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      Home Press Releases

      Biodiesel Market Size Forecast to Reach $50.60 Billion by 2026

      admin by admin
      January 29, 2022
      in Press Releases
      Phototherapy Equipment Market Size Forecast to Reach $1.2 Billion by 2026
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      (EMAILWIRE.COM, January 25, 2022 ) Biodiesel Market size is forecast to reach $50.60 billion by 2026, after growing at a CAGR of 5.3% during 2021-2026. There are four principal methods to make biodiesel, direct use, and blending, microemulsions, thermal cracking (pyrolysis) and transesterification, which changes oil and fats into fatty acid methyl esters. Biodiesel is composed of renewable feedstocks such as vegetable oils, animal fats. Biodiesel produced from Animal Tallow tends to crystallize out at much higher temperatures than biodiesel derived from plant oils. Biodiesel is capable to reduce exhaust emissions as compared to petroleum diesel fuel. It is majorly used in Automotive, Aerospace, Industrial, Marine, and Agriculture. The key factors for the development of this market are reducing storage concerns with stability and transportation issues with the great cost of delivered fuel compared to fossil fuels, it can decrease the ecological nuisances such as global warming, the greenhouse effect, and pollution. Cellulosic ethanol is one of the fastest-rising alternative fuels produce from biomass. Biodiesel is typically used as a diesel blending component at levels up to 20% by volume. Life-cycle analysis indicates that the use of biodiesel can help displace imported petroleum in the United States, and has the potential to displace 5% or more of petroleum diesel over the next decade. Growing demand for Biodiesel in commercial cars to put back crude oil is predicted to have a certain growth in the industry. Biodiesel fuel blends on oil dilution is one option currently being researched as a trail to energy diversity and decreased petroleum dependence in the transportation sector.

      COVID-19 Impact

      The COVID-19 pandemic has had an immediate impact on the world economy and that impact goes across all industries, including biodiesel. The impact is particularly acute in Oil markets, as restrictions on international travel and regional and local movement avoid people and goods from socializing freely, which takes a substantial toll on transport fuel demand. An impact on the global biodiesel market yet is hard to gauge. However, current projections for gasoline and gas oil and the current blending targets would sink biodiesel and fuel ethanol demand.

      Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=11699

      Report Price: $ 4500 (Single User License)

      Biodiesel Market Segment Analysis – By Blend

      B5 (up to 5% biodiesel) held the largest share of 48% in the Biodiesel Market in 2020. B5 and B20 are frequent blends because it signifies a decent balance of cost, emissions, cold-weather performance, materials compatibility, and competence to act as a solvent. Most biodiesel users purchase B20 or lower blends from their normal fuel suppliers or from biodiesel marketers. B20 and B5 are ASTM-approved for safe function in any compression-ignition engine originated to be operated on petroleum diesel. This can include light-duty and heavy-duty diesel cars and trucks, tractors, boats, and electrical generators. Biodiesel offers more greenhouse gas benefits than conventional diesel fuel. The emissions benefit is roughly commensurate with the blend level, that is, B20 would have 20% of the emissions reduction benefit of B100. Currently, the ethanol blending percentage in petrol is around 2.0% and the biodiesel blending percentage in diesel is less than 0.1%. As an indicative target, the government has approved 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel is proposed by 2030. Additionally, on World Biofuel Day, the Food Safety and Standards Authority of India (FSSAI) launched RUCO – Repurpose Used Cooking Oil, an ecosystem that will enable the collection and conversion of used cooking oil to biodiesel.

      Biodiesel Market Segment Analysis – By Feedstock

      The vegetable oils held the largest share of 80% of the Biodiesel market. Vegetable oils such as rapeseed oil, soybean oil, and palm oil account for the largest share in the production of biodiesel. The fuel is useful to the environment as it lowers the effect of greenhouse gas by releasing lower Volatile Organic Compound (VOC) substances as compared to fossil diesel. The feedstock used in a particular country depends on the accessibility of crops in that country. For instance, rapeseed oil is presently the most popular feedstock used in biodiesel production, followed by soybean oil. Rapeseed oil is commonly used in many European countries, whereas soybean oil is consumed in the U.S and Coconut oil and palm oil is used in Malaysia and Indonesia.

