the Report
Years Considered for the Study
2019-2029
Base Year
2023
Forecast Period
2024-2029
Units Considered
Value (USD Billion) and Volume (million litres)
Segments
Biorefinery Market by technology, by type, by product and region.
Regions covered
North America, Europe, Asia Pacific, and Rest of the World
"Industrial Biotechnology, by technology, is expected to be the largest-growing segment from 2024 to 2029."
The industrial biotechnology segment is expected to largest growing in the biorefinery market. Integration of industrial biotechnology is pivotal in biorefineries, facilitating the sustainable and efficient conversion of biomass into fuels, chemicals, and materials. It involves the use of enzymes, microorganisms, and biological processes to break down complex organic matter, such as agricultural residues, energy crops, and organic waste, into simpler compounds that can be transformed into valuable products. Enzymatic hydrolysis, for example, is employed to convert lignocellulosic biomass into fermentable sugars, which can then be fermented by engineered microbes to produce biofuels like ethanol, bioplastics, or other bio-based chemicals. Advances in synthetic biology and metabolic engineering allow for the optimization of these microbial pathways, increasing yield and reducing costs. Additionally, biocatalysis offers a greener alternative to traditional chemical processes, enabling more selective and environmentally friendly transformations.
"Second Generation, by type, is expected to be the fastest-growing market from 2024 to 2029"
It is anticipated that second-generation biorefineries will be pivotal to satisfy rising future energy demands, while enhancing sustainability and minimizing ecological impacts of fuel production. Various policy measures such as U.S. Renewable Fuel Standard (RFS2); European Union Renewable Energy Directive (RED II) develop promotional niche markets for advanced biofuels by establishing a quota for second-generation biofuels. This incentivizes industry investment into conversion technologies for non-food biomass.
"Europe is expected to be the fastest-growing region in the biorefinery market."
Germany, France, Netherlands, Italy, Spain, UK and other similar countries are rapidly advancing biorefinery technologies and developing bio-based chemicals and biofuels. Europe has the fastest growing market in the biorefinery domain mainly due to strong government policies such as the EU's Renewable Energy Directive (RED II), which contains requirements for renewable energy targets and biofuels. The region is very focused on reducing carbon emissions, as well as the principles of the circular economy, which has fostered investments in bio-based chemicals and fuels. Part of this foundation for the development of biorefinery technologies and biorefinery industries in Europe is that it has a lot of agricultural residues and forestry biomass byproducts that can be utilized, as well as relatively advanced infrastructure compared to other regions of the world when considering sustainable practices. For instance, also, the French Government initiated a blending mandate for companies to combine gasoline or diesel with biofuels. That is a specific directive requiring the use of biofuels in a blend throughout France. The proportion of biofuels in these blends has increased significantly over the years and will be further increased based on targets for reducing greenhouse gas emissions over time into the year 2030.
In-depth interviews have been conducted with chief executive officers (CEOs), Directors, and other executives from various key organizations operating in the biorefinery market.
By Company Type: Tier 1- 60%, Tier 2- 25%, and Tier 3- 15%
By Designation: C-level Executives - 35%, Director Level- 25%, and Others- 40%
By Region: North America - 35%, Europe - 25%, Asia Pacific - 30%, and Rest of the World - 10%
Note: Other designations include sales managers, marketing managers, product managers, and product engineers.
The tier of the companies is defined based on their total revenue as of 2023. Tier 1: USD 1 billion and above, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: <USD 500 million.
The biorefinery market is dominated by a few major players that have a wide regional presence. The leading players in the biorefinery market are Chevron (US), ADM (US), Valero (US), Neste (Finland), and TotalEnergies (France), among others. The major strategy adopted by the players includes new product launches, partnerships, collaboration, mergers, and investments & expansions.
Research Coverage:
The report defines, describes, and forecasts the biorefinery market by technology, type, product, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report comprehensively reviews the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; Contracts, partnerships, agreements. new product launches, mergers and acquisitions, and recent developments associated with the biorefinery market. Competitive analysis of upcoming startups in the biorefinery market ecosystem is covered in this report.
