Second Generation Biofuels Market Report 2025 (Global Edition)

Global Second Generation Biofuels Market Report 2025 Market Size Split by Type (Cellulosic Ethanol, Biodiesel, Bio Butanol, Others), by Feedstock (Simple Lignocellulose, Complex Lignocellulose, Syngas...

Second Generation Biofuels Market Report Description

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Imapct of Trumph Tariff on Electronics and Electrical Industry

In 2025, global trade has entered a period of renewed volatility as the U.S., under President Donald Trump, introduced sweeping tariffs known as the Liberation Day Tariffs. Aimed at addressing trade imbalances and foreign supply chain dominance, the tariffs range from 10% on allies like Australia and the UK to 46% on Vietnamese goods and 34% on Chinese imports. A 25% universal tariff on steel, aluminum, and auto parts has further strained global trade ties. The electronics sector is among the hardest hit, particularly due to the escalating U.S.China trade war. Tariffs on Chinese goods now reach up to 145% in sectors like semiconductors and consumer electronics, while China has retaliated with up to 125% duties and restrictions on critical mineral exports. This has disrupted just-in-time supply chains and increased component costs.

Specific tariffs include 25% on semiconductors, 20% on lithium-ion batteries, and 10–15% on consumer electronics like laptops and tablets, leading to higher retail prices and reduced consumer demand. Sub-sectors such as home automation, computer hardware, communication electronics, medical devices, and industrial electronics are all under pressure due to rising input costs and supply chain delays. Companies are revisiting suppliers, shifting sourcing to countries like India, Mexico, and Vietnam, and redesigning products to avoid high-tariff components.

China remains a key player, contributing USD 119 billion in electronics exports to the U.S. in 2023. Even components routed through countries like Malaysia and Vietnam often rely on Chinese subparts, making the ripple effect of tariffs widespread. U.S. electronics firms operating on thin margins are seeing input costs rise 18–25%, with contract manufacturers in alternative regions facing capacity constraints.

Market research is now critical. It helps companies identify new suppliers, analyze cost trends, optimize product design, forecast demand shifts, and track regulatory changes. Tools like supplier mapping, BOM optimization, and scenario planning support strategic responses to ongoing disruptions. Leading firms like Apple and Dell are expanding production outside China, while others invest in digital supply chain tools and redesign products for cost resilience. In this evolving trade environment, firms that leverage research-driven strategies are better positioned to adapt and thrive.

Second Generation Biofuels Market Insights Video

Competitive Landscape of the Second-Generation Biofuels Market

The expansion of market participants is contingent upon the economic and market conditions, laws and regulations, and industrial development. Consequently, the establishment of Second-Generation Biofuels is the primary objective of the market participants. Although the market is dominated by international actors, regional and local players with minor market shares also have a moderate presence. The global presence of international actors, which includes established manufacturing divisions or sales offices, has been bolstered in main regions such as North America, Europe, Asia-Pacific, and the Rest of the World.

In February 2023, Jio-BP, a joint venture between Reliance Industries Ltd (RIL) and BP that specializes in fuels and mobility, announced the introduction of E20 blended petrol on Wednesday. Fuel E20 is a compound of 80% fossil-based fuel and 20% ethanol. (Source: https://www.jiobp.com/news/Jio-bp-introduces-E20-blended-petrol) In October 2020, A long-term agreement has been announced between INEOS and UPM Biofuels to supply a renewable raw material for the production of new and innovative bio-attributed polymers at INEOS Köln, Germany. (Source: https://www.ineos.com/news/shared-news/ineos-and-upm-biofuels-announce-supply-agreement-for-renewable-raw-materials-to-make-plastic/)

Top Companies Market Share in Second Generation Biofuels Industry: (In no particular order of Rank)

• GranBio Investimentos S.A.
• Orsted A/S
• POET-DSM Advanced Biofuels LLC
• International Flavors & Fragrances Inc.
• Algenol Biotech LLC
• Fiberight
• INEOS Group
• Clariant AG.
• Reliance Industries Limited
• Zea2
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Second-Generation Biofuels Market

Which Region Dominates the Second-Generation Biofuels Market in 2024?

According to Cognitive Market Research, North America currently dominates the Second-Generation Biofuels market, and the region is expected to have significant growth during the anticipated period. The market is experiencing growth as a result of the growing investment in research and development and the advancements in biofuel technologies.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the anticipated period, with the greatest compound annual growth rate (CAGR). The demand for sustainable energy sources is on the rise as a result of the rapid industrialization and urbanization of countries such as China and India.

The current report Scope analyzes Second Generation Biofuels Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Second Generation Biofuels Market Analysis

According to Cognitive Market Research, the global Second-Generation Biofuels market size was estimated at USD 9215.2 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 3686.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Second-Generation Biofuels market with a market size of USD 2908.32 million in 2024 and is anticipated to grow at a CAGR of 25.0% during the projected period. The U.S. market's Government incentives and stringent environmental regulations that encourage the use of renewable energy.
• The Canada Second-Generation Biofuels market had a market share of USD 442.33 million in 2024 and is anticipated to grow at a CAGR of 26.0% during the projected period. Canada’s rising investment in biofuel technologies and the Clean Fuel Standard (CFS).
• The Mexico Second-Generation Biofuels market is anticipated to witness growth at a CAGR of 25.7% during the projected period, with a market size of USD 335.43 million in 2024.

