Global Algae Biofuel Market – Industry Trends and Forecast to 2029

Global Algae Biofuel Market, By Type (Bioethanol, Biodiesel, Methane, Jet Fuel, Biobutanol, Biogasoline, Green Diesel, Others), Application (Transportation, Aerospace, Other Applications) – Industry Trends and Forecast to 2029

Market Analysis and Size

There has been immense growth in the biofuel industry. Additionally, the market for algal biofuels has witnessed huge growth as environmental and sustainability concerns about the excessive use of fossil fuels grow. The enormous potential of algae to replace conventional raw materials used in biofuel production is promoting the use of algae biofuels in a variety of industries over the forecasted period.

Global Algae Biofuel Market was valued at USD 7.19 billion in 2021 and is expected to reach USD 11.26 billion by 2029, registering a CAGR of 5.76% during the forecast period of 2022-2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Report Scope and Market Segmentation

Market Definition

Algae fuel, also known as algal biofuel or algal oil, is a liquid fossil fuel substitute that employs algae as a source of energy-rich oils. Algae fuels are also a viable alternative to well-known biofuels like corn and sugarcane. It's known as seaweed fuel or seaweed oil when it's manufactured from seaweed.

Algae Biofuel Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• High Utilization Across End Users

The rise of the detergent industry in emerging economies, rising fuel demand from various end-use sectors, and rising demand for green and sustainable energy sources are all expected to boost the algae biofuel market in the forecast period. Moreover, the rapid expansion of the algae biofuel industry due to the expanding demand for fuels in numerous end-use industries as well as the growing need for green and sustainable energy sources is estimated to accelerate the market growth.

The increasing demand for low-cost fuels in the aviation sector will further propel the growth rate of algae biofuel market. Additionally, the expansion of the end use industries are also projected to bolster the growth of the market. The continuous attempts to find cost-effective and sustainable fuel alternatives in order to connect with international aspirations toward carbon neutrality are likely to provide new prospects to support algae biofuel industry expansion. 

Opportunities

• Initiatives and Innovative Factors

Furthermore, various increasing initiatives taken by the government for the adoption of renewable energy source as well as to minimize carbon emission are estimated to further generate profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, the growing development of innovative factors such as increased final production volume of biofuels, increased raw material development among other factors will further expand the future growth of the algae biofuel market.

Restraints/Challenges

• High Investments and Technological Barriers

However, the industry is largely hampered by determinants such as the requirement for increased capital investment as well as present technology limitations, which are significantly reducing the global algal biofuel market's growth potential. These factors are estimated to hamper the market growth.

• Production Issues of Raw Material

Algae are biofuel resources that can be farmed on non-arable soil and in saltwater or brackish water. Time constraints, regional appropriateness concerns, high production costs, and the requirement for considerable fertilizer are all obstacles to algae production. This will result in a slew of challenges that would stifle market expansion over the projection period.

This algae biofuel market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the algae biofuel market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Algae Biofuel Market

The emergence of the novel coronavirus had a negative impact on the algae biofuel market worldwide. The various restrictions due to the various precautionary lockdowns imposed by governments affected the market immensely. The supply chains are being disrupted, causing production activities to be disrupted in several countries, had a negative impact on the algal biofuel market. Furthermore, consumer demand has decreased as people are now more focused on removing non-essential expenses from their budgets since the general economic situation of most people has been badly impacted by the outbreak.

On the plus side, as individual regulatory bodies begin to relax these imposed lockdowns, the market is expected to recover. As a result of the suspended and cancelled operations, the market is expected to expand.

Global Algae Biofuel Market Scope

The algae biofuel market is segmented on the basis of type and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Bioethanol
• Biodiesel
• Methane
• Jet Fuel
• Biobutanol
• Biogasoline
• Green Diesel
• Others

Application

• Transportation
• Aerospace
• Other Applications

Algae Biofuel Market Regional Analysis/Insights

The algae biofuel market is analyzed and market size insights and trends are provided by country, type and application as referenced above.

The countries covered in the algae biofuel market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the algae biofuel market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the increasing preferences towards renewable source of energy along with its rising usage across various sectors.

Asia-Pacific on the other hand, is estimated to show lucrative growth over the forecast period of 2022-2029, due to the growth of the automotive industry along with rapid economic growth within the region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Algae Biofuel Market Share Analysis

The algae biofuel market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to algae biofuel market.

Some of the major players operating in the algae biofuel market are

• Lgenol (U.S.)
• Culture BioSystems (U.S.)
• Origin Clear Inc. (U.S.)
• Genifuel Corporation. (U.S.)
• ALGAE PRODUCTION SYSTEMS (U.S.)
• Blue Marble Production Inc. (U.S.)
• Culture Biosystems (U.S.)
• Proviron (Belgium)
• Solix (U.S.)
• Cellana Inc (U.S.)
• Biofuels Digest (U.S.)
• Neste (Netherlands)
• Infinita Renovables SA (Spain)
• Glencore (Switzerland)
• Louis Dreyfus Holding B.V (Netherlands)
• Louis Dreyfus Holding B.V
• Renewable Energy Group, Inc. (U.S.)
• Evergreen Bio Fuels (India)