In 2010,
biofuel analysis from MarketResearch.com suggests spending on the eco-friendly energy sources will exceed $40 billion (£25 billion) worldwide.
There are a number of trends factored into the research firm's
biofuel analysis, including the way the business world has changed following the shocks of 2008-09.
Government support has helped sustainable fuel developers to gain traction in the marketplace, the report claims.
As a result, more producers have achieved a firm footing in Europe, Asia, Brazil and the US.
This in turn has had the dual effects of diversifying the market - including "third-generation" sources like algae oil and cellulosic feedstock - while enhancing competition.
Distributed by MarketResearch.com, the
biofuel analysis was prepared initially by visiongain.
The independent information provider was founded in 1998 and conducts research across industry areas including energy, metals, defence, pharmaceuticals and telecommunications.
In particular, the firm stresses that its findings are not influenced by advertisers or public relations exercises.