According to a new report titled, “Global Second-Generation Biofuels – Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 – 2020″, the global second-generation biofuels (advanced biofuels) market would reach $23.9 billion by 2020, registering a CAGR of 49.4% during 2014 – 2020. Currently, biodiesel commands the largest market share; however, the latest and the most commercially viable cellulosic ethanol would surpass biodiesel and eventually lead the market by 2020. North America generated largest revenue, as it has over 50% of the globally installed capacity base.
Second generation biofuels are produced from a range of non-food crops and waste biomass. Also, second generation biofuel production is more energy efficient than the conventional fossil fuels. Such biofuels minimize greenhouse gas (GHG) emissions by over 90%; thus, are more environment-friendly. In conjunction with benefits delivered by second-generation biofuels, financial incentives and supportive regulations in the U.S. and Europe are instrumental in driving the commercial production and adoption of advanced biofuels; Renewable Fuel Standards (RFS) in the U.S. is among one of such initiative. However, complexities associated with the production process, high initial capital investment and availability of land (for plant set-up) in the vicinity of the source of feedstock are the factors impeding the growth of the market.
- Key findings of the study:
Global market for second-generation biofuel is gaining traction with production and supply of cellulosic ethanol and biodiesel as prime growth drivers during the forecast period (2014 – 2020)
- Top factors impacting the global second-generation biofuels market are favorable regulatory policies and its environment-friendly nature
- Cellulosic ethanol segment will grow at a CAGR of 52.2% during the forecast period, fastest among all types of second-generation biofuels
- Currently, North America holds largest market share, followed by Europe in the overall second-generation biofuels market in terms of production
- Among all feedstock used (corn stover, corn cob, algae, bagasse, straw, wood waste, cellulose, mixed biomass, hardwood, forest residue, animal waste), high volume of second generation biofuels will be produced from algae, due to its oil content, resulting in high yield production
- Most of the market players are focusing on mainly two strategies, namely partnership & collaborations and seeking approvals as key developmental strategies
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