VANCOUVER — The Biodiesel market size reached US$32.05 Billion in 2021 and is expected to register a CAGR of 9.9% during the forecast period, according to latest analysis by Emergen Research.

Emergen Research is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. It stated that increased need for sustainable fuels in power generation and transportation are some of the key factors driving market revenue growth.

Biodiesel is a renewable and biodegradable fuel manufactured from organic materials vegetable oils, recycled restaurant grease, or animal fats and is considered a better alternative than traditional fossil fuels. Fossil fuels such as petroleum are mostly imported from OPEC countries and fluctuating oil prices due to geopolitical pressures have negatively impacted end-user industries significantly. The production of biodiesel can reduce dependence on foreign oil and bring down oil imports and can improve the balance of trade between various countries. Government of various countries has therefore formulated strategic policies to expand and diversify the domestic production capacity of biodiesel. This is expected to drive the revenue growth of the market to a greater extent.

Drivers:

Increased need for sustainable fuels in power generation and transportation is a primary factor that is expected to drive revenue growth in the market. Biochemical or thermochemical methods are used to turn biomass into biofuels such as ethanol, methanol, biodiesel, biocrude, and methane. In addition, biodiesel reduces carbon emissions on average by 80% when compared to petrol and diesel, and therefore is considered a better carbon reduction tool commercially available. In the USA one-third of the country’s carbon dioxide (CO2) emissions are attributable to the transportation industry and therefore use of biodiesel as an alternative fuel in vehicles can bring the carbon dioxide emission to a significant extent.

The National Biofuels Program is run by the USA Department of Energy with the objective to adopt and commercialize the finest technologies in an effort to realize the widespread use of biomass-based transportation fuels that are cost-effective, environmentally sound, and efficient. This is expected to increase the demand for biodiesel and therefore drive the revenue growth of the market.

Restraints:

Performance issues with biodiesel, an insufficient supply of feedstock to produce biodiesel, and weaker cold filtering capabilities are some factors restraining the revenue growth of the market. Engine’s performance is affected by low-quality biodiesel due to time deposits, corrosion, and other problems that could build up until the vehicle’s engine breaks catastrophically. These factors are major restraints in the revenue growth of the market.

Growth Projections:

The Biodiesel market is expected to register a CAGR of 9.9% over the forecast period and revenue is projected to increase from US$32.05 Billion in 2021 to US$75.57 Billion in 2030. Increasing government initiatives to promote biodiesel and increased need for sustainable fuels in power generation and transportation are expected to drive the revenue growth of the market.

Current Trends and Innovations:

Increasing government initiatives to promote biodiesel has led to an increase in production of biodiesel. Since ethanol is a renewable energy source, it is a better substitute for fossil fuels and can be used as a fuel for generating power. Molasses fermentation is used to produce ethanol at the industrial level. On 19 May 2022, the government of India amended the National Policy on Biofuels which would allow the government more feedstocks for biofuels production. Additionally, under the new amendments, the Government of India is promoting the establishment of units in Special Economic Zones (SEZ) or Export Oriented Units to produce biofuels in the nation as part of the Make in India program (EoUs). This can lead to an increase in production of biodiesel and therefore drive the revenue growth of the market. (*)

Source: prnewswire.co.uk