Biodiesel Market was around USD 46.79 Billion by revenue, at the end of 2021. It is expected to grow at a CAGR of 5.87 % to reach close to USD 51.48 Billion in 2026, as mentioned earlier period.
The Biodiesel Market has a decent growth pace in the global market, which is driven by the demand for the vegetable oil segment of the feedstock type in various applications and from numerous end-user industries.
What are Biodiesel and its Applications?
Biodiesel is obtained from renewable feedstock like vegetable oils, animal fats, and others by utilizing a chemical procedure known as Transesterification that converts oil and fats into fatty acid methyl esters. It is employed as a substitute for petroleum diesel fuel or can be combined with petroleum diesel fuel with other parts. Biodiesel is efficient to decrease exhaust release when compared to petroleum diesel fuel. It is mainly employed in Automotive, Aviation, Industrial, Marine, Agriculture, and Mining. It is applied in aviation since biodiesel can decrease the release of carbon dioxide by the aviation business. It is also employed in many commercial flights and military defense aircraft. Biodiesel is used in the marine industry also as it is an excellent material as a shipping fuel, being biodegradable, non-toxic, and mainly free of sulfur and aromatics. Biodiesel is employed as a replacement for standard heating oil (kerosene) in oil-fired heating boilers for both domestic and commercial applications. Biodiesel offers an opportunity for farmers to create demand for the crops they grow on-farm. Farmers see that biodiesel is a high-quality product to utilize in their farm equipment.
The requirement for energy independence and rising environmental worries have driven the call for the biodiesel market globally. The product has the main feature to decrease greenhouse gas releases that were totally calculated to account for about 6 billion metric tons of carbon dioxide equivalents. Also, it is biodegradable and assists in producing renewable liquid fuel for transportation purposes. Being domestic in nature, it decreases the dependency on the inherent lubricity, high flash point, and imported petroleum. Furthermore, government policies and tax incentives to boost product use will also have a significant impact on the global biodiesel market in the future years. The rising threat of fossil fuel depletion and require to include renewable sources of energy in the energy mix for a sustainable expansion is estimated to drive the call for biodiesel. The product can be made in the present diesel manufacturing facility, not like other biofuels, and that is supposed to affect the market on a positive note.
The rising call for biodiesel to replace conventional fossil fuels in automotive and power generation applications is estimated to drive market expansion. Capital investment and technology know-how are expected to be the significant parameters for the market players to rise themselves in the market. The market is fragmented due to the availability of several suppliers. There has been a critical problem of changes in crude oil costs in the past many years. These changes have impacted the consumption volume of biodiesel, therefore, restraining the expansion of the global market.
Depleting petrochemical reserves in oil rigs all over the world will probably rise the product call in future years. The global petroleum reserve is estimated to last till around the year 2050. This has boosted researchers to look for the best substitutes and create new expansion avenues for the total market. Nevertheless, the call-supply gap due to inadequate production capacities and broad scope for R&D in the feedstock selection for product manufacturing is estimated to start opportunities for new market players. Moreover, the market is predicted to showcase partnerships and collaborations between the manufacturers in order to produce high product volumes to meet the increasing call for biodiesel.
With shrinking land for agriculture, rising oil & fat call and ever-increasing population, and high competition in the feedstock call for the product manufacturing is probable to hinder the future expansion of the global biodiesel market
Market Size Available
2022 - 2027
|By Feedstock Type, By Application, By Region|
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Market Leaders Profiled
Biodiesel Market Segmentation Analysis as per the research report until 2027.
Biodiesel Market - By Feedstock Type:
Based on the type of feedstock, the global market is segmented into Vegetable Oils, Animal Fats, Brown Grease/ Trap Grease. Among the mentioned types of feedstock, the vegetable oil segment has accounted for the major part of the global market share in 2020 and is expected to have the fastest growth rate in the proposed forecast period. The growth is mainly attributed to the fact that they are widely used as they have less percentage of saturated fat hence reducing the cost of production.
