Newly released research projects the algae biofuel market will more than double in the next six years. Zion Market Research's report, released on Monday, shows the algae biofuel market was valued at approximately $4.7 billion in 2017 and is expected to generate revenue of around $9.88 billion by the end of 2024.

The Algae Biofuel Market report attributes healthy growth in the algae biofuel market to an increasing worldwide fuel demand, which is expected to continue to grow during the forecast period. The research also considered transportation industry expansion and fossil fuel market volatility as major factors contributing to the algae fuel market growth.

A rising focus on reducing fuel emissions also edged the zero-emission algae fuel market upward. In 2017, the market was dominated by biodiesel, which accounted for a significant share of the total volume. Zion Market Research predicts the transportation segment will dominate the market, accounting for more than 60 percent of the overall demand by 2024, due to its high potential to alter gasoline and diesel use in vehicles.

North America dominated the market in 2017 with more than 30 percent of the global algae biofuel market. The U.S. and Canada contributed heavily to the market. Europe, led by Germany, was also a major player. The study projects the Asia Pacific region will experience major growth in the market during the forecast period due to technological advancements and materials availability.

Legislation and research will likely drive demand for the fuel over the next six years. Zion referenced policies such as the European Commission's Renewable Energy Directive, which would require that at least 10 percent of transport fuels come from renewable sources by 2020. Government led algae biofuels research efforts, including studies via the U.S. Energy Department, are expected to rein in manufacturing costs and propel production.