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Biodiesel Market Size - By Application (Fuel, Power Generation, Others), By Feedstock (Vegetable Oil, Animal Fats), By Production Process (Alcohol Trans-Esterification, Hydro-Heating) and By Region: Global Forecast, 2024 – 2033

  • PUBLISHED ON
  • 2023-12-20
  • NO OF PAGES
  • 278
  • CATEGORY
  • Energy & Power

Market Overview

Biodiesel Market Size is set to rev up its engines, racing towards a value of USD 39.75 Billion by 2024. Propelled by a consistent and predictable path of growth, this eco-friendly juggernaut is projected to shift into high gear, surging to a remarkable USD 80.23 Billion by 2033. With a turbocharged Compound Annual Growth Rate (CAGR) of 8.4% during the forecast period from 2024 to 2033, the biodiesel market is not just driving change; it's steering the future of sustainable energy. Get ready for a green revolution on the road to a cleaner, biodiesel-powered world.

 

SOURCE: We Market Research

Biodiesel is a renewable fuel that is made from natural ingredients such as residual cooking oil, animal or vegetable fats, or recycled oil. Through a process called transesterification, these organic materials are converted into a clean-burning alternative to traditional diesel fuel. Biodiesel may be used in diesel engines without requiring any changes, reducing greenhouse gas emissions and the need for fossil fuels. Because it is environmentally friendly, biodegradable, and promotes sustainable energy habits, it offers a realistic route toward a more ecologically conscious and varied energy future.

The biodiesel market is driven by a number of factors. First of all, stringent regulations meant to lower greenhouse gas emissions and growing environmental concerns are driving the need for cleaner, renewable fuel sources like biodiesel. The need for energy security and fluctuating crude oil prices are further factors driving interest in alternate fuels. Government policies that support biofuels through subsidies, incentives, and restrictions also help to expand the industry. Customers are more likely to use biodiesel because it is versatile and compatible with modern diesel engines. Furthermore, technology advancements for effective production techniques and the potential for waste-to-energy solutions have improved biodiesel's commercial prospects and made it a viable and sustainable competitor in the renewable energy space.

Market Scope

Report Attributes

Description

Market Size in 2024

USD 39.75 Billion

Market Forecast in 2033

USD 80.23 Billion

CAGR % 2024-2033

8.4%

Base Year

2023

Historic Data

2016-2022

Forecast Period

2024-2033

Report USP

 

Production, Consumption, company share, company heatmap, company production capacity, growth factors and more

Growth Drivers

Increasing concerns about environmental sustainability and a growing emphasis on reducing greenhouse gas emissions have led to a heightened demand for cleaner and more sustainable fuel alternatives like biodiesel.

Global initiatives to promote renewable energy sources and reduce the carbon footprint are creating a favorable environment for biodiesel adoption. Biodiesel, derived from renewable resources, aligns with the objectives of these initiatives.

Ongoing advancements in biodiesel production technologies are enhancing efficiency, reducing production costs, and expanding the feasibility of biodiesel as a mainstream fuel source.

Segments Covered

By Application, By Feedstock, By Production Process and By Region

Regional Scope

North America, Europe, APAC, South America and Middle East and Africa

Country Scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria

Biodiesel Industry: Drivers & Restrains

Market Drivers

Growing Awareness of Environmental Benefits - The market for biodiesel is driven by growing awareness of its environmental benefits as consumers and businesses search for eco-friendly alternatives to conventional fuels. As awareness of climate change grows, so does the popularity of biodiesel, which is recognized for emitting fewer greenhouse gases and having a lower environmental impact than fossil fuels. This information encourages consumer demand, investment interest, and legislative backing—all of which drive innovation and industry expansion for biodiesel. The market for biodiesel is developing due to the combination of the recognized environmental benefits of the fuel and the increased global awareness of sustainability.

Growing Demand for Cleaner Fuels - The market for biodiesel is being driven primarily by the growing need for greener fuels. As societies place a higher priority on cutting back on air pollution and carbon footprints, biodiesel is becoming more and more appealing as a renewable and sustainable diesel substitute. The global popularity of biodiesel is surging due to strict emissions laws and the pursuit of cleaner energy sources. A number of businesses, notably transportation and those pursuing greener methods, are the source of this growing need. The market for biodiesel is expanding as a crucial component of a more sustainable energy landscape due to the acknowledgement of its role in reducing environmental impact and satisfying cleaner fuel requirements.

Market Restrains

Higher initial investment and Feedstock costs - The market for biodiesel is limited by higher feedstock costs and initial investment requirements. Large obstacles include the high startup costs of setting up biodiesel manufacturing facilities and the unpredictability and cost of obtaining feedstocks such as palm or soybean oil. These high initial costs discourage potential investors and limit the scalability of production, making it difficult to enter and grow the market. The price variations caused by the reliance on expensive feedstocks make biodiesel less competitive with regular diesel. These financial barriers prevent the market from expanding, necessitating creative ways to reduce production costs and look into more accessible feedstock choices for the manufacturing of sustainable biodiesel.

Biodiesel Segmentation

Market- By Application Analysis

By Application, the Biodiesel Market is Categories into Fuel, Power Generation, Others. The Fuel segment accounts for the largest share of around 71% in 2022.

Biodiesel is a cleaner-burning fuel substitute that is in high demand due to strict rules requiring reduced emissions. In order to satisfy emission reduction targets, governments subsidize the mixing of biodiesel into diesel fuel, hence driving market growth. Additionally, changes in the price of oil might increase the economic viability of biodiesel. Biodiesel becomes a viable alternative when the price of conventional diesel rises, leading to a growth in its use in the fuel industry.

The following segments are part of an in-depth analysis of the global Biodiesel Market:

Market Segments

 

By Feedstock

·         Vegetable Oil

·         Animal Fats

By Production Process

·         Alcohol Trans-Esterification

·         Hydro-Heating

Biodiesel Industry: Regional Analysis

Europe Market Forecast

Europe dominate the Biodiesel Market with the highest revenue generating market with share of more than 60%. The Renewable Energy Directive (RED) of the European Union and sustainability requirements promote the usage of biodiesel. Mandates for renewable energy and strong carbon reduction objectives drive market expansion. Also, Europe's significant production of rapeseed and sunflower seeds, coupled with its emphasis on environmentally friendly farming practices, promote the development of biodiesel. Additionally, the demand for biodiesel in European markets is further bolstered by consumer preferences for environmentally friendly products and business sustainability initiatives.


North America Market Statistics

North America is the second-largest market for Biodiesel. The United States is the biggest producer and consumer. The industry is expected to grow steadily in the future years as a result of increased demand for renewable fuels and government regulations.

Asia Pacific Market Forecasts

Asia Pacific is expected to be the fastest-growing market for Biodiesel during the forecast period. This can be attributed to a variety of factors, including growing economies, rising disposable incomes, and government support for biofuels. China and India are the two nations in the region with the highest production of biodiesel.

Key Market Players

The Biodiesel Market is dominated by a few large companies, such as

·         Ecodiesel Colombia S.A.

·         Cargill, Inc.

·         FutureFuel Corp.

·         Manuelita S.A.

·         Renewable Biofuels, Inc.

·         TerraVia Holdings, Inc.

·         Wilmar International Ltd.

·         Archer Daniels Midland Company (ADM)

·         Bunge Ltd.

·         Ag Processing, Inc.

·         Others

Recent Developments:

·         January, 2022, ExxonMobil revealed that it has acquired a 49.9% stake in Biojet AS, a biofuels business based in Norway that aims to produce ethanol and biofuel components with fewer emissions from wood-based building waste and forestry.

