Europe Biodiesel Market, By Feedstock (Vegetable Oil and Animal Fats), Blend (B100, B20, B10, and B5), Production Technology (Trans-Esterification, Pyrolysis, Hydro Heating, Dilution, Micro-Emulsification, and Others), Application (Fuel, Power Generation, and Others) Industry Trends and Forecast to 2029.
Europe Biodiesel Market Analysis and Insights
Europe biodiesel market is expected to gain significant growth in the forecast period of 2022 to 2029. Data Bridge Market Research analyzes that the market is growing with a CAGR of 4.7% in the forecast period of 2022 to 2029 and is expected to reach USD 43,330.31 million by 2029. Some of the major factors driving the market growth are growing demand for eco-friendly fuels, high compatibility of biodiesel with existing diesel engines, and rapidly depleting reserves of fossil fuels.
Biodiesel is becoming a more affordable option due to the unstable prices of petroleum-based products. The biodiesel market is developing in response to public pressure to reduce emissions and replace fossil fuels due to environmental concerns and concerns over rapidly depleting crude oil reserves across the globe. Moreover, the use of biodiesel boosts the fuel's cetane number and improves its lubricity.
Europe biodiesel market report provides details of market share, new developments, impact of domestic and localized market players, analyzes opportunities in terms of emerging revenue pockets, changes in market regulations, product approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario contact us for an analyst brief, our team will help you create a revenue impact solution to achieve your desired goal.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Year
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2020 (Customizable to 2019 - 2014)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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By Feedstock (Vegetable Oil and Animal Fats), Blend (B100, B20, B10, and B5), Production Technology (Trans-Esterification, Pyrolysis, Hydro Heating, Dilution, Micro-Emulsification, and Others), Application (Fuel, Power Generation, and Others)
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Countries Covered
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U.K., Russia, France, Spain, Italy, Germany, Turkey, Netherlands, Switzerland, Belgium, Luxembourg, and rest of Europe
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Market Players Covered
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Louis Dreyfus Company, Münzer Bioindustrie GmbH, Bio-Oils Energy, Argent Energy, Eco Fox Srl, ecomotion.de, ECODIESEL COLOMBIA S.A., ADM, Neste, Renewable Energy Group, VERBIO Vereinigte BioEnergie AG, Petróleo Brasileiro S.A. – Petrobras, and Cargill, Incorporated.
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Market Definition
Biodiesel is obtained from renewable feedstock such as vegetable oil and animal fats by utilizing a chemical procedure called trans-esterification which converts oil and fats into fatty acids methyl esters. It is employed as a substitute for petroleum diesel fuel and is often combined with petroleum diesel fuel for other parts. It is efficient to decrease exhaust release when compared to petroleum diesel fuel. It has applications in automotive, marine, aviation, industrial, and other industries. In marine industry, it is used as an excellent material as shipping fuel, being biodegradable and non-toxic in nature.
Europe Biodiesel Market Dynamics
DRIVERS
- Growing demand for environment-friendly fuels
Biodiesel fuel is similar to diesel fuel but is much more eco-friendly. Biodiesel is a clean, non-polluting energy source. This green transition is seen as a catalyst for the biodiesel market, paving the way for biodiesel suppliers. The need to integrate renewable energy sources is driving the demand for biodiesel. Biodiesel is expected to grow fast in popularity as a replacement for conventional fossil fuels in various applications. Biodiesel is helping several countries across Europe to decrease their reliance on foreign oil reserves and imports, since it is manufactured domestically and deployed in a diesel engine with minor or near modifications. Moreover, second-generation and third-generation biofuels, such as those produced using algae, have a greater potential to reduce emissions. Therefore, the growing demand for eco-friendly and sustainable fuels and energy sources across various industries is expected to drive the demand for biodiesel, which in turn is expected to drive market growth.
- High compatibility of biodiesel with the existing diesel engines
The industry is expected to benefit from increased demand for fuel in commercial vehicles as a replacement for crude oil as it emits fewer Volatile Organic Compounds (VOCs) than traditional fuels, such as diesel. The main target for biodiesel consumption is fuel and power generation applications. Today, automotive and marine industries are using a majority of the fuel produced, which uses components of crude oil in heavy quantities. These conventional fuels release toxicants into the environment. Also, in power generation, biodiesel can be used in generators where only a few changes or no changes are needed to be done to the structure of machine.
- Rapidly depleting reserves of fossil fuels
The limited availability and surging prices of non-renewable energy sources, such as petrol, diesel, and Liquefied Petroleum Gas (LPG) are favoring the utilization of biodiesel in various industries. Biofuel production and its uses in industries and transportation considerably minimize fossil fuel dependence. Furthermore, a growing preference for replacing fossil fuels, which are associated with higher Greenhouse Gas (GHG) emissions, with biofuel such as biodiesel, which is renewable and biodegradable, is influencing the demand in various European countries.
