The biofuels market is expected to grow by almost 8.4% through 2021, according to a new report from Technavio.
Based on an in-depth market analysis with input from industry experts, "Global Automotive Biofuels Market 2017-2021" report covers the growth prospects of the biofuels industry over the next five years, with discussion from key market vendors.
According to the report, increasingly stringent regulations on emissions will drive the market for automotive biofuels, with possible support from governments as they work to reduce the impact of greenhouse gasses and, as consequently, minimize negative effects of climate change.
Also, aiding the growth projections is the trend to make biofuel production also a green process, because the process to make green fuels is itself not environmentally friendly, with various steps including milling, cooking, liquefaction, fermentation and distillation.
The report adds that growth of biofuels could be considerable except for the subsidies to fossil fuel consumption, which is hampering the adoption of biofuels. It cites the latest available data that pegs fossil fuel subsidies at $548 billion in 2013, nearly four times higher than subsidies offered for renewable energies. The report claims certain Asia-Pacific and Latin America regions enjoy such fossil fuel subsidies and therefore prefer to use petroleum products over renewables.