B5 Fuel Market Size, Share, Growth Analysis, By Feedstock (Vegetable Oils, Rapeseed Oil), By Application (Industrial Fuels, Transportation Fuels), By Region - Industry Forecast 2025-2032

B5 Fuel Market size was valued at USD 35.5 billion in 2023 and is poised to grow from USD 37.56 billion in 2024 to USD 58.97 billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).

B5 Fuels, a blend of up to 95% petroleum diesel with biodiesel, are gaining traction as a viable alternative energy source. They offer numerous advantages, such as reducing countries' reliance on foreign oil reserves, as they are domestically produced and compatible with most diesel engines with minimal modifications. The adoption of B5 fuels contributes to lower petrochemical emissions, which in turn helps mitigate greenhouse gas emissions, particularly carbon dioxide, known for its role in global warming. By replacing fossil fuels, B5 Fuels not only enhance energy security but also play a significant part in environmental conservation, making them an increasingly preferred choice in the global energy landscape.

Top-down and bottom-up approaches were used to estimate and validate the size of the B5 Fuel market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

B5 Fuel Market Segments Analysis

Global B5 Fuel Market is segmented by Feedstock, Application and region. Based on Feedstock, the market is segmented into Vegetable Oils, Rapeseed Oil, Palm Oil, Animal Fats, Poultry and Tallow. Based on Application, the market is segmented into Industrial Fuels, Transportation Fuels, Chemical Industry and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the B5 Fuel Market

The B5 Fuel market is experiencing significant growth, driven primarily by its expanding applications across various industries. B5 Fuel, which consists of a blend of 5% biodiesel and 95% petroleum diesel, serves as a crucial component for operating compression ignition engines found in light-duty and heavy-duty vehicles, tractors, boats, and electrical generators. Users of B5 Fuel report comparable fuel efficiency, horsepower, and performance to traditional petroleum diesel, highlighting the blend's viability as a sustainable alternative. Its minimal energy variance of 1% to 2% less per gallon compared to conventional diesel has not deterred its adoption, making B5 Fuel increasingly popular in diverse applications, thus propelling market growth.

Restraints in the B5 Fuel Market

The B5 fuel market faces significant restraints primarily due to the availability of alternative fuels like B20, which offers a higher blending level of biodiesel at 20%. B20 fuels positively impact the environment by promoting sustainability and reducing reliance on foreign oil, as they can be produced domestically. Additionally, B20 is compatible with most diesel engines, requiring little to no modifications, thus making it more accessible for consumers. These factors, combined with B20's favorable cost-performance balance, lower emissions, and enhanced cold-weather performance, pose a considerable threat to the growth and adoption of the B5 fuel market.

Market Trends of the B5 Fuel Market

The B5 fuel market is witnessing a significant upward trend, fueled by its growing acceptance in both light and heavy-duty diesel vehicles, including trucks, tractors, boats, and generators. Its safety profile, bolstered by ASTM approval for operation in various compression ignition engines, enhances its appeal among consumers and businesses alike. The implementation of the Renewable Fuel Standard in the United States further supports this trend by facilitating the widespread distribution of B5 biodiesel at fuel stations nationwide. As environmental concerns rise, the shift towards renewable and sustainable fuel alternatives like B5 is expected to strengthen, driving market growth and innovation in the sector.