According to a new report from Navigant Research, global demand for biofuels used for road transportation will grow from 32.4 billion gallons in 2013 to 51.1 billion gallons by 2022.
The report, “Biofuels for Transportation Markets,” analyzes the emerging markets and future growth opportunities for biofuels, including ethanol, biodiesel, and drop-in biofuels. The report provides an analysis of the major demand drivers and market challenges related to biofuels technologies. The report also examines the key technologies associated with biofuels, as well as the competitive landscape.
“Developed nations in Europe and North America are beginning to see declines in liquid fuels consumption from the road transportation sector, due to increased vehicle fuel efficiency and growing interest in alternative fuel vehicles,” said Scott Shepard, research analyst with Navigant Research.
“The continued growth of conventional biofuels relies either on policies increasing biofuel blend requirements, or on growing vehicle markets in the Asia Pacific region. Meanwhile, advances in biofuels derived from non-food feedstocks, and biofuels that require no changes to infrastructure or vehicles, promise to significantly alter the petroleum industry landscape,” added Shepard.
According to the report, petroleum consumption by the road transportation sector in the United States is expected to peak in 2016, according to the report, as biofuels grow to account for 8.7 percent of demand. Major stakeholders, including the airline industry and the U.S. Department of Defense, stand to benefit greatly from advances in drop-in biofuels and will continue to spur development of the technology, driving the price per gallon down to competitive levels.