Biofuel is the fuel that is made through the biological process from agricultural and anaerobic digestion rather than the traditional geographical process. Fossil fuel such as coal and petroleum is made from the biological material deep in the earth. On the other hand, biofuel is made from the plants through the direct or indirect procedure from the agricultural, industrial or domestic waste.
The renewable biofuel includes the process that extracts biofuel from the process made through photosynthesis while nonrenewable fuel is made through the use of biomass explained as explained above. The demand for fuel is expected to expand 55% by the year 2030 when compared with the fuel demand of 2004 which will create market space for biofuel.
Some countries such as India and Germany are using the blend or pure mix of biofuel to meet the fuel demands. These countries are using biofuel in the public transport system. The Renewable Energy Directive also is known as RED of Europe has the aim to run 10% of the transport on renewable sources by the year 2020. The global market for renewable fuel is expected to grow at a fast pace.
The global demand for renewable fuel is increasing due to the fluctuating prices of fossil fuel and the harmful emission of biofuels. The depletion of fossil fuel is another factor driving the market. The worldwide support for biofuel research is also driving the market. The increased tax on the import of biofuels is restraining the growth of the global biofuel market.
The market is segmented on the basis of fuel type which includes biodiesel and bioethanol. The market share of bioethanol is more than the biodiesel due to its increasing demand in the vehicles. In terms of market share bioethanol has a market share of 64% while biodiesel has a market share of 36%.
The market is also segmented on the basis of region and the details of all the regions are provided in the analysis. The analysis of the basis of regions is based on the social, political and economic factors of the provided regions. The companies producing biofuels are expanding their horizon along with product portfolio which is expanding the market.