The fuel segment dominates the biodiesel market during the forecast period
Biodiesel is an alternative fuel for diesel engines that is gaining major attention all over the world because it is non-toxic, biodegradable, and one of the fuels that comes from renewable sources. This biodiesel is a domestically produced renewable fuel that can be produced from new and used animal fats, vegetable oils, and recycled restaurant grease. Biodiesel meets both the demand for advanced biofuel and diesel made from biomass. Biodiesel is a liquid fuel that is also known as B100 or neat biodiesel when it is in its pure, unmixed form. Biodiesel is used to fuel compression-ignition engines just like petroleum diesel. It is a renewable, clean-burning, domestically produced alternative to petroleum diesel. Using biodiesel as a vehicle fuel increases energy security, further develops air quality and the climate, and gives wellbeing benefits. Certain characteristics of biodiesel are even more similar to those of petroleum diesel. It also cleans the fuel system of a vehicle, releasing deposits accumulated from previous diesel fuel use, and can be used directly in most diesel engines without requiring extensive engine modifications. Biodiesel blended in various proportions with petroleum-based diesel is used mostly as a transportation fuel to power different vehicle engines, but it may also be used for heating and electricity generation.
The factor driving the growth of biodiesel market is increasing awareness regarding depleting non- renewable energy sources as it provides less toxicity, in comparison with diesel fuel, further has low emissions of contaminants like carbon monoxide, particulate matter, polycyclic aromatic hydrocarbons, and aldehydes. Besides the increasing threat of fossil fuel depletion and the need to include renewable sources of energy in the energy mix for sustainable growth are driving demand for biodiesel, which lowers health risks and reduces carcinogen emissions. These key factors are driving the growth of the biodiesel market during the forecast period.
The developing interest for harmless, ecosystem-friendly fuels that ensure complete combustion and can reduce greenhouse gas (GHG) emissions is a major factor driving the market. In addition, rising demand for biodiesel to replace traditional fossil fuels in power generation and automotive applications and increasing demand for clean energy are also expected to drive the biodiesel market growth.
The market is expected to have new opportunities with technological advancements and ongoing R&D activities. The rising population and the subsequent growth in the number of vehicles and other industries using biodiesel are also expected to provide ample new growth opportunities in the market during the forecast period. Additionally, the increasing attempts by governments to adopt renewable energy sources to generate power are expected to offer significant growth opportunities for players operating in the biodiesel market.
The biodiesel offers many opportunities in transportation and power generation, automobile, aircrafts sectors. In addition, biodiesel can be blended with petroleum-based heating oil in a variety of ratios and used as fuel to heat domestic and commercial boilers. For specific heating applications, such mixtures or blends have been standardized in various ratios.
The market has major restraining factors like the requirement for high cost of feedstocks for biodiesel production. Additionally, the unfavorable cold flow qualities of biodiesel are one of the main concerns among users. Since biodiesel tends to gel (freeze) at higher temperatures than conventional diesel, it can be difficult to fuel vehicles with high biodiesel blends in cold regions. The type of oil or fat from which biodiesel is manufactured determines the actual temperature at which it freezes. This factor is expected to restrain biodiesel market growth during the forecast period.
A key challenge that may affect the growth of the market is the expensive feedstock costs for biodiesel production. The most frequent feedstock for biodiesel manufacturing is vegetable oil, including canola oil, soybean oil, and palm oil. The variation in the quality of biodiesel is a major challenge for the biodiesel market. This is due to the variety of biofuel crops used to make biodiesel. The ability to generate power can vary depending on how the oil is extracted and chemically converted into fuel. While the use of biodiesel improves the efficiency of an engine, it can also considerably damage the rubber houses of some engines. More fertilizer is used to grow more crops for biofuel production, which can have a devastating impact on the environment. These are the major challenges for the market's growth during the forecast period.
The report provides an in-depth analysis of biodiesel market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for biodiesel in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
The global biodiesel market comprises of different market segments like, by feedstock, type, application and geography.
By feedstock, the global biodiesel includes key segments like
On the basis of feedstock, the biodiesel market in segmented into vegetable oils and animal fats. The vegetable oils are projected to dominate in biodiesel market during the forecast period. This is due to the new technologies and provides as solution for economic, environmental and waste management. Vegetable oils further includes canola oil, soybean oil, palm oil, corn oil and animal fats further subdivided into poultry fat, white grease, tallow, yellow grease. The higher use of vegetable oil as a renewable resource for the production of biodiesel, the lower emissions of greenhouse gases, the high oil yield, and the lower percentage of saturated fat contribute to this segment's growth. Through industrial processes of esterification and transesterification, lipids like vegetable oils or animal fats react with alcohol to produce biodiesel, a liquid biofuel. Any diesel automobile engine can use biodiesel alone or mixed with petroleum-based diesel.
By type, the global biodiesel includes key segments like
Methanol segments holds the major share of the biodiesel market during the forecast period. Methanol is a widely used type of biodiesel because it can be used as a substitute for fuel for transportation and as a feedstock for the production of other chemicals. Additionally, rising demand in the transportation sector, where it is directly or indirectly used in methanol fuel cells or blended with gasoline to increase the octane rating. Further, methanol required low-cost production compared to the other alternative fuels. Methanol can also be produced from a variety of carbon-based feed stocks, such as natural gas and coal, and has a lower risk of flammability. Methanol are the most often used alcohols in biodiesel production because of its physical and chemical advantages. In addition, its reaction with triglycerides is quick, and it is simple to dissolve in NaOH. However, the level of water in an alcohol is crucial for its successful application in the production of biodiesel. Biohydrogen can be produced from microalgae using two alternative processes such as direct production of biohydrogen by microalgae and microalgal biomass utilization as a fermentation substrate by other microbes.
