What are the Factors that will Drive the Global Biofuels Market?
Global consumption for biofuels is expected to witness strong growth in the upcoming years resulting in a rapid shift in consumption of soybean oil to biofuels. Biofuel is an economic vegetable oil used as a raw material for food and non-food product. It is the most widely used vegetable oil across the world and is used in baked goods, washing powders, cosmetics, and margarine.
The Biofuel market is expected to grow steadily owing to the increase in environmental concerns across the globe thus rise in the number of government regulations. Demand for sustainable and clean energy supply, increase in living standards coupled with increasing disposable income, and improving economic activity & rising investments in the infrastructure development will encourage the market to grow significantly over the forecast period. Additionally, low price of biofuels as compared to vegetable oils will accelerate the market growth over the forecast period.
Growth In The U.S. To Lead The Biofuels Market in the North American Region
North America accounted for the leading share in terms of revenue throughout the forecast period. The U.S. accounted for the largest market in the North American region with a global consumption share of nearly 45% in 2015 and is expected to reach approximately 57 billion gallons by 2020. Rising government support for the use of biofuels and to develop economy proposed to environmental conservation coupled with environmental concerns are driving the biofuel market in this region.
Government Regulations May Drive The Growth Of Biofuels In The Asia Pacific Region
The Asia Pacific is anticipated to register the highest growth during the forecast period due to the availability of feedstock and multiple uses of bio-based fuels in this region. The surging demand for bio-diesel in the developing countries such as India and China is expected to propel the market for biofuels. In the Asia Pacific region, China is the most promising market for biofuels, owing to the increasing energy security concerns and growth strategies to reduce carbon emission levels.