Lignocellulosic Feedstock-based Biofuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Biofuel Type, By Technology, By End-Use, By Region & Competition, 2020-2030F
The Global Lignocellulosic Feedstock-based Biofuel Market was valued at USD 35.58 billion in 2024 and is anticipated to grow significantly, reaching USD 229.98 billion by 2030 with a CAGR of 36.28% during the forecast period. This market involves the production of advanced biofuels from non-food biomass such as agricultural residues, forestry waste, energy crops, and municipal solid waste, offering a sustainable alternative to traditional fossil fuels. These feedstocks are rich in complex organic compounds like lignin, cellulose, and hemicellulose, which can be processed into bioethanol, biobutanol, syngas, and other fuels through biochemical or thermochemical methods. Lignocellulosic biofuels are increasingly favored due to their minimal impact on food supply chains, ability to reduce carbon emissions, and contribution to rural economic development. Technological advancements and government support in the form of mandates and subsidies across regions such as North America, Europe, and Asia are driving market growth, supported by policies like the Renewable Fuel Standard (US), RED III Directive (EU), and India's National Bio-Energy Mission.
Market Overview
Forecast Period
2026-2030
Market Size 2024
USD 35.58 Billion
Market Size 2030
USD 229.98 Billion
CAGR 2025-2030
36.28%
Fastest Growing Segment
Thermochemical Conversion
Largest Market
North America
Key Market Drivers
Growing Emphasis on Reducing Greenhouse Gas Emissions
The market is witnessing strong growth due to rising global initiatives aimed at reducing greenhouse gas emissions and advancing sustainability goals. Lignocellulosic biofuels, made from non-food biomass such as forest and agricultural residues, present a low-carbon alternative to fossil fuels, particularly beneficial for high-emission sectors like transportation. Unlike first-generation biofuels, these fuels avoid competition with food resources, making them a more environmentally responsible choice for use in aviation, shipping, and freight. These biofuels can achieve emission reductions of 60-90% compared to fossil fuels, aligning with international commitments like the Paris Agreement. Regulatory frameworks such as the EU's Renewable Energy Directive (RED III), which increases renewable energy targets in transportation, further encourage adoption. Additionally, their production from waste materials like wood chips and wheat straw helps reduce land-use change and preserves natural ecosystems.
Key Market Challenges
Elevated Production Costs Undermine Commercial Viability
A major challenge limiting the commercial expansion of lignocellulosic biofuels is their high production cost. Although feedstocks like crop and forestry residues are relatively low-cost and abundant, the conversion processes involve complex and resource-intensive stages. Advanced biochemical and thermochemical techniques such as pretreatment, hydrolysis, and fermentation demand specialized equipment, skilled labor, and high energy inputs, driving up operational costs. The ongoing high prices of enzymes and catalysts, along with scalability challenges from lab-scale to full-scale production, contribute further to cost inefficiencies. Moreover, building commercial-scale biorefineries requires significant capital investment, posing financial hurdles in regions lacking robust policy support or subsidies.
Key Market Trends
Advancements in Conversion Technologies Enhancing Efficiency
One of the key trends transforming the market is the continuous improvement in conversion technologies, both biochemical and thermochemical. The inherent complexity of lignocellulosic biomass has historically hindered efficient fuel conversion. However, recent innovations in pretreatment, enzymatic breakdown, and fermentation methods are enhancing process yields and lowering costs. Developments such as engineered enzymes, improved catalysts, and integrated bioprocessing are enabling faster and more energy-efficient operations. Synthetic biology is also being applied to develop microbial strains capable of higher tolerance and broader fuel production. Additionally, thermochemical approaches like pyrolysis and gasification are seeing advances in reactor designs, improving energy efficiency, scalability, and emissions performance.
Key Market Players
POET-DSM Advanced Biofuels LLC
DuPont de Nemours, Inc.
Beta Renewables S.p.A.
Clariant AG
Abengoa Bioenergy S.A.
GranBio Investimentos S.A.
Raizen S.A.
Enerkem Inc.
