Global Biofuel Enzymes Market - 2023-2030
Global Biofuel Enzymes Market reached US$ 1.1 billion in 2022 and is expected to reach US$ 1.8 billion by 2030 growing with a CAGR of 6.4% during the forecast period 2023-2030.
With the growing environmental concerns and increasing government efforts to pass legislation permitting the use of biofuels, the market for biofuel enzymes is developing. Biofuels are encouraged for the future due to the unavoidable degradation of non-renewable resources and favorable environmental characteristics. As a result, fuel costs and CO2 emissions have fallen down.
As the world's energy demand rises, there is a growing need for alternative non-fossil fuel sources. The production of alternative fuels is made for various feedstock types and biofuel enzymes are a key component. The market for biofuel enzymes has grown as interest in starch-based ethanol has shifted to bio-based ethanol.
Market DynamicsGrowing Market Demand for Ethanol
One of the main drivers of the global market for biofuel enzymes is the use of ethanol as a biofuel. The automotive industry has experienced considerable growth in recent years and has encountered many obstacles in reducing air pollution. To address the increased air pollution brought on by automobiles, ethanol is combined with petrol up to quantities of 10% and 15%.
Demand for the chemical, which is used to make petrol additives to increase fuel economy, is being driven by both the expanding demand for vehicle fuel and changing rules aimed at lowering air pollution. The least cost petrol additive is ethanol. Replacing aromatics in petroleum products also helps to minimize the emission of air pollutants such as CO, PMs, NO and exhaust hydrocarbons.
High Costs Of Biofuel Enzymes
One of the key challenges limiting the industry from expanding is the high cost of the enzymes used to produce biofuel enzymes. Demand for biofuels and enzymes may be affected by the price and availability of raw materials including corn, sugarcane and soybeans. Changes in the price of feedstock can impact the ability of biofuel producers to make profits as well as their inclination to invest in enzyme technology.
Current lignin degradation processes are costly, leave wasteful and unwanted scraps (whose disposal incurs additional expenditures) and occasionally might generate unwanted chemicals. Commercial production of biofuel enzymes is hampered by the high production costs, which include the cost of the raw materials, the cost of pretreatment, the cost of the enzyme, etc.
COVID Impact
Global demand for biofuel enzymes has been significantly impacted by the COVID-19 epidemic. Various regulations and incentives have been put in place by governments worldwide to encourage biofuel use and lessen reliance on fossil fuels. Policies like renewable fuel requirements and mandates for biofuel blending have led to an environment that is conducive to market expansion for biofuel enzymes.
The German Bioethanol Industry Association has released market data for producing and consuming certified sustainable bioethanol in 2020 for informational purposes. German bioethanol production in 2020 was over 700,000 tonnes, up 7.1% from the year before. Bioethanol was standardized for use as fuel. In 2020, German producers also provided the essential ingredients for disinfectants.
AI Impact
To develop novel enzymes and proteins that can catalyze particular chemical reactions, researchers can use artificial intelligence, which can potentially change the field of enzyme design. Scientists can develop new enzymes that are more effective and economical than existing ones by utilising machine learning algorithms to assess huge databases of chemical structures and properties.
Artificial intelligence (AI), which may assist in the identification and optimisation of procedures to convert waste and byproducts of biofuel production into value-added products, has the potential to have a substantial impact on the global market for biofuel enzymes. Artificial intelligence (AI) systems can analyse the makeup of waste streams and recommend the best conversion pathways, resulting in extra revenue streams and increased sustainability in the manufacture of biofuels.
Russia-Ukraine War Impact
Russia's invasion of Ukraine has significantly impacted the world energy environment. Consumers have been affected hard by rising prices in many parts of the world due to a geopolitical environment that prioritizes energy security. The economic harm brought on by the conflict in Ukraine has increased calls for an expedited energy transition.
The Global Biofuel Enzymes Market is impacted in a number of various ways by the ongoing conflict between Russia and Ukraine. Market volatility can result from economic uncertainty brought on by geopolitical tensions and conflicts. Uncertainty may have an effect on investor confidence and decision-making, thereby delaying investments and projects in the biofuel sector, especially those involving enzyme research, development and commercialization.
Segment AnalysisThe Global Biofuel Enzymes Market is segmented based on product, application and region.
Capability of Amylase to Break Down Complex Starch
The amylase segment, which can make up around 32% of the market, is expected to experience substantial expansion during the forecast period. Owing to its capacity to bear a wide range of temperatures and pH levels, it is anticipated to expand quickly and is anticipated to contribute to the market expansion of biofuel enzymes. Simpler sugars like glucose, maltose and maltotriose can be produced from complex starch molecules by amylases.
In comparison to chemical techniques for breaking down of starch, enzymatic hydrolysis is more effective and focused. Amylases can break down certain bonds in starch, increasing the desirable sugars produced. In the forecast period, it is anticipated that the switch to employing cellulases and associated enzymes to generate starch and ethanol will drive the global biofuel enzymes market growth.
Geographical AnalysisThe Rapid Technological Developments in North America
During the forecasted period, North America is expected to hold around 1/3rd share of the global biofuel enzymes market. The region is a significant producer of ethanol as a result of the presence of sophisticated economies like the U.S. It generated more than 15 billion gallons of ethanol in 2021, making it the greatest producer in the world. Corn is the primary source of ethanol production in the U.S.
The region is well-versed in many advantages of modern enzymes with major players developing innovative products. For instance, in the North America bioethanol market, BASF Bioenergy introduces SpartecTM, a new brand, in 2022. It aims to improve plant performance by increasing yields, enhancing plant efficiency and lowering carbon intensity.
Competitive LandscapeThe major global players include AB Enzymes GmbH, Codexis Inc., Du Pont De Nemours & Co., Logen Corporation, NextCAT Inc., Noor Creations, Novozymes A/S, Royal DSM NV, Verenium Corporation and Agrivida, Inc.
Why Purchase the Report?• To visualize the global biofuel enzymes market segmentation based on product, application and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of biofuel enzymes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The Global Biofuel Enzymes Market Report Would Provide Approximately 54 Tables, 48 Figures And 205 Pages.
Target Audience 2023• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies