Lignocellulosic Feedstock-based Biofuel Market is Expected to grow at a robust CAGR of 36.28% through 2030F
Lignocellulosic Feedstock-based Biofuel Market is increasing
due to growing demand for sustainable, low-emission fuels and the abundant availability
of non-food biomass resources during the forecast period 2026-2030F.
According to TechSci Research report, “Lignocellulosic Feedstock-based
Biofuel Market – Global Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2020-2030F”, The Global Lignocellulosic
Feedstock-based Biofuel Market was valued at USD 35.58 billion in 2024 and is
expected to reach USD 229.98 billion by 2030 with a CAGR of 36.28% during the
forecast period.
The rising demand for sustainable aviation fuels
(SAFs) is a significant driver of the Lignocellulosic Feedstock-based Biofuel
Market, as the aviation industry seeks low-carbon alternatives to meet
stringent emission reduction targets. Lignocellulosic biofuels, particularly
biojet fuels derived from feedstocks like wood residues, agricultural waste,
and energy crops, are gaining traction due to their ability to reduce
greenhouse gas emissions by up to 80% compared to conventional jet fuels.
The aviation sector, responsible for approximately 2%
of global carbon emissions, faces increasing pressure to decarbonize under
initiatives like the International Civil Aviation Organization’s Carbon
Offsetting and Reduction Scheme for International Aviation (CORSIA).
Lignocellulosic feedstocks are ideal for SAF production because they do not
compete with food crops and can be sourced from abundant waste materials,
ensuring sustainability and scalability.
Major airlines and fuel producers are investing
heavily in SAF production facilities, with companies like Neste and BP
expanding their lignocellulosic biofuel portfolios. For example, thermochemical
processes like hydrothermal liquefaction and gasification are being optimized
to produce high-quality biojet fuels from lignocellulosic biomass, offering a
drop-in solution compatible with existing aircraft engines.
The European Union’s ReFuelEU Aviation initiative
mandates a 6% SAF blend by 2030, driving demand for lignocellulosic-based
fuels. Similarly, the U.S. Inflation Reduction Act provides tax credits for SAF
production, encouraging investment in advanced biorefineries. The use of
lignocellulosic feedstocks also supports circular economy principles by
repurposing waste materials, reducing disposal costs and environmental impacts.
As consumer awareness of climate change grows, airlines are increasingly committing
to net-zero goals, further boosting demand for SAFs. The scalability of
lignocellulosic feedstocks, combined with advancements in conversion
technologies, positions the Lignocellulosic Feedstock-based Biofuel Market to
meet the aviation industry’s growing need for sustainable fuel solutions,
driving significant market growth.
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Based on By End-Use, In 2024, the
transportation segment dominated the lignocellulosic feedstock-based biofuel
market and is expected to maintain its leading position throughout the forecast
period. This dominance is primarily driven by the global emphasis on reducing
greenhouse gas emissions from the transportation sector, which remains one of
the largest contributors to environmental pollution. Governments and regulatory
bodies across major economies such as the United States, the European Union,
China, and India have implemented aggressive mandates and incentives aimed at
increasing the share of renewable fuels in the transportation fuel mix.
Lignocellulosic biofuels, especially cellulosic
ethanol and advanced biofuels, are increasingly being adopted as viable
alternatives to conventional gasoline and diesel, as they are produced from
non-food biomass sources such as agricultural residues, forestry waste, and
energy crops. These fuels offer significant carbon savings over their lifecycle
and help countries meet their climate commitments under international
agreements. Additionally, the transportation industry benefits from the fact
that lignocellulosic biofuels are compatible with existing internal combustion
engines and fuel distribution infrastructure, enabling rapid integration
without substantial capital investment.
The rise in demand for low-emission fuels in aviation
and heavy-duty trucking sectors is further propelling the use of
lignocellulosic biofuels. Strategic collaborations between biofuel producers
and transportation companies, especially in the aviation sector, are
reinforcing supply chain development and encouraging large-scale production.