      Biodiesel Market Segment Analysis – By Application

      Transportation held the largest share of 52% in the Biodiesel Market in 2020. The scarcity of petroleum supplies will mark renewable energy resources further attractive. The most practical way to encounter this growing demand is by utilizing alternative fuels. Biodiesel is the top candidate for diesel fuels in diesel engines. The major advantage that biodiesel has over gasoline and petroleum diesel is its environmental friendliness. Biodiesel burns parallel to petroleum diesel as it matters regulated pollutants. On the other hand, biodiesel undoubtedly has improved efficiency than gasoline. One such fuel for compression-ignition engines that show great ability is biodiesel. Diesel fuel can also be replaced by biodiesel made from vegetable oils. Biodiesel is now mainly being produced from soybean, rapeseed, and palm oils.

      Biodiesel Market Segment Analysis – By End-Use Industry

      Automotive dominates the Biodiesel Market growing at a CAGR of 5.2%. The escalating demands for biodiesel in the automotive industry are increasing due to the extreme pollution caused by automobile pollutants, which are the outcomes of petrol or diesel-based automobiles. As an alternative similar to gasoline and fossil diesel, biodiesel is an advanced form of biofuel. It is biodegradable, non-toxic, and has reduced exhaust emissions as compared to petroleum diesel fuel. Also, the lack of sulfur in 100% biodiesel extends the life of catalytic converters, and also the lubricating property of the biodiesel may lengthen the lifetime of engines. It is the only alternate fuel, which has been approved by the Environment Protection Agency (EPA). It has also passed every Health – Effects Test of the Clean Air Act and meets the necessities of the California Air Resources Board (CARB). Expanding demand for biodiesel to substitute traditional fossil fuel in automotive and power generation applications is likely to hustle industry growth.

      Biodiesel Market Segment Analysis – Geography

      Asia Pacific region held the largest share in the Biodiesel Market in 2020 up to 40% followed by North America and Europe. The Asia Pacific is likely to witness rapid growth due to uprising industrialization and considerable escalation in liquid fuel demand in the transport and power sectors in emerging countries as Indonesia followed by China, Thailand, India, and Malaysia. According to the ERIA report, the total demands of the ASEAN and East Asian countries will reach nearly 37 million tons of biodiesel by 2035. Moreover, the presence of expertise, progressive technologies, and equipment encouraged exploration and production activities are the foremost factors supporting the regional biodiesel market growth forecast period, although, North America has the biggest market for Biodiesels. According to Environmental Impact Assessment (EIA), the United States imported about 9.10 million barrels per day of petroleum from nearly 90 countries in 2019. As petroleum includes refined petroleum, crude oil, hydrocarbon gas liquids products such as gasoline and diesel fuel, and biofuels. The market is extremely fragmented due to the manifestation of various suppliers. However, the demand-supply breach owing to insufficient production capacities and widespread possibility for R&D in the feedstock selection for the product manufacturing is anticipated to open opportunities for fresh industry players

      Biodiesel Market Drivers

      Potential to Reduce Emissions will Drive the Biodiesel Market

      Biodiesel is biodegradable and non-toxic and, most importantly, it is free of aromatics, and sulfur compounds. It releases lower greenhouse gases and air pollutants, downgrades toxic carbon-based emissions, and can be expended in nearly all diesel engines. The rising concern considering greenhouse gas emissions over the use of fossil fuels is influencing the growth of the biodiesel market. It lowers the emission of greenhouse gases by up to 50% as compared to petroleum diesel and has low toxic and carcinogenic aromatic carbon content. The manufacture of biodiesel by numerous countries has prevented their dependence on foreign oil reserves, as it is domestically produced, and can be consumed in any diesel engine with little or no alterations to the engine or the fuel system. Due to the fluctuating prices of petroleum-based products, biodiesel is becoming a gradually affordable option.

