As per industry analysis on biodiesel by Fact.MR, a market research and competitive intelligence provider, the global market is anticipated to expand at a CAGR of 6.9% over the forecast period of 2021-2031, reaching US$ 187.6 Bn by the end of the mentioned period.
Biodiesel can be used as a substitute for petroleum diesel fuel or blended with it in some cases. When compared to petroleum diesel fuel, biodiesel is more effective at reducing exhaust emissions. Biodiesel is used in aviation because it reduces the amount of carbon dioxide released by the industry. Many commercial airlines and military defense aircraft use biodiesel as well.
Biodiesel, sometimes known as ‘green diesel’ or ‘renewable diesel,’ is a petroleum-based fuel manufactured using traditional refining procedures. Scientists are looking for more cost-effective ways to make biodiesel utilizing various feedstocks depending on their accessibility and availability.
Various technological breakthroughs, such as third-generation biofuels derived from algae, when compared to other feedstocks, can create a diverse and vast quantity of biofuel and are also contributing to market growth.
Key Takeaways from Market Study
- Global biodiesel market to reach valuation US$ 187.6 Bn by 2031.
- Demand for biodiesel fuel is projected to record around 5% CAGR from 2021 to 2031.
- Europe is expected to hold the highest share of the global biodiesel market.
“Favorable government policies to promote biodiesel usage for sustainable development, energy-saving, and environmental preservation will stimulate market growth,” says a Fact.MR analyst
Winning Strategy
Biodiesel manufacturers are constantly concentrating on innovation and developing new production methods that will help them lower their manufacturing costs and make processing easier.
Companies are focusing their efforts on making biodiesel from sustainable feedstocks, including used cooking oil (UCO) and vegetable oil. Biodiesel suppliers are also working together with governments and automakers to increase product sales.
In order to improve their market position, market firms are expected to invest in expanding their production capacities and geographical reach.
For instance,
- In 2019, in order to lessen the carbon impact in the country, MAN Truck & Bus introduced roughly 200 buses that run on biodiesel or biofuel in the city of Trondheim in Norway. Vy Buss received 105 city buses from MAN Truck & Bus, while Tide Buss received 84.
More Valuable Insights on Offer
Fact.MR, in its new offering, presents an unbiased analysis of the global biodiesel market, presenting historical demand data (2017-2020) and forecast statistics for the period of 2021-2031.
The study divulges essential insights on the market on the basis of feedstock (soybean oil, distillers corn oil, canola oil, yellow grease, and animal fat) and application (fuel, agriculture, power generation, and others), across five major regions (North America, Europe, Asia Pacific, Latin America, and MEA).
About the Chemicals and Materials Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned chemicals and materials team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the chemicals industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
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