1. Global Biodiesel Market Introduction and Market Overview

1.1. Objective of the Market Research Study

1.2. Biodiesel Market Definition & Description

1.3. Research Data Parameters & Reporting Timelines

1.3.1. Historical Data Reporting Years – 2020 to 2021

1.3.2. Projected Data Reporting Years – 2022 to 2033

1.3.3. Reporting Data Parameters – Value and Volume (US$ Million & Million Liters)

1.4. Global Biodiesel Market Scope and Market Estimation

1.4.1. Global Biodiesel Overall Market Size (US$ Million), Market CAGR (%), Market Estimates & Forecast (2020 to 2033)

1.4.2. Global Biodiesel Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2020 to 2033

1.5. Biodiesel Market Segmentation

1.5.1. Production Process of Global Biodiesel Market

1.5.2. Feedstock of Global Biodiesel Market

1.5.3. Application of Global Biodiesel Market

1.5.4. End-use of Global Biodiesel Market

1.5.5. Key Regions of Global Biodiesel Market

 

2. Global Biodiesel Market - Executive Summary

2.1. Global Biodiesel Market – Summary & Snapshot

2.2. Global Biodiesel Market, By Production Process (US$ Million & Million Liters)

2.3. Global Biodiesel Market, By Feedstock (US$ Million & Million Liters)

2.4. Global Biodiesel Market, By Application (US$ Million & Million Liters)

2.5. Global Biodiesel Market, By End-use (US$ Million & Million Liters)

2.6. Global Biodiesel Market, By Geography (US$ Million & Million Liters)

2.7. Global Biodiesel Market Outlook & Future Opportunities

 

3. Biodiesel Market Trends, Outlook, and Factors Analysis

3.1. Global Biodiesel Market Industry Development Trends under COVID-19 Outbreak

3.1.1. Global COVID-19 Status Overview

3.1.2. Influence of COVID-19 Outbreak on Global Biodiesel Market Industry Development

3.1.3. Pre & Post COVID-19 Trends and Scenarios

3.2. Biodiesel Market Dynamics (Growth Impacting Factors & Rationales)

3.2.1. Drivers

3.2.1.1. The demand-supply mismatch created by limited production capacity and a huge opportunity for R&D in feedstock selection for product manufacture is likely to open up new market possibilities.

3.2.1.2. The Government policies and tax rebates to support the preference of biodiesel also anticipated to surge the growth in the global market.

3.2.1.3. Driver 3

3.2.1.4. Driver 4

3.2.2. Restraints

3.2.2.1. High cost of raw material and dependency on food prices.

3.2.2.2. Restraint 2

3.2.2.3. Restraint 3

3.2.3. Opportunities

3.2.3.1. The growing demand for environmentally friendly fuels that lower greenhouse gas emissions is predicted to open up a plethora of opportunities in the worldwide industry.

3.2.3.2. Opportunity 2

3.2.3.3. Opportunity 3

3.2.4. Impact Analysis of Drivers and Restraints

3.3. Ecosystem/ Value Chain Analysis

3.4. Porter’s Five Forces Analysis

3.5. SWOT Analysis

3.6. PEST Analysis

3.7. Average Selling Prices and Pricing Trends Analysis of Biodiesel Market

3.8. Key Investment Pockets of Biodiesel Market

3.8.1. By Production Process

3.8.2. By Feedstock

3.8.3. By Application

3.8.4. By Regions

 

4. Global Biodiesel Market: Estimates & Historic Trend Analysis (2019 to 2021)

4.1. Global Biodiesel Market, 2020 – 2021 (US$ Million & Million Liters)

4.2. Global Biodiesel Market, By Production Process, 2020 to 2021 (US$ Million & Million Liters)

4.3. Global Biodiesel Market, By Feedstock, 2020 to 2021 (US$ Million & Million Liters)

4.4. Global Biodiesel Market, By Application, 2020 to 2021 (US$ Million & Million Liters)

4.5. Global Biodiesel Market, By Region, 2020 to 2021 (US$ Million & Million Liters)

 

5. Global Biodiesel Market Estimates & Forecast Trend Analysis, by Production Process

5.1. Global Biodiesel Market Share (%) Estimates and Forecasts, by Production Process, 2022 & 2033

5.2. Global Biodiesel Market Revenue (US$ Million) & Volume (Million Liters) Estimates and Forecasts, by Production Process, 2022 to 2033

