Biorefinery Technologies Market: Overview
The market for biorefinery technologies was worth USD 629.5 million in 2021, and it is anticipated to expand at a compound annual growth rate (CAGR) of 8.6%. The primary drivers driving the growth of the market for biorefinery applications are the expanding global population, the industrial revolution, urbanization, and the development of new transportation technologies. Global environmental rules and other public and private initiatives will also expand the market. A large number of biorefinery products are used in the production of alcohols, resins, and cosmetics. In the United States, the average yearly spending on cosmetics, fragrances, and bath preparation goods in 2020 came to almost 199 dollars per consumer unit. Additionally, the fuel created by the biorefinery process is used for energy requirements, which are inexpensive and emit fewer greenhouse gases. The worldwide biorefinery market is thus anticipated to increase throughout the forecast period due to all these variables working together.
The market for biorefineries is still in its infancy, but it is anticipated to expand rapidly over the next ten years due to rising environmental concerns. Mandates and regulations worldwide are also anticipated to increase demand for goods made from biomass. The California Low-carbon Fuel Standard mandates that fuel suppliers cut GHG emissions by 10% by 2020. Additionally, the industry has been forced to turn its attention to biofuels due to the world's diminishing fossil fuel supplies to meet the rising need for energy. In addition, the implementation of strict environmental regulations in various nations, such as the Renewable Energy Directive (RED) of the European Union's target for producing at least 20% of the energy from renewable sources, is fueling the demand for efficient and less polluting energy sources, which is driving the growth of the global biorefinery market.
Biorefinery Technologies Market: COVID-19 Impact
Almost every company in the world has experienced setbacks due to the pandemic. This is because several precautionary lockdowns and other global restrictions enforced by governing bodies have caused significant disruptions in their respective industrial and supply-chain operations. This is also true of the market for biorefinery technologies worldwide. Additionally, as this disease has severely impacted most people's overall economic status, consumers are now more focused on cutting non-essential spending from their budgets. This has resulted in a decline in consumer demand. Throughout the forecast period, these factors are anticipated to impact the global market for Biorefinery Technologies revenue growth. However, the worldwide Biorefinery Technologies Market is anticipated to revive as regional regulatory bodies start to loosen these enforced limits.
Biorefinery Technologies Market: Drivers
Growing Demand For Sustainable Energy to Propel Market’s Growth
The key driver driving the global market for biorefinery technology is the increase in demand for renewable energy sources. With a growing global population and rising living standards, there is a huge growth in the need for energy. Therefore, people have been compelled to look for new energy sources. Biorefinery has emerged as a feasible choice for supplying energy needs while providing long-term environmental sustainability. The sustainable energy industry is anticipated to grow due to favorable government policies, increased renewable energy consumption, and reduced solar panel and wind turbine pricing and installation costs. Around 558 terawatt-hours of bioenergy were produced globally in 2019, according to estimates; however, in 2020, that number rose by 53 terawatt-hours. In the upcoming years, the market's demand will rise due to the ongoing expansion in bioenergy output.
Increased Urbanization due to Increased Need for Improved Lifestyle to Drive Market’s Growth
Living in an urban area is associated with better opportunities for employment and education, better health, greater access to social services, and more social and cultural opportunities. People go to towns and cities for a higher standard of living. Growing urbanization raises energy consumption by shifting production from less energy-intensive to more energy-intensive sources. With increased mobility and transportation, urbanization also needs more energy, which increases the need for sustainable energy. As of 2021, 4.46 billion people lived in metropolitan areas worldwide. By 2050, there will be 2.22 billion more people living in cities worldwide, bringing the total number of people who call cities home to 6.68 billion. As a result, as urbanization and living standards rise, so will demand for sustainable energy sources and, with it, the market.
