The global algae biofuel market is estimated to show growth from US$5.022 billion in 2020 to US$9.033 billion in 2027 at a CAGR of 8.75%.
The key factor driving the growth is the demand for algae biofuel as an essential energy source. Due to the rising prices of petrol and diesel, the demand for algae biofuel has increased. Moreover, increasing inclination towards eco-friendly lifestyles owing to their health benefits and fewer or no environmental hazards is boosting the demand for algae biofuel. As a result, all biofuels are referred to as a replacement for oil or another environmentally hazardous fuel. Algae B biofuel has the potential to provide around 20 times the output of other conventional biofuels like sorghum, beet, corn, and corn stover. This feature of algae biofuel has the potential to open new pathways for industrial growth during the forecast period.
Algae biofuels are produced from biomass and are in the form of both liquid and gaseous forms. They are generated through the conversion of biomass material, which can be done thermally, chemically, or biochemically Algae Biofuel has various other qualities over other biofuels, such as high energy content, high biodegradability, and faster microorganism growth. These qualities make the algae biofuel’s manufacturing practices. Some of the biofuel types made from algae biofuels are green diesel, biodiesel, bioethanol, methane, jet fuel, bio-butanol, and bio-gasoline.
Algal biofuel has applications in the automotive, transportation, aerospace, and defense industries. It has come up as the best third-generation alternative to the second-generation crop-based biofuel. Increasing research and developments in algae biofuel are making it more applicable in many sectors and making its production more economical and viable. Many industrial sectors have also started using algae biofuel commercially due to its increasing popularity since the last decade. Algae biofuel can be used to generate combined heat and power or can be used for pyrolysis oil. Algae biofuel is also preferred in transportation because it directly replaces petroleum without any changes in engine performance.
According to the United States Energy Department, if algae biofuel completely replaces petroleum fuel all over the USA, it will require only 15 thousand square miles, which is 0.42% of the total USA area. It is stated that this area would be less than 1/7 of the total area of corn harvested in the USA. Whereas, in November 2022, an engineer in India started creating biofuel from microalgae in Jharkhand’s Pond.
Convenient natural sources to produce algae biofuel
As light is the prime factor needed for the cultivation of algae, investors are more interested in investing in the production of algae biofuel as the requirements are comparatively lower. Additionally, as algae biofuel is a competitive alternative to petroleum and diesel, it will gain at increasing rates in the future, making algae biofuel a profitable investment. Countries that have huge waterbodies also prefer the production of algae biofuel. Water temperature is what influences the growth of algae the most. Although the use of a few media can accelerate the production of algae biomass, the two most enriching mediums are Guillard’s F/2 and Walne medium. These media reduce the time required for the preparation of the nutrients that are needed to grow algae. Thus, various nutritive solutions, viability, profit to the investors, and most importantly, increasing popularity among the consumers for algae biofuel are all contributing to the rising demand for algae biofuel globally. For instance, in November 2021, ExxonMobile announced the commercialization of biofuels from algae technology.
Thus, it is estimated that this will lead to an increase in the market size during the forecast period.
Challenges for the algae biofuel market
Due to a lack of knowledge regarding the cultivation of algae, not all manufacturers take the risk of its production. Moreover, according to the study by the Center for Algae Biotechnology, California University, the challenges that affect of algae biofuel production are nutrient sourcing and utilization, strain isolation, production management, coproduct developments, and fuel extraction.
|Market size value in 2020||US$5.022 billion|
|Market size value in 2027||US$9.033 billion|
|Growth Rate||CAGR of 8.75% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Applications, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||ExxonMobil, Manta Biofuel, Algenol, Synthetic Genomics, Cellana, ALFA LAVAL, Seambiotic|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the global algae biofuel market size by 2027?
A1. The global algae biofuel market is estimated to reach a market size of US$9.033 billion by 2027.
Q2. What is the size of the global algae biofuel market?
A2. Algae Biofuel Market was valued at US$5.022 billion in 2020.
Q3. What are the growth prospects for the algae biofuel market?
A3. The algae biofuel market is estimated to grow at a CAGR of 8.75% during the forecast period.
Q4. What factors are anticipated to drive the algae biofuel market growth?
A4. The key factor surging the growth is the demand for algae biofuel as an essential energy source.
Q5. How is the global algae biofuel market segmented?
A5. The algae biofuel market has been segmented by type, application, and geography.
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