PUBLISHER: The Business Research Company | PRODUCT CODE: 1927190
PUBLISHER: The Business Research Company | PRODUCT CODE: 1927190
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.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have influenced the renewable diesel market by affecting costs of imported feedstocks, refining equipment, and catalysts used in production. Automotive, marine, and power generation segments are most impacted, particularly in north america and europe. Increased tariffs have raised capital expenditure and operating costs. At the same time, tariffs are supporting domestic bio refinery development and encouraging local feedstock sourcing.
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 strongly in recent years. It will grow from $24.51 billion in 2025 to $26.88 billion in 2026 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to government biofuel mandates, volatility of fossil fuel prices, development of hydrotreating technology, demand for cleaner fuels, early adoption in fleets.
The renewable diesel market size is expected to see strong growth in the next few years. It will grow to $38.85 billion in 2030 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to stricter emission regulations, growth of renewable fuel standards, expansion of aviation and marine fuels, increased feedstock availability, investment in advanced biofuel plants. Major trends in the forecast period include rising adoption of low carbon fuels, expansion of drop in diesel alternatives, growing use in heavy duty transport, increased investment in bio refineries, focus on waste based feedstocks.
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 November 2023, Neste Corporation, a Finland-based provider of renewable diesel, sustainable aviation fuel, and renewable feedstocks for polymers and chemicals, formed a strategic partnership with Hightowers Petroleum to supply renewable diesel to customers in the U.S. Midwest region. Through this collaboration, Neste aims to expand its market presence, increase the availability of lower-emission fuels, and help businesses reduce greenhouse gas emissions in a high-demand area. Hightowers Petroleum is a US-based wholesale fuel supplier catering to commercial and industrial customers with high-quality fuel products.
Major companies operating in the renewable diesel market are Neste Oyj, Valero Energy Corporation, Marathon Petroleum Corporation, Chevron Corporation, Phillips 66, BP p.l.c., Shell plc, TotalEnergies SE, Eni S.p.A., Repsol S.A., Exxon Mobil Corporation, PBF Energy Inc., Calumet Inc., Par Pacific Holdings Inc., Preem AB, UPM-Kymmene Corporation, Petrobras, Ampol Limited, OMV AG, Saras S.p.A., CEPSA, HF Sinclair Corporation
North America was the largest region in the renewable diesel market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the renewable diesel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the renewable diesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses 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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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