Lignocellulosic Biomass Market Size (2024 – 2030)

The Global Lignocellulosic Biomass Market was valued at USD 5.68 billion and is projected to reach a market size of USD 9.18 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of  7.1%. 

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INDUSTRY OVERVIEW

Plant biomass-based energy, such as heat and power, and biomass-based fuels, such as bioethanol and biodiesel, have both developed quickly during the past several years. The supply sources for plant biomass and the technologies for refinement make up the foundation of development. Among these many biomass types, raw materials derived from lignocellulosic biomass have received increased attention as potential substitutes for the food-based biomass (sugar- and starch-based biomass) utilised in first-generation (1G) refining processes. The lignocellulosic biomass-based 2nd generation (2G) refining technologies are the current focus of the bioenergy sector and the governments. While the third (3G) and fourth (4G) generation technologies, which are primarily used by algae-based businesses, have started to emerge, it is acknowledged that these more sophisticated technologies do not necessarily have better commercial viability in terms of feedstock cost, capital expense, and operating expense. 2G firms are among the greatest early-stage possibilities for commercial-scale operations. Celluloses, hemicelluloses, and lignin are the three biopolymers that make up the majority of lignocellulosic biomass. Compounds called carbohydrate polymers, such as cellulose and hemicellulose, have the potential to be sources of fermentable sugars or sugar raw materials (glucose). An aromatic polymer called lignin may be utilised to create chemicals and combined heat and electricity. Among the lignocelluloses employed in the creation of diverse bio-based goods, cellulosic biopolymers are the most prevalent and valued ones.

Lignocellulose, often known as lignocellulosic biomass, refers to plant dry matter (biomass). It is the raw ingredient for making biofuels that is most readily available on Earth. It is made up of lignin, a polymer-rich in aromatics, and two different types of carbohydrate polymers termed cellulose and hemicellulose. Everyone has unique chemical behaviour. Processing lignocellulose is difficult because it is a mixture of three dissimilar elements. Recalcitrance is the term used to describe a highly developed resistance to deterioration or even separation. It takes a mix of heat, chemicals, enzymes, and microbes to overcome this resistance and generate usable, high-value goods. These polymers that include carbohydrates are covalently attached to lignin and comprise various sugar monomers (sugars with six and five carbons). Lignocellulosic biomass may be roughly divided into three categories: energy crops, waste biomass, and virgin biomass. The term "virgin biomass" refers to all types of naturally existing terrestrial plants, including trees, shrubs, and grass. Various industrial sectors, including agriculture (corn stover, sugarcane bagasse, straw, etc.) and forestry, create waste biomass as a low-value byproduct (saw mill and paper mill discards). Energy crops, such as switchgrass (Panicum virgatum) and elephant grass, are plants that generate a large amount of lignocellulosic biomass, which is used as a raw material for the creation of second-generation biofuel.

COVD-19 IMPACT ON THE LIGNOCELLULOSIC BIOMASS MARKET

The current pandemic has significantly changed the state of the chemicals and materials sector and has had a detrimental effect on the expansion of the market for bio-based ethylene. Due to the abrupt closing of national and international borders, the COVID-19 outbreak has disrupted operational effectiveness and upset value chains, causing both harm and a loss of money. The raw material supply has been negatively impacted by the disruptive value chain, which is affecting the market expansion for bio-based ethylene. However, as the economies prepare to restart their operations, it is anticipated that demand for bio-based ethylene would increase internationally. Due to customers' preference for online shopping during the pandemic, there is an increase in the demand for bio-based ethylene from the consumer goods and food packaging industries. Additionally, the governments of various nations have adopted proactive steps including partial lockdowns, travel bans, and others, coupled with scattered generations and the use of cutting-edge technology, which is another factor projected to support market expansion. The safety precautions taken by the businesses include restricting direct contact with truck drivers and visitors, enforcing and disseminating good hygiene standards, completing thorough sanitation, and preventing employee interaction during shift changes. With all of these contributing reasons, it can be assumed that some application segments will see an increase in demand for bio-based ethylene in the post-pandemic era.

MARKET DRIVERS: 

Lignocellulosic Biomass usage in making biofuel is propelling the market growth

Biodiesel is a liquid biofuel that is environmentally beneficial, renewable and has the potential to reduce greenhouse gas emissions. Vegetable oils, inedible oils, and waste oils were first used to make biodiesel. These feedstocks, however, have several drawbacks, including a need for labour and land, and they are still expensive. Similar issues arise with waste oils, where the quantity of feedstock is inadequate to fulfil demand. Recent research has shown that oleaginous microbes may use lignocellulosic substrates to produce biodiesel. Under induces high-stress circumstances, these bacteria produce more lipids with a composition like that of vegetable oils. As they are produced from readily accessible atmospheric CO2, water, and sunlight through biological photosynthesis, lignocellulosic materials are among the most feasible fossil fuel replacements. Over 90% of all plant biomass on earth comes from them, which equates to annual biomass of over 2000 million tons. They are sustainable sources of organic carbon.

