B5 Fuel Market Size, Share, and Growth Analysis, By Feedstock (Vegetable Oils, Rapeseed Oil), By Application (Industrial Fuels, Transportation Fuels), By Region - Industry Forecast 2026-2033

B5 Fuel Market size was valued at USD 37.56 Billion in 2024 and is poised to grow from USD 39.74 Billion in 2025 to USD 62.39 Billion by 2033, growing at a CAGR of 5.8% during the forecast period (2026-2033).

B5 fuels, consisting of up to 95% petroleum diesel blended with biodiesel, are gaining traction due to their numerous advantages and applications. They enable countries to lessen their reliance on foreign oil reserves by utilizing domestically produced sources. Compatible with existing diesel engines, B5 fuels require minimal or no modifications to the engine or fuel system, making them a viable alternative to traditional fossil fuels. Additionally, these blends reduce the concentration of harmful petrochemicals that contribute to greenhouse gas emissions, particularly carbon dioxide, which exacerbates global warming. By integrating biodiesel with petroleum, B5 fuels not only offer a sustainable energy solution but also play a crucial role in mitigating environmental impacts and promoting cleaner transportation options.

Top-down and bottom-up approaches were used to estimate and validate the size of the B5 Fuel market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

B5 Fuel Market Segments Analysis

Global B5 Fuel Market is segmented by Feedstock, Application and region. Based on Feedstock, the market is segmented into Vegetable Oils, Rapeseed Oil, Palm Oil, Animal Fats, Poultry and Tallow. Based on Application, the market is segmented into Industrial Fuels, Transportation Fuels, Chemical Industry and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the B5 Fuel Market

The B5 Fuel market is significantly driven by the versatility and compatibility of B5 fuel, a blend containing 5% biodiesel, which is suitable for various compression ignition engines. This encompasses a wide range of vehicles, including both light and heavy-duty diesel cars, trucks, tractors, and even generators. Users of B5 fuel have reported that it provides comparable fuel consumption, horsepower, and overall performance to traditional petroleum diesel, often with minimal discernible differences in fuel efficiency. As the adoption of B5 fuel expands across diverse applications, its market presence continues to grow, reflecting a broader shift towards sustainable fuel alternatives.

Restraints in the B5 Fuel Market

The B5 fuel market faces significant constraints as higher blends of biodiesel, such as B20, gain traction due to their environmental benefits. With up to 20% biodiesel content, B20 fuel can lead to a more substantial reduction in dependence on foreign oil, as it can be produced domestically. Additionally, B20 is compatible with existing diesel engines with minimal modifications, offering advantages in cost, emissions reduction, cold-weather performance, and material compatibility. These compelling benefits of B20 fuel may hinder the growth of the B5 fuel market, as consumers and industries increasingly seek more sustainable and efficient alternatives.

Market Trends of the B5 Fuel Market

The B5 fuel market is witnessing a robust upward trend, driven by increasing adoption in light and heavy-duty diesel vehicles, including trucks, tractors, boats, and generators. This biofuel, comprising 5% biodiesel blended with 95% petroleum diesel, has garnered safety approvals from ASTM, making it a reliable choice for compression ignition engines. The endorsement of the renewable fuel standard in the United States has further bolstered its availability across fuel stations nationwide, reflecting a growing consumer preference for sustainable fuel options. As environmental concerns rise and regulatory frameworks evolve, the B5 market is poised for significant growth, promoting cleaner energy solutions in transportation.