      Biodiesel for Aviation

      The aviation sector is one of the biggest contributors to greenhouse gases in the world. The sector’s modification to sustainable and renewable fuels, therefore, is crucial to meet the international climate targets set forth in the 2015 Paris Agreement. The growth of biodiesel for jet aircraft can decrease emissions significantly compared to fossil-based jet fuel. Aviation in current years has reported for about 12% of global fuel intake for transport. Numerous airlines, aircraft manufacturers, and industry associations have established intended targets to attain carbon-neutral development by 2020 and halve emissions by 2050. Therefore, Biofuels for Aviation is one of several briefs from the International Renewable Energy Agency (IRENA) to emphasize on renewable-based transport.

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      Biodiesel Market Challenges

      Biodiesel Fuel Blends can Degrade Diesel Engine Oil Performance

      One critical area is achieving a full understanding of the impact of biodiesel fuel blends on advanced emission control systems. The use of biodiesel fuel blends can degrade diesel engine oil performance and impact oil drain interval requirements. A number of factors related to fuel compatibility need to be considered when using biodiesel in any particular engine. Logically, the effect of biodiesel on engines and after-treatment systems depend on the blend level used. While in many cases the most significant effect would be expected with neat B100 or high-level blends, intermediate level blends can be most prone to the precipitation of fuel insoluble and filter plugging. The number of engine manufacturers limits the use of biodiesel in many engine models to ensure no adverse effects over the entire life of the engine.

      Difficulty in Storage and Lubricity

      Biodiesel is made using vegetable-based products and as a result, it must be stored at a suitable temperature. If it’s left unattended for excessively long in a warm storage tank, it can turn mold. On the contrary, if it is stored at temperatures that are too cold, it could thicken and become problematic to dispense Another concern are the difficulties caused by higher lubricity when transitioning from existing systems to biodiesel. While high lubricity helps prevent premature fuel system wear and tear, it can release deposits on tank walls and pipes, causing fuel filter clogs. The EPA recommends diesel vehicle owners change fuel filters after the first tank of fuel. Biodiesel’s performance is worse than petroleum diesel in cold conditions.

      Impact of Biodiesel feedstock in agriculture

      Biofuel feedstocks can have equally direct and indirect effects on food sources. If biofuels are generated from feedstocks that would have been used for foodstuff, then biofuels immediately cut down possible food supplies. This reduction arises even if feedstock price upsurges result in an expansion of supply because the expanded feedstock source will typically decrease the supply of other food crops.

      Biodiesel Market Segment Analysis Market Landscape

      Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Window Films Market. Major players in the Biodiesel market are Market Western Dubuque Biodiesel, Delta American Fuel, Imperium Renewables, DuPont, Deerfield Energy, Crimson Renewable Energy, China Biodiesel International Holding, Diversified Energy Corporation, XL Renewables, Blue Marble Energy Corp.

      Acquisitions/Technology Launches/ Product Launches

      In April 2021 Continental Refining Company (CRC), Kentucky to invest additional $20M in biodiesel project. They announced that it is moving forward with plans to invest an additional $20 million to acquire and install a soybean crushing, biodiesel refining and blending facility at the current CRC oil refinery in Somerset, Kentucky.

      Key Takeaways

      Asia Pacific dominates the Biodiesel Market owing to a rapid increase in the Automotive and Aerospace sector.

      The market drivers and restraints have been assessed to understand their impact on the forecast period.

      The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.

      The other key areas of focus include the various applications and end-use industry in Biodiesel Market and their specific segmented revenue.

      Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Biodiesel related industries have been negatively affected, thus hampering the growth of the market.

      Related Reports

      A.Biofuel Market

      https://www.industryarc.com/Report/18518/biofuel-market-research-report-analysis.html

      B.Asia Methanol Market

      https://www.industryarc.com/Report/15012/asia-methanol-market.html

      For more Chemicals and Materials Market reports, please click here

      About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.



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