Global biodiesel market to grow to $41bn, driven by environmental properties
The global biodiesel market is projected to reach a total worth of $41.18 billion (€38.45bn) by 2021, growing at a compound annual growth rate of 3.8%.
A new study by RnR Market Research states biodiesel’s non-toxic and environmentally friendly properties, along with its greenhouse gas (GHG) reductions, will increase its demand in automotive, power generation, marine, railway, agriculture, and mining industries.
The growth projections are held back by the fuel’s low cold filtration properties and an increase in water separation and fuel foaming when biodiesel is used.
The consumption of vegetable oils to produce biodiesel is projected to witness high growth during the forecast period, with soybean, palm, and rapeseed as the feedstocks used to manufacture vegetable oils.
These feedstocks are majorly used for the production of biodiesel production due to their easy availability in various countries.
Furthermore, they enable easy processing as they contain less saturated fat and thus reduce the overall manufacturing cost of vegetable oils.
Rising use of biodiesel in the fuel and power generation application segments have led to an increased demand for biodiesel, globally.
Europe is estimated to be the largest market for biodiesel, where Germany is expected to account for the largest share in Europe until 2021, while Italy will see the fastest growth.
In North America the US dominates the market, with major producers of biodiesel, such as Archer Daniels Midland Co., Bunge, Renewable Energy Group, Cargill, and TerraVia Holdings located in the country.
The fuel application segment is estimated to witness the highest growth during the forecast period, due to the increasing demand for environmentally friendly fuel from the transportation industry.
The use of biodiesel as a fuel has gained significant importance in recent years, as it is derived from natural sources and ensures complete burning, as well as offering better fuel economy over fossil fuels.