According to the Market Statsville Group (MSG), the global biodiesel market size is expected to grow from USD 1,531.6 million in 2021 to USD 4,103.6 million by 2030, at a CAGR of 15.1% from 2022 to 2030. Biodiesel, sometimes known as green diesel, is a sustainable, clean-burning alternative fuel made by transesterifying recycled cooking oils and animal fats. The process has two byproducts: methyl esters (biodiesel) and glycerol. Similar to petroleum diesel in some respects, biodiesel is more affordable, carbon neutral, and non-toxic. Additionally, it produces no byproducts of sulphur or other hazardous pollutants and burns cleaner than fossil fuels. Because of these advantages, it is widely used in the automotive, maritime, railway, agriculture, and mining sectors.
A major aspect driving the biodiesel industry is the rising demand for ecologically friendly fuels that lower greenhouse gas emissions while ensuring full combustion. The government's support for biodiesel production through subsidies and requirements implies that the market will continue to develop.
The increasing demand for energy and the growing desire for clean and renewable fuel sources are the primary drivers driving market expansion. The robust automobile industry is another significant development driver. Growing environmental consciousness and consumer understanding of the benefits of biodiesel have resulted in its widespread use worldwide. Furthermore, the scarcity and rising prices of nonrenewable energy sources such as gasoline, diesel, and liquefied petroleum gas (LPG) have pushed the use of biodiesel. Various technical breakthroughs, such as the advent of third-generation biofuels generated from algae, which can create a diversified and large quantity of ethanol compared to other feedstocks, are also contributing to the market's favorable outlook.
Other factors such as favorable government policies promoting its use for sustainable development, energy conservation, and environmental preservation are expected to benefit the market in the next years.
The current COVID pandemic has caused a drop in production and logistic operations in the biodiesel industry, but demand is expected to normalize as the pandemic situation calms and economic activity begins to recover. The COVID-19 pandemic has significantly influenced the world economy at various times, and the effects may also be observed in biodiesel demand. Automobiles and agriculture, the two largest biodiesel end consumers, saw a decline in 2020.
The study categorizes the biodiesel market based on blend, production technology, feedstock type, and application at the regional and global levels.
Vegetable oils segment is projected to account for the largest market share, by feedstock type
Based on feedstock type, the global biodiesel market is divided into vegetable oils (soybean, rapeseed, palm), animal fats (lard/white grease, poultry, tallow), and brown grease/ trap grease. The segment of vegetable oils has the largest market share. The bulk of biodiesel is created using vegetable oil-derived feedstock, primarily from rapeseed, soybean, and palm oils. The feedstock utilized in a given nation is determined by the availability of crops in that country. Rapeseed oil, for example, is the most often utilized feedstock in biodiesel manufacturing, followed by soybean oil. Rapeseed oil is widely utilized for biodiesel manufacturing in several European nations, whereas soybean oil is used in the United States and Argentina. Malaysia and Indonesia utilize coconut and palm oil.
Based on the regions, the global biodiesel market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia-Pacific is estimated to hold the highest CAGR in the global biodiesel market during the forecast period. The expanding population and energy consumption are factors that will contribute to market expansion. The Asia Pacific area has a strong agricultural base in China and India, which will aid in meeting the demand for biodiesel raw materials.
The global biodiesel market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
Major players in the global biodiesel market are:
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