Global Biodiesel Market Growth, Size, Share, Trends, and Forecast 2032

Biodiesel Market Insights

According to Zion Market Research, the global Biodiesel Market was worth USD 35.87 Billion in 2023. The market is forecast to reach USD 70.81 Billion by 2032, growing at a compound annual growth rate (CAGR) of 7.85% during the forecast period 2024-2032.

The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Biodiesel industry over the next decade.

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Biodiesel is one of the major source of renewable energy and is used extensively in the transport sector. It emits lesser carbon monoxide and hydrocarbons. The product also referred as green diesel is a pure and renewable fuel extracted from biomass.  Apparently, it is a kind of diesel fuel that is derived from animal fats or plants and comprise of an elongated chain of fatty acid esters. Moreover, it is utilized as a substitute fuel or is combined with petroleum diesel to reduce air pollution.

Global Biodiesel Market Growth Dynamics  

In Global Biodiesel Market Report, Growing use of biodiesel in automotive, marine power, farming, and various manufacturing sectors will boost the market trends. Apart from this, huge concerns pertaining to environmental degradation and need for fulfilling the energy needs of rapidly growing population as well as industries will prop up the market expansion. Furthermore, biodegradable feature of the product and its ability to produce renewable fuel for purpose of transport will embellish the market growth over the years to come. In addition to this, biodiesel helps in reducing the dependence on lubricity and this will culminate in high product penetration across myriad industries and this will steer the business growth.

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Moreover, government policies favoring the use of biodiesel and tax benefits provided by the government will proliferate the expansion of biodiesel market in the foreseeable future. However, the market is highly fragmented & competitive and hence market players will try to increase their market share, thereby resulting in new product innovations at reduced cost and this will drive the business trends. Apart from this, easy availability of Blends will unlock new growth avenues for the market. Nonetheless, oscillating Blend costs will influence the product pricing, thereby inhibiting the market progression.  Moreover, large-scale depletion of fossil fuels has resulted in massive demand for renewable fuel, thereby unravelling new growth avenues for the market as well as obliterating the negative impact of hindrances on the market expansion.   

Key Market Drivers

Increasing demand for cleaner fuels to stimulate the global biodiesel market

• Environmental assistance improved regulatory assistance, geopolitical assistance, consumer assistance, and economic and agricultural assistance are all driving market expansion. Biodiesel generated from vegetable oils is popular in a range of sectors because the saturated fat level is minimal, making the production process easy and cutting total production costs. Furthermore, the feedstock needed to make vegetable oils is much more easily accessible than that required to produce greases and animal fats. The fuel application type segment is predicted to lead the market, followed by power generation.
• The product's primary market is expected to be in Europe. The automotive industry's strong product demand, as well as different government attempts to minimise GHG emissions, are likely to drive market expansion. According to the National Biodiesel Board's 2020 report, utilisation will surpass six billion gallons in there on, off-road, civil aviation, power generation, and home heating applications by 2030, resulting in an annual reduction of approximately 35 million metric tonnes of Carbon dioxide equivalents greenhouse gas emissions. Advances in feedstock will raise consumption to 15 billion gallons by 2050. As a result, the market is likely to expand in the near future.

Growing demand by the automotive sector

• The increased demand from the automotive industry is expected to boost the growth of the Biodiesel Market over the forecast period. Rising demand for gas in commercial trucks to replace crude oil is predicted to help the business. The fuel is healthy for the environment since it emits fewer greenhouse gases than conventional diesel because it contains fewer VOCs. However, the market's development is likely to be restricted by a rise in the sale of electric cars throughout the forecast period.
• Tesla, for example, launched electric vehicles in the Indian market in 2017, noting the country's fourth-largest auto sector and the fact of electric vehicles will significantly reduce pollution levels. As a result of this invention, product demand in fuel applications is expected to be impeded. Furthermore, as OEM support for biodiesel grows and there is increased usage for crude glycerine through biodiesel production, prospects for market expansion are predicted in the coming years.

Biodiesel Market: Report Scope

Asia Pacific Market Revenue To Hit Scalable Heights Over Forecast Timeframe

The growth of the market in Asia Pacific over forecast timespan is due to rise in the number of biodiesel manufacturers shifting their headquarters to the region. In addition to this, easy access of Blends in the sub-continent will boost the production of biodiesel in the Asia Pacific. Countries like China and India are likely to majorly contribute to the regional market size in the years ahead.

Key players influencing the market growth are -

• Deerfield Energy
• Delta American Fuel
• Green Earth Fuels of Houston
• Western Dubuque Biodiesel
• ACCIONA Energy
• LLC
• DuPont
• China Biodiesel International Holding
• Imperium Renewables
• XL Renewables
• Crimson Renewable Energy
• Diversified Energy Corporation
• Blue Marble Energy Corp.
• American Energy Producer.

The global biodiesel market is segmented as follows:

By Blend

• B100
• B20
• B10
• B5

By Production Technology

• Pyrolysis
• Trans-esterification
• Others (Dilution, Micro-Emulsification)

By Feedstock Type

• Vegetable Oils
  • Edible Oils (Rapeseed/Canola, Soybean, Palm)
  • Others
• Animal Fats
  • Poultry
  • Tallow
• Lard & White Grease
  • Others

By Application

• Fuel
  • Automotive (On road vehicles, Off road vehicles)
  • Marine
  • Agriculture
  • Others
• Power Generation
• Others(Solvents, Diluent, Coatings, Printing Inks, Others)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa