Global Biodiesel Market Research Report - Forecast to 2028

Biodiesel Market Information Report by Application (off grid electricity supply and transportation), by Type (Methanol, Biohydrogen and Cellulosic ethanol.) and by Region - Forecast to 2028

ID: MRFR/E&P/0992-HCR | February 2021 | Region: Global | 185 pages

Biodiesel Market Overview


Biodiesel Market is projected to be worth USD 64.27 billion by 2028, registering a CAGR of 7.31% during the forecast period (2021 - 2028)., The market was valued at USD 40.85 billion in 2021.


Regional Analysis


The biodiesel market in the global market has been divided based on the region into South American region, the Middle East and African region, European region, Asia-Pacific region, North American region, and the rest of the world. The largest market share in the biodiesel market in the global market is held by the North American region owing to increasing government policies and strict rules and regulations regarding environment conservation.


The second-largest market share in the biodiesel market in the global market is held by the European region owing to increasing concerns related to environmental issues. Also, the implementation of all the government policies and regulation is a major factor that boosts the demand for biodiesel in the European market.


The third-largest market share in the biodiesel market in the global market is held by the Asia-Pacific region as this region is the fastest-growing region in the global market. Improving economic conditions coupled with increasing population are major factors that accelerate the demand for biodiesel in the Asia-Pacific region. The availability of raw materials in the Asia-Pacific region is another factor.


The South American region and the Middle East and African region are also showing positive growth towards the demand for the biodiesel market. Increasing investment in infrastructural development and emerging global concerns are the contributing concerns.


Competitive Landscape


The most prominent major key players in the biodiesel market in the global market has been mentioned below:



  • INEOS New Planet BioEnergy

  • Canergy LLC

  • Abengoa bioenergy

  • Archer Daniels Midland Company

  • Wilmar International Limited

  • Bunge Limited

  • Neste Corporation

  • Emami Group

  • Munzer Bioindustrie

  • BIOX Corporation

  • Cargill Inc.

  • Louis Dreyfus Company

  • Renewable Energy Group Inc.

  • Amyris

  • Poet-DSM Advanced Biofuels LLC


These major key players use various strategies to sustain their market position in the biodiesel market in the global market by collaborating, by going for mergers, and acquisitions, setting up a new joint venture, establishing a partnership, developing a new production process, innovation in the existing product, developing a new product line, and many others to expand their customer base in the untapped market of the biodiesel all across the globe.


Market Dynamics


Drivers


The demand for the biodiesel market is increasing in the global market owing to growing awareness among people regarding depletion of non-renewable energy sources coupled with depletion in natural resources. To cater to the increasing demand for clean energy there is a need to integrate biodiesel (renewable energy source) fuel with the other sources of energy. Also, the increasing population all across the globe demand green and clean energy sources, and hence the demand for biodiesel market increases in the global market.


Opportunities


The demand for biodiesel is increasing constantly in the global market during the forecasted period owing to stringent rules, regulations, and government policies regarding the use of green and clean energy sources provide various growth opportunities for the biodiesel market in the global market. Moreover, biodiesel is the only renewable source of energy available so it has great potential for growth during the forecasted period in the global market.


Restraints


The growth of the biodiesel market is increasing rapidly but some factors restrict the growth of the biodiesel market in the global market. Restriction in the existing distribution channels, retail, and development adversely affects the growth of the biodiesel market in the global market. Also, the low quantity of biodiesel production is another factor that hinders the growth of the biodiesel market in the global market. Moreover, there is a lack of awareness regarding the biodiesel market in various under-developed countries.


Value Chain Analysis


The demand for biodiesel is increasing tremendously in the global market as there is a scarcity of fossil fuels coupled with the depletion of natural resources is increasing demand for biofuels in the global market. Also, the increasing awareness for reducing carbon footprint among people is among some major reasons that fuel the demand for biodiesel in the global market. Moreover, the use of biodiesel is environmental-friendly and hence reduces global warming.


Market Segmentation


The biodiesel market in the global market has been divided based on the fuel type, type, application, and region.


Based on the Fuel Type


The biodiesel market in the global market had been divided based on the fuel type into ethanol fuel, and biodiesel fuel.


Based on the Type


The biodiesel market in the global market has been divided based on type into cellulosic type, biohydrogen type, and methanol type.


