Marine Biofuel Market
Marine Biofuel Market Analysis by FAME [Biodiesel], HVO [Renewable Diesel], Ethanol, Biomethanol, and BioLNG for Passenger, Cargo, and Military Vessels from 2024 to 2034
Analysis of Marine Biofuel Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Marine Biofuel Market Outlook (2024 to 2034)
The global marine biofuel market size is calculated at a value of US$ 3.94 billion for 2024 and is projected to end up at US$ 7.99 billion by 2034. Worldwide demand for marine biofuel is forecasted to rise at 7.3% CAGR between 2024 and 2034.
Renewable fuel derived from using organic materials and sourced from marine biomass that is capable of powering marine vessels such as ships and boats is known as marine biofuel. Marine biofuel is different than regular biofuel as it has to meet the specific requirements of long-distance sea travel.
The shipping industry has emerged as one of the leading contributors to carbon emissions in the world and efforts to reduce the same are projected to uplift sales of marine biofuel around the world going forward. Implementation of stringent mandates to curb emissions from marine vessels by different governments and high emphasis on sustainability are also forecasted to aid marine biofuel market growth through 2034.
- In July 2023, the International Maritime Organization (IMO) adopted interim guidance on the use of biofuels in marine vessels. The guidance stressed that the biofuels used in marine vessels should have international certification and reduce GHG emissions by at least 65% as compared to conventional fossil fuels.
Advancements in marine biofuel technology, growing acceptance of alternative fuels in the marine industry, and low costs of biofuel production are other marine biofuel market trends that could create new opportunities for marine biofuel suppliers over the coming years.
| Report Attributes | Details |
|---|---|
| Marine Biofuel Market Size (2024) | US$ 3.94 Billion |
| Projected Market Value (2034F) | US$ 7.99 Billion |
| Global Market Growth Rate (2024 to 2034) | 7.3% CAGR |
| East Asia Market Value (2024E) | US$ 382.8 Million |
| Demand Growth in Canada (2024 to 2034) | 5.7% CAGR |
| Liquid Marine Biofuel Segment Share (2024E) | 92.2% |
| Key Companies Profiled |
|
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How Can Start-ups Sustainably Power the Future of Marine Vessels?
“Advancements in Biofuel Technology Creating Opportunities for New Companies”
The race to develop a perfect biofuel suitable for a multitude of applications has been on for quite a while now and this trend has attracted many new companies to invest in the R&D of novel biofuels. Incoming marine biofuel manufacturers are focusing on solving the challenges associated with the use of biofuels to make a mark in this marketplace.
- Paterson Energy, a new company based in India is creating replacements for traditional fuel by using sorted plastic waste to create alternative fuel oil and carbon black. With their proprietary technology, they create a product called Verte-X that has similar calorific values as diesel and can be used to power marine engines.
New marine biofuel companies are also focusing on raising new capital and partnering with established market players to expand their business scope and boost revenue generation in the future.
- Wastefuel, a start-up founded in 2018 to convert waste into fuel, received US$ 10 million in funding from British Petroleum (BP) in July 2023. Wastefuel had plans to utilize the recently raised capital to create a network of waste-to-biofuel conversion plants around the world.
- In October 2022, Goodfuels, Carnival Corporation, and Wärtsilä came together to carry out ship trials involving 100% biofuel and 70% diesel with 30% biofuel mixture using Wärtsilä ZA40 engine. The tests were carried out on Holland America Line’s vessel Volendam.
Start-ups can gain a detailed understanding of factors such as local supply, pricing trends, product standards, safety regulations, and new developments in this marine biofuel market research analysis by skilled analysts at Fact.MR, a market research and competitive intelligence provider.
Why is Europe a Formidable Force in the Marine World?
“Huge Marine Territory of Europe Makes it Profitable Market for Biofuel Suppliers”
The contribution of the marine industry is huge to European economies as the region has a substantial chunk of the world’s marine territory. The region is home to some of the most prominent shipbuilding companies and industries in the world, which makes it a highly rewarding market for marine biofuel companies.
Strong devotion of European countries towards sustainability and energy innovation is also estimated to create new opportunities for marine biofuel manufacturers over the coming years. Germany, Netherlands, Sweden, and Belgium are some prominent markets in the European region for suppliers of marine biofuel in the future.
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Country-wise Insights
Apart from investing in European countries, marine biofuel distributors can target China, Japan, South Korea, and the United States to scale their business on a global level and boost revenue generation in the future.
How Investment-worthy is Japan for Marine Biofuel Companies?
