Global Second Generation Biofuels Market Research Report: Forecast (2026-2032)

Global Second Generation Biofuels Market - (Lignocellulosic biomass, Agricultural residues, Forest residues, Municipal Solid Waste (MSW), Algae, Others), By Biofuel Type (Cellulosi......c Ethanol, Biodiesel / Renewable Diesel, Bio-butanol, Bio-DME, Sustainable Aviation Fuel (SAF), Others), By Process- (Thermochemical, Biochemical, Hybrid), By End User (Transportation (road / automotive), Aviation, Marine, Energy & Power, Others), and others Read more

  • Energy
  • Oct 2025
  • 190
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Global Second-Generation Biofuels Market Size: Forecast (2026- 2032)

The Global Second Generation Biofuels Market size is valued at around USD 10.92 billion in 2025 and is projected to reach USD 19.38 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 8.54% during the forecast period, i.e., 2026-32.

Global Second-Generation Biofuels Market Outlook:

The Global Second-Generation Biofuels Market is witnessing steady growth as countries intensify efforts to replace fossil fuels with cleaner and more sustainable alternatives. These advanced fuels, derived from non-food feedstocks such as lignocellulosic biomass, agricultural residues, and waste oils, are gaining traction due to their lower carbon footprint and compatibility with existing fuel infrastructure. For instance, the International Energy Agency (IEA) reported that renewable fuels contributed around 22 exajoules (EJ) to global energy demand in 2023 and are projected to increase to nearly 26 EJ by 2030, reflecting a strong policy-driven expansion across India, China, Brazil, the U.S., and Europe.

Moreover, several global producers are actively scaling up capacity to meet this rising demand. For reference, Neste Corporation currently operates over 5.5 million tons per year of renewable fuel production capacity and aims to reach 6.8 million tons by 2027, primarily using waste and residue-based inputs. Additionally, LanzaJet’s Freedom Pines Fuels facility in Georgia, U.S., has begun producing sustainable aviation fuel (SAF) from waste-derived ethanol, marking a crucial milestone in commercial-scale deployment. Similarly, the European Union’s cellulosic ethanol capacity reached about 125 million liters in 2023, indicating gradual but tangible progress. Collectively, these advancements signal that second-generation biofuels are becoming a cornerstone of the global clean energy transition.

Global Second-Generation Biofuels Market Recent Developments:

  • October 2024: The U.S. Department of Energy announced conditional loan guarantees of nearly USD3 billion for two major SAF, bio-fuel projects in the U.S., reflecting large-scale finance directed at advanced biofuels.
  • July 2024: AM Green announced plans to invest USD1 billion in 2G biofuels by acquiring a 50% stake in Assam Bio Refinery Pvt. Ltd (India) and purchasing Finnish biotechnology firm Chempolis Oy.
  • July 2025: Natural State Renewables entered a strategic partnership with Axens to produce carbon-negative sustainable aviation fuel (SAF) from forest biomass residues.

 

Global Second-Generation Biofuels Market Scope:

 Category  Segments
By Feedstock Lignocellulosic biomass, Agricultural residues, Forest residues, Municipal Solid Waste (MSW), Algae, Others
By Biofuel Type Cellulosic Ethanol, Biodiesel / Renewable Diesel, Bio-butanol, Bio-DME, Sustainable Aviation Fuel (SAF), Others
By Process Thermochemical, Biochemical, Hybrid), By End User (Transportation (road / automotive), Aviation, Marine, Energy & Power, Others), and others

Global Second-Generation Biofuels Market Drivers:

Government Policies Promoting Renewable Energy Adoption

Governments worldwide are implementing strong policy measures to accelerate the transition toward cleaner energy sources. In 2023, the U.S. Environmental Protection Agency (EPA) expanded the Renewable Fuel Standard (RFS) targets, mandating 0.84 billion renewable identification numbers (RINs) of cellulosic biofuel in 2023, 1.09 billion RINs in 2024, and 1.38 billion RINs in 2025, aiming to boost advanced biofuel use and reduce greenhouse gas emissions across the U.S. transportation sector. Similarly, in 2024, the European Union’s Renewable Energy Directive (RED III) came into effect, setting a target of approximately 42.5% renewable energy consumption by 2030, with a specific emphasis on second-generation and advanced biofuels.

