The global biorefinery market is expected to reach USD 210.3 billion by 2027 from an estimated USD 141.8 billion in 2022, at a CAGR of 8.2% from 2022 to 2027.
Based on the type of biorefinery, the industrial biotechnology segment is expected to exhibit the largest market share from 2022 to 2027. Industrial biotechnology includes both production of bio-based products including fuels, chemicals, and plastics from renewable feedstocks as well as the application of biotechnology-based tools to traditional industrial processes known as bioprocessing, ResearchAndMarkets.com reported.
The capacity of integrated biorefineries to produce numerous products and value streams made possible by industrial biotechnology is seen to have the potential to change the economics of industrial production. Economic advantage, high performance, and environment-friendly products are three key factors responsible for the successful market penetration of large-scale bio-based industrial products.
Energy driven segment — the largest by-product in biorefinery market
Energy driven segment accounted for the largest share in the global biorefinery market, by-product segment. The key factor expected to drive the growth of the segment is the shift in government policies to support the use of renewable energy across industries.
However, other factors, including increased cost of fossil fuel, rise in demand for fuel for automobiles, and specialised policy designed to encourage the use of biofuel, impact the growth and boost the use of biofuel globally.
The Americas: The largest region in biorefinery market
The market in the Americas accounted for the largest share in the global biorefinery market during the forecast period. The Americas is expected to dominate the market due to the increasing efforts to develop forest-based biorefineries in the region. Countries, such as the US, Canada, and Mexico are investing significantly in new projects related to the production of biofuels and developing new technologies to produce bio-based products.
The region has witnessed a rapid growth in electricity demand in recent years, due to the growing population, increasing per capita income, and a growing number of bio-based refineries, coupled with urbanisation.
Rise in Demand for Biofuels and Bio-Based Polymers
Technological Advancements and Increased Investments in Biorefinery Market
Rise in Number of Government Initiatives and Increased Need for Environmental Sustainability
Requirement of High Initial Capital Investments
Uncertain Global Economic Conditions