5.2.1. Alcohol Trans-Esterification

5.2.2. Hydro-Heating

5.2.3. Others (Dilution, Micro-Emulsification)

 

6. Global Biodiesel Market Estimates & Forecast Trend Analysis, by Feedstock

6.1. Global Biodiesel Market Share (%) Estimates and Forecasts, by Feedstock, 2022 & 2033

6.2. Global Biodiesel Market Revenue (US$ Million) & Volume (Million Liters) Estimates and Forecasts, by Feedstock, 2022 to 2033

6.2.1. Vegetable Oil

6.2.2. Animal Oil

6.2.3. Others

 

7. Global Biodiesel Market Estimates & Forecast Trend Analysis, by Application

7.1. Global Biodiesel Market Share (%) Estimates and Forecasts, by Application, 2022 & 2033

7.2. Global Biodiesel Market Revenue (US$ Million) & Volume (Million Liters) Estimates and Forecasts, by Application, 2022 to 2033

7.2.1. Fuel

7.2.1.1. Automobile

7.2.1.2. Industrial

7.2.1.3. Marine

7.2.2. Power Generation

7.2.3. Others

 

8. Global Biodiesel Market Analysis and Forecast, by Region

8.1. Global Biodiesel Market Share (%) Estimates and Forecasts, by Region, 2022 & 2033

8.2. Global Biodiesel Market Revenue (US$ Million) & Volume (Million Liters) Estimates and Forecasts, by Region, 2022 to 2033

8.2.1. North America

8.2.2. Europe

8.2.3. Asia Pacific

8.2.4. Middle East and Africa

8.2.5. Latin America

 

9. North America Biodiesel Market: Estimates & Forecast Trend Analysis

9.1. North America Biodiesel Market Assessments & Key Findings

9.2. North America Biodiesel Market Share (%) Estimates and Forecasts, 2022 & 2033

9.3. North America Biodiesel Market Size Estimates and Forecast (US$ Million & Million Liters) (2022 to 2033)

9.3.1. By Production Process

9.3.2. By Feedstock

9.3.3. By Application

9.3.4. By Major Country

9.3.4.1. The U.S.

9.3.4.2. Canada

 

10. Europe Biodiesel Market: Estimates & Forecast Trend Analysis

10.1. Europe Biodiesel Market Assessments & Key Findings

10.2. Europe Biodiesel Market Share (%) Estimates and Forecasts, 2022 & 2033

10.3. Europe Biodiesel Market Size Estimates and Forecast (US$ Million & Million Liters) (2022 to 2033)

10.3.1. By Production Process

10.3.2. By Feedstock

10.3.3. By Application

10.3.4. By Major Country

10.3.4.1. Germany

10.3.4.2. The U.K.

10.3.4.3. France

10.3.4.4. Italy

10.3.4.5. Spain

10.3.4.6. Rest of Europe (includes all other European countries)

 

11. Asia Pacific Biodiesel Market: Estimates & Forecast Trend Analysis

11.1. Asia Pacific Biodiesel Market Assessments & Key Findings

11.2. Asia Pacific Biodiesel Market Share (%) Estimates and Forecasts, 2022 & 2033

11.3. Asia Pacific Biodiesel Market Size Estimates and Forecast (US$ Million & Million Liters) (2022 to 2033)

11.3.1. By Production Process

11.3.2. By Feedstock

11.3.3. By Application

11.3.4. By Major Country

11.3.4.1. China

11.3.4.2. Japan

11.3.4.3. India

11.3.4.4. ASEAN

11.3.4.5. South Korea

11.3.4.6. Rest of Asia Pacific (includes all other Asia Pacific countries)

 

