Press release
Biodiesel Market growing at a CAGR of 7.30% from 2026, Driven by renewable fuel mandates & Europe remain the largest region | Says Mordor Intelligence
Biodiesel Market
The Global Biodiesel Market [https://www.mordorintelligence.com/industry-reports/biodiesel-market?utm_source=abnewswire] size to rise from USD 52.17 billion in 2026 to USD 74.22 billion by 2031 at a CAGR of 7.30%. Europe remains the largest contributor to the Biodiesel Market Size, thanks to mature policy frameworks and sustainability certifications. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, with countries like Indonesia, India, and China scaling up national blend levels.
Emerging Trends in Biodiesel Market
Biodiesel in Hard-to-Abate Sectors
* Industries like mining, marine shipping, and rail transport are increasingly turning to biodiesel blends to cut emissions. These sectors are difficult to decarbonize due to their reliance on heavy-duty fuels, but biodiesel offers a practical solution without major infrastructure changes.
Rise of Hydro-Treated Vegetable Oil (HVO)
* Hydro-treated vegetable oil, also known as renewable diesel, is gaining strong momentum in the biodiesel market. Its chemical similarity to conventional diesel makes it fully compatible with existing engines and fuel infrastructure.
Expanding Industrial Applications
* Beyond road transport, biodiesel is diversifying into marine, rail, and power generation sectors. Power plants are using biodiesel as a backup fuel during peak demand, while smaller facilities in regions lacking natural gas infrastructure rely on biodiesel for electricity generation. Industrial sites are also adopting biodiesel for heating and process energy.
Unlock Localized Market Intelligence, Featuring Japan-Specific Report Editions: https://www.mordorintelligence.com/ja/industry-reports/biodiesel-market?utm_source=abnewswire
Biodiesel Market Segmentation
By Feedstock
* Vegetable Oils (largest share in 2025 at 63.45%)
* Waste Cooking Oil & Tallow (fastest CAGR of 10.15% through 2031)
* Animal Fat
* Algae and Novel Feedstocks
By Production Process
* Trans-Esterification (70.35% share in 2025)
* Hydro-Treated Vegetable Oil (HVO) - fastest CAGR of 11.74%
* Co-processed/Co-refined Diesel
By Blend Level
* B5 and Below (47.58% share in 2025)
* B6 to B20
* B100 (forecast CAGR of 10.82%)
By Application
* Transportation - Road (68.25% share in 2025)
* Transportation - Marine and Rail
* Power Generation
* Industrial and Others (fastest CAGR of 12.58%)
By Geography
* North America (United States, Canada, Mexico)
* Europe (Germany, UK, France, Italy, Nordics, Russia, Rest of Europe)
* Asia-Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand)
* South America (Brazil, Argentina, Rest of South America)
* Middle East & Africa (Saudi Arabia, UAE, South Africa, Egypt, Rest of MEA)
Explore Competitive Landscape Details: https://www.mordorintelligence.com/industry-reports/biodiesel-market/companies?utm_source=abnewswire
Top Key Players Featuring in Biodiesel Market
* Archer Daniels Midland Company
* Wilmar International Ltd
* Neste Oyj
* Chevron Renewable Energy Group
* Cargill
Dominating Country - Europe
Europe stands as the leading region in the Biodiesel Industry, supported by strong sustainability frameworks and regulatory commitments. The region's leadership is reinforced by renewable energy directives, blend obligations, and national carbon policies that encourage widespread adoption of biodiesel. Countries such as Germany, France, and the UK have implemented stricter blending requirements, while Nordic nations are advancing waste oil collection systems to boost local biodiesel production.
Explore Related Reports:
Biofuels Market [https://www.mordorintelligence.com/industry-reports/biofuels-market?utm_source=abnewswire]
Biogas Market [https://www.mordorintelligence.com/industry-reports/biogas-market?utm_source=abnewswire]
About Mordor Intelligence
Mordor Intelligence is a trusted partner for businesses seeking actionable market insights. With 550+ domain experts and specialists across 150+ countries, we deliver comprehensive syndicated and custom research across industries such as aerospace, agriculture, chemicals, consumer goods, energy, healthcare, and many more, helping organizations make informed decisions and achieve strategic goals.
For any inquiries or to access the full report, please contact:
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Company Name: Mordor Intelligence Private Limited
Contact Person: Jignesh Thakkar
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