The global market for biofuel enzymes is to experience a compound annual growth rate (CAGR) of 10.4% over the next five years, driven by the shift to cellulosic ethanol, BCC Research says in a report, released Wednesday.
The firm expects the market to reach USD 652.1 million (EUR 613.9m) in 2015 and to grow to USD 1.1 billion in 2020. The US will see the fastest annual growth over the period, of 11.3%, with revenues reaching USD 355.7 million in 2020. The European region is also growing but it is lagging behind the US, where the market is supported by the presence of novel enzymes and techniques as well as government aid.
At the same time, the emerging market region, mainly including Brazil, China, India, Thailand, Japan, Australia and South Africa, will be the largest segment worth USD 389.7 million in 2020.
In recent years interest has shifted from starch-based ethanol to cellulosic ethanol, which uses second-generation feedstock as raw matter. Researchers have used innovative techniques to produce low-cost cellulosic ethanol, which has boosted market growth, according to the report.