Based on the Application


The biodiesel market in the global market has been divided based on the application into transportation and off-grid electricity supply.


Based on the Region


The biodiesel market in the global market has been divided based on the region into South American region, the Middle East and African region, European region, Asia-Pacific region, North American region, and the rest of the world.


COVID 19 Analysis


With the growing outbreak of the global pandemic of COVID 19 businesses have suffered huge losses which have pushed the economies towards forced recession. The growing wave of the global pandemic has suffocated the individual to fight between the financial crises along with health concerns. The situation of lockdown has resulted in shut down of most of the manufacturing units coupled with halted transport and airlines led to a steep downfall in the sales revenue of the biodiesel market all across the globe. The supply chain networks have also been disrupted which results in reduced profit margin.


The government is showing huge support to lift growth. However, it is expected that the biodiesel market will recover from this global pandemic by strategizing properly to meet the requirements of their customers. Also, it is expected to recover at the end of the third quarter in the coming year.

With the increasing concerns for the environment and demands for environmentally friendly and clean sources of energy coupled with increasing demand for a sustainable and reliable source of energy, the demand for the biodiesel market is increasing in the global market. Also, in various emerging countries having a high population has made it mandatory to blend biodiesel in the automotive industry. With the scarcity of fossil fuels and depletion of natural resources, the growth of the biodiesel market has become the need of an hour. Moreover, biodiesel is a waste-based fuel generally obtained from waste of commercial, agronomic, digestion, plant, and domestic industry.


Recent Developments



  • In June 2016, a facility of biodiesel in Sombra, Ontario which has 50 liters of production capacity of biodiesel is owned by Methes Energies Canada Inc. has been acquired by BIOX Corporation. The acquisition of a production facility will cater to the increasing demand for biodiesel in the North American region as it will increase the production capacity of BIOX Corporation by 75%.

  • In August 2016, an expansion plan of around 14,000 sq. Ft. for research facility of canola in Aberdeen (Canada) is done by Cargill Inc. as it will include high efficiency LED lighting, ventilated seed prep room, quality assurance lab, and pathology lab for increasing research work of the company.

  • In November 2016, for increasing the annual production capacity from 12 million gallons to 30 million gallons an expansion plan of IA bio-refinery is done by Renewable Ebergy Group Inc. for catering to the increasing demand for biodiesel in the United States.

  • The largest market share in the biodiesel market in the global market is held by the North American region owing to increasing concerns related to the environment and increasing government policies regarding the same issue.

  • Neste Corporation is spending a huge amount on research and development which will provide an upper edge over its competitors in the global market and will result in higher sales revenue and profit margins.


Report Overview


This global biodiesel market research report consists of various elements mentioned below:



  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Value Chain Analysis

  • Market Segmentation

  • Regional Analysis

  • Competitive Landscape

  • Recent developments


This global biodiesel market research report contains factors that drive the growth of the biodiesel market in the global market along with the factors that restrict the growth of the biodiesel market in the global market. The opportunities available for the growth of the biodiesel market during the forecasted period are mentioned. The impact of COVID 19 on the sales revenue of the biodiesel market all across the globe is mentioned. The future growth rate of the biodiesel market during the forecasted period is estimated and mentioned.



Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 64.27 billion
  CAGR   7.31% CAGR (2021-2028)
  Base Year   2020
  Forecast Period   2021-2028
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Application, Type
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Enerkem among few ,INEOS New Planet BioEnergy, Canergy LLC, Abengoa bioenergy, Amyris, Poet-DSM Advanced Biofuels LLC
  Key Market Opportunities

  • Biodiesel being the only form of renewable fuel
  • favorable government regulations
  •   Key Market Drivers   Increasing awareness regarding depleting non renewable energy sources and the need to integrate renewable energy sources


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    Frequently Asked Questions (FAQ) :


    Increasing investments in the production of green fuel are poised to drive the growth of the biodiesel market.

    By application, the segments of the biodiesel market are off grid electricity supply and transportation.

    The type-based segments of the biodiesel market are biohydrogen, methanol, and cellulosic ethanol

    Increasing implementation of favorable laws is poised to boost expansion of the biodiesel market.

    The key players are Enerkem, INEOS New Planet BioEnergy, Abengoa bioenergy, Canergy LLC, Amyris, and Poet-DSM Advanced Biofuels LLC.