Dublin, April 10, 2025 (GLOBE NEWSWIRE) -- The "Bio-Diesel Market Outlook to 2031" report has been added to ResearchAndMarkets.com's offering.
The global biodiesel market is valued at USD 49.05 billion, based on a comprehensive five-year historical analysis. The market growth is primarily driven by increased adoption of renewable energy to reduce greenhouse gas emissions, favorable government policies like blending mandates, and rising crude oil prices that push demand for sustainable alternatives.
The market is dominated by countries like the United States, Germany, and Brazil due to their strong regulatory frameworks, advanced infrastructure for biodiesel production, and abundant availability of feedstock. The United States benefits from its Renewable Fuel Standards (RFS), while Germany leads in Europe with its focus on decarbonization policies. Brazil's dominance is fueled by its agricultural sector, which provides an ample supply of soybeans and other feedstocks.
Global Bio-Diesel Market Competitive Landscape
The global biodiesel market is highly competitive, with key players leveraging their extensive supply chains, advanced technology, and strategic investments to maintain dominance. The market is characterized by a mix of multinational corporations and region-specific players, each focusing on innovation and sustainability.
- Technological Advancements: Biodiesel production has improved significantly with technologies like Crown's ACRE, which optimizes transesterification to save catalysts and energy. Pyrolysis technology also enhances the process by allowing a variety of feedstocks to be converted into biodiesel, making production more sustainable and cost-effective. These advancements are crucial for increasing both the efficiency and sustainability of biodiesel production.
- Increased Demand for Sustainable Energy: Biodiesel is gaining traction due to its role in reducing carbon emissions, especially in the transportation sector where it's used as an alternative to traditional diesel fuels. This is driven by growing environmental concerns and climate change awareness. In the transportation sector, companies like UPS and FedEx have integrated biodiesel into their fleets to reduce carbon emissions and meet sustainability goals.
Market Challenges
- Feedstock Availability and Sustainability: Biofuels from agricultural crops compete with food production for land, posing potential food security issues. The cultivation of biofuel crops can lead to deforestation, biodiversity loss, and water depletion if not managed sustainably. For Instance, in Indonesia and Malaysia, large tracts of tropical forests have been cleared to plant palm oil, which is a key feedstock for biodiesel. This has led to significant biodiversity loss and increased carbon emissions.
- Economic Viability: Producing biofuels involves high costs for growing, harvesting, and conversion, often exceeding those for fossil fuels without subsidies or technological advancements. Many biofuel projects depend on government subsidies to remain economically viable, leaving them vulnerable to policy changes. For Instance, the U.S. biodiesel industry has experienced fluctuations in production linked to the expiration and reinstatement of the biodiesel tax credit, demonstrating how dependent the industry is on government financial support.
Global Bio-Diesel Future market Outlook
Over the next five years, the global biodiesel market is expected to exhibit significant growth reaching a market size of USD 77.50 Billion by 2031 fueled by government mandates for renewable energy usage, increased investments in advanced biofuel technologies, and rising awareness about carbon footprint reduction. The transportation and power generation sectors are likely to witness the highest adoption of biodiesel as governments worldwide aim to achieve decarbonization targets.
Market Opportunities
- Growth in Sustainable Aviation Fuel (SAF): The global biodiesel market is experiencing significant growth, driven in part by the expansion ofSustainable Aviation Fuel (SAF)production. With new mandates from the EU and Japan, SAF is increasingly being integrated into existing refinery setups through co-processing technologies, which offer competitive costs and facilitate the transition to greener fuels.
- Diversification of Feedstocks: The diversification of feedstocks is another key trend influencing the biodiesel market. Non-edible oils are gaining traction as viable feedstocks, particularly in Europe and the U.S., which supports long-term production capacities and sustainability goals. The increasing use of these alternative feedstocks helps mitigate competition with food resources and enhances the overall sustainability of biodiesel production.
