Algae Biofuel Market Trends Analysis, Size & Growth Report 2030

Biofuels are the products derived from biological materials through biomass conversion. Algae biofuels are developed to conquer the limitations associated with conventional biofuels. Algae biofuel production is more energy efficient than the conventional fossil fuels. Algae biofuels minimize greenhouse gas emissions by 90%; thus, are more eco-friendly. Production of algae biofuels is beneficial for countries with no fuel reserves as it helps to reduce foreign exchange spending towards import of fuels.

The algae biofuel market is driven by the need to produce clean and sustainable energy, with minimal environmental impact. Increasing regulating policies and government support is observed as a key driver boosting the demand for algae biofuel. Moreover, rising fuel demand by automotive and aviation sector is expected to have a positive impact on the industry growth within the forecast period.

The algae biofuel industry is witnessing three main obstacles including high water demand for algae production, maintaining algae biomass cultivation consistency across the globe, and high capital costs along with technological challenges in algae biomass are expected to limit the market in the years to come. Nevertheless, algae can provide 10 to 20 times higher yield than other biofuel feedstocks such as beetroot, sorghum, corn, and other crops, which is likely to open new growth avenues for the industry in future.

Based on the type, the algae market has been segmented into bioethanol, biodiesel, methane, jet fuel, biobutanol, biogasoline, green diesel, and some others. Some of the applications of algae biofuel market include transportation, aerospace, and others. In terms of revenue, transportation segment dominated the market in 2017 owing to the potential of algae biofuel to replace conventional petrol and diesel products. Algae biofuels have tremendous future opportunities as automotive and aviation fuel.

Geographically, the algae biofuels market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2017, North America dominated the algae biofuel market. Favorable government policies toward renewable resources such as algae biofuel are expected to boost the market in this region. Europe has significant demand for algae biofuel, especially in the biodiesel applications. The Asia Pacific is expected to be a major market for the algae biofuel due to the rapid growth of the transport industry in the region. Furthermore, increasing government initiative in producing alternative biofuel is likely to positively impact the algae biofuel market in the Asia Pacific.

To leverage opportunities in the algae biofuel market, many companies are setting up algae biofuel plants.

Some of the key players in algae biofuel market include:

• Algenol
• Blue Marble Production
• Culture Biosystems
• Sapphire Energy Origin Oils Inc.
• Proviron
• Culture Biosystems Genifuels
• Algae Systems
• Solix Biofuels
• Solazyme Inc.
• Reliance Life Sciences

Players are mainly involved in partnership agreements for R&D to exploit maximum potential. For instance, in 2015, Algenol and Reliance Industries have deployed India's first Algenol algae production platform.

This report segments the global algae biofuel market as follows:

Global Algae Biofuel Market: Type Analysis

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

Global Algae Biofuel Market: Application Analysis

• Transportation
• Aerospace
• Others

Global Algae Biofuel Market: Regional Analysis

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa