The global consumption of biodiesel is expected to register a 3.1% compound annual growth rate (CAGR) between the period of 2018 to 2026, bolstered heavily by growth in Europe and China, according to Persistence Market Research.
On the basis of region, Europe is expected to dominate the global biodiesel market throughout the forecast period and grow at a CAGR of around 1.2%, according to the study. China is also expected to witness healthy growth as compared to other burgeoning regions. And the automotive segment is expected to register 1.3 times growth in terms of value over the forecast period.
During the same period, South Asia and Oceania are projected to register a significantly high CAGR in the global biodiesel market.
The demand for biodiesel around the globe has witnessed significant growth in the recent past, owing to the increasing energy needs, rising crude oil prices and growing demand for clean and renewable sources of energy, according to the study. Along with this, growth of the automotive industry and increasing vehicle registrations are the key factors driving the demand for fuel, globally
The vegetable oil segment is estimated to dominate the global biodiesel market on the basis of feedstock during the forecast period, according to the report. In terms of consumption, biodiesel is estimated to witness high demand from the automobile segment wherein it is blended with conventional diesel fuels. Around the globe, the mandatory blending of biodiesel is the key driving force for market growth.