Green Diesel Market to Witness an Impressive CAGR of Around 11.09% During 2025-30

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The Global Green Diesel Market size was valued at around USD35.99 billion in 2024 and is expected to reach USD69.86 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 11.09% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The most influential factors of the market include growing stringent regulations, advancements in production technology, and rising environmental sustainability initiatives in the aviation and maritime sectors etc. Various governments across the globe are highly concerned about limiting environmental degradation and improving their health, for which a net-zero emission by 2050 target has been formed. In line with this target, all the countries worldwide are introducing their own GHG emission reduction targets and regulatory policies for the adoption of green and biofuels. The US released Renewable Fuel Standards, which aim to increase the share of renewable diesel in the country.

Similarly, the European Union announced the EU anti-dumping duties on Chinese companies, which were misleading the consumers of the region with their mislabeled green diesel, which was sold at significantly lower prices, disrupting the EU’s local players’ market. The tariffs were introduced to protect the interests of the local players. While Germany has approved a law removing the option for companies to carry over excess 2024 greenhouse gas (GHG) certificates. These updates in the regulatory policies in Europe will further enhance the demand for renewable diesel.

Apart from this, the aviation and maritime sectors, which are the major sources of carbon emissions in the world, are also looking forward to attaining some level of environmental sustainability. Aligning with the aim, various regions are launching targets for blending renewable fuels with conventional fuel in both aviation and marine vessels. Europe has set a target to use a minimum of 2% of sustainable fuel in the aviation sector by 2025. IMO required ships must reduce, over time, their annual greenhouse gas fuel intensity (GFI) – that is, how much GHG is emitted for each unit of energy used.

Additionally, the market players, owing to the growing demand and government requirements for increased usage of green fuel, are adopting organic and inorganic strategies to expand their presence. Players like Phillips 66, OMV Petrom, and Holborn Europa Refinery invested hefty amounts in expanding their production facilities. While some of the leading players partnered with other players and end-user businesses to increase their revenues and customer base. Such strategic moves by the companies will further contribute to the growth of the market in the coming years, further states the research report, “Global Green Diesel Market Analysis, 2025.”

Global Green Diesel Market Segmentation Analysis        

Blended Form Holds the Largest Market Share

Based on the form, the market is further bifurcated into blended form and pure form. Out of both the segments, the blended form held the majority share in the market in 2024. The share accounted for over 60% of the total market. The growing standards and mandates being established by governments of various countries to blend renewable fuels, including green diesel, with traditional fuels have driven the segment’s growth globally. Additionally, the blended form can easily be used in transportation without the need to change the traditionally existing fuel infrastructure. Moreover, the blended fuel form is cheaper than the pure form, making it more cost-effective for the end-users. Thus, the easy compatibility with existing diesel engines and affordable cost make it an attractive choice for adoption.

North America Leads the Global Green Diesel Industry

North America has a market share of around 30% in the Global Green Diesel Market. A major driver behind this is the growing concern over greenhouse gas emissions, which has pushed both governments and industries to turn to cleaner, renewable energy options. Green diesel, in particular, is quickly stepping in to replace traditional fossil fuels across the globe. In a big move, the U.S. DOE poured USD118 million into 17 different projects aiming at the production of sustainable fuels like green diesel. With this kind of investment rolling in, the renewable fuel production is picking up serious momentum. The strict regulations in Canada and the US regarding the green fuel adoption and numerous investments in new production facilities indicate that North America will maintain its dominance in the forecasted period as well.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Neste, UPM Global, Gevo, Valero, Chevron Renewable Energy Group, Marathon Petroleum Corporation, Enilive S.p.A., Phillips 66 Company, TotalEnergies, Aemetis, Inc., Global Clean Energy Holdings, Inc., Shell, Repsol, Acelen Renewables, Heartwell Renewables, LLC, and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?