Biodiesel Market Size was valued at USD 39.29 Billion in 2023. The Biodiesel market industry is projected to grow from USD 42.35 Billion in 2024 to USD 79.86 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.30% during the forecast period (2024 - 2032). Growing awareness among people regarding depletion of non-renewable energy sources coupled with depletion in natural resources are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The demand for the biodiesel market is increasing in the 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 industry increases in the market.
The demand for biodiesel is increasing constantly in the 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 market. Moreover, biodiesel is the only renewable source of energy available so it has great potential for growth during the forecasted period in the market. Therefore, such factors related to biodiesel have enhanced the Biodiesel market CAGR across the globe in recent years.
The Biodiesel market segmentation, based on type, includes Methanol, Biohydrogen and Cellulosic Ethanol. The Cellulosic Ethanol segment held the majority share in 2021, contributing to the Biodiesel market revenue. This is because cellulosic biodiesel has several advantages over other types of biodiesel. It is made from non-edible plant materials, which means that it does not compete with food crops for land and resources. Additionally, cellulosic biodiesel has a higher energy content than traditional biodiesel, which means that it is more efficient and cost-effective to use. Furthermore, it has lower greenhouse gas emissions than traditional biodiesel, making it a more sustainable and environmentally friendly option. Due to these advantages, the demand for cellulosic biodiesel is expected to continue to grow in the coming years.
Based on application, the Biodiesel market segmentation includes Off Grid Electricity Supply and Transportation. The transportation segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is because biodiesel is a clean-burning and renewable alternative fuel that can be used in existing diesel engines without the need for any major modifications. This makes it an attractive option for transportation, especially in the commercial and heavy-duty vehicle sectors. However, this application is not as widely adopted as transportation, as it is more limited in terms of the availability of biodiesel feedstocks and the cost of producing biodiesel in small quantities. These all factors for Biodiesel positively impact the market growth.
Figure 2: Biodiesel Market, by application, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The largest market share in the biodiesel market in the market is held by the North American region owing to increasing government policies and strict rules and regulations regarding environment conservation.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Figure 3: Biodiesel Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s Biodiesel market accounts for the second-largest market share 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. Further, the Germany Biodiesel market held the largest market share, and the UK Biodiesel market was the fastest-growing market in the European region.
The third-largest market share in the biodiesel market in the market is held by the Asia-Pacific region as this region is the fastest-growing region in the 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 in the demand for the biodiesel market. Increasing investment in infrastructural development and emerging concerns are the contributing concerns. Moreover, the U.S. Biodiesel market held the largest market share, and the Canada Biodiesel market was the fastest-growing market in the north america region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Biodiesel market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Biodiesel industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Biodiesel. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Biodiesel industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Biodiesel industry to benefit customers and expand the market sector. The Biodiesel market has recently given medicine some of the most important advantages. Major Biodiesel market players, including INEOS New Planet BioEnergy, Canergy LLC, Abengoa bioenergy, Archer Daniels Midland Company, Wilmar International Limited, and others, are attempting to increase market demand by funding R&D initiatives.
INEOS New Planet BioEnergy is a company that specializes in the production of advanced biofuels. The company uses proprietary technology to convert non-food feedstocks, such as municipal solid waste and woody biomass, into advanced biofuels. The company has a facility in Vero Beach, Florida, United States, which is one of the largest advanced biofuel plants in the world. In addition to advanced biofuels, the company also produces renewable chemicals and biopower. INEOS New Planet BioEnergy is a subsidiary of INEOS, a leading chemical company with operations in over 30 countries.
Abengoa Bioenergy is a subsidiary of Abengoa, a company that specializes in the development and implementation of sustainable solutions for energy and the environment. Abengoa Bioenergy is focused on the production of biofuels, bioenergy, and biopower. The company uses proprietary technology to convert non-food feedstocks, such as agricultural waste and woody biomass, into advanced biofuels and biopower. Abengoa Bioenergy has operations and facilities in several countries, including the United States, Spain, and South Africa. The company's biofuels are used in transportation and industrial applications, and its biopower is used for electricity generation. Abengoa Bioenergy also provides engineering, construction, and operation services for bioenergy projects. The company has been in business for over 30 years, and is considered as one of the industry leaders in the field of bioenergy.
April 2021: Continental Refining Company (CRC), Kentucky, invested an additional USD 20 million in the biodiesel project. The company plans to invest an additional USD 20 million to acquire and install a soybean crushing, biodiesel refining, and blending facility in Kentucky.
In September 2019, In order to reduce the carbon footprints in the country, approximately 200 buses running on biodiesel or biofuel were rolled out by MAN Truck & Bus to run in the city of Trondheim in Norway. MAN Truck & Bus delivered 105 city buses to Vy Buss and further 84 to Tide buss.
In August 2019, UK based company Crown Oil announced an investment of £4 million in biofuels. The investment is done with the main objective of replacing the diesel and gas used for vehicles with the biofuel being manufactured using vegetable oils. The fuel produced has been approved for the use of vehicles by Scania, Caterpillar, Volvo, and Mercedes-Benz.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 39.29 Billion |
| Market Size 2024 | USD 42.35 Billion |
| Market Size 2032 | USD 79.86 Billion |
| Compound Annual Growth Rate (CAGR) | 7.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | INEOS New Planet BioEnergy, Canergy LLC, Abengoa bioenergy, Archer Daniels Midland Company, Wilmar International Limited, Bunge Limited, Neste Corporation, Emami Group, Continental Refining Company, BIOX Corporation |
| Key Market Opportunities | Stringent rules, regulations, and government policies regarding the use of green and clean energy sources |
| Key Market Dynamics | Growing awareness among people regarding depletion of non-renewable energy sources |
Biodiesel Market Highlights:
Frequently Asked Questions (FAQ) :
The Biodiesel market size was valued at USD 39.29 Billion in 2023.
The market is projected to grow at a CAGR of 7.30% during the forecast period, 2024-2032.
North America had the largest share in the Biodiesel market.
The key players in the market are INEOS New Planet BioEnergy, Canergy LLC, Abengoa bioenergy, Archer Daniels Midland Company, Wilmar International Limited, Bunge Limited, Neste Corporation, Emami Group, Continental Refining Company, BIOX Corporation.
The cellulosic ethanol category dominated the market in 2021.
Transportation had the largest share in the market for Biodiesel.
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