From the period 2022 to 2028, the Global Biodiesel Market is expected to reach USD 48.1 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 3.40%.
Biodiesel is a clean-burning, environmentally friendly fuel made from the transesterification of edible and non-edible oils. In comparison to traditional fuel sources, it is renewable, cost-effective, carbon-neutral, and non-toxic. As a result, it is widely used to minimize carbon emissions in India's automotive, marine, and railway industries. Biodiesel is also mixed with petroleum diesel fuel for use in compression ignition engines because it improves engine lubrication and extends engine life.
Biodiesel is a clean-burning, environmentally friendly fuel made from the transesterification of edible and non-edible oils. In comparison to traditional fuel sources, it is renewable, cost-effective, carbon-neutral, and non-toxic. As a result, it is widely used to minimize carbon emissions in India's automotive, marine, and railway industries. Biodiesel is also mixed with petroleum diesel fuel for use in compression ignition engines because it improves engine lubrication and extends engine life. In India's vehicle sector, rising prices of petroleum products, along with growing environmental concerns, are driving up demand for Biodiesel. Furthermore, the market's expansion is aided by a growing focus on sustainable development techniques. Biodiesel is also utilized to power underground mining equipment and machinery because it improves air quality, increases energy security, and provides a variety of safety benefits. Aside from that, increased energy consumption, as well as the growing use of Biodiesel as a heating fuel in both home and commercial boilers, are expected to have a favorable impact on the industry in the coming years.
Key Highlights from the Report
- On the basis of Feedstock Type, the market is segmented into Vegetable Oils, Animal Fats, and Others. The majority of Biodiesel is produced from feedstock derived from vegetable oils such as rapeseed oil, soybean oil, and palm oil. The feedstock used in a given country is determined by the availability of crops in that country. Rapeseed oil, for example, is currently the most commonly used feedstock in Biodiesel production, followed by soybean oil.
- On the basis of Application, the market is segmented into Fuel, Power Generation, and Others (Solvents, Diluent, Coatings, Printing Inks, Adhesives). Due to the increasing consumption of Biodiesel fuel in the marine, automotive, railway, and agriculture industries, fuel application accounted for the largest share in 2021. Biodiesel has a higher lubricity (50:1) than conventional petroleum diesel, which contributes to its use as a fuel.
- Asia Pacific is the fastest regional segment in terms of growth. Due to increased industrialization and significant escalation in liquid fuel demand in the transport and power sectors in emerging countries such as Indonesia, China, Thailand, India, and Malaysia, the Asia Pacific region is expected to experience rapid expansion. The presence of knowledge, advanced technology, and equipment that promoted exploration and production operations are the main drivers of regional Biodiesel Market expansion over the projection period. Refined petroleum, crude oil, hydrocarbon gas liquids products such as gasoline and diesel fuel, and biofuels are all examples of petroleum. Due to the presence of numerous vendors, the market is tremendously fragmented. However, it is expected that a demand-supply gap caused by limited production capacity and the widespread possibility of Research and Development (R&D) in feedstock selection for product manufacturing will create chances for new industry players.
Some of the key players in the Biodiesel Market include Archer Daniels Midland Company (U.S.), Wilmar International Limited (Malaysia), Bunge Limited (U.S.), Neste Corporation (Finland), Renewable Energy Group Inc. (U.S.), Louis Dreyfus Company (Netherlands), Cargill Inc. (U.S.), BIOX Corporation (Canada), Munzer Bioindustrie (Austria), Emami Group (India) and others.
The Biodiesel Market will be Driven by the Potential to Reduce Emissions
Biodiesel is biodegradable, non-toxic, and free of aromatics and sulphur compounds, among other things. It emits fewer greenhouse gases and pollutants into the atmosphere, reduces hazardous carbon-based emissions, and can be used in almost all diesel engines. The growing concern about greenhouse gas emissions from the use of fossil fuels is influencing the Biodiesel Market's expansion. When compared to petroleum diesel, it emits up to 50% less greenhouse emissions and has a low harmful and carcinogenic aromatic carbon content. Many countries have reduced their reliance on foreign oil supplies by producing Biodiesel, which is manufactured domestically and can be used in any diesel engine with little or no modifications to the engine or fuel system. Biodiesel is rapidly becoming a cheaper option as the price of petroleum-based products fluctuates.
The aviation industry is one of the world's largest emitters of greenhouse gases. The transition of the sector to sustainable and renewable fuels. When compared to fossil-based jet fuel, the expansion of Biodiesel for jet aircraft can dramatically reduce emissions. In recent years, aviation has accounted for around 12% of worldwide transportation fuel use. Several airlines, aircraft manufacturers, and industry organizations have set goals to achieve carbon-neutral development.
With a market share of 41.30 % in 2021, Europe is expected to gain the most market share. In Europe, Biodiesel is the most widely used fuel. However, in terms of volume, Europe is predicted to grow at a very low Compound Annual Growth Rate (CAGR). This is owing to a saturated Biodiesel Market in Europe. The volume of Biodiesel used in the European Union transportation sector has not dropped because major countries such as Germany and Italy have increased the share of blended biofuels. These government initiatives are also increasing the usage of Biodiesel in autos. The most common feedstocks used in the production of gasoline in Europe are rapeseed oil, soybean oil, palm oil, animal fats, UCO, and sunflower oil.