Biodiesel Market size is set to grow by USD 16.71 billion from 2024-2028, Growing demand for algae for production of biodiesel to boost the market growth, Technavio

NEW YORK, May 29, 2024 /PRNewswire/ -- The global biodiesel market  size is estimated to grow by USD 16.71 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 7.38%  during the forecast period. 

For more insights on the forecast market size and historic data (2018 - 2022) - Download Free sample report in minutes 

Key Market Trends Fueling Growth

The biodiesel market has experienced growth due to its cost-effective and eco-friendly attributes. However, high production costs have hindered market expansion. To address this issue, manufacturers are implementing strategies such as using efficient catalysts, affordable raw materials, and advanced technologies.

Notably, spent bleaching clay, which contains 25-40% oil, is now being recycled through base-catalyzed transesterification to produce biofuel at a lower cost. This trend is anticipated to boost the global biodiesel market during the forecast period. 

The biodiesel market is experiencing significant growth with increasing demand for renewable energy sources. Diesel and biodiesel blend usage is prevalent in various industries such as transportation, agriculture, and power generation. Key players in the market include cooking oil, animal fats, and vegetable oils. Feedsstock sources like soybean oil, palm oil, and waste vegetable oils are commonly used.

The industry is driven by factors such as government policies, increasing awareness of environmental concerns, and advancements in technology. The use of biodiesel in the aviation industry is also gaining traction. The market is expected to continue growing due to its sustainability and cost-effectiveness compared to traditional fossil fuels. 

Market Challenges

• The global biodiesel market faces challenges due to higher operating costs compared to crude oil prices. This issue is particularly significant in developing countries where petrochemical products dominate as the primary fuel source. The use of various raw materials, such as soybean oil and vegetable oils, adds to the manufacturing expenses.
• In 2020, the average price of crude oil was USD39.68 per barrel, which decreased to USD11.24 per barrel in April. This price decline poses challenges for biodiesel adoption and growth during the forecast period.
• The biodiesel market faces several challenges in its production and implementation. Feedsstock availability and cost are key concerns, with palm oil, soybean, and vegetable oils being commonly used. The production process involves the use of chemicals like methanol and sodium hydroxide, which can be costly. Additionally, the inconsistency in the quality of feedstocks can impact the final product's quality. Regulations and renewable energy policies vary, making it challenging to maintain a consistent market.
• Furthermore, competition from other renewable energy sources like wind and solar power can impact the demand for biodiesel. Despite these challenges, the industry continues to grow, driven by the need for sustainable energy solutions.

Research report provides comprehensive data on impact of trend, driver and challenges - Download Free sample report in a minutes 

Segment Overview 

1. Application 
• 1.1 Transport fuel
• 1.2 Power generation
• 1.3 Others
2. Type 
• 2.1 Vegetable oil
• 2.2 Animal fats
• 2.3 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Transport fuel-  Biodiesel is a popular alternative fuel for diesel engines, offering environmental benefits and improved efficiency in CI engines. Europe leads the biofuel market with over 80% share, driven by increasing automobile usage. India is investing in biodiesel manufacturing, with Karnataka already utilizing it for buses. The transport fuel segment's moderate growth is due to biodiesel's adoption as an alternative fuel in the transportation industry.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022)  - Download a Sample Report

Research Analysis

The global Biodiesel Market is experiencing significant growth due to the increasing demand for renewable energy sources. Biodiesel, a type of renewable fuel derived from vegetable oils, animal fats, and recycled cooking oil, is a key contributor to this sector. Feedstocks used in the production of biodiesel include rapeseed oil, palm oil, and soybean oil.

The market is driven by various factors such as the depletion of fossil fuels, stringent environmental regulations, and the need to reduce greenhouse gas emissions. The biodiesel industry is expected to continue its expansion in the coming years, making it a promising investment opportunity in the renewable energy sector.

Market Research Overview

The Biodiesel market encompasses the production, consumption, and trade of biodiesel fuel worldwide. This renewable energy source is derived from various feedstocks, including vegetable oils, animal fats, and waste cooking oil. The production process involves transesterification, which converts triglycerides into fatty acid methyl esters (FAME). Biodiesel is a clean-burning fuel that reduces greenhouse gas emissions and improves air quality.

Its applications span across various sectors, including transportation, power generation, and industrial processes. The market growth is driven by factors such as increasing environmental concerns, government regulations, and the depleting fossil fuel resources. The global biodiesel market is expected to grow significantly in the coming years, with major demand coming from Europe and North America.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Transport Fuel
• Power Generation
• Others
• Type
• Vegetable Oil
• Animal Fats
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED