Hydrotreated Vegetable Oil: Introduction
- Hydrotreated vegetable oil is also known as renewable diesel. Of late, hydrotreated vegetable oil has emerged as an alternative to biodiesel.
- Hydrotreated vegetable oil is chemically equivalent to petroleum diesel. Therefore, it can be used in diesel engines in any concentration with no modifications. This is the primary advantage of hydrotreated vegetable oil over biodiesel.
Key Drivers and Restraints of Global Hydrotreated Vegetable Oil Market
- The global automotive industry has been expanding at rapid space. Large population, microeconomic development, effective and efficient vehicle-manufacturing techniques, and rise in the number of middle-class consumers are factors boosting vehicle sales. Hydrotreated vegetable oil can be used in the automobile sector. Thus, growth in the automobile industry is likely to boost the demand for hydrotreated vegetable oil in the near future.
- Implementation of stringent rules and regulations to minimize carbon emission, due to combustion of fossil fuel, is another key driver of the global hydrotreated vegetable oil market. This has encouraged companies to focus on better, cleaner, and cheaper fuel. Hydrotreated vegetable oil provides cleaner and cheaper solution.
- Increase in usage of ethanol and biodiesel is expected to hamper the global hydrotreated vegetable oil market in the near future. The capital costs of hydrotreating equipment is much higher than that of equipment required to produce biodiesel ethanol.
Global Hydrotreated Vegetable Oil Market: Segmentation
- The global hydrotreated vegetable oil market can be segmented based on feedstock and application
- In terms of feedstock, the global hydrotreated vegetable oil market can be classified into vegetable oil, non-food oil, animal fats, and others. The vegetable oil segment can be sub-segmented into rapeseed, sunflower, soybean, palm oil, and others. The non-food oil segment can be sub-divided into Jatropha, algae oil, and others. The vegetable oil segment dominates the global hydrotreated vegetable oil market due to high availability of the raw material across the globe.
- Based on application, the global hydrotreated vegetable oil market can be segregated into automobile, power generation, heat generation, and others. Automobile and power generation segments are estimated to expand at a faster pace than other segments during the forecast period owing to the increase in adoption of hydrotreated vegetable oil in automobile and power generation industries.
Global Hydrotreated Vegetable Oil Market: Regional Segmentation
- Based on region, the global hydrotreated vegetable oil market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global hydrotreated vegetable oil market in 2019. The market in the region is projected to expand significantly during the forecast period, owing to the presence of large numbers of hydrated vegetable oil manufacturers in the region.
- The market in Asia Pacific is also likely to expand considerably during the forecast period owing to rapid increase in infrastructure and industrialization in India and China
- Europe is estimated to be a key region of the global hydrotreated vegetable oil market in the near future. Significant number of projects are being undertaken by various countries in the region to reduce the emission of greenhouse gases. This is anticipated to boost the hydrotreated vegetable oil market in Europe in the near future.
- The hydrotreated vegetable oil market in Latin America and Middle East & Africa is projected to expand at a steady pace during the forecast period. Increase in investments in the production of bio-based energy in developing counties is expected to drive the hydrotreated vegetable oil market in these regions during the forecast period.
COVID-19 Impact on Global Hydrotreated Vegetable Oil Market
- The COVID-19 pandemic spread all across the globe within a short period of time. It has adversely affected various global industries including automobile and aviation. Many countries imposed lockdowns to curb the spread of the pandemic. This has negatively affected the availability of labor, resulting in less or no production. The COVID-19 pandemic is likely to restrain the hydrotreated vegetable oil market for the next two years.
- On November 03, 2020, Neste acquired Bunge's refinery plant in Rotterdam to increase raw material pretreatment capacity for the production of renewable products. This acquisition was valued at more than US$ 300 Mn.
- In July 2020, ABITEC acquired Larodan AB, a manufacturer of high-purity research grade lipids in Sweden. The acquisition is expected to expand ABITEC’s functional lipid product offerings and scientific capabilities to serve pharmaceutical, nutritional, and industrial markets.
Key Players in Global Hydrotreated Vegetable Oil Market
- Royal Dutch Shell PLC
- Crown Oil Ltd
- Renewable Energy Group, Inc.
Global Hydrotreated Vegetable Oil Market: Research Scope
Global Hydrotreated Vegetable Oil Market, by Feedstock
- Vegetable Oil
- Palm Oil
- Non-food Oil
- Algae Oil
- Animal Fats
Global Hydrotreated Vegetable Oil Market, by Application
- Power Generation
- Heat Generation
Interested in this report?
Get a FREE Brochure now!