The global biodiesel market is estimated to value US$ 33,748.2 in 2016 and is projected to register a CAGR of over 4% in terms of value during the forecast period 2017–2026. The report offers in-depth insights, revenue details, and other vital information regarding the global biodiesel market, and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report includes PEST analysis, Porter’s Five Forces analysis, and opportunity map analysis for in-depth understanding of the market. The report offers insightful and detailed information regarding the various key players operating in the global biodiesel market, their financials, supply chain trends, technological innovations, key developments, apart from future strategies, SWOT analysis, acquisitions & mergers, and market footprint. The global biodiesel market has been segmented on the basis of feedstock type, application, and region.
Biodiesel is defined as vegetable oil- or animal fat-based diesel fuel consisting of mono-alkyl (methyl, ethyl, or propyl) esters of long chain fatty acids which conform to ASTM D6751 and EN 14214 specifications.
Biodiesel is produced by transesterification process using vegetable oil or animal fat by converting into long chain mono alkyl esters. Four types of biodiesel blends are available namely B100, B20, B5, and B2. Blends are decided depending upon percentage ratio of biodiesel and petro-diesel.
Global Biodiesel Market Dynamics:
Increasing adoption of biofuels as an alternative for petro-fuels by automotive and power generation sectors, coupled with rising awareness regarding environmental concerns such as greenhouse gas emission, etc. are major factors driving growth of the global biodiesel market. In addition, fluctuating crude oil prices is another major factor driving growth of the global biodiesel market. Moreover, properties of biodiesel such as biodegradability, non-toxicity, and eco-friendly are further boosting demand for biodiesel in the global market.
Report Coverage and Deliverables
Increasing adoption of electric vehicles is expected to hamper growth of the global biodiesel market to a significant extent over the forecast period. In addition, biodiesel is not suitable for low temperature operation and also cause engine clogging, this are another factors hampering growth of the global biodiesel market. Rising R&D investments by major market players for increasing production capacity by development of advance production units and facilities can create lucrative opportunities for key manufacturers in the global biodiesel market over the forecast period.
Governments in various developed countries have also been providing subsidies and certain percent of investment costs to manufacture biodiesel. In addition, governments have established different incentives for consumption of biofuels such as reduced registration fees for high-blend biofuel-compatible cars, free parking, funding for filling stations that provide high blends or pure biofuels, or single premiums for purchase of “green cars”, etc. This is expected to increase adoption of biofuel tremendously, and thereby support growth of the global biodiesel market during the next ten years.
Global Biodiesel Market Segments Analysis:
Analysis by Feedstock Type:
On the basis of feedstock type, the market is segmented into, vegetable oil and animal fat. The vegetable oil segment includes of oil extracted from soybean, rapeseed, palm oil, corn oil, and are sourced from restaurants, chip shops, industrial food producers, etc. The animal fat segment includes of raw materials like tallow, lard, fish fat, chicken fat, etc. These raw materials are mainly sourced from pigs, fish, poultry, etc.
Vegetable oil segment is expected to account for major revenue share of over 70% in terms of revenue in 2017, and is expected to register higher CAGR as compared to animal fat segment during the forecast period. This is attributed to easy and cost-effective manufacturing process compared to that of animal fat-based biodiesel manufacturing process.
Analysis by application:
Among the three application segments, fuel, power generation, and others, the fuel segment is expected to dominate with revenue share of over 60%, and is expected to continue its dominance by registering highest CARG during the forecast period. Governments of various countries are promoting adoption of biodiesel blend with petroleum as it helps emit lower VOC as compared to other fuels, along with increasing concerns regarding greenhouse gas (GHG) emissions, global warming, coupled with increasing health concerns due to air pollution. Use of blended fuel has also helped to reduce cost of fuel used for flights, and other transportation.
Analysis by region:
Europe market accounts for highest market share in terms of revenue contribution in the global biodiesel market, and projected growth rate between 2016 – 2026 for Europe market is expected to be 1.6X, owing to favorable government regulations and high adoption rate of biodiesel in countries in this region. Increasing infrastructure activities in the eastern part of Europe with energy up-gradation, large availability of feedstock and high investment in production activities is expected to boost growth of the biodiesel market in this region. In addition, high adoption of biodiesel from transportation sector, along with increasing non-renewable resources price is another major factor expected to drive growth of the biodiesel market in this region.
According to survey conducted by Global Agriculture Information Network (GAIN), countries such as Germany, France, Netherland, Spain, and Poland are top 5 producers of biodiesel and the production is expected to increase by 3% compared to last year. In May 2016, European Federation for Transport and Environment identified that in 2014 biodiesel was the largest outlet for palm oil in the Europe, and the second largest feedstock used in biodiesel after rapeseed oil.
Increasing, governments initiatives for production and export of biodiesel is expected to boost growth of Europe biodiesel market. According to a survey conducted by Global Agriculture Information Network (GAIN), top 3 importers of biodiesel from Europe region were Norway, Switzerland, and Austria, importing 68%,28%, and 6% respectively.
Latin America market accounted for second largest share for biodiesel in 2016, with countries such as Brazil, Argentina contributing the majority of share in terms of revenue. Argentina plays an important role in the biodiesel market in Latin America region. Argentina is being a major exporter of biodiesel to US and Europe. High production of biodiesel and increased export is expected to boost the biodiesel market in this region. For instance, in 2016 and 2017, Argentina alone produced 3.05 billion liter of biodiesel.
Global biodiesel market segmentation, by feedstock type:
- Vegetable Oils
- Animal Fats
Global biodiesel market segmentation, by application:
- Power Generation
Global biodiesel market segmentation, by region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Archer Daniels Midland Company
- Wilmar International Limited
- TerraVia Holdings Inc.
- Bunge Limited
- Neste Corporation
- Louis Dreyfus Company
- BIOX Corporation
- Cargill Inc.
- Renewable Energy Group Inc.
- FutureFuel Corporation
- 1.0 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Component
- 2.2.2 Market Snapshot, By Application
- 2.2.3 Market Snapshot, By Region
- 2.3 Opportunity Map Analysis
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