Press Release Description
Hydrotreated Vegetable Oil Market to Accelerate with the Growing Demand for Low Carbon Fuel
The Global Hydrotreated Vegetable Oil Market is projected to grow at a CAGR of 12.4% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. Consumers' heightened environmental awareness has spurred both individual vehicle owners & commercial fleet operators to actively seek cleaner & sustainable fuel alternatives. This surge in demand is driving market expansion and presenting opportunities for HVO fuel providers. Moreover, governments worldwide recognize the necessity of transitioning from fossil fuels to renewable energy sources to combat climate change and bolster energy security. Consequently, incentives and mandates are often implemented to encourage the production, distribution, and usage of renewable fuels like HVO.
Governments in the European Union, the US, China, and Denmark, among others, are increasingly mandating biofuel blending to promote their use, reduce greenhouse gas emissions, and work toward climate neutrality. As nations globally prioritize sustainable energy solutions, the demand for biofuels, including hydrotreated vegetable oil, is soaring. The global shift towards reducing carbon footprints and embracing renewable energy sources is a pivotal driver poised to propel the demand for hydrotreated vegetable oil (HVO) in the forthcoming years.
Positioned as an eco-friendly alternative to fossil diesel, HVO offers distinct advantages, particularly in lowering greenhouse gas emissions, aligning with sustainability targets across various sectors like transportation, power generation, and heat production. Furthermore, the expanding global automotive market is rapidly adopting hydrotreated vegetable oil (HVO) over conventional fuels due to its cost-effective maintenance, reduced degradation risks, and seamless blending capabilities with regular diesel in any quantity.
In the realm of power generation, environmental regulations, sustainability objectives, and growing demand from consumers and businesses are propelling the ascent of Hydrotreated Vegetable Oils (HVOs). Major power generator manufacturers are actively endorsing the use of paraffinic fuels, particularly HVO, in their generator sets. Consequently, the growing approval of HVO in diesel generators by manufacturers is expected to fuel the demand for hydrotreated vegetable oil in the coming years., “Global Hydrotreated Vegetable Oil Market Analysis, 2024.”
Global Hydrotreated Vegetable Oil Market Segmentation Analysis
Palm Feedstock to Dominate the Market
Based on the Feedstock, the market is further bifurcated into Rapeseed, Sunflower, Soybean, Palm, and Others (Jatropha, Coconut Oil, etc.). Among them, Palm oil is witnessing a significant surge in demand as the preferred feedstock to produce hydrotreated vegetable oils (HVOs). This increased demand is mainly due to the high oil yield per hectare of cultivation, surpassing other vegetable oils. Moreover, the well-established infrastructure & processing facilities for palm oil play a pivotal role, offering a logistical edge for HVO producers. The robust supply chain & processing capabilities make it convenient for industries to seamlessly integrate palm oil into their biofuel production processes.
Furthermore, palm oil stands out as a cost-effective vegetable oil, enhancing its economic viability for large-scale biofuel production. Consequently, companies such as Cepsa and Eni are opting for palm oil in the production of hydrotreated vegetable oils. Thus, the increasing adoption of palm as the primary feedstock for HVO production by manufacturers, driven by factors like cost-effectiveness and logistical advantages, is poised to elevate the Hydrotreated Vegetable Oil Market share in the coming years.
North America is Estimated to Account for Significant Market Share
In the forecast period, North America is set to take the lead across the Hydrotreated Vegetable Oil Market, propelled by stringent measures. Consumers in the region are becoming more environmentally conscious, owing to a better understanding of the consequences of climate change. Government initiatives such as the Clean Energy Initiative (CEI) and the Pan-Canadian framework emphasizing clean growth & climate action emphasize the importance of environmental preservation and sustainability even more.
As consumers become more environmentally conscious, there is a noticeable shift toward sustainable options, particularly biofuels. This shift in consumer awareness and preferences has the potential to drive demand for Hydrotreated Vegetable Oil (HVO) as a renewable and environmentally friendly fuel option in the near future.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Neste Oyj, Valero Energy Ltd, Eni, Cepsa, TotalEnergies, Preem, Repsol, Green Biofuel Limited, Shell, Watson Fuels, Crown Oil Ltd., Interion Pte Ltd., Targray, Prema Energy Ltd., and Others., are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
- What are the trends influencing the current scenario of the market?
- What key factors would propel and impede the industry across the region?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition been shaping across various regions?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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