Biodiesel is an alternative fuel for automotive engines, which is produced by the chemical reaction of a raw material, such as vegetable oil or animal fat, with an alcohol such as methanol or ethanol. Biodiesel is a better alternative for the environment as it is produced from renewable resources, and it releases low emissions compared with normal diesel. As it is produced domestically from natural resources, its use decreases the dependency on imported fuel, and it also contributes to a country's economy.
Technavio’s analysts forecast the global biodiesel market to grow at a CAGR of 4.57% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global biodiesel market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Biodiesel Market 2017-2021
Technavio recognizes the following companies as the key players in the global biodiesel market:
Other Prominent Vendors in the market are: Altenesol, Argent Energy, biomax fuels, KFS Biodiesel, Longyan Zhuoyue New Energy, Louis Dreyfus, MÜNZER Bioindustrie, NESTE, RB FUELS, Renewable Energy Group, Vance Group, White Mountain Biodiesel, and YAMUNA BIO ENERGY.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Biofuels from spent bleaching earth. In recent years, the use biodiesel is increasing due to its advantages like cost benefits, renewable, clean, and reduced level of pollution. However, on the other hand, the market growth is hampered by its cost of production. To overcome this, manufacturers are trying to adopt strategies such as the use of an efficient catalyst, cheap raw materials, and advanced technologies.”
According to the report, one of the major drivers for this market is Increasing demand for biofuels. The global biofuels market is expected to grow at a CAGR of nearly 6% during the forecast period, which will boost the growth of the global biodiesel market. In 2016, the use of biofuels was increased as they reduce carbon emissions and the dependency on fossil fuels. Moreover, their production requires feedstock, which is generally renewable in nature. The use of biofuel is high in agriculture-based economies such as India, China, and Brazil because of the vast area available for feedstock production.
Further, the report states that one of the major factors hindering the growth of this market is High operating costs of biodiesel. Biodiesel is an alternative fuel for automotive engines that are produced by the chemical reaction of raw material, such as vegetable oil or animal fat, with an alcohol such as methanol or ethanol. The chemical reaction is known as transesterification, where short-chain alcohols are esterified to biodiesels. This process involves various production costs; the total cost ranges from $110 to $120 per barrel.
Archer Daniels Midland, BIOX, Bunge, Cargill, Wilmar International, Altenesol, Argent Energy, biomax fuels, KFS Biodiesel, Longyan Zhuoyue New Energy, Louis Dreyfus, MÜNZER Bioindustrie, NESTE, RB FUELS, Renewable Energy Group, Vance Group, White Mountain Biodiesel, and YAMUNA BIO ENERGY.
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