Biodiesel is produced by esterification process; wherein vegetable oil or animal fats are converted into long chain mono alkyl esters. Four types of biodiesel blends are available namely B100, B20, B5, and B2. Blends are decided depending upon percentage ratio of biodiesel and petro-diesel.
Increasing adoption of biofuels as an alternative for petro-fuels by automotive and power generation sectors coupled with rising awareness regarding environmental concerns such as greenhouse gas emission, etc. are major factors driving growth of the global biodiesel market. In addition, fluctuating crude oil prices is another major factor driving growth of the global biodiesel market. Moreover, properties of biodiesel such as biodegradability, non-toxicity, and eco-friendly are further boosting demand for biodiesel in the global market. Vegetable oil feedstock segment accounts for highest market share in the global biodiesel market.
Increasing adoption of electric vehicles may hamper growth of the global biodiesel market to a significant extent over the forecast period. Additionally, biodiesel is not suitable for low temperature operation and also cause engine clogging, this are another factors hampering growth of the global biodiesel market. Rising R&D investments by major market players for increasing production capacity by development of advance production units and facilities can create lucrative opportunities for key manufacturers in the global biodiesel market over the forecast period.
The global biodiesel market is segmented in feedstock type, application, and region. On basis of region, global biodiesel market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
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Europe accounts for highest market share in terms of revenue contribution in the global biodiesel market, owing to favorable government regulations and high adoption rate of biodiesel. The market in North America is expected to witness significant growth and is expected to register a CAGR of X.X% during the forecast period, followed by market in Latin America, Asia Pacific, and Middle East & Africa respectively.
Key players in the global biodiesel market are Archer Daniels Midland Company, Wilmar International Limited, TerraVia Holdings Inc., Bunge Limited, Neste Corporation, Louis Dreyfus Company, BIOX Corporation, Cargill Inc., Renewable Energy Group Inc., and FutureFuel Corporation.