Press Release

99.42 Million Barrels, U.S. Renewable Diesel Market to Surge at a CAGR of Around 45% During 2025-30

The U.S. Renewable Diesel Market size was valued at around 99.42 MB (million barrels) in 2024 and is projected to reach 922.39 MB by 2030. Along with this, the market is estimated to grow at a CAGR of around 45% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The Environmental Protection Agency of the country has established a particular standard known as the Renewable Fuel Standard to meet a specific percentage of the country's fuel requirements from renewable sources. Renewable diesel is the upgraded version of biofuel which allows the producers to produce Renewable Identification Numbers for every gallon produced under this standard Moreover, in regions such as California, the Low Carbon Fuel Standard encourages a shift toward sustainable fuels by providing carbon credits depending upon the carbon intensity of the fuel. Such activities make renewable diesel one of the viable and competitive alternatives to traditional petroleum-based diesel fuel. Strong environmental focus and a push toward sustainable sources of energy significantly influence the growth of the renewable diesel industry.

Moreover, renewable diesel emits significantly fewer carbons than traditional diesel. This is an attractive goal for governments and businesses since they are trying to reach sustainability goals. For instance, California is very restrictive in terms of environmental issues and has set some tough targets for emission reduction. The biggest target would be carbon neutrality in 2045. For that, companies and organizations need some way to decrease their carbon footprint. In such a scenario, renewable diesel has been gaining ground as one of the more impressive alternatives, further states the research report, US Renewable Diesel Market Analysis, 2025.”

U.S. Renewable Diesel Market Segmentation Analysis:

Hydrotreated Vegetable Oil is the Most Preferred Production Process

Based on the production process, the market is further bifurcated into, Hydrotreated Vegetable Oil, Ethanol-to-Diesel, Gasification-to-Liquids, and Microwave-assisted Processing. Because of its efficiency and adaptability, the hydrotreated vegetable oil (HVO) production process is the leading segment of the US renewable diesel industry. Hydrogenated vegetable or animal fats are used to create HVO a highly processed form of renewable diesel. In contrast to conventional biodiesel, HVO has chemical characteristics that are almost the same as those of fossil diesel making it suitable for direct fuel replacement in existing diesel engines and infrastructure. The superior cold flow characteristics and higher energy content of HVO premium fuel which makes it appropriate for a range of applications such as commercial vehicles aviation and marine transportation account for its dominance. Using cutting-edge hydroprocessing technologies, major players in the renewable diesel sector including Neste Valero and Marathon Petroleum have made large investments in HVO production facilities.

Commercial Vehicle Segment Holds the Largest Market Share

Due to its vital role in distribution and transportation, the commercial vehicle industry is leading the US Renewable Diesel Market. Since trucks and buses among other commercial vehicles contribute significantly to greenhouse gas emissions both the federal and state governments are working to lessen their environmental impact. Due to its easy integration into existing diesel engines without requiring any modifications renewable diesel is ideally suited for this industry and offers a quick solution for cutting carbon emissions in heavy-duty transportation. Its use on public transit has been mandated in major cities like; Los Angeles and San Francisco which has increased acceptance. Additionally, to meet sustainability goals big logistics firms like; FedEx and UPS are converting their fleets of vehicles to renewable diesel.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Shell Plc, Chevron Corporation, TotalEnergies, BP, Exxon Mobil Corporation, Honeywell International Inc., Cargill, Incorporated, Eni S.p.A neste, Equinor, Repsol S.A., Marathon Petroleum Corporation, Phillips 66, Valero Energy Corporation, Neste Corporation, 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 nation?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across the country?
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?