Algae Biofuel Market Size, Share & Trends Analysis Report By Application (Transportation, Others), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2023 - 2030

Algae Biofuel Market Size, Share & Trends Analysis Report By Application (Transportation, Others), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2023 - 2030

Algae Biofuel Market Growth & Trends

The global algae biofuel market size is expected to reach USD 17.94 billion by 2030, registering a CAGR of 10.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. Depleting fossil fuel resources as well as rising awareness towards environment protection is expected to be the key factor for driving industry growth.

Algae has the ability to offer 2 to 20 times higher yield than existing biofuel feedstock including corn stover, corn, sorghum and beet which is likely to open new avenues for the industry growth over the projected period. Increasing R&D conducted by numerous startup companies as well as various oil & gas majors, and university-led research consortiums are expected to propel production of the over the projected period. However, technological challenges and high capital investment in algae biomass and fuel production are expected to limit the industry growth.

Growing demand for low cost, reliable and sustainable energy sources to ease acute vulnerability to petroleum supply chain and meet the rising fuel demand by automotive and aviation sector is expected to have a positive impact on the industry growth over the forecast period. The industry is experiencing three major hurdles including maintaining algae biomass cultivation consistency across various regions and climates, high water demand for algae production and lack of technology innovation to commercial scale up. As a result, the market is expected to foresee regional partnerships and collaborations to capitalize the production and technology exchange for large scale productions.

Algae Biofuel Market Report Highlights

• Transportation accounted for the largest revenue share of around 75.3% in 2022 and is expected to grow at the fastest CAGR of 10.6% over the forecast period, owing to the potential of algae to replace traditional diesel and petrol products.
• High demand for biodiesel in the European countries owing to the government regulations and high adoption rate in the region is expected to propel industry growth.
• North America is expected to be the largest market accounting over 30%, owing to high investment by the start-up companies and the U.S. government to support renewable energy sector over
• Asia Pacific is expected to grow at the fastest CAGR of 10.5% during the forecast period, owing rapid technological advancements and low raw material costs in the region

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