The global biodiesel market finds major applications in
On the basis of applications, the global biodiesel market finds major applications in fuel, power generation, and agriculture. The fuel segment dominates the biodiesel market during the forecast period. This is due to the rising consumption of biodiesel fuel in marine, automobiles, railway, automotive, aircraft and agriculture industries. A fuel is any substance that can be made to react with other substances to produce energy that can be used for work or as thermal energy. In automobile the biodiesel is major used due to its increased fuel lubricity, which further aids to makes the engine work more smoothly and also more effectively.
The global biodiesel market is studied for the following region
Geographically, the global biodiesel market is studied in North America, Europe, Asia-Pacific, and the Rest of the World (RoW). North America is projected to lead the market during the forecast period. This is due to the spending on renewable energy sources and the technological advancements taking place in the region. Government support to reduce the carbon emissions via tax rebates on biofuels is another factor that has led to the growth of these regions. The Asia Pacific region projected significant growth during the forecast period. This is due to the increasing population and energy demand, as well as the agriculture bases in China and India, which would help meet the demand for biodiesel's raw materials.
Many economies suffered as a result of the COVID-19 pandemic. Globally, complete lockdown and quarantine had a negative impact on numerous industries. Throughout the initial stages of the pandemic, manufacturing facilities all over the world were shut down. COVID-19 pandemic had significant impact on global economy at various stages as well as on biodiesel demand. The automotive industry was among the most affected industries during the pandemic. Along with logistics and freight transportation, the biodiesel market experienced interruptions in the value chain, from raw materials supply to government shortages and distribution. The movement restrictions of workers during the pandemic declined the automotive demand for biodiesel, resulting in the closure of production facilities. The repeated lockdowns also had an impact on production and trade movements. The freight logistics sector and transportation sector also had negative impact due to pandemic, which resulted in supply chain disruption and reduced demand for biodiesel. However, this is expected to resume the biodiesel market's growth during the forecast period. This is due to the increasing awareness regarding the depletion of non-renewable energy sources, the increasing preference for biofuel, which is renewable and biodegradable, over fossil fuels, and the increased demand for eco-friendly and GHG emission-reducing gas.
The competitive landscape analysis of biodiesel market is primarily focused on expanding the global growth of biodiesel industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in biodiesel sector has led the growing demand for the market.
The key players studied in market are
October 2022: Neste and Rolls-Royce built a strategic partnership to accelerate the adoption of renewable diesel as a lower-emission diesel engine solution. The key focus of the collaboration is to promote the use of more sustainable fuels in applications based on existing internal combustion engine technology, accelerate the switch from fossil fuels to renewable fuels, and increase knowledge sharing on renewable diesel and the benefits it provides to its users.
March 2022: Renewable Energy Group Inc., a leading biobased diesel producer in North America, announced the introduction of a line of branded fuel solutions, EnDura Fuels. This biobased diesel can play an essential role in assisting the entire transport industry in reducing carbon emissions.
November 2020: PRIO has launched a new green fuel for ships with 15% biodiesel content. Eco Bunkers, developed from raw waste material recycling processes, is produced at PRIO's biodiesel plant in Aveiro in Portugal. According to the company, Eco Bunkers allows for a reduction of up to 18% in CO2 emissions.
By feedstock, the global biodiesel includes key segments like vegetable oils and animal fats. The vegetable oils are projected to dominate in biodiesel market during the forecast period. By type, the global biodiesel includes key segments such as methanol, bio-hydrogen, and cellulosic ethanol. Methanol segments holds the major share of the biodiesel market during the forecast period. By application, the global biodiesel market finds major applications in fuel, power generation, and agriculture. The fuel segment dominates the biodiesel market during the forecast period. The global biodiesel market is studied for region: The North America, Asia Pacific, Europe, and the Rest of the World. North America is projected to lead the market during the forecast period.
Sizing for Year:||2023-2029|
|Value: ||USD million|
Players and its Competitors:|
Archer Daniels Midland Company
Poet-DSM Advanced Biofuels LLC.
Wilmar International Limited
Louis Dreyfus Company B.V
China Petroleum & Chemical Corp (Sinopec Corporation)
INEOS New Planet BioEnergy
Renewable Energy Group, Inc.
Royal Dutch Shell plcTotal S.A
FREQUENTLY ASKED QUESTIONS
Which is the leading application segment for global biodiesel market?
The fuel segment dominates the biodiesel market during the forecast period
Who are the key players in the global biodiesel market?
The key players in biodiesel market are Abengoa bioenergy, Archer Daniels Midland Company, Canergy LLC, Cargill Incorporated, Poet-DSM Advanced Biofuels LLC., RB Fuels, Wilmar International Limited, Repsol S.A., Amyris, Bunge Limited, Louis Dreyfus Company B.V, China Petroleum & Chemical Corp (Sinopec Corporation), Enerkem, INEOS New Planet BioEnergy, Neste Oyj, Renewable Energy Group, Inc., Royal Dutch Shell plc and Total S.A
Which region is gaining majority of market share during the forecast period (2023-2029)?
North America is expected to gain major market share during the forecast period (2023-2029).