Renewable Diesel Market

Global Renewable Diesel Market Size (2024-2032):

The size of the global renewable diesel market was worth USD 28.7 billion in 2023. The global market is anticipated to grow at a CAGR of 7.4% from 2024 to 2032 and be worth USD 54.57 billion by 2032 from USD 30.82 billion in 2024. 

Current Scenario of the Global Renewable Diesel Market

Renewable diesel is a special kind of eco-friendly fuel that is made up of natural sources like vegetable oils, animal fats and used cooking oils. Unlike regular diesel made from fossil fuels, renewable diesel is created through a clean process that doesn't harm the environment. When we use renewable diesel in our vehicles or machines, it releases way fewer harmful things into the air, like smog or greenhouse gases that cause climate change. It works just like regular diesel, so we don't need to change anything in our cars or trucks to use it. Renewable diesel is a smart choice for a cleaner and greener future, as it helps reduce pollution and our reliance on fossil fuels, making our world a healthier and more sustainable place.

MARKET DRIVERS

The Renewable Diesel Market is growing with the trend towards a pollution-free environment.

These rules push companies and governments to use renewable diesel to meet their clean energy goals. Also, it makes the air cleaner and our planet healthier. Therefore, there is a rising market demand for the Renewable Diesel Market in the workplace.

Fluctuations in crude oil prices drive the renewable diesel market. When regular oil prices become so expensive, renewable diesel becomes a more attractive option because it's often more cost-effective. This makes the Renewable Diesel Market more appealing to folks looking for reliable and eco-friendly fuel alternatives. 

MARKET RESTRAINTS

The Renewable Diesel Market faces significant restraints due to its high production cost because making renewable diesel can sometimes cost more money than regular diesel.

This can make it hard for renewable diesel to compete in the market, especially when people are looking to save money. As a result, the high production cost can slow down the market growth of Renewable Diesel in these workplaces.

MARKET OPPORTUNITIES

The Renewable Diesel Market has an exciting opportunity for Advanced Feedstock Research. By investing in this research and development, the manufacturers can find better and more eco-friendly materials to make renewable diesel, and it can also help to make renewable diesel more available and cheaper. It can make renewable diesel more attractive and help us all go greener in our energy choices. This opportunity can make renewable diesel even more popular and accessible in the future.

IMPACT OF COVID-19 ON THE GLOBAL RENEWABLE DIESEL MARKET

The COVID-19 pandemic had mixed effects on the Renewable Diesel Market. There was a temporary decrease in market demand for transportation fuels due to lockdowns and reduced travel, affecting renewable diesel consumption. Supply chain disruptions and economic uncertainties also impacted investments in new production facilities. However, the pandemic also highlighted the importance of cleaner and more sustainable energy sources. As governments and industries looked to build back greener, there was increased interest in renewable fuels like renewable diesel. Some regions even provided incentives to support renewable fuel production and consumption as part of their recovery plans. Also, the Renewable Diesel Market may benefit from the pandemic by accelerating the transition towards cleaner fuels, especially as environmental concerns and renewable energy goals gain prominence in the post-COVID world.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Renewable Diesel Market Analysis By Feedstock Type

Vegetable oils dominate the renewable diesel market due to their wide availability and well-established infrastructure from years of biodiesel use. Abundant global production and conversion technology contribute to their strong presence in the industry.

Global Renewable Diesel Market Analsysis By Production Technology

Hydrotreating leads the Renewable Diesel Market due to its proven track record in refining, offering reliability for feedstock conversion. It consistently yields high-quality renewable diesel that aligns with strict fuel standards, making it compatible with existing diesel infrastructure and engines without modifications.

Global Renewable Diesel Market Analysis By End-User

The Transportation sector leads the Renewable Diesel Market shares due to its immense diesel fuel demand. Stricter emissions rules in this sector drive the adoption of cleaner, renewable diesel, aligning with goals to lower greenhouse gas emissions and air pollution.

REGIONAL ANALYSIS

North America is dominating the market, particularly the United States and Canada has a significant presence in the Renewable Diesel Market demand. Favorable policies, such as Renewable Fuel Standards (RFS) and Low Carbon Fuel Standards (LCFS), incentivized renewable diesel production and use are accelerating the market growth rate.

Europe is next to North America in leading the significant shares of the market. Germany and Finland have invested heavily in making renewable diesel that is leveraging the market demand. The European Union focused on cutting down on carbon emissions and pushing for cleaner energy, and that's surging the shares of the renewable diesel market.

Asia-Pacific, countries like Singapore and Malaysia are also making strides in renewable diesel production. They have lots of materials to make it, a growing need for energy, and a desire to reduce air pollution, so that's boosted their presence in the market.

Middle East & Africa and Latin America are likely to have huge growth opportunities in the coming years.

KEY PLAYERS IN THE GLOBAL RENEWABLE DIESEL MARKET

Companies playing a prominent role in the global renewable diesel market include Neste Corporation, Renewable Energy Group (REG), Diamond Green Diesel (a joint venture of Valero and Darling Ingredients), TotalEnergies, Phillips 66, Archer Daniels Midland Company (ADM), Marathon Petroleum Corporation, Shell, Chevron Corporation, Honeywell UOP, ExxonMobil, UPM Biofuels, Enerkem, Neste Oyj, Eni S.p.A., Finnish Forest Industries, World Energy and Wilmar International Limited

RECENT HAPPENINGS IN THE GLOBAL RENEWABLE DIESEL MARKET

• In 2021, Neste continued to expand its production capacity and invest in research and development for new feedstocks. They also announced plans to increase their presence in North America, signalling their commitment to the market.
• In 2021, Diamond Green Diesel expanded its renewable diesel production capacity significantly and announced plans for further growth. They also collaborated on various projects to source sustainable feedstocks.
• In 2021, TotalEnergies announced plans to convert a large refinery into a renewable diesel and sustainable aviation fuel production facility. This marked a significant move by a major energy company into the renewable diesel sector.

DETAILED SEGMENTATION OF THE GLOBAL RENEWABLE DIESEL MARKET INCLUDED IN THIS REPORT

This research report on the global renewable diesel market has been segmented and sub-segmented based on feedstock type, production technology, end-user and region.

By Feedstock Type

● Vegetable Oils

1. Soybean oil
2. Palm Oil

• Animal Fats and Residues
• Used Cooking Oil (UCO)
• Algae
• Others  

By Production Technology

• Hydrotreating
• Pyrolysis 
• Fischer-Tropsch Synthesis
• Other Advanced Conversion Processes 

By End-User

• Transportation

1. Road
2. Aviation
3. Marine

• Industrial and Commercial Heating
• Power Generation
• Residential heating

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa