Being a renewable and clean-burning fuel, biodiesel is used on a large scale in various industries including marine, railway, automotive, power generation, mining, etc. Biodiesel is also helping various countries to decrease the dependency on foreign oil reserves as it is being produced domestically and used in a diesel engine with very little or no modification. The government across various countries are also introducing policies supporting the production of biodiesel to reduce emission and create positive economic impact.
As per the new study by Transparency Market Research (TMR), the global market for biodiesel is likely to witness substantial growth, registering 6.9% CAGR between 2017 and 2026. By 2026 end, the global market for biodiesel is projected to bring in US$ 64,497.4 million revenue.
Soybean Oil to Emerge as the Largest Feedstock in the Global Market for Biodiesel
Compared to the various feedstock for biodiesel, soybean oil is likely to witness solid growth in terms of volume during 2017-2026. Soybean oil is projected to reach the volume surpassing 30,500 ‘000 liters by 2026 end. Soybean is one of the dominant feedstock for biodiesel. The U.S. is the largest producer of soybean and the increasing demand for biodiesel is influencing soybean farmers to produce soybean for biodiesel production. The use of (Low Linolenic) LL soybean oil has increased in biodiesel production. Owing to properties in the oil that ensure better and high quality of biodiesel. The two main properties are CFPP and oxidative stability. Moreover, the price of soybean oil feedstock is one of the driving forces resulting in the use of soybean for biodiesel production.
Biodiesel to Find Largest Application in Fuel
Biodiesel is likely to find the largest application in Fuel. Between 2017 and 2026, fuel is projected to account for nearly half of the volume share. Transportation fuel accounts for the major share in the global market for biodiesel. There has been an increase in demand for fuel in commercial vehicles because fuel is beneficial for the environment as it reduces greenhouse gas emission by emitting lower VOC content as compared to diesel. Moreover, biodiesel improves lubricity in fuel and keep moving parts from wearing prematurely. Biodiesel also causes far less damage to the environment as compared to the petroleum diesel in the case of spillage.
Europe to Dominate the Global Market for Biodiesel between 2017 and 2026
The European Union is the biggest producer of biodiesel, with France and Germany being the top biodiesel producers. In Europe to increase the use of biodiesel, the policy has been implemented that requires blending of biodiesel with fuels, it also includes penalties if the required rate of biodiesel in blending is not reached. Tax rebates are also being offered as an initiative for countries in Europe to continue the production of biofuels. Moreover, Europe’s energy taxation regime has also resulted in the increasing use of biodiesel fuel.
Meanwhile, most of the countries in APEJ are also moving towards using biodiesel, for instance, Malaysia and Indonesia are committed to pursuing their biodiesel mandates, despite the low oil prices. The government in both the countries have also introduced a policy to support the production of biodiesel. The U.S. also accounts for the largest production of biodiesel using soybean oil. Many countries have their independent policies regarding the rebate and taxation of biodiesel production, use, and import.
Solvay SA, Mitsui, Ineos Group, Royal Dutch Shell plc, Louis Dreyfus, Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company, Cargill, and TerraVia Holdings, are some of the key players in the global market for biodiesel.
Global Biodiesel Market- Overview
Biodiesel obtained from non-mineral sources such as vegetable oil or animal fats is being used in standard diesel engines. Being a renewable source of energy, the government of various countries are working on introducing policies that promote the use and production of biodiesel and are also providing support for the research and development activities for production. Thus, driving the growth of biodiesel market. Biodiesel is used in both pure form and blended with petroleum diesel.
Moreover, the need to integrate renewable energy sources and depleting non-renewable energy sources are driving the demand for biodiesel. Currently, blended biodiesel is being used on a large scale in heavy-duty vehicles, especially in the U.S. Various methods are being used to produce biodiesel such as supercritical processes, common batch processes, ultrasonic methods and also microwave methods. Moreover, in terms of feedstock, waste vegetable oil is considered to be the best sources to produce biodiesel. However, current production of vegetable oil and animal fat is insufficient. Hence, there is a need for more feedstock to produce biodiesel in a large quantity.
Global Biodiesel Market- Research Methodology
The report has used both top-down and bottom-up approaches in order to estimate the market size of the global biodiesel market. The report provides in-depth analysis and forecast on various segments and regions. Market dynamics including drivers, trends, opportunities, and restraints have also been covered in the report. The research study involved primary and secondary research to identify market opportunities and collect information on all the major factors in the biodiesel market. The report also provides extensive interviews and analysis of all the opinions offered by the primary respondents. Meanwhile, the information obtained through secondary resources is validated through crosscheck with various data sources.
The report offers Porter’s five force analysis, SWOT analysis as well as market attractiveness analysis. Impact analysis of the weighted average model based on growth drivers is also provided in the report. Estimated market share, revenue, year-on-year growth, CAGR, is offered in the report to understand market growth and to identify right growth opportunities in the global biodiesel market. Absolute dollar opportunity is also given in the report as it the most important factor in analyzing opportunities for manufacturers and identify potential resources from delivery and sales perspective.
The competitive landscape in the report offers detailed profiles of the companies operating in the global biodiesel market. It also provides a financial overview, long-term and short-term strategies, new product launches by the companies. This helps businesses to plan new strategies in order to gain a competitive edge.
Global Biodiesel Market- Market Segmentation
The global biodiesel market is segmented based on feedstock type, application, and region. Feedstock type covered in the report is segmented into soybean oil, distillers corn oil, canola oil, yellow grease, and animal fats. On the basis of application, the global biodiesel market is segmented into fuel, agriculture, power generation, and others.
The global biodiesel market is segmented on the basis of the region which includes Europe, Asia Pacific Excluding Japan (APEJ), North America, Japan, Latin America, and the Middle East and Africa (MEA). The research report includes regional trends contributing to the growth of the market.
Global Biodiesel Market- Competitive Landscape
The research report offers information on the major companies operating in the global biodiesel market such as TerraVia Holdings, Cargill, Archer Daniels Midland Company, Wilmar International Limited, Bunge Limited, Louis Dreyfus, Royal Dutch Shell plc., Ineos Group, Mitsui, and Solvay SA. The report has evaluated companies on various parameters including product portfolio, company overview, financial overview, key strategies, and new developments.