Investment in research and technological advancements is also enhancing fuel
quality and improving energy yields, making lignocellulosic biofuels more
attractive for long-distance and commercial transport. Moreover, the
transportation segment benefits from a mature policy framework, which includes
carbon credit mechanisms, renewable fuel standards, and financial subsidies,
all of which contribute to its continued dominance. With sustainability targets
becoming increasingly stringent, the transportation segment is expected to
remain the primary consumer of lignocellulosic feedstock-based biofuels in the
years ahead.
Europe is emerging as the fastest growing region in
the lignocellulosic feedstock-based biofuel market, propelled by strong
regulatory frameworks, ambitious climate targets, and sustained investment in
advanced biofuel technologies. The European Union has committed to achieving
climate neutrality by 2050, and advanced biofuels derived from non-food biomass
such as agricultural residues, forestry byproducts, and energy crops are
considered critical to meeting this goal. Under the Renewable Energy Directive
II and its proposed updates, member states are required to increase the share
of advanced biofuels in transportation fuels, thereby directly stimulating
demand for lignocellulosic biofuels. Several European nations, including
Germany, France, Sweden, and Finland, have already set specific blending
mandates for second-generation biofuels, further accelerating market
development.
Europe also benefits from a well-established research
and innovation ecosystem, with numerous public-private partnerships and funding
mechanisms such as Horizon Europe and the Innovation Fund supporting the
commercialization of lignocellulosic conversion technologies. Companies like
Clariant AG, Sekab, and UPM-Kymmene Corporation are leading the charge with
operational or planned commercial-scale facilities across the continent.
Furthermore, Europe's commitment to the circular economy and sustainable land use
aligns well with the use of agricultural and forestry waste for biofuel
production, providing both economic and environmental advantages.
The region's logistics infrastructure and stringent
sustainability certification systems such as REDcert and ISCC ensure
traceability and compliance, fostering investor confidence and market
transparency. In addition, the growing demand for sustainable aviation fuel and
renewable marine fuels across Europe is creating new avenues for
lignocellulosic biofuel applications. As transportation decarbonization gains
momentum and fossil fuel alternatives become more urgent, Europe’s proactive
policies, feedstock potential, and technological leadership position it as the
fastest growing region in the global lignocellulosic feedstock-based biofuel
market. This growth trajectory is expected to remain strong over the coming
years, supported by continued innovation and regional cooperation.
Key market players in the Global Lignocellulosic
Feedstock-based Biofuel market are: -
- POET-DSM Advanced
Biofuels LLC
- DuPont de Nemours, Inc.
- Beta Renewables S.p.A.
- Clariant AG
- Abengoa Bioenergy S.A.
- GranBio Investimentos S.A.
- Raízen S.A.
- Enerkem Inc.
- INEOS Bio
- Borregaard AS
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“Lignocellulosic Feedstock-based Biofuel
Market is poised for significant growth in the future, driven by increasing
adoption of automated cleaning solutions across commercial, industrial, and
institutional sectors. Technological advancements in battery efficiency, such
as the rise of lithium-ion and smart battery systems, will enhance machine
performance, reduce maintenance, and support longer operational cycles. Growing
emphasis on workplace hygiene, sustainability, and labor cost optimization will
further accelerate demand. Additionally, expanding infrastructure in emerging
economies and the integration of connected cleaning equipment will create new
opportunities, positioning the Lignocellulosic Feedstock-based Biofuel market
for sustained expansion over the coming years”, said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based Global management
consulting firm.
“Lignocellulosic
Feedstock-based Biofuel Market - Global Industry Size, Share, Trends,
Opportunity, and Forecast, Segmented By Biofuel Type (Bioethanol, Biodiesel,
Biobutanol, Bio-oil, Syngas), By Technology (Biochemical Conversion,
Thermochemical Conversion, Hybrid Technologies), By End-Use (Transportation,
Power Generation, Industrial Heating), By Region & Competition,
2020-2030F,”
has evaluated the future growth potential of Global Lignocellulosic
Feedstock-based Biofuel Market and provides statistics & information
on market size, structure, and future market growth. The report intends to
provide cutting-edge market intelligence and help decision makers take sound
investment decisions. Besides the report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in Global
Lignocellulosic Feedstock-based Biofuel Market.
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