PUBLISHER: 360iResearch | PRODUCT CODE: 1471125
PUBLISHER: 360iResearch | PRODUCT CODE: 1471125
[198 Pages Report] The Renewable Diesel Market size was estimated at USD 40.41 billion in 2023 and expected to reach USD 46.78 billion in 2024, at a CAGR 16.18% to reach USD 115.53 billion by 2030.
Renewable diesel is majorly made from fats and vegetable oils and is processed to be chemically similar to petroleum diesel. It is produced most often by hydrotreating and also via gasification, pyrolysis, and other biochemical and thermochemical technologies. Renewable diesel's high use in buses, waste transport, and emergency response vehicles is expanding its making. In the past few years, there has been several government initiatives to accelerate the use and development of renewable fuels. Advanced quality and performance tracking certifications and standards have been established to ensure their safety. However, increasing cost of organic feedstocks and lubricity limitations of renewable diesel fuels impede their extensive use. Advancements in the production and sourcing technologies of renewable diesel curb this limitation. End-users and market players have been involved in strategic collaboration activities to expand their deployment across industry activities.
KEY MARKET STATISTICS | |
---|---|
Base Year [2023] | USD 40.41 billion |
Estimated Year [2024] | USD 46.78 billion |
Forecast Year [2030] | USD 115.53 billion |
CAGR (%) | 16.18% |
Feedstock Type: Companies can lower their carbon footprint while also saving energy and reducing costs by producing diesel from waste oil
Renewable diesel production relies on fresh vegetable oils and waste oils as feedstock. Fresh vegetable oils, sourced from soybean, rapeseed, palm, and sunflower crops, are favored for their low carbon intensity, availability, and scalability. Government incentives supporting eco-friendly alternatives have also increased the demand for fresh vegetable oil-based fuels. Waste oils, including used cooking oil (UCO), animal fats, and greases that have reached the end of their useful life cycle as food products, provide a sustainable alternative fuel source with a smaller carbon footprint than conventional diesel. Regulatory bodies such as the European Commission recognize the importance of waste oils under the Renewable Energy Directive II (RED II), further bolstering their role in achieving sustainability goals.
Technology: Hydrotreating, gasification, and pyrolysis are exponential used method in producing renewable diesel
Renewable diesel production technologies have gained significant traction in recent years due to their potential to mitigate greenhouse gas emissions and promote sustainable development. Biomass-to-Liquid (BTL), hydrotreating, and pyrolysis-based Rapid Thermal Processing (RTP) are significant methods. BTL technology converts a wide range of biomass feedstocks into liquid biofuels through thermochemical or biochemical processes, such as gasification and fermentation. Hydrotreating is a well-established refining method that employs hydrogen and catalysts to remove impurities from petroleum-derived feedstocks. This process can also transform vegetable oils, animal fats, and other lipids into high-quality renewable diesel with low sulfur content and excellent combustion properties. Pyrolysis-based RTP involves the thermal decomposition of biomass feedstock at high temperatures and short residence times to produce bio-oil, syngas, and char. Bio-oil can be further upgraded Ito renewable diesel via hydrotreating or other refining techniques. Moreover, hydrotreating enables drop-in fuel production using existing infrastructure, providing a cost-effective approach to renewable diesel generation. While pyrolysis-RTP can efficiently handle challenging feedstocks and generate valuable co-products, it may face obstacles in bio-oil upgrading and commercial scalability.
End-User: Renewable diesel is a source of clean energy source for mining, oil & gas operations
The renewable diesel market caters to various industrial and transportation end-user segments, each driven by the need for sustainable energy, reduced greenhouse gas emissions, and compliance with regulatory standards. Industrial sectors such as power generation, heating & cooling, and manufacturing are increasingly adopting renewable diesel as a cleaner alternative to traditional fossil fuels. In the transportation segment, road transport dominates renewable diesel demand due to urbanization growth and heavy-duty vehicle fleet expansions. Aviation and rail transport providers have also turned towards customized renewable diesel blends. Moreover, both industrial and transportation segments are actively adopting renewable diesel due to its environmental benefits and regulatory compliance requirements.
Regional Insights
The policy environment for renewable diesel has led to a cascade of new projects, including new standalone facilities, conversions of pre-existing refinery units, and co-processing with fossil fuels at refineries in the Americas. The United States supports renewable diesel supply via the national level Renewable Fuel Standard, a biomass-based diesel blenders tax credit, and state-level policies such as the Oregon Clean Fuels Program and California Low Carbon Fuel Standard. Countries in Southeast Asia have been pressing the use of renewable diesel (RD) as an alternative to petroleum diesel. Currently, the major RD produced and consumed in Southeast Asia is biodiesel (BD), produced from edible oils. The European region also observes high production of renewable diesel with the rise of significant market players and the automotive industry's shift to sustainable fuel usage.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Renewable Diesel Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Renewable Diesel Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Renewable Diesel Market, highlighting leading vendors and their innovative profiles. These include Aemetis, Inc., Ag Processing Inc, Agilent Technologies, Inc., AMERICAN GREENFUELS, LLC, Calumet Specialty Products Partners, L.P., Cargill, Incorporated, Chevron Corporation, Diamond Green Diesel, Elite Natural Oils & Fuels Pvt. Ltd., Emami Agrotech Limited (EAL), Eni S.p.A., Erigo Bio Fuels P Ltd., Euglena Co., Ltd., Exxon Mobil Corporation, Geekay Fuels, Gevo, Inc., Global Clean Energy Holdings, Inc., HF Sinclair Corporation, Kern Energy, Louis Dreyfus Company, Marathon Petroleum Corporation, Metrohm AG, Milton Roy by Ingersoll Rand Inc., Muenzer Bharat Private Limited, Neste Corporation, NSR Industries, Olleco by ABP Food Group, Pan Oleo Energy Limited, PBF Energy Inc., Phillips 66 Company, RB Fuels, Revo International Inc., Shell PLC, The Archer-Daniels-Midland Company, The Ashcourt Group, Valero Energy Corporation, Veoli Environnement S A, and VERBIO Vereinigte BioEnergie AG.
Market Segmentation & Coverage
1. Market Penetration: It presents comprehensive information on the market provided by key players.
2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
1. What is the market size and forecast of the Renewable Diesel Market?
2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Renewable Diesel Market?
3. What are the technology trends and regulatory frameworks in the Renewable Diesel Market?
4. What is the market share of the leading vendors in the Renewable Diesel Market?
5. Which modes and strategic moves are suitable for entering the Renewable Diesel Market?