Lignocellulosic Biomass are present in abundance and can be easily extracted

Herbaceous weeds and grasses that emerge from marginal or agricultural soils can become agricultural wastes. Forest leftovers are thought to be the second-largest lignocellulosic resource. Typically, the term "forest leftovers" refers to tree pieces including branches, dead wood, leaves, and treetops that are unsuitable for use as saw logs. This category can also comprise waste products from the production of wood and recycled wood. Wastes from the food industry and several other sectors based on plants and plant-derived goods can be used to create microbial oil. Municipal wastes can be used as a feedstock for the generation of microbial oil since they include lignocellulosic components as well. According to biodiesel's commercial standpoint, the procurement of substrate typically accounts for 40–80 % of the entire production cost. Lignocellulosic can be a potential replacement for the commercially viable microbial oil production process that results in the creation of biodiesel since they are the most abundant bio renewable biomass resource in the world and are inexpensive.

MARKET RESTRAINTS:

The contamination during the manufacturing process is a major challenge

Contamination during bioconversion, whether first or second-generation feedstock is used, is a significant issue that arises in ethanol refineries. Due to competition for sugars and nutrients caused by the contaminated species, the fermentation of microflora is inhibited during processing, which results in a decrease in ethanol production and the production of undesirable products. This makes it extremely important to identify and stop any potential threat of contamination at its earliest stage. Unavoidable situations may result in the fermenter being shut down, which calls for the removal of pollutants, adequate system sterilization, and reinoculation of the fermenting species into a new substrate.

The plant tissues are inhibitors for bioconversions

Epidermal plant tissues, particularly the cuticle and epicuticular waxes, the density of sclerenchyma tissue, the configuration of vascular bundles, lignin composition, structural heterogeneity and complexity of cell wall, and other inhibitors occurring naturally in cell walls and/or produced during bioconversion are a few examples of natural barriers that contribute to the recalcitrance of lignocellulosic biomass to chemicals or enzymes. Furthermore, before bioconversion, pretreatment is essential to guarantee higher sugar yields from the biomass.

SEGMENTATION ANALYSIS

LIGNOCELLULOSIC BIOMASS MARKET – BY APPLICATION:

• Pulp and Paper
• Biofuel
• Other

Based on application, the lignocellulosic biomass market is segmented into Pulp and Paper, Biofuel and Others. Due to their availability and biodegradability, lignocellulosic feedstocks are becoming more and more attractive for novel industrial uses. The over-reliance on petrochemical resources might be reduced by using lignocellulosic materials, particularly from the agriculture and forestry industries, while also offering a sustainable waste management option. Additionally, a variety of cutting-edge industrial uses for lignocellulosic biomass have been thoroughly described. These include biorefining for the production of biofuel and biochemicals, biomedical, cosmetics and pharmaceuticals, bioplastics, multifunctional carbon materials, and other environmentally friendly specialty goods. The pulp and paper industry widely uses lignocellulosic biomass. The industry producing pulp and paper uses lignocellulosic biomass as a feedstock. Separating the lignin and cellulose fractions of the biomass is a task that requires a lot of energy in this business. Typically, the process's lignin component is burnt as fuel.

LIGNOCELLULOSIC BIOMASS MARKET - BY REGION:

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

The market for lignocellulosic biomass market is projected to witness higher growth in the North American region. Since they are used in the biobased ethylene industry and the market for bio-based ethylene is anticipated to develop at the quickest rate in North America over the next few years, eventually, it would benefit the lignocellulosic biomass market as well. Due to the extensive use of this substance in North America's packaging and plastic manufacturing sectors, this region is predicted to hold a significant share of the global market for bio-based ethylene during the projected period. Starch, sugars, and lignocellulosic biomass are just a few examples of the bio-based resources used to make bio ethylene. Lignocellulosic biomass is mostly used as a component of transportation fuel in this area, and it is also becoming more significant in the automotive sector, which is further boosting the market growth. North American residents and even business leaders are now very worried about greenhouse gas emissions, which is why they are switching to bio ethylene as an alternative to petrochemical goods. As a result, the market for lignocellulosic biomass in this area is looking more promising.

Due to the existence of significant producers like The Dow Chemical Company, Oxy Low Carbon Ventures (OCLV), and Enerkem, Europe now holds the highest market share.

LIGNOCELLULOSIC BIOMASS MARKET - BY COMPANIES:

Some of the major players operating in the Lignocellulosic Biomass market include:

1. Braskem SA
2. The Dow Chemical Company
3. LyondellBasell Industries Holdings B.V.
4. SABIC
5. Oxy Low Carbon Ventures (OCLV)