Global Algae Biofuels Market to Surge at an Anticipated CAGR of 10.3% During 2025-30

• Overview
• Table of Content
• Research Methodology
• Download Free Sample

The Global Algae Biofuel Market size was valued at around USD 10.23 billion in 2024 and is projected to reach USD 18.45 billion by 2030. The market is also estimated to grow at a CAGR of around 10.3% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The market growth is mainly driven by the robust adoption of renewable energy sources to achieve sustainability and increased concerns regarding environmental health. Rapid urbanization and industrial growth have negatively impacted environmental health by releasing harmful substances such as particulate matter, toxic gases, and waste materials into the environment through the burning of various kinds of fossil-based fuels. Such fuels are used in power generation, transportation, aviation, and many other areas.

It has contributed to more clinical and preclinical trials for producing alternative fuels that are renewable and organic, and must be sustainable with future concerns. So, a better alternative called Algae biofuel entered the market.

Moreover, governmental support promotes the utilization of biofuel made from algae on a commercial scale. For instance, as per the U.S. Department of Energy (2024), the government of the United States has announced an investment of almost USD20 million in the Algae biofuel mixing bio-products projects to reduce carbon emissions and to make products with low-carbon content. Additionally, in 2023, the European Parliament introduced the Algae Initiative, which also aims to use algae biofuels to reduce carbon release. The region is also increasing the production capacity for algae production, as there are now over 160 companies in France, Spain, Ireland, etc. for producing microalgae.

Furthermore, the development in the production process leads to high yields of Algae biofuels and raises the consumption of biofuels extracted from Algae feedstock. The widely used algae is Spirulina. It possesses a high amount of oil content, hence becoming a potential source for large-scale biofuel production. This results in the protection of the environment and human health, further states the research report, “Global Algae Biofuel Market Analysis, 2025.”

Segmentation Analysis

Transportation Sector Holds the Largest Market Share

Based on the Application, the market is further bifurcated into Transportation, Aerospace, Power Generation, Agriculture, Industrial, and Others. Among these, transportation is the leading segment with the largest market share of more than 40%. Traditionally, transportation fuels were the source of harmful substances that polluted the environment. It led to serious implications for human health. Therefore, it is leading to the incorporation of biofuels firstly in the transportation sector.

The demand for biofuels in transportation is rapidly growing globally. Many countries like China, the United States, India, Indonesia, Brazil, etc. are actively promoting the blending of diesel with biofuels, including algae biofuels, in the transportation sector to reduce their carbon footprints.

North America Spearheads the Algae Biofuel Industry Globally

North America is the leading region in the Global Algae Biofuel Market, which is mainly dominated by the United States. The growth is driven by the high demand for energy production and transportation due to extensive industrial and infrastructural development in the country. It is ultimately raising the demand for biofuel production involving algae biofuel. To meet the demands, the country has advanced its production capacity, leading to the enormous growth of the biofuels market. As per Science Direct (2023), the average production of bioethanol by US companies such as Sapphire Energy, Seambiotic, and Algenol has now reached around 3.7 billion liters annually.

Also, as per the US Department of Energy, the United States aimed to achieve the target of producing more than 18 billion liters of biodiesel per year, especially from algae, by 2030. Additionally, as per the U.S. Department of Energy (2024), the Funding Opportunity Announcement (FOA) will invest more than USD 18.5 million for R&D of the algae conversion to biofuel production.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Algenol Inc., Sapphire Energy, Genefuel Corporation, Original Clear, Cellana Inc., Neste, Renewable Energy Group, Viridos Inc., Solix Biofuels Inc., Manta Biofuels Inc., Euglena Co. Ltd., Inventure Renewables Inc., and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?