INEOS Bio
Borregaard AS
Report Scope:
In this report, the Global Lignocellulosic Feedstock-based Biofuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Lignocellulosic Feedstock-based Biofuel Market, By Biofuel Type:
Bioethanol
Biodiesel
Biobutanol
Bio-oil
Syngas
Lignocellulosic Feedstock-based Biofuel Market, By Technology:
Biochemical Conversion
Thermochemical Conversion
Hybrid Technologies
Lignocellulosic Feedstock-based Biofuel Market, By End-Use:
Transportation
Power Generation
Industrial Heating
Lignocellulosic Feedstock-based Biofuel Market, By Region:
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
Spain
South America
Brazil
Argentina
Colombia
Asia-Pacific
China
India
Japan
South Korea
Australia
Middle East & Africa
Saudi Arabia
UAE
South Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Lignocellulosic Feedstock-based Biofuel Market.
Available Customizations:
Global Lignocellulosic Feedstock-based Biofuel Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Product Overview
1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. Executive Summary
3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
5. Global Lignocellulosic Feedstock-based Biofuel Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Biofuel Type (Bioethanol, Biodiesel, Biobutanol, Bio-oil, Syngas)
5.2.2. By Technology (Biochemical Conversion, Thermochemical Conversion, Hybrid Technologies)
5.2.3. By End-Use (Transportation, Power Generation, Industrial Heating)
5.2.4. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
5.3. By Company (2024)
5.4. Market Map
6. North America Lignocellulosic Feedstock-based Biofuel Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Biofuel Type
6.2.2. By Technology
6.2.3. By End-Use
6.2.4. By Country
6.3. North America: Country Analysis
6.3.1. United States Lignocellulosic Feedstock-based Biofuel Market Outlook
6.3.1.1. Market Size & Forecast
6.3.1.1.1. By Value
6.3.1.2. Market Share & Forecast
6.3.1.2.1. By Biofuel Type
6.3.1.2.2. By Technology
6.3.1.2.3. By End-Use
6.3.2. Canada Lignocellulosic Feedstock-based Biofuel Market Outlook
6.3.2.1. Market Size & Forecast
6.3.2.1.1. By Value
6.3.2.2. Market Share & Forecast
6.3.2.2.1. By Biofuel Type
6.3.2.2.2. By Technology
6.3.2.2.3. By End-Use
6.3.3. Mexico Lignocellulosic Feedstock-based Biofuel Market Outlook
6.3.3.1. Market Size & Forecast
6.3.3.1.1. By Value
6.3.3.2. Market Share & Forecast
6.3.3.2.1. By Biofuel Type
6.3.3.2.2. By Technology
6.3.3.2.3. By End-Use
7. Europe Lignocellulosic Feedstock-based Biofuel Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Biofuel Type
7.2.2. By Technology
7.2.3. By End-Use
7.2.4. By Country
7.3. Europe: Country Analysis
7.3.1. Germany Lignocellulosic Feedstock-based Biofuel Market Outlook
7.3.1.1. Market Size & Forecast
7.3.1.1.1. By Value
7.3.1.2. Market Share & Forecast
7.3.1.2.1. By Biofuel Type
7.3.1.2.2. By Technology
7.3.1.2.3. By End-Use
7.3.2. France Lignocellulosic Feedstock-based Biofuel Market Outlook
7.3.2.1. Market Size & Forecast
7.3.2.1.1. By Value
7.3.2.2. Market Share & Forecast
7.3.2.2.1. By Biofuel Type
7.3.2.2.2. By Technology
7.3.2.2.3. By End-Use
7.3.3. United Kingdom Lignocellulosic Feedstock-based Biofuel Market Outlook
7.3.3.1. Market Size & Forecast
7.3.3.1.1. By Value
7.3.3.2. Market Share & Forecast
7.3.3.2.1. By Biofuel Type
7.3.3.2.2. By Technology
7.3.3.2.3. By End-Use
7.3.4. Italy Lignocellulosic Feedstock-based Biofuel Market Outlook
7.3.4.1. Market Size & Forecast