Reasons to buy this report:
Reasons to buy this report The report will help the market leaders/new entrants biorefinery market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
Analysis of key drivers (Increasing demand for biofuels and bio-based products, government initiatives and increasing need for sustainability, and technological advancements in the biorefineries are just a few of the primary drivers propelling the biorefinery market), restraints (Lack of product uncertainties, as well as costly initial capital expenditure, limit the market's expansion), opportunities (development of advanced biofuels and circular economy initiatives), and challenges (variable and high cost of feedstock and competition from traditional fuels) influencing the growth.
Product Development/ Innovation: The biorefinery market is seeing substantial product development and innovation, driven by rising environmental concerns. Companies are investing in improved biorefinery technology to produce advanced biofuels and bio-based products.
Market Development: In February 2022, Versalis announced the beginning of the production of bioethanol from lignocellulosic biomass at Crescentino (Vercelli).
Market Diversification: In July 2024, Neste and HELLENiQ ENERGY, one of Southeast Europe's leading energy groups, collaborated to deliver blended Neste MY Sustainable Aviation Fuel to HELLENiQ ENERGY's facilities in Thessaloniki.
Competitive Assessment: In-depth analysis of market share, growth plans, and service offerings of top companies in the stations market, including Chevron (US), ADM (US), Valero (US), Neste (Finland), and TotalEnergies (France), among others.
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 STUDY SCOPE
1.3.1 MARKETS COVERED AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 UNITS CONSIDERED
1.6 LIMITATIONS
1.7 STAKEHOLDERS
1.8 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH APPROACH
2.1.1 SECONDARY DATA
2.1.1.1 List of major secondary sources
2.1.1.2 Key data from secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 List of primary interview participants
2.1.2.2 Key primary insights
2.1.2.3 Breakdown of primaries
2.2 MARKET BREAKDOWN AND DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION METHODOLOGY
2.3.1 BOTTOM-UP APPROACH
2.3.2 TOP-DOWN APPROACH
2.4 DEMAND-SIDE ANALYSIS
2.4.1 ASSUMPTIONS FOR DEMAND-SIDE ANALYSIS
2.4.2 CALCULATIONS FOR DEMAND-SIDE ANALYSIS
2.5 SUPPLY-SIDE ANALYSIS
2.5.1 ASSUMPTIONS FOR SUPPLY-SIDE ANALYSIS
2.5.2 CALCULATIONS FOR SUPPLY-SIDE ANALYSIS
2.6 MARKET GROWTH RATE FORECAST
2.7 RESEARCH LIMITATIONS
2.8 RISK ANALYSIS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN BIOREFINERY MARKET
4.2 BIOREFINERY MARKET, BY REGION
4.3 BIOREFINERY MARKET, BY TECHNOLOGY
4.4 BIOREFINERY MARKET, BY PRODUCT
4.5 BIOREFINERY MARKET, BY TYPE
4.6 BIOREFINERY MARKET, BY PRODUCT AND COUNTRY
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Increasing demand for bio-based products
5.2.1.2 Technological advancements
5.2.1.3 Government initiatives and increasing need for environmental sustainability
5.2.2 RESTRAINTS
5.2.2.1 Requirement of high initial capital investments
5.2.2.2 Lack of process efficiency and product consistency
5.2.3 OPPORTUNITIES
5.2.3.1 Development of advanced biofuels
5.2.3.2 Circular economy initiatives
5.2.4 CHALLENGES
5.2.4.1 Variable and high cost of feedstock
5.2.4.2 Competition from traditional fossil fuels
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
5.3.1 REVENUE SHIFT AND NEW REVENUE POCKETS FOR PLAYERS IN BIOREFINERY MARKET
5.4 PRICING ANALYSIS
5.4.1 AVERAGE SELLING PRICE TREND, BY REGION (USD/LITER)
5.4.2 INDICATIVE PRICING ANALYSIS, BY PRODUCT, 2020-2023