Biodiesel is a renewable
transportation fuel consisting of fatty acid methyl esters, generally produced
by transesterification of vegetable oils and animal fats. Biodiesel is an
alternative fuel similar to conventional fossil diesel. Almost all biodiesel is
produced using base-catalyzed transesterification as it is the most economical
process requiring only low temperatures and pressures. Biodiesel has many
environmentally beneficial properties such as carbon neutral, renewable sources of
energy, and density of biodiesel fuel. Biodiesel fuels are used in a wide
variety of applications ranging from fuel to power generation and solvents
& cement manufacturing.
Figure 1: Global Biodiesel Market by Value 2015 – 2023
The global biodiesel market was
sized over USD 32.95 billion in 2015. The global biodiesel market is projected
to grow with a CAGR between 3.5% and 4.0% during 2017-2023 and reach USD 43.26
billion by 2023. The global biodiesel market is primarily driven by the motives
of concerns about greenhouse gas emissions and global climate change coupled
with a desire for renewable and sustainable energy sources. Moreover, increasing
demand for biodiesel fuels form end-user applications such as railway,
aircraft, marine, heating oil, cleaning and generators will drive the global
biodiesel market over the forecast period. Furthermore, the growing demand for
biodiesel fuel to replace conventional fossil fuel in commercial, automotive
and power generation is anticipated to drive the biodiesel market globally over
the forecast period. However, volatility in raw material prices required for
the production of biodiesel and the unavailability of raw materials will restrain
the growth of the global biodiesel market. Nevertheless, increasing investment in
R&D activities from the government in the feedstock and growing focus in
developing domestic & more secure fuel supplies from key players will bring
more opportunities in the biodiesel market globally over the forecast period.
The report segments the biodiesel
market by feedstock, by application, and by region. Market segmentation based on
feedstock includes animal fat, waste vegetable oil, algae, jatropha, and others.
Moreover, the global biodiesel market based on application is segmented as
automotive fuel, power generation, solvent & cement manufacturing,
cleaning, heating oil and others.
Geographic Coverage and Analysis:
The report provides regional
analysis covering geographies such as North America, Europe, Asia-Pacific,
Latin America and Rest of the World. In this section the key trends and market
size for each geography is provided over the period of 2017 - 2023.
Figure 2: Global Biodiesel Market by Region
Europe is accounted for the
largest production of biodiesel due to support by the government to increase energy
independence and meet the rising energy demand. Moreover, Germany and France
are major and remarkable producers of biodiesel over the last decade but are
anticipated to decline in the upcoming years due to imposition of taxes on
green fuels which have made biodiesel too expensive and economic slowdown.
However, North and South America biodiesel market are anticipated to grow at a
highest CAGR rate over the forecast period due to initiatives taken by the
government of U.S, Canada, Brazil, and Argentina to reduce dependence on foreign
petroleum and to promote bio-fuel sector by creating jobs and improving the
environment. Nevertheless, Asia Pacific biodiesel market is also likely to
witness significant growth over the forecast period due to growth in
automotive sector and increasing demand in diesel driven vehicle are at rapid
pace especially in economies such as China and India. Furthermore, India is
anticipated to grow at the highest CAGR rate in the Asia Pacific region due to
government initiatives in promoting green fuel to reduce pollution as well as
to reduce dependency on crude oil.
The companies covered in the
report include Green Earth Fuels, LLC, ACCIONA Energy, American Energy
Producer, China Biodiesel International Holding, Crimson Renewable Energy,
Deerfield Energy, Imperium Renewables, Archer Daniels Midland Company, Wilmar
International Limited, Neste Corp., BIOX Corp., and Cargill Inc.
The report provides deep insights
on demand forecasts, market trends, and micro and macro indicators. In addition,
this report provides insights into the factors that are driving and restraining
the demand for biodiesel globally as well as regionally. Moreover, IGR-Growth
Matrix analysis given in the report brings an insight into the investment areas
that existing or new market players can consider. The report provides insights
into the market using analytical tools such as Porter’s five forces analysis
and value chain analysis of biodiesel. Moreover, the study highlights current
market trends and provides forecast from 2017 to 2023. We also have highlighted
future trends in the biodiesel market that will impact the demand during the
forecast period. Moreover, the competitive analysis given in each regional
market brings an insight into the market share of the leading players.
Additionally, the analysis highlights the rise and fall in the market shares of the
key players in the market. This report will help manufacturers, suppliers, and
distributors of the biodiesel market to understand the present and future
trends in this market and formulate their strategies accordingly.