Biodiesel Market is Tremendously Growing and is Estimated to Reach $94.87 Billion by 2023

According to the report “Biodiesel Market: By Source (Vegetable oil, Animal fat, Biomass and others); By Blend (B100, B20, B5 and others); By Application (Automotive, Aviation, Industrial, Marine and others) & Geography -Forecast (2017-2021)” published by IndustryARC, estimates the market to reach $94.87 billion by 2023.

Browse 31 Market Tables, 109 Figures spread through slides and an in-depth TOC on “Biodiesel Market (2017 - 2021)” 

Biodiesel also known as fatty acid methyl ester (FAME) is produced by transesterification of vegetable oils or animal fats using methanol. Growing usage of biodiesel as an alternative to petroleum diesel is all set to escalate the demand for these fuels in future. Biodiesel find use in automotive applications as a fuel additive, alternate fuel as well as lubricating additive for protecting the engine parts. Other than these applications these are also used in manufacturing, metal processing and motor control units. In aviation industry it is used as fuel in commercial flights and defense aircrafts. Developed regions like America and Europe are lowering down their dependence on fossil fuels and prefer these fuels to be used in vehicles in order to create more sustainable environment. There are various blends available ranging from B5 to B100, each being different from one another based on the percentage of biodiesel available in the mixture. B100 is 100% pure biodiesel typically used in the formulation of B5 and B20 blend. In industrial sector biodiesel can be used for power generation. The various applications comprises of boiler, gas turbine, and few others.

Based on grades of blends available commercially, the market is segmented into B100, B20, B5 and others of which B5 holds a major share. On the basis of source of extraction the market had been segmented into vegetable oils, animal fat, biomass and others. Vegetable oil is majorly used as a potential source in the extraction and holds a major share percentage. There are two types of oil used for biodiesel production-edible and non-edible. Edible oils include rapeseed, soybean, corn and few other sources whereas non-edible oils used include camelina, seashore mallow and jatropha. The key segmentations for biodiesel market include source, blend, application and by geography.

Increasing concerns over reliable, renewable and affordable sources of energy coupled with need of mitigating climatic change and achieve lower pollutants emission is anticipated to propel the demand for biodiesel

The global biodiesel market is estimated to grow at a CAGR of 16.82% during the forecast period and will reach $94.87 billion by 2023. The source used in the extraction varies from region to region. In APAC palm oil is used as a major source in the extraction whereas in Europe canola oil is used majorly.  Escalating demand for automotive & industrial alternative fuel is propelling the growth of biodiesel in various geographies.  The properties such as biodegradability, non-toxicity among others have triggered the use of these fuels in marine applications also with regard to protection of oceanic ecosystem.

The market of biodiesel has been segmented into Americas, Asia-Pacific, Europe and Rest of the World (RoW) on basis of geography. In 2016, America is the prominent region for biodiesel market and is estimated to grow with CAGR of 18.08% during the forecast period. The growth in APAC is attributed to the increasing automotive and constructional activities. However, considerable biodiesel demand in Americas along with European countries is likely to boost the overall market. 

Biodiesel companies through its broad range of products, product expansion and innovation have been successful in catering to a variety of customers, consequently maintaining their hold over the biodiesel market. North American biofuel industry continues trend of merger and acquisition activities. BIOX Corp acquired Methes and Green Earth Fuels, producers of biodiesel in 2016 which was an overall transaction of $25 million. With various product launches, mergers, acquisitions, collaborations and other strategies, these companies are obtaining biodiesel market shares in the industry.