According to a new market report published by Credence Research Global Biodiesel Market- Growth, Future Prospects & Competitive Analysis, 2017 - 2025, the Global Biodiesel Market is expected to reach US$ 53.6 Bn by 2025, expanding at a CAGR of 4.4% during the forecast period 2017 - 2025.
Market Insights
Biodiesel market is expected to witness significant growth in biodiesel production across various countries along with increasing application of biodiesel across various industries including automotive, marine, agriculture, railway, power generation and mining. It is widely used as fuel and also blended in diesel fuel in various countries in the ratio of B20, B50 and B100 depending upon the regulatory guidelines of the respective countries. Biodiesel also finds application as industrial solvent, and lubricating agent. Rising investment in the expansion of production capacity of biodiesel in various economies of Europe such as Germany, France and Italy are projected to fuel growth of biodiesel market over the forecast period. Further, growing fuel consumption in key emerging economies including India, China and others and increasing focus on reducing the dependency on fossil fuel attracting the investment in alternate sources of energy such as biodiesel. Growth in food industry driving the production of feed stock made from residue of soybean oil, corn oil, canola oil and animal fats enabling the handiness of feed stock required for production of biodiesel which in turn is fueling the production of biodiesel over the forecast period. Moreover, favorable regulatory support for mandatorily blending of biodiesel in diesel fuel is projected to fuel the consumption of biodiesel. However, raw material availability and high cost of installation of biodiesel production plant are factors expected to hamper the growth of biodiesel market during the forecast period (2017-2025).
Competitive Insights:
Global Biodiesel market is segmented on the basis of source, application and geography. By source, soybean oil was estimated to be the largest segment among all the source segments. Strong presence of food industry especially in Europe and North America generating sufficient feedstock including soybean oil, corn oil, canola oil and animal fats. Further, increasing investment in expansion of production capacity of biodiesel along with favorable regulatory support such as necessary blending of biodiesel in diesel fuel is projected to drive the growth of the segment during the forecast period. By application, in 2016 transportation fuel segment was the most dominant segment accounting for largest revenue share in global biodiesel market. Growing use of biodiesel in blending with diesel fuel coupled with regulatory support such as necessary blending of 10% of biodiesel in diesel fuel is projected to drive the growth of the segment during the forecast period. On the basis of geography, Europe was estimated to be the largest market for biodiesel in 2016. High availability of feedstock due to strong presence of manufacturing industries especially in Germany, France, and Italy is projected to drive the demand for biodiesel in the region during the forecast period. Followed by it, Asia Pacific is anticipated to be the fastest growing region in global biodiesel market. High energy demand coupled with availability growing inclination towards the reducing the imports of fossil fuel especially in India and China is projected to drive the growth of the global biodiesel market during the forecast period.
Major players in global biodiesel market are investing in expansion of production capacity along with high focus on research and development to lower the production cost. To increase their companies are focusing in merger and acquisition.
Overall, global biodiesel market is anticipated to register significant growth over the forecast period (2017-2025).
Key Trends:
- Merger & Acquisition
- Production capacity expansion
- Investment in research and development
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