Europe Second Generation Biofuels Market Analysis

According to Cognitive Market Research, the global Second-Generation Biofuels market size was estimated at USD 9215.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 2764.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.5% from 2024 to 2031.

• The United Kingdom Second-Generation Biofuels market had a market share of USD 464.45 million in 2024 and is anticipated to grow at a CAGR of 26.3% during the projected period. In the UK, Second-Generation Biofuels sales see an upswing due to a strong emphasis on the reduction of carbon footprints and the promotion of sustainability.
• The France Second-Generation Biofuels market is anticipated to see growth at a CAGR of 24.7% during the projected period, with a market size of USD 254.34 million in 2024.
• According to Cognitive Market Research, the German Second-Generation Biofuels market size was valued at USD 547.38 million in 2024 and is anticipated to grow at a CAGR of 25.7% during the projected period. In Germany, The Renewable Energy Directive (RED II) of the European Union and substantial funding for biofuel initiatives.
• The Italy Second-Generation Biofuels market is anticipated to see growth at a CAGR of 24.9% during the projected period, with a market size of USD 237.75 million in 2024.
• The Russia Second-Generation Biofuels market is anticipated to see growth at a CAGR of 24.5% during the projected period, with a market size of USD 428.51 million in 2024.
• The Spain Second-Generation Biofuels market is anticipated to see growth at a CAGR of 24.6% during the projected period with a market size of USD 226.69 million in 2024
• The Luxembourg Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.6% during the projected period, with a market size of USD 85.70 million in 2024.
• The Portugal Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.3% during the projected period, with a market size of USD 58.06 million in 2024.
• The Greece Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.8% during the projected period, with a market size of USD 33.17 million in 2024.
• The Rest of Europe's Second-Generation Biofuels market is anticipated to see growth at a CAGR of 24.2% during the projected period, with a market size of USD 428.51 million in 2024.

Asia Pacific Second Generation Biofuels Market Analysis

According to Cognitive Market Research, the global Second-Generation Biofuels market size was estimated at USD 9215.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 2119.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 29.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Second-Generation Biofuels market size was valued at USD 953.77 million in 2024 and is anticipated to grow at a CAGR of 28.5% during the projected period. Second-Generation Biofuels surged in China due to Fast industrialization and government efforts to decrease fossil fuel dependence.
• The Japan Second-Generation Biofuels market is anticipated to see growth at a CAGR of 27.5% during the projected period, with a market size of USD 292.49 million in 2024.
• The India Second-Generation Biofuels market had a market share of USD 254.34 million in 2024 and is anticipated to grow at a CAGR of 30.8% during the projected period. India's Government initiatives that prioritize renewable energy and agricultural residues that are abundant.
• The South Korean Second-Generation Biofuels market is anticipated to see growth at a CAGR of 28.1% during the projected period, with a market size of USD 211.95 million in 2024.
• The Australian Second-Generation Biofuels market is anticipated to see growth at a CAGR of 28.7% during the projected period, with a market size of USD 110.21 million in 2024.
• The South East Asia Second-Generation Biofuels market is anticipated to see growth at a CAGR of 30.0% during the projected period, with a market size of USD 146.25 million in 2024.
• The Rest of Asia Pacific Second-Generation Biofuels market is anticipated to see growth at a CAGR of 28.8% during the projected period, with a market size of USD 150.48 million in 2024.

South America Second Generation Biofuels Market Analysis

According to Cognitive Market Research, the global Second-Generation Biofuels market size was estimated at USD 9215.2 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 460.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Second-Generation Biofuels market size was valued at USD 197.21 million in 2024 and is anticipated to grow at a CAGR of 27.0% during the projected period. Second-Generation Biofuels flourished in Brazil due to increasing Investments in bio-refineries and supportive government policies.
• Argentina's Second-Generation Biofuels market had a market share of USD 77.41 million in 2024 and is anticipated to grow at a CAGR of 27.3% during the projected period. Argentina's Governmental support and favorable climatic conditions for biomass production.
• Colombia Second-Generation Biofuels market is anticipated to see growth at a CAGR of 26.2% during the projected period, with a market size of USD 41.01 million in 2024.
• Peru Second-Generation Biofuels market is anticipated to see growth at a CAGR of 26.6% during the projected period, with a market size of USD 37.78 million in 2024.
• Chile Second-Generation Biofuels market is anticipated to see growth at a CAGR of 26.7% during the projected period, with a market size of USD 33.17 million in 2024.
• The Rest of Latin America's Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.5% during the projected period, with a market size of USD 74.18 million in 2024.

Middle East Second Generation Biofuels Market Analysis

According to Cognitive Market Research, the global Second-Generation Biofuels market size was estimated at USD 9215.2 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 184.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.7% from 2024 to 2031..

