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

 

Segment Analysis for the Renewable Diesel Market

By Feedstock:

Leading Segment: Vegetable Oils (e.g., Soybean Oil, Palm Oil)

Vegetable oils account for the largest market share, exceeding 40%, due to their widespread availability & established use in renewable diesel production. For example, the U.S. uses soybean oil as a primary feedstock which is supported by government incentives like the Renewable Fuel Standard (RFS). Palm oil is a dominant feedstock in regions like Southeast Asia. This segment is growing at a steady rate, which is driven by its compatibility with existing production technologies & growing demand in transportation.

Fastest-Growing Segment: Used Cooking Oil (UCO)

UCO is growing at a CAGR of over 12%, fueled by its sustainability & reduced environmental impact compared to virgin feedstocks. Countries such as the U.K. & the Netherlands are actively promoting the use of UCO in renewable diesel through tax benefits & blending mandates. Companies like Neste & TotalEnergies have established advanced facilities for UCO processing, making it a preferred choice in Europe.

 

By Application:

Leading Segment: Transportation

The transportation segment dominates the renewable diesel market, holding over 50% of the share due to its compatibility with existing diesel engines & infrastructure. Heavy-duty trucks & fleets are the primary consumers. For example, Amazon has partnered with Neste to use renewable diesel in its U.S. fleet, showcasing the increasing adoption in logistics & transportation.

Fastest-Growing Segment: Aviation (Renewable Jet Fuel)

Aviation is the fastest-growing segment, with a CAGR of 15%, as the industry aims to reduce emissions from carbon. Airlines like Delta & United actively integrate renewable jet fuel into their operations. ICAO's Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA) has further driven the adoption of renewable diesel in aviation.

 

By Production Technology:

Leading Segment: Hydrotreating

Hydrotreating is the leading production technology, accounting for nearly 60% of the market share. It is widely adopted because of its efficiency in producing high-quality renewable diesel with minimal impurities. Companies like Valero Energy & Phillips 66 have heavily invested in hydrotreating facilities in North America, ensuring their dominance in the market.

Fastest-Growing Segment: Fischer-Tropsch

The Fischer-Tropsch process is growing at a CAGR of 14%, driven by its ability to utilize diverse feedstocks, which include biomass & waste materials. This technology is gaining traction in Europe & North America, where governments support advanced biofuel production through subsidies & grants. Shell's investments in Fischer-Tropsch plants highlight its potential for scalability.

 

By End-Use Industry:

Leading Segment: Transportation

Transportation leads with over 55% of the market share, supported by government mandates & corporate commitments to decarbonize logistics. Companies like Chevron & Marathon Petroleum have integrated renewable diesel into their supply chains for trucking & rail.

Fastest-Growing Segment: Aviation

The aviation sector is growing at a CAGR of 14%, driven by growing collaborations between airlines & renewable fuel producers. For example, Neste has signed agreements with major airports in the U.S. & Europe to supply renewable jet fuel, which makes aviation a key growth area.

 

By Region:

Leading Region: North America

North America dominates the renewable diesel market, with a 45% share, supported by policies such as (LCFS) Low Carbon Fuel Standard in California & the federal Blender's Tax Credit. States like California & Oregon lead in renewable diesel adoption. Companies like Valero and REG (Renewable Energy Group) are major regional players with significant production capacities.

Fastest-Growing Region: Europe

Europe is the fastest-growing region, with a CAGR of 13%, driven by stringent emission reduction targets & the Renewable Energy Directive (RED II). Countries like Sweden & Finland are leading in renewable diesel production & consumption. Neste, a Finnish company, has emerged as a global leader, exporting renewable diesel to meet international demand.

 

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.