Moreover, the emerging economies such as India and Brazil have also launched national biofuel roadmaps in 2024–2025, focusing on waste-to-fuel projects and ethanol blending programs to reduce dependence on imported petroleum. For instance, in Brazil, the “Fuel of the Future Law” enacted in 2024 allows ethanol blends in gasoline to move from 22% to 35%. These coordinated policy actions are encouraging investments in advanced bio-refineries, improving market stability, and driving the long-term growth of the global second-generation biofuels industry.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Second-Generation Biofuels Market Policies, Regulations, and Product Standards
  5. Global Second-Generation Biofuels Market Trends & Development
  6. Global Second-Generation Biofuels Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. Global Second-Generation Biofuels Market Hotspot & Opportunities
  8. Global Second-Generation Biofuels Market Outlook, 2021-2032F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
        1. Lignocellulosic biomass
        2. Agricultural residues
        3. Forest residues
        4. Municipal Solid Waste (MSW)
        5. Algae
        6. Others
      2. By Biofuel Type- (USD Million)
        1. Cellulosic Ethanol
        2. Biodiesel / Renewable Diesel
        3. Bio-butanol
        4. Bio-DME
        5. Sustainable Aviation Fuel (SAF)
        6. Others
      3. By Process- (USD Million)
        1. Thermochemical
        2. Biochemical
        3. Hybrid
      4. By End User- (USD Million)
        1. Transportation (road / automotive)
        2. Aviation
        3. Marine
        4. Energy & Power
        5. Others
      5. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      6. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
  9. North America Second-Generation Biofuels Market Outlook, 2021-2032F
    1.  Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
      2. By Biofuel Type- (USD Million)
      3. By Process- (USD Million)
      4. By End User- (USD Million)
      5. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The US Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    4. Canada Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    5. Mexico Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
  10. South America Second-Generation Biofuels Market Outlook, 2021-2032F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
      2. By Biofuel Type- (USD Million)
      3. By Process- (USD Million)
      4. By End User- (USD Million)
      5. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    3. Brazil Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    4. Argentina Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
  11. Europe Second-Generation Biofuels Market Outlook, 2021-2032F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
      2. By Biofuel Type- (USD Million)
      3. By Process- (USD Million)
      4. By End User- (USD Million)
      5. By Country
        1. The UK
        2. Italy
        3. Germany
        4. France
        5. Spain
        6. Rest of Europe
    3. The US Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    4. Italy Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    5. Germany Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    6. France Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    7. Spain Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
  12. Middle East & Africa Second Generation Biofuels Market Outlook, 2021-2032F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
      2. By Biofuel Type- (USD Million)
      3. By Process- (USD Million)
      4. By End User- (USD Million)
      5. By Country
        1. Saudi Arabia
        2. UAE
        3. South Africa
        4. Rest of Middle East & Africa
    3. Saudi Arabia Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    4. UAE Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    5. South Africa Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
  13. Asia-Pacific Second-Generation Biofuels Market Outlook, 2021-2032F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Feedstock- (USD Million)
      2. By Biofuel Type- (USD Million)
      3. By Pressure- (USD Million)
      4. By Process- (USD Million)
      5. By End User- (USD Million)
      6. By Country
        1. China
        2. Japan
        3. India
        4. South Korea
        5. Australia
    3. China Second Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    4. Japan Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    5. India Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    6. South Korea Second Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
    7. Australia Second-Generation Biofuels Market Outlook, 2021-2032F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Feedstock- (USD Million)
        2. By Biofuel Type- (USD Million)
        3. By Process- (USD Million)
        4. By End User- (USD Million)
  14. Global Second-Generation Biofuels Market Key Strategic Imperatives for Success & Growth
  15. Competition Outlook
    1. Company Profiles
      1. Abengoa S.A.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. DuPont de Nemours, Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Novozymes
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. BP plc
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. POET, LLC
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Renewable Energy Group
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Gevo Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Enerkem Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Amyris, Inc.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Shell
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. LanzaTech
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      12. TotalEnergies
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      13. Clariant AG
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      14. Cosan
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      15. Green Plains Renewable Energy
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      16. Others
  16. Disclaimer


MarkNtel Advisors follows a robust and iterative research methodology designed to ensure maximum accuracy and minimize deviation in market estimates and forecasts. Our approach combines both bottom-up and top-down techniques to effectively segment and quantify various aspects of the market. A consistent feature across all our research reports is data triangulation, which examines the market from three distinct perspectives to validate findings. Key components of our research process include:

1. Scope & Research Design At the outset, MarkNtel Advisors define the research objectives and formulate pertinent questions. This phase involves determining the type of research—qualitative or quantitative—and designing a methodology that outlines data collection methods, target demographics, and analytical tools. They also establish timelines and budgets to ensure the research aligns with client goals.

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Data Trangulation

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