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Biodiesel Market Size Projected to Rise Lucratively during 2026
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Meanwhile, energy security is also among the main drivers of the biodiesel market. Many countries are involved in increasing the production and use of biodiesel as an alternative energy source to oil and fossil fuels. The government across various countries are also implementing laws and legislation to reduce dependency on oil and increase the use of renewable energy resources, thereby fostering the biodiesel industry. However, volatile raw material prices and limited availability of raw materials to produce biodiesel are some of the factors hampering the growth of the biodiesel market.
Some of the leading players currently active in the global biodiesel market are Cargill, TerraVia Holdings, Archer Daniels Midland Company, Bunge Limited, Wilmar International Limited, Louis Dreyfus, Ineos Group, Royal Dutch Shell plc., Solvay SA, and Mitsui. In order to remain competitive in the market, biodiesel manufacturers are focusing on promoting awareness on the benefits biofuels, and are also entering into technology partnerships to produce technically superior products. The companies are also focusing on developing effective retail and distribution system. Companies are also focusing on first-generation of biofuels that are produced using vegetable oils, starch, and sugar using biomass technique.
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The research report on the global biodiesel market by Transparency Market Research (TMR) anticipates the market to witness robust growth. It is estimated to increase to 6.9% CAGR between the forecast period 2017 and 2026. The global biodiesel market by the end of 2026 is estimated to reach US$ 64,497.4 million revenue.
The global biodiesel market is divided into the application, feedstock type, and region. Based on the feedstock type, the market segment includes animal fats, yellow grease, canola oil, distillers corn oil, and soybean oil. Among these, soybean oil is expected to witness significant growth in the global biodiesel market during the forecast period 2017-2026.
Based on the application, the market is segmented into power generation, agriculture, fuel, and others. Fuel is expected to witness the highest growth in terms of market volume in the global biodiesel market during the forecast period 2017-2026.
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Geographically, Europe is expected to be the largest region in the global biodiesel market during the forecast period. Germany and France are the biggest producers of biodiesel in Europe. Europe also consumes more diesel and biodiesel than petrol. Meanwhile, the supply and demand for biodiesel are gradually increasing at the same level. The current energy taxation regime in Europe also supports biodiesel over ethanol. Also, the Netherlands has the largest surplus in the biodiesel market compared to the other countries in Europe. Some of the major applications of biodiesel in Europe includes power generation, fuel, lubricating agent, and industrial solvent.
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