EUROPE ADVANCED BIODIESEL MARKET ANALYSIS

Europe Advanced Biodiesel MarketSize and Trends

Europe advanced biodiesel market was valued at US$ 11.41 Bn in 2022, and is expected to reach US$ 32.09 Bn by the end of 2030, exhibiting a CAGR of 13.8% during the forecast period (2023-2030). Rising awareness about the depletion of fossil fuels and sustainable use of energy resources coupled with increasing governmental initiatives in Europe towards increasing the use of renewable energy resources are expected to boost the demand for advanced biodiesel in Europe. For instance, the European Renewable Energy Directive 2009/28/EC established a framework for the promotion of renewable energy sources, setting mandatory targets for achieving 20% of renewable energy in the gross final energy consumption by 2020.

Figure 1. Europe Advanced Biodiesel Market, By End-Use Industry 2022

Europe Advanced Biodiesel Market: Growth 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.

Europe Advanced Biodiesel Market: Market Segmentation

Among end-use industry, the transportation segment held a dominant position in the Europe advanced biodiesel market in 2022, accounting for 71% share in terms of value. Rising demand for advanced biodiesel from the marine and aviation industry is expected to offer growth opportunities to market players operating in Europe advanced biodiesel market over the forecast period. For instance, according to the report, ‘Biofuels for Aviation Technology Brief’ published on January 2017, by the International Renewable Energy Agency (IRENA), 2014, global consumption of jet fuel was 5.4 million barrels/day (314 billion liters/year) in 2014, and demand for jet-fuel is expected to increase to 9 million barrels/day (522 billion liters/year) by 2040.

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