Green Diesel Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the green diesel market was USD 31.8 billion in 2022, and a CAGR of 11.5% is expected during the forecast period. Increasing demand for a substitute for petroleum fuel is driving demand for green diesel. Fuel made of fats and oils is known as green diesel and is used in the same manner as petroleum diesel. The green diesel market refers to the production and consumption of renewable or sustainable diesel fuels, often derived from biomass or vegetable oils.

Its aim is to reduce carbon emissions and promote environmental sustainability. Expanding renewable stock sources, increasing production efficiency, and collaboration between government, industry, and research entities drive innovation and accelerate the development of sustainable technology in the production and utilization of green diesel.

Impact of Covid-19

The impact of COVID-19 on the green diesel market was mixed. Due to disruptions in the supply chain and economic uncertainties, it affected investment and project timelines in the renewable energy sector, including green diesel production. There is increasing awareness of the importance of sustainable practices, and governments worldwide are increasingly focusing on green recovery plans, which provide opportunities for the green diesel market to rebound and expand. The long-term impact will depend on how quickly economic activities recover and the extent to which sustainability remains a top priority.

Growth Drivers

·         Renewable Energy Policies

·         Increasing Environmental Awareness

·         Advancement in technology

·         Diversification of feedstocks

·         Global Energy Transition

·         Corporate sustainability initiatives

·         Investment and Funding

·         Rising Energy Security Concerns

·         Collaboration and Partnerships

·         Volatility in crude oil prices

Supportive government policies and regulations promoting renewable energy and low-carbon fuels encourage investments in green diesel production. Growing concerns about climate change prompt businesses and consumers to seek sustainable alternatives, boosting demand for green diesel as a cleaner fuel option. Ongoing research and technological developments improve the efficiency and cost-effectiveness of green diesel production, making it more competitive with traditional diesel. Exploration of diverse feedstocks, such as waste oil, algae, and agricultural residues, enhances the resilience and sustainability of the green diesel market.

Increasing demand for cleaner energy resources is driving growth in the market. Green diesel plays a significant role in carbon reduction. Increasing investment from both the public and private sectors in green diesel projects facilitates capacity expansion and technology improvement, fostering market growth. Fluctuation in traditional diesel prices is driving the demand for green diesel in the market significantly. Governments and industries seek alternatives to reduce dependence on traditional fossil fuels. Collaboration between the government, industry players, and research institutes accelerates the development and deployment of green diesel technologies, driving the demand for green diesel.

Segmentation

By Raw Materials

·         Vegetable Oils

·         Animal Feeds

·         Others

By Application

·         Fuel

·         Power Generation

·         Others

By Type

·         Pure Form

·         Blended Form

By Production Technology

·         Gasification

·         Pyrolysis

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Green Diesel Market by Raw Material Segmentation

On the basis of raw materials, the green diesel market is segmented into vegetable oils, animal feeds, and others. Vegetable oils are the leading segment in the market and are expected to lead during the forecast period. These oils, derived from crops such as soybean, rapeseed, palm, and others, serve as feed stocks for the production of renewable diesel through processes like hydrotreating or hydrocracking. The conversion of vegetable oils into green diesel involves removing impurities and refining the oil into a suitable hydrocarbon mixture. This biofuel, derived from vegetable oil, is considered a renewable alternative to traditional diesel. Reducing reliance on fossil fuels is driving the growth of the market significantly.

Green Diesel Market by Application Segmentation

On the basis of application, the green diesel market is segmented into fuel, power generation, and others. Fuels utilized by numerous industries and applications are the leading segment and are expected to grow significantly during the forecast period. Transportation, electricity generation, heating, and manufacturing are the sectors where fuels are used significantly. Power generation is another segment leading during the forecast period due to excess demand in all the industries. The increase in demand as an alternative to traditional fuel is driving the growth of the market.

Regional Outlook

On the basis of regions, the green diesel market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America was the leading segment in 2022 and is expected to witness significant growth during the forecast period. The region has witnessed a growing emphasis on sustainability and renewable energy, leading to an increase in demand for eco-friendly alternatives like green diesel. Supportive government policies, investment in research and development, and a well-established infrastructure for renewable energy contribute to North America’s leadership in this market. The region's commitment to reduce carbon emissions is driving the growth of the North American market.

The United States and Canada are leading the market in the region. European countries like Germany, Italy, France, and Spain are actively promoting the use of renewable energy sources, including biofuels like green diesel, to reduce carbon emissions and dependence on traditional fossil fuels. Policy frameworks such as the Renewable Energy Directives in the European Union set targets for the share of renewable energy in the transportation sector, driving the demand for green diesel. The presence of well-established biofuel production facilities and a robust infrastructure for distributing and utilizing green diesel further contribute to its popularity in Europe.

Consumer awareness and preferences for cleaner alternatives have played a crucial role in the adoption of green diesel, making it a key player in the European renewable energy landscape. Countries in the Asia-Pacific region are experiencing rapid urbanization and industrialization, leading to a surge in energy demand. Government initiatives, supportive policies, and investment in renewable energy infrastructure contribute to the growth of the green diesel market in the Asia-Pacific region. Rising awareness of climate change and the importance of sustainable practices drive growth in both the public and private sectors. This region's diverse economies make a significant contribution to market growth.

Key Players

·         Total Energies

·         Chevron Corporation

·         Cargill Incorporated

·         Honeywell Corporation

·         Exxon Mobil Corporation

·         Neste Corporation

·         Marathon Petroleum Corporation

·         Valero Energy Corporation

·         ENI S.P.A

·         Other Players