7.3.4.1.1. By Value
7.3.4.2. Market Share & Forecast
7.3.4.2.1. By Biofuel Type
7.3.4.2.2. By Technology
7.3.4.2.3. By End-Use
7.3.5. Spain Lignocellulosic Feedstock-based Biofuel Market Outlook
7.3.5.1. Market Size & Forecast
7.3.5.1.1. By Value
7.3.5.2. Market Share & Forecast
7.3.5.2.1. By Biofuel Type
7.3.5.2.2. By Technology
7.3.5.2.3. By End-Use
8. Asia Pacific Lignocellulosic Feedstock-based Biofuel Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Biofuel Type
8.2.2. By Technology
8.2.3. By End-Use
8.2.4. By Country
8.3. Asia Pacific: Country Analysis
8.3.1. China Lignocellulosic Feedstock-based Biofuel Market Outlook
8.3.1.1. Market Size & Forecast
8.3.1.1.1. By Value
8.3.1.2. Market Share & Forecast
8.3.1.2.1. By Biofuel Type
8.3.1.2.2. By Technology
8.3.1.2.3. By End-Use
8.3.2. India Lignocellulosic Feedstock-based Biofuel Market Outlook
8.3.2.1. Market Size & Forecast
8.3.2.1.1. By Value
8.3.2.2. Market Share & Forecast
8.3.2.2.1. By Biofuel Type
8.3.2.2.2. By Technology
8.3.2.2.3. By End-Use
8.3.3. Japan Lignocellulosic Feedstock-based Biofuel Market Outlook
8.3.3.1. Market Size & Forecast
8.3.3.1.1. By Value
8.3.3.2. Market Share & Forecast
8.3.3.2.1. By Biofuel Type
8.3.3.2.2. By Technology
8.3.3.2.3. By End-Use
8.3.4. South Korea Lignocellulosic Feedstock-based Biofuel Market Outlook
8.3.4.1. Market Size & Forecast
8.3.4.1.1. By Value
8.3.4.2. Market Share & Forecast
8.3.4.2.1. By Biofuel Type
8.3.4.2.2. By Technology
8.3.4.2.3. By End-Use
8.3.5. Australia Lignocellulosic Feedstock-based Biofuel Market Outlook
8.3.5.1. Market Size & Forecast
8.3.5.1.1. By Value
8.3.5.2. Market Share & Forecast
8.3.5.2.1. By Biofuel Type
8.3.5.2.2. By Technology
8.3.5.2.3. By End-Use
9. Middle East & Africa Lignocellulosic Feedstock-based Biofuel Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Biofuel Type
9.2.2. By Technology
9.2.3. By End-Use
9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
9.3.1. Saudi Arabia Lignocellulosic Feedstock-based Biofuel Market Outlook
9.3.1.1. Market Size & Forecast
9.3.1.1.1. By Value
9.3.1.2. Market Share & Forecast
9.3.1.2.1. By Biofuel Type
9.3.1.2.2. By Technology
9.3.1.2.3. By End-Use
9.3.2. UAE Lignocellulosic Feedstock-based Biofuel Market Outlook
9.3.2.1. Market Size & Forecast
9.3.2.1.1. By Value
9.3.2.2. Market Share & Forecast
9.3.2.2.1. By Biofuel Type
9.3.2.2.2. By Technology
9.3.2.2.3. By End-Use
9.3.3. South Africa Lignocellulosic Feedstock-based Biofuel Market Outlook
9.3.3.1. Market Size & Forecast
9.3.3.1.1. By Value
9.3.3.2. Market Share & Forecast
9.3.3.2.1. By Biofuel Type
9.3.3.2.2. By Technology
9.3.3.2.3. By End-Use
10. South America Lignocellulosic Feedstock-based Biofuel Market Outlook
10.1. Market Size & Forecast
10.1.1. By Value
10.2. Market Share & Forecast
10.2.1. By Biofuel Type
10.2.2. By Technology
10.2.3. By End-Use
10.2.4. By Country
10.3. South America: Country Analysis
10.3.1. Brazil Lignocellulosic Feedstock-based Biofuel Market Outlook
10.3.1.1. Market Size & Forecast
10.3.1.1.1. By Value
10.3.1.2. Market Share & Forecast
10.3.1.2.1. By Biofuel Type
10.3.1.2.2. By Technology
10.3.1.2.3. By End-Use
10.3.2. Colombia Lignocellulosic Feedstock-based Biofuel Market Outlook
10.3.2.1. Market Size & Forecast
10.3.2.1.1. By Value
10.3.2.2. Market Share & Forecast
10.3.2.2.1. By Biofuel Type
10.3.2.2.2. By Technology
10.3.2.2.3. By End-Use
10.3.3. Argentina Lignocellulosic Feedstock-based Biofuel Market Outlook