12. Middle East & Africa Biodiesel Market: Estimates & Forecast Trend Analysis

12.1. Middle East & Africa Biodiesel Market Assessments & Key Findings

12.2. Middle East & Africa Biodiesel Market Share (%) Estimates and Forecasts, 2022 & 2033

12.3. Middle East & Africa Biodiesel Market Size Estimates and Forecast (US$ Million & Million Liters) (2022 to 2033)

12.3.1. By Production Process

12.3.2. By Feedstock

12.3.3. By Application

12.3.4. By Major Country

12.3.4.1. GCC

12.3.4.2. South Africa

12.3.4.3. Egypt

12.3.4.4. Rest of Middle East & Africa (includes all other Middle East & Africa countries)

 

13. Latin America Biodiesel Market: Estimates & Forecast Trend Analysis

13.1. Latin America Market Assessments & Key Findings

13.2. Latin America Biodiesel Market Share (%) Estimates and Forecasts, 2022 & 2033

13.3. Latin America Biodiesel Market Size Estimates and Forecast (US$ Million & Million Liters) (2022 to 2033)

13.3.1. By Production Process

13.3.2. By Feedstock

13.3.3. By Application

13.3.4. By Major Country

13.3.4.1. Brazil

13.3.4.2. Mexico

13.3.4.3. Rest of Latin America (includes all other Latin America countries)

 

14. Competitive Landscape

14.1. Biodiesel Market Revenue Share Analysis (%), by Major Players (2021)

14.2. Biodiesel Market Competition Matrix, by Leading Players

14.3. Biodiesel List of Emerging, Prominent and Leading Players

14.4. Major Mergers & Acquisitions, Partnership, Joint Venture, Expansions, Deals, Recent Developments, etc.

 

15. Company Profiles

15.1. Ag Processing, Inc.

15.1.1. Company Overview & Insights

15.1.2. Financial Performance

15.1.3. Product / Service Portfolio

15.1.4. Geographical Footprint & Share

15.1.5. Strategic Initiatives & Key Developments

 

*Similar details would be provided for all the players mentioned below

15.2. Archer Daniels Midland Company (ADM)

15.3. Biox Corp.

15.4. Bunge Ltd.

15.5. Cargill, Inc.

15.6. Ecodiesel Colombia S.A.

15.7. FutureFuel Corp.

15.8. HERO BX

15.9. Louis Dreyfus Company

15.10. Manuelita S.A.

15.11. Marathon Petroleum Corporation

15.12. Munzer Bioindustrie GmbH

15.13. Neste Oyj

15.14. NOVAOL

15.15. Renewable Biofuels, Inc.

15.16. Renewable Energy Group, Inc.

15.17. TerraVia Holdings, Inc.

15.18. VERBIO

15.19. Wilmar International Ltd.

15.20. Others

16. Assumptions and Research Methodology

16.1. Data Mining

16.2. Secondary Research

16.3. Primary Research

16.4. Subject Matter Expert Advice

16.5. Quality Check

16.6. Final Review

16.7. Data Triangulation

16.8. Bottom-Up Approach

16.9. Top Down Approach

16.10. Research Flow

16.11. Key Insights from Industry Experts

16.12. Data Sources

16.13. Assumptions

16.14. Limitations

 

17. Conclusions and Recommendations

17.1. Key Research Findings and Conclusion

17.2. Key Insights & Recommendations from Analysts

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Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.


Frequently Asked Questions

What is the market size of Biodiesel Market in 2022?

Biodiesel Market was valued at USD 36.86 Billion in 2022.

What is the growth rate for the Biodiesel Market?

Biodiesel Market size will increase at approximate CAGR of 8.4% during the forecasted period.

Which are the top companies operating within the market?

Major companies operating within the Biodiesel Market are Ecodiesel Colombia S.A., Cargill, Inc., FutureFuel Corp., Manuelita S.A., Renewable, Biofuels, Inc., TerraVia Holdings, Inc., Wilmar International Ltd., Archer Daniels, Midland Company (ADM), Bunge Ltd., Ag Processing, Inc. and Others.

Which region dominates the Biodiesel Market?

Europe dominates the market with an active share of 60%.

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