Biodiesel Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Biodiesel Market is segmented By Feedstock Type (Vegetable Oils, Animal Fats, Grease, Other (Algae Oils)), By End-User ( Automotive industry, Agriculture industry, Mining, Marine sector, Power, Others), By Blend type (B100, B20, B5, B2, and others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Market Overview

The Global Biodiesel Market was valued at USD YY million in 2022 and is estimated to reach USD YY million by 2031, with a high CAGR during the forecast period from 2024-2031. Biodiesel is an alternative renewable fuel that is manufactured from vegetable oils, animal fats, and greases. Biodiesel’s physical properties are similar to those of petroleum diesel, but it is a cleaner-burning renewable alternative.

Biodiesel Market Scope and Summary

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Market Dynamics

• The various advantages of biodiesel over conventional fuel are driving the market for bio-diesels. They are easy to use, provide energy security, build economic development, reduce greenhouse gas emissions, and are biodegradable. It is an ideal substitute for increasing the longevity of diesel and reducing the greenhouse gas emissions

• Government regulations in countries like the US, regarding the use of renewable fuels in transportation, are also driving the market for biodiesels.

• In the US, the volume of biodiesel required to be blended into transportation fuels is set under the federal Renewable Fuels Standard (RFS2) each year. RFS2 requires this volume to reach 2 billion gallons in 2017 and 2.1 billion gallons in 2018. Thus, the regulation regarding the blending of biodiesel fuel is driving the demand for biodiesels in the US.

• With the growing environmental concerns, there has been an increasing demand for green fuels. Biodiesel reduces greenhouse gases by up to 86%, compared with petroleum diesel, and is made from renewable resources, such as soybean oil.

• Biodiesel is also claimed to be the most successful alternative fuel to complete the rigorous emissions and health study under EPA’s (Environmental Protection Agency of the US) Clean Air Act.

Segmentation Analysis

• The Global Biodiesel market report segments the report by feedstock type, blend type, and end-user. Based on the feedstock type, the market has been segmented as Vegetable Oils, Animal fats, Greases, and Others.

• Vegetable Oils can be sub-segmented as Soybean Oils, Canola Oil, Distillers Corn Oil, and Others. Further, the market has been classified by blend type, which includes B100, B20, B5, B2, and others. B20 is the most commonly used biodiesel blend in the United States because it provides the right balance between material compatibility, cold weather operability, performance, emission benefits, and costs.

• Vegetable Oils have the most significant market share by feedstock type, with Soybean Oil being the leading feedstock for biodiesels.

• Soybean Oil accounted for 46% of the US market share in 2017 followed by Corn Oil and Yellow Grease.

• Also, the classification based on end-user includes the Automotive industry, Agriculture, Mining, Marine, Power, and others. Biodiesel is primarily used in the automotive industry as a fuel type or as a fuel additive. Currently, every original equipment manufacturer (OEM) of diesel vehicles in the US approves blends of up to B5 in their cars.

• Nearly 80% of OEMs already approve blends up to B20 in some or all of their diesel vehicles. Engines operating on B20 exhibit similar fuel consumption, horsepower, and torque to engines running on conventional diesel.

• Biodiesel also has a higher cetane number (a measure of the ignition value of diesel fuel) and higher lubricity (the ability to lubricate fuel pumps and fuel injectors) than conventional diesel fuel, so it combusts easier and lubricates the fuel system better.

Market Geographical Share

• The Global Biodiesel market report segments the market by geography as North America, South America, Asia-Pacific, Europe, and the Rest of the World.

• The US is the largest country for biodiesels producing about 6 billion liters of biodiesel in 2017. However, Europe holds a significant market share and is the largest producer of biodiesels, with Germany and France being the top producers in the region.

• The market is most substantial in Europe because of the policies implemented by the European Union (EU), which require the blending of conventional diesel with biodiesel and the existence of penalties if the required rate of biodiesel in the mixture is not reached.

• The market is further increased because of the subsidized production of biodiesels and the exemption of excise duty for biofuels in European countries.

• Asia-Pacific region is also a fast-growing market for biodiesels, and there are considerable opportunities in countries like China, and India due to rising diesel prices and the presence of the vast number of diesel vehicles in these countries.

Biodiesel Companies

The report profiles the following companies Archer Daniels Midland Company, Cargill, Royal Dutch Shell, Wilmar International Limited, Bunge Limited, Solvay SA, Ineos Group, Mitsui, Louis Dreyfus, and Terracina Holdings.