by The United States biofuels market has witnessed significant growth in recent years owing to the growing popularity of renewable fuel sources like ethanol and biodiesel. Biofuels are produced from biomass resources such as corn, sugarcane, vegetable oils etc. and are capable of reducing greenhouse gas emissions as compared to fossil fuels like petrol and diesel. Ethanol is commonly produced from corn and used as a gasoline additive or substitute, while biodiesel is usually made from vegetable oils, animal fats or used cooking oils. Both these biofuels provide an eco-friendly alternative to gasoline and diesel without comprising on performance. Growing awareness regarding the imminent dangers of climate change has prompted governments across the world to mandate the use of biofuel blends. The US federal government requires transportation fuel to contain a minimum volume of renewable fuels under the Renewable Fuel Standard program.
The global U.S. Biofuels Market is estimated to be valued at US$ 32.91 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the U.S. biofuels market size is the development of advanced biofuel technologies. Researchers are actively working on the commercialization of second and third generation biofuel production technologies that use non-edible feedstocks like cellulosic biomass, algae, municipal solid waste etc. These advanced biofuels have lower carbon footprint, are compatible with existing infrastructure and do not compete with food crops for agricultural land. Increased funding in advanced biofuel research is expected to help minimize production costs and drive their adoption in the coming years. Government incentives and policies also play a key role in promoting innovation, farmer education and consumer acceptance of alternative transportation fuels.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as there are high capital requirements and regulatory requirements to enter the U.S. biofuels market.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of large fuel companies and vehicle manufacturers that dominate the market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers have fewer options to sell to.
Threat of new substitutes: The threat of new substitutes such as electric vehicles is moderate as they are still in the developing stages.
Competitive rivalry: Competition in the U.S. biofuels market is high due to the presence of major players.
Key Takeaways
The global U.S. biofuels market is expected to witness high growth.
Regional analysis: The Midwestern region of the United States dominates the biofuels market owing to the largest production of corn and other feedstocks. States like Iowa, Illinois and Nebraska account for over 50% of the total biofuel production in the country.
Key players operating in the U.S. biofuels market are Simply Warranty, PTC, Inc., Snap-On Business Solutions, Inc., Oracle Corporation, Zafire Ltd., SAP SE, Pegasystems, Inc., Tavant Technologies, Inc., and Astea International, Inc. Simply Warranty leads the market with its comprehensive warranty management software solutions catering to vehicle and equipment manufacturers.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
