Future Global Second Generation Biofuels Market: Key Dynamics, Size & Share Analysis

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.

Top Trend Impacting the Global Second Generation Biofuels Market Growth

Technological Advancements & Expanding Production Capacity - Ongoing innovation in conversion technologies continues to play a vital role in market expansion. Between 2022 and 2025, several global energy companies introduced pilot and commercial-scale facilities for cellulosic ethanol and renewable diesel production. For instance, LanzaTech in partnership with TotalEnergies and Airbus (2023), made efforts to produce sustainable aviation fuel (SAF) using captured carbon emissions, while Shell launched a large-scale biofuels plant in the Netherlands in 2024 to convert agricultural residues into low-carbon fuels.

Advancements in enzyme engineering, biomass pretreatment, and fermentation efficiency have reduced production costs by up to 20–25% since 2022. Moreover, digital monitoring, automation, and smart logistics integration in refineries are improving process reliability and reducing waste. These developments collectively enhance scalability, boost global supply capacity, and strengthen the commercial viability of second-generation biofuels.

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Understanding the Core Segments in the Second Generation Biofuels Market

Second Generation Biofuels Market Size, Share & Industry Trends Analysis - 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

Geographical Analysis of the Second Generation Biofuels Market

-By Region

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Who Dominates the Second Generation Biofuels Market Insights on Key Industry Players?

Companies are strengthening their presence in the Second Generation Biofuels market by adopting strategies such as forming strategic alliances, leveraging AI, entering partnerships, pursuing mergers and acquisitions, expanding into new regions, and introducing innovative products and services

• Abengoa S.A.
• DuPont de Nemours, Inc.
• Novozymes
• BP plc
• POET, LLC
• Renewable Energy Group
• Gevo Inc.
• Enerkem Inc.
• Amyris, Inc.
• Shell
• LanzaTech
• TotalEnergies
• Clariant AG
• Cosan
• Green Plains Renewable Energy
• Others

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