Case Studies:
- Neste Corporation (Carbon Capture and Utilization (CCU) Integration in Biodiesel Production)
- Louis Dreyfus Company (Vertical Integration Strategy in Biodiesel Production)
- ENCIRCs Implementation of Biodiesel for Sustainable Glass Production
Key Topics Covered:
1. Global Biodiesel Market Overview
1.1. Ecosystem (Ecosystem: Biodiesel Players, Biodiesel Producers)
1.2. Heat Map Analysis (Comparing players on the basis of type of feedstock, geographical presence)
1.3. Product Flow and Value Chain (Detailed product flow from feedstock procurement to retail and end use, segmented as upstream, midstream, and downstream)
2. Global Biodiesel Market Size (In USD Bn & Litres)
2.1. Market Size by Value and Volume (2021-2031)
3. Global Biodiesel Market Segmentation
3.1. By Region (Market Size for Global, North America, Europe, APAC, LATAM, MEA, segmental growth trends, and working notes for key drivers)
3.2. By Feedstock Type (Market Size for First Generation Feedstock, Second Generation Feedstock, and Third and Fourth Generation Feedstock)
3.3. By Application (Market Size for applications such as transportation fuels, power generation, and other uses like heating oil replacement)
4. Global Biodiesel Market Competitive Landscape
4.1. Competition Matrix (Comparison based on number of plants/refineries and production capacity)
4.2. Cross Comparison of Key Market Players (British Petroleum, Wilmar International, Cargill, Bunge, Chevron Renewable Energy Group, Verbio, Louis Dreyfus Company, AG Processing Inc.)
4.2.1. Company Overview
4.2.2. Headquarters & Establishment Year
4.2.3. Headcount as of March 2024
4.2.4. Geographical Presence
4.2.5. Revenue ($/Bn) in 2023
4.2.6. Estimated Revenue by Segment ($/Bn)
4.2.7. Feedstock Generation Type
4.2.8. Plants/Refineries with Production Capacity
4.2.9. Recent Developments (M&A, New Product, Geographical Expansion, Investments, New Product Line, Fresh Funding, Partnerships, Future Plans)
4.3. Case Study - Neste Corporation (Carbon Capture and Utilization (CCU) Integration in Biodiesel Production)
4.4. Case Study - Louis Dreyfus Company (Vertical Integration Strategy in Biodiesel Production)
4.5. Case Study - ENCIRCs Implementation of Biodiesel for Sustainable Glass Production
5. Global Biodiesel Market Dynamics
5.1. Market Drivers (Regulatory Support, Technological Advancements, Increased Demand for Sustainable Energy, Geographic Expansion, Corporate and Industrial Adoption)
5.2. Market Challenges (Feedstock Availability and Sustainability, Economic Viability, Technological Barriers, Environmental Impact)
5.3. Market Trends (Growth in Sustainable Aviation Fuel (SAF), Diversification of Feedstocks, Plant Conversions, Maritime Decarbonization, Utilization of Solid Waste)
6. Global Biodiesel Future Market Size (In USD Bn & Litres)
6.1. Future Market Size Projections (2031)
6.2. Key Factors Driving Future Market Growth
7. Global Biodiesel Future Market Segmentation
7.1. By Region (Projected growth trends for North America, Europe, APAC, LATAM, MEA)
7.2. By Feedstock Type (Future market projections for First, Second, and Third & Fourth Generation Feedstocks)
7.3. By Application (Projected growth for Transportation Fuel, Power Generation, and Heating Oil Replacement Sectors)
8. Global Biodiesel Market Analysts Recommendations
8.1. TAM/SAM/SOM Analysis
8.2. Customer Cohort Analysis
8.3. Marketing Initiatives
8.4. White Space Opportunity Analysis
Company Coverage Includes:
- Wilmar International
- Louis Dreyfus Company
- British Petroleum (BP)
- Chevron Renewable Energy Group
- ADM US
- Verbio Vereinigte BioEnergie
For more information about this report visit https://www.researchandmarkets.com/r/ipg0c4
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