Renewable Diesel Market By Feedstock (Animal Fats, Waste Oils, Vegetable Oils (e.g., Soybean Oil, Palm Oil), Used Cooking Oil, Other Biomass); By Application (Transportation (Heavy-duty trucks, Buses, Fleets), Power Generation, Aviation (Renewable Jet Fuel), Marine, Agriculture); By Production Technology (Hydrotreating, Co-processing, Fischer-Tropsch); By End-Use Industry (Transportation, Agriculture, Aviation, Shipping and Marine, Utilities (Power generation)); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The renewable diesel market in 2023 was worth USD 13.4 billion and is expected to be worth USD 24.49 billion by 2030, expanding at a CAGR of 7.83% during the forecast period.

 

The market for renewable diesel has also been prompted by the increased adoption of sustainable fuels and global climate change goals and targets. Governments across the globe are thus placing pressure on fossil carbon emissions, and renewable diesel, which has the potential to cut down GHG emissions by up to 80 percent compared to traditional diesel, is gradually becoming popular. For instance, California LGT has greatly enhanced demand for renewable diesel whereby the utilization of renewable diesel in California has now risen to a billion gallons and above.

 

A recent Innovation includes the largest producer of Renewable diesel, Neste, investing in new production capacities for Singapore and the Netherlands to cater to the growing global demand. Renewable diesel has become useful in transportation, farming, and shipping industries, among others, due to the need to reduce the use of hydrocarbons that cause pollution. Such shifts are driving the growth of the renewable diesel industry as organizations seek to improve their carbon footprint and diversify their energy sources.

 

The renewable diesel market is anticipated to have more prospects owing to the increasing emphasis on emission reductions and realization of net-zero targets. The transportation sector which contributes approximately 24% of the total global CO2 emissions is gradually focusing on incentives such as renewable diesel. This is creating significantly increased growth opportunities especially with governments enacting measures such as tax credits and low carbon fuels. For instance, the European Union has set an ambition to reduce their greenhouse gases’ emissions by 55% by 2030, which will create the market for renewable fuels. Chevron entered into partnership with Bunge for the production of renewable diesel from soybean oil, a project meant to churn out more than 100 million gallons in a year.

 

 

Market Segmentation

By Feedstock:

• Animal Fats

• Waste Oils

• Vegetable Oils (e.g., Soybean Oil, Palm Oil)

• Used Cooking Oil

• Other Biomass

 

By Application:

• Transportation (Heavy-duty trucks, Buses, Fleets)

• Power Generation

• Aviation (Renewable Jet Fuel)

• Marine

• Agriculture

 

By Production Technology:

• Hydrotreating

• Co-processing

• Fischer-Tropsch

 

By End-Use Industry:

• Transportation

• Agriculture

• Aviation

• Shipping and Marine

• Utilities (Power generation)

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

North America is the largest market for renewable diesel, primarily aided by LCFS in California and other federal and state incentives for low-carbon fuels. The U. S. has rapidly been increasing its consumption of renewable diesel, with California alone using more than one billion gallons of renewable diesel in the recent past. This demand is expected to continue growing as the state insists on enforcing even more stringent reduction of carbon emissions through the transport and energy industries.

 

The latest innovation in North America is switching conventional refineries into renewable diesel production by firms like Neste and Phillips 66. For instance, in the Phillips 66’s Rodeo Renewed project, the anticipated annual production is 800 million gallons by 2024. The repurposing of historical oil refineries for renewable fuel production and a rise in support from regulators has cemented North America’s position in the renewable diesel market.

 

Key Players

• Neste

• Chevron Corporation

• Phillips 66

• REG (Renewable Energy Group)

• Valero Energy Corporation

• Eni SpA

• TotalEnergies

• Shell

• Preem AB

• BP (British Petroleum)

 

Renewable Diesel Market Report

Report Attribute	Details
Forecast Period	2023 – 20320
Market Size Value in 2023	USD 10.5 billion
Revenue Forecast in 2030	USD 18.9 billion
Overall Growth Rate	CAGR of 10.2%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Million, CAGR (2023 - 2030)
Segmentation	By Feedstock, By Technology, By End-Use, By Region
By Feedstock	Vegetable Oils, Animal Fats, Used Cooking Oil
By Technology	Hydroprocessing, Fischer-Tropsch
By End-Use	Transportation, Power Generation, Others
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	US, Canada, Germany, France, UK, China, Japan, India
Pricing and Purchase Options	Available customized purchase options to meet your exact research needs.