Biodiesel Market - By Application:
Based on the application of biodiesel, the global market is categorized into Fuel, Power Generation. Of the mentioned applications, the fuel segment is the fast-growing segment in the proposed forecast period mainly due to the abundant use of biodiesel for fuel in household and domestic purposes.
The global Biodiesel market report contains the segmentation of various regions with their respective nations.
North America Biodiesel Industry includes the U.S and Canada.
Europe Biodiesel Industry includes the UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic, & Rest of Europe.
Asia Pacific Biodiesel Industry includes India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore, & Rest of APAC.
Latin America Biodiesel Industry includes Brazil, Mexico, Argentina, Chile, & Rest of LATAM.
Middle East & Africa Biodiesel Industry includes KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, & rest of MEA.
Central & South America is estimated to be the quickest developing biodiesel market, rising at a CAGR of 11.0% from 2020 to 2025. Initiatives taken by the government of Brazil, Colombia, and Argentina to encourage the biofuel segment in order to decrease fossil fuel imports is estimated to have a positive effect on the market expansion. India is estimated to be one of the quickest developing markets for the product as the call for diesel-driven vehicles in the region is rising at a fast speed. The government initiative to fuel green fuel to substantially decrease pollution and decrease dependency on crude oil is estimated to drive the market expansion in the forecast period.
In China, UCO is the significant feedstock employed for the making of biodiesel. The nation has close to 25 bio-refineries as of 2020, with the majority of them utilizing UCO as their raw material. The integration of biofuels is estimated to escalate in the North American region offering the industry scope for further expansion. Europe and Asia-Pacific are the other key locales for the Biodiesel market due to the fuel in the making segment in these regions.
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Feedstock Type
5.1.2 Vegetable Oils
5.1.3 Animal Fats
5.1.4 Brown Grease/Trap Grease
5.1.5 Y-o-Y Growth Analysis, By Feedstock Type
5.1.6 Market Attractiveness Analysis, By Feedstock Type
5.1.7 Market Share Analysis, By Feedstock Type
5.2.3 Power Generation
5.2.4 Y-o-Y Growth Analysis, By Application
5.2.5 Market Attractiveness Analysis, By Application
5.2.6 Market Share Analysis, By Application
6. Geographical Analysis
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
188.8.131.52 By Geographical Area
184.108.40.206 By Feedstock Type
220.127.116.11 By Application
6.1.4 Market Attractiveness Analysis
18.104.22.168 By Geographical Area
22.214.171.124 By Feedstock Type
126.96.36.199 By Application
6.1.5 Market Share Analysis
188.8.131.52 By Geographical Area
184.108.40.206 By Feedstock Type
220.127.116.11 By Application
6.2 North America
6.1.2 United States
6.3.6 South Korea
6.5 Latin America
6.4.5 Rest of Latin America
6.6 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 Neste Corporation
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 BIOX Corporation
8.3 Cargill Inc.
8.4 Wilmar International Limited
8.5 Renewable Energy Group Inc.
8.6 TerraVia Holdings Inc.
8.7 Bunge Limited
8.8 Archer Daniels Midland Company
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
a) List of Tables
b) List of Figures
Global Biodiesel Market By Region, From 2022 - 2027( USD Billion )
Global Biodiesel Market By Feedstock Type, From 2022 - 2027( USD Billion )
Global Vegetable Oils Market By Region, From 2022 - 2027( USD Billion )
Global Animal Fats Market By Region, From 2022 - 2027( USD Billion )
Global Brown Grease/Trap Grease Market By Region, From 2022 - 2027( USD Billion )
Global Biodiesel Market By Application, From 2022 - 2027( USD Billion )
Global Fuel Market By Region, From 2022 - 2027( USD Billion )
Global Power Generation Market By Region, From 2022 - 2027( USD Billion )
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