“Presence of Robust Shipbuilding Industry and Huge Naval Fleet”
| Attribute | Japan |
|---|---|
| Market Value (2024E) | US$ 159.6 Million |
| Growth Rate (2024 to 2034) | 7.2% CAGR |
| Projected Value (2034F) | US$ 340.3 Million |
Japan is a formidable marine force in the world and this is why it is a highly opportunistic space for marine biofuel suppliers as well. The country controls a huge naval as well as commercial shipping fleet that makes it a moneymaking market for all things marine. Increasing efforts of Japanese ship manufacturers and fleet owners to reduce maritime emissions and make sea transportation sustainable are estimated to bolster shipments of marine biofuel in the country going forward.
- In May 2022, ITOCHU Corporation, a leading Japanese trading company, announced that it has partnered with GoodFuels, a provider of marine biofuel to scale the availability of sustainable marine biofuel in the Asian region.
What Makes the United States a Key Market in This Space?
“Surging Investments in R&D of Novel Biofuels”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 862.2 Million |
| Growth Rate (2024 to 2034) | 7.4% CAGR |
| Projected Value (2034F) | US$ 1.75 Billion |
The government in the United States has been imposing stringent restrictions on the maritime industry to curb emissions from marine vessels, which is driving shipments of marine biofuels in the country. Rising air pollution and the growing availability of advanced biofuel production technology are also forecasted to increase the marine biofuel market size in the United States over the coming years.
Increasing investments in the R&D of novel biofuels by public and private organizations in the country are also creating new opportunities for marine biofuel providers going forward.
- In January 2023, the United States Department of Energy (DOE) revealed its plans to allocate US$ 118 million to 17 different projects that are aimed at scaling and accelerating the production of biofuels in the country.
Category-wise Insights
Marine biofuel manufacturers are focusing on providing FAME biodiesel for cargo vessels to maximize their revenue generation potential in the long run.
What’s Driving High Preference of FAME Biodiesel?
“Compatibility with Existing Infrastructure”
| Attribute | FAME (Biodiesel) |
|---|---|
| Segment Value (2024E) | US$ 1.42 Billion |
| Growth Rate (2024 to 2034) | 6.8% CAGR |
| Projected Value (2034F) | US$ 2.74 Billion |
Fatty acid methyl ester (FAME) biodiesel is gaining popularity around the world owing to its ability to work with existing engines and distribution infrastructure. FAME biodiesel can be effortlessly blended with conventional diesel to create a smooth transition from fossil fuels to cleaner and sustainable fuels in different modes of transportation including marine. The use of FAME biodiesel is projected to increase as companies opt for it to comply with changing emission mandates for ships and other marine vessels.
For Which Type of Vessel is Marine Biofuel Widely Used?
“Cargo Vessels to Account for High Marine Biofuel Consumption”
| Attribute | Cargo |
|---|---|
| Segment Value (2024E) | US$ 3.2 Billion |
| Growth Rate (2024 to 2034) | 7.5% CAGR |
| Projected Value (2034F) | US$ 6.6 Billion |
Marine cargo vessels are crucial in world trade and the majority of trade is carried using these cargo vessels. Cargo vessels contribute significantly to the global carbon footprint as they burn more fuel to carry huge amounts of cargo from one point to another. Increasing focus on improving the sustainability of the supply chain is pushing cargo companies to opt for marine biofuels as they allow them to improve their profit margins while complying with strict emission mandates.
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
Competitive Landscape
Leading marine biofuel brands are focusing on partnerships, collaborations, mergers, and acquisitions to fast-track the R&D of their products as well as improve their global marine biofuel market share.
- In September 2022, Wärtsilä, Meriaura, and Green NortH2 Energy collaborated to build a new cargo vessel that would be powered by green ammonia. The vessel is projected to be completed by 2024 and is estimated to start operations in 2026.
Key Segments of Marine Biofuel Market Research
-
By Fuel Type :
- FAME (Biodiesel)
- HVO (Renewable Diesel)
- Ethanol
- Biomethanol
- BioLNG
- Others
-
By Feedstock :
- Sugarcane
- Corn
- Vegetable Oil
- Castor Oil
- Biomass
- Others
-
By Form :
- Liquid
- Gas
-
By Vessel Type :
- Passenger
- Cargo
- Military
- Others
-
By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
What is the current marine biofuel market size?
The global marine biofuel market is estimated to be valued at US$ 3.94 billion in 2024.
How big will the marine biofuel market be by 2034?
Sales of marine biofuel are forecasted to reach US$ 7.99 billion by 2034-end.
Will marine biofuel be in demand in the future?
Revenue from marine biofuel is set to increase at 7.3% CAGR over the next ten years.
Which country leads the demand for marine biofuel?
Shipments of marine biofuel in the United States are projected to rise at 7.4% CAGR from 2024 to 2034.
What statistics are listed for the market in China in this report?
Marine biofuel demand in China is set to rise at 8.6% CAGR over the next ten years.
Who are the leading marine biofuel suppliers?
Cargill, Neste Oil, Chevron Corporation, GoodFuels, ExxonMobil, BP plc, UPM, and TotalEnergies are top marine biofuel producing companies.
Marine Biofuel Market