In India, Coherent Market Insights reported that the global biofuels market size is estimated to be valued at $160 billion in 2025 and is expected to reach $185 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.20% from 2025 to 2032.
The research firm noted that this growth trajectory reflects the increasing adoption of biofuels in response to stringent environmental regulations and fluctuating fossil fuel prices, underscoring the market’s expanding scope and revenue potential.
“Supply-side dynamics remain crucial in shaping the biofuels market share. Production capacity expansions in North America and Asia Pacific have increased by approximately 5.2% and 4.7% respectively in 2024, driven by enhanced investments in second-generation biofuels. This has led to a stabilized market revenue stream despite feedstock price volatility,” the report stated.
“Diverse industrial use cases, especially in the transportation and aviation sectors, have propelled demand. Airlines in the U.S. and Europe increased sustainable aviation fuel (SAF) consumption by nearly 12% in 2024, showcasing the expanding market segments and reinforcing the market forecast for biofuels,” it added.