”, the market has witnessed significant growth from the past few years, on account of rising environmental awareness and strong growth demand from automotive applications. Stringent government regulations is an additional growth factor for the Biodiesel market.
Americas held the largest market share in the Biodiesel Market
Americas hold the largest market share and growth rate in the Biodiesel Market, and is anticipated to reach $40 billion by 2023 at a CAGR of 18.08%. Owing to the implementation of various regulations and laws in this region, the market is anticipated to experience an upsurge during the forecast period. The key applications in this region include vegetable oil, animal fats, among others.
Selected Opportunity Analysis
The market for biodiesel is still a niche market, serving specific set of verticals. The key reason being the prices and efficiency of biodiesel fuel. The industry has no hesitation in accepting the fact that the current ecosystem of biodiesel market has a critical dependency on government subsidies and mandates.
Generally, the opportunities in terms of expansion are limited for biodiesel. As an industry, it is yet to evolve extensively on various parameters, including quality, feedstock, process, production, prices and consumer behaviors. Thus, the key opportunity for biodiesel fuel lies in moving beyond the introduction stage in the market lifecycle by making a transition beyond industry constraints. As per the estimates available on Crude Oil Depletion, the world might be entering the oil crisis phase in the next 20 to 30 years. This phase will definitely provide lucrative offers for alternative fuel growth beyond current expectations.
Thus, the priority for biodiesel stakeholders in the existing scenarios is to overcome the restraints, in terms of product efficiency and prices. If stakeholders are able to evolve the product beyond such constraints, the future vacuum due to rapid depletion of conventional resources will be created simultaneously that will offer ample expanding opportunities.
The required conditions for promoting alternative fuels industry are already present in the market. These are present in the form of government subsidiaries, type of feedstock, mandates, rising greenhouse gas emissions, and swift fluctuations in conventional diesel prices.
Out of these, government subsidiaries and feedstock play a crucial role in determining the prices of biodiesel fuel. In other words, any wavering situations in these two factors will impact the prices directly. Therefore, the producers should focus on improving the raw material or feedstock that currently depends largely upon the waste edible or vegetable oil coming from restaurants. Even if the producers switch to soybean- a direct feedstock available from farms, the prices are subjected to harvest production and availability in the market.
Currently, the efficiency of biodiesel fuel is limited by low energy density of the product. If such product is utilized to prepare a blend beyond the mandated concentration in conventional fuels, the overall efficiency of fuel is reduced drastically.
Therefore, as per IndustryARC Analysis, until and unless both of the aforementioned factors are not acted upon in a transformative manner, the rapid opportunity for biodiesel fuel to become a mainstream fuel will be substituted by other means of alternative fuels.
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Excerpts on Market Growth Factors
Different factors such as expanding domestic and global Biodiesels production capacity, weak dollar price, decreasing energy and transportation costs, are expected to strengthen the global demand for Biodiesels products.
Other factors such as contracts and agreements of biofuel companies for the production of raw materials for biodiesel production are propelling the growth.
In regions such as Middle East, favorable geographic conditions help in higher production of raw materials such as algae, bacteria, biomass, and others for the production of Biodiesels.
Different advanced sensor technologies are present in the market, which are capable to determine accurate biofuel content of diesel blends. These advanced sensors technology provides more reliable data, with a less time of operation, which helps with the production volume of the Biodiesel products.
Increase in annual production capacity, and transition from smaller batch plants to large scale continuous procedure, increases the biodiesel production process in the U.S.
In developed nations such as North America and Europe, consumption of liquid fuel is decreasing gradually in the road transportation sector. In these nations, consumers prefer to use Biodiesels in vehicles that increases the fuel efficiency of the vehicle, which is expected to penetrate the global Biodiesels market in the upcoming future.
Biodiesels are part of a growing global bioenergy industry, which is driven to reduce fossil fuel utilization, increase fuel security and develop a greater range of bio products in the upcoming future.
Biodiesel products offer major value addition to different industries that include automotive, industrial agricultural and others.
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Key players of Bio diesels Market:
RBF Port Neches LLC and Renewable Energy Group are analyzed to be the dominant players.
World Energy Alternatives LLC is the third highest revenue in the U.S. biodiesel market. The growth is attributed to growing energy consumption, globally. Other key players include Archer Daniels Midland Co., Louis Dreyfus Agricultural Industries LLC, among others.
Also, few major companies such as China Petrochemical Corporation, Guangxi Kuonengba Energy Tech Co Ltd., Huntsman Petrochemical LLC, Argent Energy Group Ltd, Tangshan Jinlihai Biodiesel Co Ltd., Qingdao Jieneng Energy Saving Environmental Prot Technology Co Ltd., have filed for patents in the Biodiesel market
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