Widening Energy Gap Pushes Countries to Use Bioenergy
The growing demand for energy to keep up with the industrial spurt and the rampant urbanization has created a huge shortfall, coaxing several countries to resort to alternative energy options. The increasing pressure on the world leaders to reduce the carbon footprint and the deadly amount of greenhouse gasses is also forcing nations across the globe, especially developing countries to take up the option of bioenergy seriously. With these environmental, social, and political pressures the opportunity in the global bioenergy market is anticipated to be worth US$246.52 bn by 2024 from US$158.39 bn in 2015. During the forecast period of 2016 and 2024, the global market is expected to rise at a CAGR of 4.9%.
Yet another growth driver for the bioenergy is the looming crisis of energy security. The transportation industry, known as the backbone of every economy, depends on oil, which makes it exceptionally vulnerable to any changes in the oil prices. Modern economies are heavily relying on renewable sources of energy to achieve long-term energy security by reducing their dependence on other nations to fuel their economic growth. Thus, the sustainable environmental projects initiated by several governments are expected to propel the usage of bioenergy across several sectors.
Bioethanol: An Alternative to Conventional Fuel
Bioethanol is the largest product segment of the bioenergy market. Increasing awareness about the advantages of bioethanol, its cost-efficiency, and its benefit to the environment are some the underlying factors supporting the growth of this segment. The biggest end user of bioethanol is the transportation industry. The sale of bioethanol has gained momentum in the recent years due to the ban on usage of gasoline in some countries. In the foreseeable future, the unaffordable rise in the price of crude oil is going to push governments and private sector to commercialize the sale of bioethanol for several purposes.
Some of the key players operating in the global bioenergy market are Joule Unlimited, Amyris, Inc., Abengoa Bioenergy, BP Biofuels, Butamax Advanced Biofuels, Ceres Inc., E. I. du Pont de Nemours and Company, Enerkem, Gevo, Inc., POET LLC, Novozymes, LanzaTech, Sapphire Energy, Zeachem Inc., and Solazyme Inc. The majority of the players in this market are focusing on improving their brand awareness and investing in expanding their geographical reach to grab bigger and better shares in the overall market. Vertical integration is also an important business strategy adopted by some of the companies in the global bioenergy market.
This post was originally published on Market Reports