The global biodiesel market is expected to be worth a whopping $12.6 billion in 2014. A new market research report, “Global Biodiesel Market (2009 – 2014),” put out by MarketsandMarkets, details how the European market should make up about 55.6 percent of the revenues and 28.6 percent in the Americas.
Increasing environmental concerns and the need for energy independence have led to the biodiesel market. Despite the economic recession, global biodiesel production totaled 5.1 billion gallons in 2009, representing a 17.9% increase over 2008 levels. The biodiesel market is expected to grow from $8.6 billion in 2009 to $12.6 billion in 2014. Market growth is primarily dependent on the availability, quality, and yield of feedstock, as it accounts for 65% to 70% of the cost of biodiesel production.
Biodiesel derived from rapeseed oil forms the largest segment of the overall market. Germany is the single largest producer of biodiesel with 2.8 million tons produced in 2008. The biodiesel market also offers immense opportunities countries such as U.K., India, and China, as these regions have high diesel fuel prices and a large number of diesel fueled vehicles.
While growth may be affected by feedstock availability issues and the food v/s fuel debate, the market is expected to witness a paradigm shift with the increasing conversion efficiency of existing feedstock, and the development of newer feedstock sources such as algae.
Transportation fuels still make up the lion’s share of the biodiesel market, with 70 percent of the green fuel going into vehicle tanks.