OPPORTUNITIES
- Rise in government initiatives to adopt renewable energy sources
Governments of many countries are supporting eco-friendly alternatives such as biodiesel. Government aid like subsidies and imposing mandates indicates and helps in continued market growth. Governments in the European region are constantly attempting to adopt renewable energy sources to generate power and as a fuel to reduce GHG emissions. As a result, the demand for the product in fuel applications and power generation applications is expected to grow in the near future.
- Technological advancements to improve the performance characteristics of biodiesel
The transportation sector is mainly responsible for adding GHGs to the environment. These pollutants are produced by burning petrol and diesel which are used in different locomotives. Though biodiesel has proved to be a promising and best resource for alternative fuel, its exhaust emissions and especially Nitrous Oxide (NOx) is harmful. Nanoparticles added to emulsions have the potential to reduce exhaust emissions without compromising engine performances. The addition of nano additives to biodiesel aids in increasing fuel properties. Nanoparticles increase the surface-to-volume ratio and oxidation rate of fuel. It decreases ignition delay and improves the ignition temperature of combustion zone.
RESTRAINTS/CHALLENGES
- Insufficient production capacity
Europe biodiesel market is largely affected by lack of efficiency in the production of biodiesel in desired quantities and this is due to several factors. At present, there is no policy mechanism incentivizing farmers to collect and deliver biomass residues to a next-generation biodiesel plant. Therefore, it is important to establish a reliable supply chain for biomass covering collection, transportation, and handling of biomass feedstock. If the policymakers seek to foster an industry for long term, they could create a mechanism whereby cooperatives or farming communities could be involved in the process of collection, storage, and delivery of residues for the adequate use of feedstock for the production of biodiesel.
- Emissions and pollution caused during production of biodiesel
Substituting conventional fuels with biodiesel blends is considered to be extremely vital for social and environmental reasons; however, there are potential problems associated with its use. Despite the favorable environmental impacts in terms of overall reduced GHG emissions, biodiesel has the potential to increase NOx emissions. Approximately 3% to 4%, 4% to 6%, and 6% to 9% of petroleum diesel are emitted from B20, B40, and B100 respectively.
- High feedstock costs for biodiesel production
Demand for biodiesel and clean-burning fuels over traditional petroleum-based fuels is also linked to the agricultural commodity market. Vegetable oils, such as soybean oil, canola oil, and palm oil, are the most common feedstocks for biodiesel production. Feedstock costs account for approximately 80% to 85% of total biodiesel production costs. Therefore, high price volatility of the feedstock on which biodiesel producers rely threatens their long-term financial stability. Feedstock prices will rise in tandem with biodiesel prices, resulting in lower profit margins.
Recent Development
- In September 2022, Neste launched a strategic study on transitioning its refinery in Porvoo, Finland, to non-crude oil refining and into a globally leading renewable and circular solutions site. Through co-processing and retrofitting units, and benefiting from available refining assets, experience, and know-how Neste targets to significantly grow its renewables and circular production in Porvoo in long term.
Europe Biodiesel Market Scope
Europe biodiesel market is segmented into four notable segments based on feedstock, blend, production technology, and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Feedstock
- Vegetable Oil
- Animal Fats
Based on feedstock, the market is segmented into vegetable oil and animal fats.
Blend
- B20
- B10
- B5
- B100
Based on a blend, the market is segmented into B100, B20, B10, and B5.
Production Technology
- Trans-Esterification
- Pyrolysis
- Hydro Heating
- Dilution
- Micro-Emulsification
- Others
Based on production technology, the market is segmented into trans-esterification, pyrolysis, hydro heating, dilution, micro-emulsification, and others.
Application
- Fuel
- Power Generation
- Others
Based on application, the market is segmented into fuel, power generation, and others.
Europe Biodiesel Market Regional Analysis/Insights
Europe biodiesel market is segmented based on feedstock, blend, production technology, and application.
The countries covered in the market are U.K., Russia, France, Spain, Italy, Germany, Turkey, Netherlands, Switzerland, Belgium, Luxembourg, and rest of Europe. France is dominating the market in terms of market share and market revenue due to the growing demand for commercial vehicles in the region.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Europe brands and their challenges faced due to large or scarce competition from local and domestic brands, and the impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Europe Biodiesel Market Share Analysis
Europe biodiesel market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the market.
Some of the prominent participants operating in the Europe biodiesel market are Louis Dreyfus Company, Münzer Bioindustrie GmbH, Bio-Oils Energy, Argent Energy, Eco Fox Srl, ecomotion.de, ECODIESEL COLOMBIA S.A., ADM, Neste, Renewable Energy Group, VERBIO Vereinigte BioEnergie AG, Petróleo Brasileiro S.A. – Petrobras, and Cargill, Incorporated.
Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by the DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning grids, Market Time Line Analysis, Market Overview and Guide, Company Positioning grids, Company Market Share Analysis, Standards of Measurement, Europe Vs Regional, and Vendor Share Analysis. Please request an analyst call in case of further inquiry.
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