• The GCC Countries Second-Generation Biofuels market is anticipated to see growth at a CAGR of 27.5% during the projected period, with a market size of USD 78.88 million in 2024. Second-Generation Biofuels sales flourish due to necessity of energy diversification and the reduction of dependence on fossil fuels.
• The Egypt Second-Generation Biofuels market is anticipated to see growth at a CAGR of 27.0% during the projected period, with a market size of USD 19.35 million in 2024.
• The South Africa Second-Generation Biofuels market is anticipated to see growth at a CAGR of 27.7% during the projected period, with a market size of USD 29.12 million in 2024. Second-Generation Biofuels sales flourished in South Africa due to increasing international partnerships and government initiatives that advance renewable energy.
• The Turkey Second-Generation Biofuels market is anticipated to see growth at a CAGR of 26.2% during the projected period, with a market size of USD 15.85 million in 2024.
• The Nigeria Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.8% during the projected period, with a market size of USD 19.35 million in 2024.
• The Rest of the MEA Second-Generation Biofuels market is anticipated to see growth at a CAGR of 25.7% during the projected period, with a market size of USD 21.75 million in 2024.

Second Generation Biofuels Market Analysis

Second-Generation Biofuels Market Type Segment Analysis

According to Cognitive Market Research, Biodiesel Second-Generation Biofuels are likely to dominate the Second-Generation Biofuels Market over the forecast period. Primarily, this dominance is attributable to its pervasive adoption and utilization in preexisting diesel engines without the necessity of substantial modifications. Furthermore, biodiesel production from residual oils and lipids is a highly appealing alternative that addresses both waste management and renewable energy requirements. Its position as a leader is further bolstered by the relatively lower production costs and the established infrastructure for biodiesel distribution in comparison to other second-generation biofuels.

The Cellulosic Ethanol is the fastest-growing segment in the Second-Generation Biofuels Market. This fast increase is due to technology that makes manufacturing more efficient and cost-effective. Cellulosic ethanol, made from agricultural leftovers and wood chips, avoids the food vs. fuel issue of first-generation biofuels. Since cellulosic ethanol has many environmental advantages, substantial government support and incentives for lowering greenhouse gas emissions are driving its expansion.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Second Generation Biofuels Industry. Request a Free Sample PDF!

Second-Generation Biofuels Market Feedstock Segment Analysis

According to Cognitive Market Research, the Simple Lignocellulose segment holds the largest share of the market. It dominates due to its abundance and ease of conversion compared to more complicated feedstocks. Lignocellulose from agricultural leftovers and wood chips is commonly utilized to make biofuels like cellulosic ethanol since it is cheap and efficient. Its established supply networks and cheaper processing costs make it a popular biofuel manufacturing option.

In the Second-Generation Biofuels Market, the Algae has been expanding at a rapid pace. Fast growth is due to its great yield potential and capacity to generate biodiesel and bioethanol. Sustainable and ecologically friendly algae may be grown on non-arable land and in wastewater. As algae biofuel technology improve and research and development funds increase, its acceptance and market expansion accelerate.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Second Generation Biofuels Process Segment Analysis

Second-Generation Biofuels Market Process Segment Analysis

According to Cognitive Market Research, The Biochemical Process segment holds the largest market share. It dominates because it effectively converts lignocellulosic biomass into biofuels like cellulosic ethanol via enzymatic hydrolysis and fermentation. Research and development enhance enzyme efficiency and lower biochemical costs. Many biofuel producers choose the technique because it is suitable for large-scale production.

In the Second-Generation Biofuels market, the rapidly growing sector is the Thermochemical Process category. This fast rise is owing to its adaptability in gasifying and pyrolyzing biomass, including agricultural wastes and trash, into biofuels. The thermochemical process produces biofuels like bio-oil and syngas, which may be converted into transportation fuels. Technology and investment in thermochemical conversion processes are propelling its acceptance and market growth.

• Biochemical Process
• Thermochemical Process

Second Generation Biofuels Application Segment Analysis

Second-Generation Biofuels Market Application Segment Analysis

According to Cognitive Market Research, the Transportation segment dominates the market. The huge demand for clean and renewable fuel options to minimize car greenhouse gas emissions drives this supremacy. Biofuels in transportation are being promoted by strict rules and incentives globally. The infrastructure for liquid biofuels like biodiesel and cellulosic ethanol makes it simpler to incorporate them into transportation.

Power Generation is anticipated to be the fastest-growing segment in the Second-Generation Biofuels market. The necessity for renewable energy to replace fossil fuels in power generation drives this fast expansion. Power plants are increasingly using second-generation biofuels like syngas and bio-oil to create energy. Biofuels are being used in power generating more due to decarbonization, energy security, and biofuel technology advances.

• Transportation
• Power Generation
• Others

Author's Detail

Kalyani Raje

Senior Research Analyst at Cognitive Market Research

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ResearchGate Profile: https://www.researchgate.net/profile/Kalyani-Raje

An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile and transportation vertical.

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