The biodiesel market is garnering significant traction. Biodiesel uses helps economies to achieve their renewable energy targets. Energy is an important aspect of the economic growth and welfare of nations. The presence and development of advanced infrastructure are essential for the sustained growth of an economy.
Therefore, governments worldwide are initiating programs to encourage the use of biodiesel to generate electricity in a carbon-neutral manner, tackling growing pollution concerns. With the growing numbers of biodiesel plants and increasing biodiesel production capacities worldwide, the market is estimated to perceive substantial revenue growth in the years to come.
In this regard, Market Research Future states that the biodiesel market is expected to demonstrate an exponential growth by 2032, registering a colossal CAGR during the review period (2024-2032). Currently, the biodiesel industry is witnessing a significant surge in its demand, mainly due to the increasing energy demand.
Improved Energy Generation While Reducing VOC Emissions Boost Market Value
Favorable government regulations to foster carbon-neutral energy sources and development in technology have made biodiesel cost-effective. Additionally, improvements in technology have helped boost biodiesel performance. Growing environmental concerns and the increasing energy demand are expected to drive the biodiesel industry worldwide.
Demand-Supply Gap in Key Raw Materials is a Major Headwind
Also, shortages of sodium methylate solution, a catalyst used to produce biodiesel, are adding to market concerns about fuel availability. Unexpected technical issues at production sites that severely affect the production of sodium methylate solution pose significant challenges to the market growth. Such exceptional market situations result in delays and reduction in delivery of sodium methylate.
COVID-19 Impacts
The biodiesel market revenues remained reassuringly robust amid the COVID-19 crises. Resultantly, the market has become more dynamic and constantly changing than in the pre-pandemic era. Simultaneously, the ability to respond to market changes became more important than ever in post-pandemic periods.
Lockdowns implemented to control the virus spread fostered many trends, including industrial automation & robotics, networked machines, and analytics. Therefore, the biodiesel market kept growing, witnessing the rising adoption during the pandemic era. The biodiesel market kept growing during the pandemic era witnessing the rising adoption of biopower solutions and equipment.
Segmentation
The market is segmented into types, fuel types, applications, and regions. The type segment is sub-segmented into cellulosic, biohydrogen, methanol, and others. The fuel type segment is sub-segmented into ethanol and biodiesel fuel. The application segment is sub-segmented into transportation, off-grid electricity supply, and others. The region segment is sub-segmented into Americas, Europe, Asia Pacific, and the-rest-of-the-world.
Regional Analysis
North America accounts for the largest market in terms of biodiesel market value. Increasing government policies and strict rules to promote environmental conservation is a key driving force behind the growing biodiesel market. Besides, increasing environmental concerns and the implementation of government policies boost the region's biodiesel market shares.
Increasing investment in infrastructural development defines the growing market landscape. Moreover, the increasing use of biodiesel in various power generation and industrial applications substantiate the biodiesel market growth. Spurring rise in manufacturing sectors and vast technological upgrades, alongside the strong presence of key players in the region, fosters market revenues.
Competitive Analysis
The biodiesel market experiences strategic approaches, such as mergers & acquisitions, collaborations, expansions, and product launches. Key market players invest substantially to drive their research and development activities and expansion plans.
For instance, recently, on Aug.23, 2021, Union Pacific locomotives announced that it would use higher biodiesel blends to help reduce carbon footprint, getting a boost of biodiesel fuel. Progress Rail has approved using up to 20% biodiesel blend in specific EMD locomotive series operated by the railroad.
This is another step toward achieving the company's long-term goal to reduce 26% greenhouse gas (GHG) emissions by 2030. The updated fuel recommendation comes after testing high-horsepower locomotives used for hauling long freight distances. Besides, monitoring performance for fuel consumption and impact on engine oil and fuel filters.
Key players involved in the market are INEOS New Planet BioEnergy, Canergy LLC, Abengoa bioenergy, Archer Daniels Midland Company, Wilmar International Limited, Bunge Limited, Neste Corporation, Emami Group, Munzer Bioindustrie, BIOX Corporation, Cargill Inc., Louis Dreyfus Company, Renewable Energy Group Inc., Amyris, and Poet-DSM Advanced Biofuels LLC, among others.
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