USD 40 billion
Biodiesel Market Size, Share, Growth Analysis, By Feedstock(Vegetable Oils, Animal Fats, and others), By Application(Fuel, Power Generation, Transportation, and others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10D2025 |
Region:
Global |
Published Date: February, 2024
Pages:
242
|Tables:
64
|Figures:
75
Biodiesel Market Insights
Biodiesel Market size was valued at USD 40 billion in 2022 and is poised to grow from USD 42.69 billion in 2023 to USD 64.27 billion by 2031, growing at a CAGR of 5.25% in the forecast period (2024-2031).
Increasing demand for biodiesel to replace traditional fossil fuels in power generation and automotive applications is projected to bring an extensive growth in the global biodiesel market. The growing demand for environment friendly fuels that ensure complete combustion and can help to reduce greenhouse gas emissions is another major factor likely to have a positive impact on the market. Also, government aid like subsidies and imposing mandates indicates a continuous of the biodiesel market growth.
In 2021, the demand for biodiesel declined to 39.5M tonnes after five years of solid growth, mainly a result of reduced transport activities during the pandemic. However, in 2019, global consumption of biodiesel started to recover robustly. Despite the low prices for conventional types of fuel, the global energy market is striving to adhere to the Paris Agreement by reducing greenhouse gas emissions and shifting towards using sustainable forms of energy, which is likely to promote the use of biodiesel across the globe.
Biodiesel has a high demand in the automotive industry as it emits less greenhouse gasses. As a result, the demand in the global biodiesel market is expected to witness a rise during the forecast period. For instance, Volvo CE India has announced that its customers across the country will have access to select biodiesel blends to run their Volvo machines.
US Biodiesel Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
vegetable oils
Fastest Growth
vegetable oils
Growth Rate
5.25% CAGR
Global Biodiesel Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Biodiesel Market Segmental Analysis
Global biodiesel market is segmented on the basis of feedstock, application, and region. By feedstock, the market is sub-segmented into vegetable oils, animal fats, and others. By application, the market is categorized into fuel, power generation, transportation and others. By region, the market is segmented into North America, Latin America, Europe, MEA, and Asia Pacific.
Biodiesel Market Analysis by Feedstock
By feedstock, the market is sub-segmented into vegetable oils, animal fats and others. In which, vegetable oils segment such as rapeseed oil, soybean oil, and palm oil held the largest market share with a contribution of 80% of the overall biodiesel market, and is expected to maintain its dominance throughout the forecast period. The feedstock used in a particular country depends on the accessibility and production capacity of crops in that country. For instance, rapeseed oil is currently the most popular feedstock used in biodiesel followed by soybean oil. European countries are the major consumer of rapeseed oil, whereas soybean oil is majorly consumed in the U.S. and coconut oil and palm oil is commonly used in Malaysia and Indonesia.
Biodiesel Market Analysis by Application
By application, the market is categorized into fuel, power generation, transportation, and others. And, the fuel segment dominated the market in 2021 with a contribution of 76% in the market in terms of revenue. The segment is expected to benefit through the growing demand for gasoline in the commercial vehicles to replace crude oil. It is mainly utilized in the automotive, industrial, aviation, mining, marine, agricultural industries. As a result, biodiesel’s share in transportation fuel is expected to increase significantly, which is expected to boost the growth and demand of the global biodiesel market during the forecast period.
Global Biodiesel Market By Type
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Biodiesel Market Regional Insights
Globally, the Asia Pacific region dominated the biodiesel market share with a holding of 40% of the overall market. The Asia Pacific region is witnessing rapid growth due to the increasing industrialization and considerable escalation in fuel demand in the transport and power sectors in emerging countries such as Indonesia, China, Thailand, India, and Malaysia. According to a report of ERIA, the total demand of the ASEAN and East Asian Countries will reach nearly 37 million tons by 2035. In addition, the presence of progressive technology, expertise, encouraged exploration, and production capacities are likely to be another major factor to drive the market’s growth during the forecast period.
Moreover, the North American region is expected to have a significant growth at a CAGR of 5.48% during the forecast period. High investments on research & developments and early product adoption is likely to have a positive impact on the biodiesel market growth in the region. According to Environmental Impact Assessment (EIA), the United States imported about 9.10 million barrels per day of petroleum from around 90 countries across the world in 2019. Petroleum includes refined petroleum, crude oil, hydrocarbon gas liquid products such as gasoline and diesel fuel and biofuels. However, the demand-supply owing to insufficient production capacities and widespread possibility for R&D in the selection of feedstock for the product manufacturing is anticipated to open opportunities for fresh industry players.