Biorefinery Technologies Market: Restraints
High Logistic and Transportation Cost to Hamper Market’s Growth
The supply chain for biomass will involve several crucial processing steps, including collection, storage, preprocessing (densification by compaction, pelleting, and briquetting), transportation (from the field to the biorefinery), and postprocessing at the biorefinery. These supply chain phases will directly impact the price of delivering feedstock. Transporting lignocellulosic biomass to biorefineries is difficult due to the variability of the biomass's texture, its seasonal availability, low bulk density, and its widespread distribution. The low density of biomass is known to occupy more volume and need more carrier space, which is reported to impact the cost of transportation. The moisture content, distance from the field to the biorefinery, accessibility of infrastructure, accessibility of on-site technology, and mode of transportation all have an impact on transportation costs (rail or road)
Biorefinery Technologies Market: Segment Overview
Demand for BioRefineries is Increasing From Chemical Industry
It is highly desirable to produce chemicals from biomass, a renewable feedstock, to increase the cost-effectiveness of biorefineries. The only method to compete with refineries using fossil fuels is to upgrade biomass in integrated biorefineries. Since these waste materials are widely available and can trap carbon, biomass feedstocks, including agricultural leftovers and wood chips, are an affordable renewable resource for large-scale commercial biorefineries. Among the substances targeted are alcohols, organic acids like formic acid, levulinic acid, and furanic like 5-hydroxymethylfurfural (5-HMF) and furfurals. Then, these molecules can be converted into several derivatives that might be useful in the biofuel, polymer, and solvent sectors. R&D that is ongoing has aided in creating goods with the best and most cutting-edge features. This is one of the main factors influencing the segment's growth.
Green Biorefineries to Dominate Market due to Their Inexpensive Nature
The sustainable conversion of green biomass into a range of commercially viable goods and energy is referred to as "green biorefinery." Any naturally occurring wet biomass, such as crops (such as grass, lucerne, clover, and immature cereal), as well as agricultural leftovers, can be classified as green biomass (e.g., sugar beet leaves). The main advantages of the multi-productive system and inexpensive feedstock readily available in large quantities are the green biorefinery's main advantages. Since managing the biorefinery's profitability is the primary focus, this is necessary. The grassy green feedstock is easier to pretreat and fractionate into its basic constituent for biorefinery processing, which eventually lowers the cost of the end-product formulation. The woody lignocellulosic feedstock is more resistant to dissolving and pretreatment.
Biorefinery Technologies Market: Regional Landscape
Largest Market Share to be Held by North America due to Rising Environmental Awareness
During the forecast, North America will lead the industry with the largest market share. The biorefinery market will expand in North America over the forecast period due to rising environmental concerns about decreasing greenhouse gas emissions and strict laws monitoring domestic non-renewable resource consumption. Key factors encouraging the company's expansion during the predicted timeframe include supportive governmental regulations and the abundance of biogas feedstock. The commercial picture will improve if variety is prioritized across the energy portfolio.
Industrial development will be fueled by the continued switch to renewable energy sources and the implementation of numerous environmental regulations to cut GHG emissions. Technology adoption in the area will be aided by the rising demand for environmentally friendly waste management techniques and the potential for biogas plants to generate electricity and heat. The EIA estimates that 20 large dairies and livestock operations produced approximately 173 million kWh (or 0.17 billion kWh) power from biogas in the United States in 2020. The regional market will expand as energy output from biogas keeps rising.
During the foreseeable period, Europe will hold a sizable portion. The market's size will be influenced by efforts to achieve energy diversification and changing trends in using clean energy sources. Respective EU governments are focusing on reducing their dependency on imports of fossil fuels, which will accelerate corporate development even more. The development of the European biogas industry will be fueled by supportive government policies that encourage using renewable energy sources. The region's top economies' reliable support systems have led to a rise in biogas production. Europe generates 2 billion cubic meters (bcm) of biogas annually. The Renewable Energy Directive II has increased the target for the entire EU for RES consumption by 2030 to 32%. (RED II). Germany, Sweden, Spain, Italy, and the United Kingdom are significant nations for bio-based energy. With more than 10,000 facilities in operation, Germany is the largest manufacturer in the world. As a result, the aforementioned elements will influence the local market
Global Biorefinery Technologies Market: Competitive Landscape
In June 2020, Gasum, a Nordic energy company, announced the launch of a liquefied natural gas (LNG) and liquefied biogas (LBG) filling station near Stockholm's Arlanda Airport. The first Gasum station in the Stockholm area. In April 2020, Ductor, a Finnish Swiss biotech company, is building three biofertilizer-biogas complexes in northern Poland. The new facilities will be built in Poland's Zachodniopomorskie area. Two new plants will have a 0.5MW installed capacity, while the third will have a 1MW installed capacity.
Few of the players in the Biorefinery Technologies Market include Renewable Energy Group Inc., Neste, Abengoa Bioenergy SA, UOP LLC, Valero Energy Corporation, and Pacific Ethanol Inc.
Global Biorefinery Technologies Market is Segmented as Below:
By Industry Vertical
Key Elements Included In The Study: Global Biorefinery Technologies Market
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