The Biodiesel Market Is Expected To Be Valued At US$ 187.6 Bn By 2031

Posted on 2022-11-01 by Fact.MR in Chemicals // 0 Comments

As per Fact.MR, a market research and competitive intelligence provider, the global market for biodiesel was valued at US$ 96.22 Bn in 2021.

Transesterification, a chemical process that transforms oil and fats into fatty acid methyl esters, is used to make biodiesel from renewable feedstock such as vegetable oils, animal fats, and other sources. It is then utilized to power diesel engines as a fuel. Corn oil, palm oil, canola oil, soybean oil, and jatropha oil are some of the most frequent biodiesel raw sources.

Due to low production costs, considerable volumes of biodiesel are also created from waste vegetable oil collected from fast food outlets, restaurants, and food manufacturers. Growing crops expressly for biofuel has enormous promise, but current transesterification technology uses waste vegetable oil, which is abundant and requires significantly less processing to convert to biodiesel.

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Which Factor Can Positively Influence Demand for Biodiesel?

“Growing Energy Independence Demand to Bolster Market Revenue”

The growing need for energy independence and rising environmental concerns around the world are driving the biodiesel market. Biodiesel is a biodegradable fuel and may be used to make renewable fuel for transportation, making it clean fuel. Other advantages include its domesticity, which reduces reliance on imported petroleum and promotes market expansion.

Furthermore, governments are supporting and assisting in the promotion of biodiesel use by enacting laws and tax incentives, boosting market growth for the product over the projection period. Government organizations have been proactive in enacting legislation and policies, resulting in a rise in opportunities such as exports, feedstock development, and increased production.

In terms of quick growth and development, the biodiesel business is undergoing a shift that will bring new prospects in the next years around the world. Biodiesel consumption is expected to rise in the predicted period due to fluctuating petrochemical reserves on oil rigs across the world.

Will the U.S. Biodiesel Market Exhibit Steady Growth?

“Rise in Consumer Spending on Renewable Energy Sources Boosting Market Value”

The United States is the world’s leading producer of biodiesel and one of its top consumers. Biodiesel’s environmental benefits, ease of accessibility, and the government Renewable Fuels Standard Program have all contributed to the expanding demand for biodiesel in the U.S.

Biodiesel is widely employed in the transportation sector, including school and transportation bus fleets, courier trucks, garbage trucks, and military vehicles. The availability of essential feedstock and high spending on renewable energy sources are driving market expansion in the United States.

Which Biodiesel Feedstock is Expected to Showcase Highest Growth?

“Rising Usage of Soybean Oil Feedstock for Biodiesel Production”

Biodiesel is a renewable fuel generated from a range of feedstocks such as vegetable oils, leftover cooking oils, and animal fats. Different feedstocks yield different quality of biodiesel. Because it is cheap and easy to obtain, soybean oil is one of the fastest-growing feedstock segments. This segment will provide profitable growth potential for biodiesel producers.

Soybean oil is the most common feedstock for biofuel manufacturing. One of the main driving forces is the price of soybean oil, which results in high utilization of the product in biodiesel manufacturing. Biodiesel production has increased as a result of the use of low linolenic (LL) soybean oil. The oxidative stability of LL soybean oil supports the generation of higher-quality biodiesel.

Because of the majority of manufacturers’ technological know-how and the large oil yields supplied by these goods, soybean oil dominated the sector, accounting for the highest proportion of overall renewable feedstock consumption for biodiesel synthesis.

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COVID-19 impact on Biodiesel Demand

The COVID-19 pandemic hampered the biodiesel market. The COVID-19 pandemic had a significant impact on the world economy at various points, and the effects can also be observed in biodiesel demand. During the pandemic, major end users of biomass-based diesel, such as automobiles and agriculture, saw a drop in demand. Supplies chain interruptions, a shortage of raw material supply, and the government all had an impact on the market.

New advancements that are now taking place to boost performance qualities will add another good quality to the biodiesel’s characteristics. Government regulations and tax rebates to encourage the use of biomass-based diesel will further contribute to the market growth over the forecast period.

Consumers all across the world are becoming more conscious of the escalating environmental challenges caused by traditional fossil fuels. The increased popularity of renewable and clean energy sources is helping to propel the biodiesel business forward.

Competitive Landscape

The biodiesel market is extremely competitive, with worldwide firms producing technologically-advanced biodiesel-based products. Due to rising demand, leading biodiesel manufacturers are focusing on strengthening their relationships with major distributors and expanding their existing production capacity.

For instance,

In February 2022, SLD Pumps & Power (SLD) announced that it shifted to biodiesel fuel for its nationwide equipment fleet. The shift is expected to displace around 1 million litres of highly polluting mineral diesel usage each year.

Key Segments Covered in Biodiesel Industry Research

Biodiesel Market by Feedstock:

Soybean Oil
Distillers Corn Oil
Canola Oil
Yellow Grease
Animal Fat

Biodiesel Market by Application:

Fuel
Agriculture
Power Generation
Others (including Transportation and Cooking)

Biodiesel Market by Region:

North America
Europe
Asia Pacific
Latin America
MEA

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