Global Biodiesel Market By Region
- Largest
- Fastest
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Biodiesel Market Dynamics
Biodiesel Market Drivers
Rise of Conscious Living and Safeguarding Environment to Boost Market Growth
- The rising concerns regarding greenhouse gas emissions due to the use of fossil fuels is creating a paved way for the growth of the global biodiesel market. It lowers the emission of greenhouse gasses up to 50% as compared to petroleum diesel and has low toxic and carcinogenic aromatic carbon content. Due to this, manufacturers of biodiesel from several countries have prevented their dependence on foreign oil reserves, as it can be domestically produced and can be consumed in any diesel engine with little or no alterations to the engine or fuel system.
- Increasing demand for biodiesel as automobile fuel across the globe is another major factor driving the growth of the market throughout the forecast period. Transesterification produces a high-quality advanced biofuel that meets ASTM D6751 requirements, and is expected to contribute significantly to the growth of the market.
Biodiesel Market Restraints
Quality Issues might Restrain Market during Forecast Period
- The use of biodiesel fuels blends can degrade diesel engine performance and might impact on oil drain interval requirements. A number of factors related to fuel compatibility need to be considered while using biodiesel in an engine. Several engine manufacturers limit the use of biodiesel in many engine models to ensure no adverse effects of the engine.
- Another concern in biodiesel are the difficulties caused by higher lubricity when transitioning from existing systems to biodiesel. The EPA recommends diesel vehicle owners to change fuel filters after the first tank of fuel.
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Biodiesel Market Competitive Landscape
The global biodiesel market is fairly concentrated, with a few big and medium-sized players accounting for a large portion of market revenue. Major players are implementing numerous tactics, including acquisitions, strategic agreements and contracts, and mergers. For instance, in 2021, Continental Refining Company, Kentucky to invest additional USD 20 million in a biodiesel project. They announced that it is moving forward with plans to invest USD 20 million to acquire and install a soybean crushing, biodiesel refining and blending facility at the current CRC oil refinery in Somerset, Kentucky.
Biodiesel Industry Top Players Company Profiles
- Neste Corporation
- Archer Daniels Midland Company
- Cargill Incorporated
- Wilmar International Limited
- Renewable Energy Group, Inc.
- Louis Dreyfus Company
- Bunge Limited
- BIOX Corporation
- Royal Dutch Shell plc
- TotalEnergies
- BASF SE
- Evonik Industries AG
- Dow Inc.
- DuPont de Nemours, Inc.
- Novozymes A/S
- Eni S.p.A.
- Sinopec Corp.
- Mitsubishi Chemical Holdings Corporation
- Chemrez Technologies, Inc.
- Crown Iron Works Company
Recent Developments in Biodiesel Industry
- In November 2021, Purefuel Energy announced plans to launch 1000 fully compliant biodiesel retail fuel stations in the next 1 year in India. Purefuel Energy works closely with the Government Authorities in achieving the Government of India’s vision to make India less dependent on fuel imports and in reducing the country’s carbon footprint.
Biodiesel Key Market Trends
- Raising crude oil prices is driving countries and manufacturers to switch towards biodiesel. Vegetable oils are playing a major role in the production of biodiesel and have many benefits as compared to crude oil such as lower cost, reduces emissions of GHG. As a result, the demand for biodiesel is increasing continuously across the globe.
- The easy availability and rising production of biodiesel are the major reasons for its extensive growth throughout the forecast period. The increasing number of cars with capabilities of using biodiesel as a fuel is creating huge demand for biodiesel in the global market.
Biodiesel Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data Collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global biodiesel market analysis, the market is witnessing a strong growth during the forecast period due to the increasing demand of biodiesel in the automotive industry and power generation sector. Features like lower cost, environmentally friendly, easy availability are likely to be the major factors driving the market’s growth over the forecast period. Government initiatives to make the environment cleaner and healthier such as using biodiesel fuels in vehicles, power generation are also expected to boost the market growth and demand. For instance, the Indian Government has announced that they will make it mandatory for automobile manufacturers to offer vehicles running 100% on biodiesel in the next six months.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 40 billion |
| Market size value in 2031 | USD 64.27 billion |
| Growth Rate | 5.25% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Biodiesel Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Biodiesel Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Biodiesel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biodiesel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biodiesel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Biodiesel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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