Biodiesel Market Estimated to Flourish by 2030

Global Biodiesel Market

Rising Funding Support for Research & Sustainability Projects
and Biodiesel & Bio-heat Fuel Use Boost Market Revenues

In 2021, the biodiesel market was estimated to be worth USD 40
billion. According to projections, the biodiesel market business would expand
at a compound annual growth rate (CAGR) of 5.25% from USD 42.69 billion in 2022
to USD 64.27 billion by 2030.

The global biodiesel
market is garnering significant traction. Biodiesel
uses helps economies to achieve their renewable energy targets. Energy is an
important aspect of the economic growth and welfare of nations. The presence
and development of advanced infrastructure are essential for the sustained
growth of an economy.

Therefore, governments worldwide are initiating programs to
encourage the use of biodiesel to generate electricity in a carbon-neutral
manner, tackling growing pollution concerns. With the growing numbers of
biodiesel plants and increasing biodiesel production capacities worldwide, the
market is estimated to perceive substantial revenue growth in the years to
come.

Improved Energy Generation While Reducing VOC Emissions Boost
Market Value

Favorable government regulations to foster carbon-neutral energy
sources and development in technology have made biodiesel cost-effective.
Additionally, improvements in technology have helped boost biodiesel
performance. Growing environmental concerns and the increasing energy demand
are expected to drive the biodiesel industry worldwide.

Demand-Supply Gap in Key Raw Materials is a Major Headwind

Also, shortages of sodium methylate solution, a catalyst used to
produce biodiesel, are adding to market concerns about fuel availability.
Unexpected technical issues at production sites that severely affect the
production of sodium methylate solution pose significant challenges to the
market growth. Such exceptional market situations result in delays and
reduction in delivery of sodium methylate.

COVID-19 Impacts

The biodiesel market revenues remained reassuringly robust amid
the COVID-19 crises. Resultantly, the market has become more dynamic and
constantly changing than in the pre-pandemic era. Simultaneously, the ability
to respond to market changes became more important than ever in post-pandemic
periods.

Lockdowns implemented to control the virus spread fostered many
trends, including industrial automation & robotics, networked machines, and
analytics. Therefore, the biodiesel market kept growing, witnessing the rising
adoption during the pandemic era. The biodiesel market kept growing during the
pandemic era witnessing the rising adoption of biopower solutions and
equipment.

Segmentation

The market is segmented into types, fuel types, applications, and
regions. The type segment is sub-segmented into cellulosic, biohydrogen,
methanol, and others. The fuel type segment is sub-segmented into ethanol and
biodiesel fuel. The application segment is sub-segmented into transportation,
off-grid electricity supply, and others. The region segment is sub-segmented
into Americas, Europe, Asia Pacific, and the-rest-of-the-world.

Regional Analysis

North America accounts for the largest market in terms of
biodiesel market value. Increasing government policies and strict rules to
promote environmental conservation is a key driving force behind the growing
biodiesel market. Besides, increasing environmental concerns and the
implementation of government policies boost the region's biodiesel market
shares.

Increasing investment in infrastructural development defines the
growing market landscape. Moreover, the increasing use of biodiesel in various
power generation and industrial applications substantiate the biodiesel market
growth. Spurring rise in manufacturing sectors and vast technological upgrades,
alongside the strong presence of key players in the region, fosters market
revenues.

Competitive Analysis

The renewable
diesel market experiences strategic approaches, such as mergers &
acquisitions, collaborations, expansions, and product launches. Key market
players invest substantially to drive their research and development activities
and expansion plans.

For instance, recently, on Aug.23, 2021, Union Pacific locomotives
announced that it would use higher biodiesel blends to help reduce carbon
footprint, getting a boost of biodiesel fuel. Progress Rail has approved using
up to 20% biodiesel blend in specific EMD locomotive series operated by the
railroad.

This is another step toward achieving the company's long-term goal
to reduce 26% greenhouse gas (GHG) emissions by 2030. The updated fuel
recommendation comes after testing high-horsepower locomotives used for hauling
long freight distances. Besides, monitoring performance for fuel consumption
and impact on engine oil and fuel filters.

·
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

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