PUBLISHER: The Business Research Company | PRODUCT CODE: 1760251
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760251
Renewable diesel is an environmentally friendly, clean-burning fuel derived from renewable sources. It shares the same chemical structure as petroleum diesel, allowing it to be used in current diesel engines and infrastructure without requiring any modifications. Utilizing a specialized refining technique, it provides a high cetane rating, enhanced combustion efficiency, and considerably lower greenhouse gas emissions compared to traditional fossil diesel.
Key feedstocks for renewable diesel include soybean oil, palm oil, animal fats, vegetable oils, and used cooking oil. Soybean oil, refined from soybeans, serves as a major renewable input for the production of hydrotreated vegetable oil (HVO), presenting a sustainable substitute for petroleum-based diesel. The fuel is manufactured using various methods such as hydrotreating, the Fischer-Tropsch (FT) process, pyrolysis, and more. It is distributed via direct sales and through distributors, serving multiple end-use sectors such as automotive, marine, aerospace, power generation, and others.
The renewable diesel market research report is one of a series of new reports from The Business Research Company that provides renewable diesel market statistics, including renewable diesel industry global market size, regional shares, competitors with a renewable diesel market share, detailed renewable diesel market segments, market trends and opportunities, and any further data you may need to thrive in the renewable diesel industry. This renewable diesel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The renewable diesel market size has grown rapidly in recent years. It will grow from $22.56 billion in 2024 to $24.91 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. The growth during the historical period can be credited to rising concerns about climate change, the intention to lower greenhouse gas (GHG) emissions, encouragement of circular economy practices and waste utilization, efforts to decrease air pollution in urban regions, and growing awareness of the environmental consequences associated with fossil fuel use.
The renewable diesel market size is expected to see rapid growth in the next few years. It will grow to $36.55 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The anticipated growth in the forecast period can be attributed to the increasing demand for alternative fuels, the expansion of commercial and municipal fleet operations, the development of renewable diesel fueling infrastructure, the aviation sector's growing interest in sustainable aviation fuels, and the rising cultivation of non-food energy crops. Key trends expected during this period include advancements in hydrotreating and hydrogenation technologies, improvements in feedstock flexibility and processing capabilities, the emergence of scalable modular production units, integration with carbon capture and storage systems, and progress in refining and upgrading methods.
The increasing demand for sustainable fuels is expected to propel the growth of the renewable diesel market in the coming years. Sustainable fuels are low-carbon or renewable energy sources that minimize environmental impact and promote long-term energy resilience. As industries face mounting pressure from strict environmental regulations to cut emissions and align with climate targets, the need for sustainable fuel alternatives continues to grow. Renewable diesel benefits from this trend as a low-emission, drop-in replacement that supports climate objectives without requiring modifications to existing diesel infrastructure. For example, in November 2024, the UK Department for Transport reported that in 2023, the UK supplied 3,700 million liters equivalent of renewable fuel, making up 7.5% of all fuel used in road transport and non-road mobile machinery-an increase from 6.8% in 2022. Thus, the growing demand for sustainable fuels is set to drive the renewable diesel market's expansion.
Leading companies in the renewable diesel industry are prioritizing the development of innovative approaches, such as low-GHG emission fuels, to minimize their carbon emissions. These fuels generate fewer greenhouse gases than traditional fossil fuels, contributing to environmental preservation and climate change mitigation. For example, in August 2024, ExxonMobil Hong Kong Limited (EMHK), a petroleum products provider based in China, introduced Esso Renewable Diesel R20 for public road use in Hong Kong. This premium fuel contains at least 20% renewable content and offers about 15.4% lower lifecycle greenhouse gas emissions compared to conventional diesel. It is fully compatible with current diesel engines and maintains reliable performance and engine cleanliness with Esso's proprietary Synergy additive. This initiative highlights Esso's commitment to delivering low-emission fuel options for Hong Kong's transport industry.
In June 2022, Chevron Corporation, a U.S.-based energy firm, acquired Renewable Energy Group Inc. for an undisclosed sum. This acquisition has combined two companies with complementary capabilities, assets, and customer networks, positioning Chevron as a leading provider of renewable fuels in the United States. As a result, Chevron is now able to offer a wider array of cost-effective, lower-carbon solutions that integrate smoothly with existing fleets and infrastructure. Renewable Energy Group Inc. is a US-based prominent producer of renewable diesel.
Major players in the renewable diesel market are Shell plc, TotalEnergies SE, Chevron Corporation, BP p.l.c, Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66, Cargill Incorporated, Eni S.p.A., Petrobras, Repsol S.A., PBF Energy Inc., Neste Oyj, Ampol Limited, Preem AB, UPM-Kymmene Corporation, Par Pacific Holdings Inc., Calumet Inc., Topsoe A/S, Aemetis Inc., LanzaTech Global Inc., Diamond Green Diesel LLC, and GEVO Inc.
North America was the largest region in the renewable diesel market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in renewable diesel report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the renewable diesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The renewable diesel market consists of sales of biochar, green hydrogen, renewable lubricants, solvents, and asphalt. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Renewable Diesel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on renewable diesel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for renewable diesel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The renewable diesel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.