Hydrotreated Vegetable Oil Market Size is valued at USD 20.05 billion in 2022 and is predicted to reach USD 111.46 billion by the year 2031 at a 21.1% CAGR during the forecast period for 2023-2031.
A renewable diesel known as hydrotreated vegetable oil (HVO) is made from a variety of vegetable oils and fats that contain triglycerides and fatty acids. Green diesel fuels produced by hydrogenation and hydrocracking of feedstocks such as tall oil, rapeseed oil, leftover cooking oil, and animal fats are referred to as HVO. HVO is totally free of aromatic hydrocarbons, oxygen, and sulfur. Due to the expanding worldwide automotive market, hydrotreated vegetable oil has been adopted more quickly than conventional fuels. Because it offers cheaper maintenance costs due to a decreased risk of degradation and is simple to mix in all quantities with ordinary diesel, the automotive sector employs HVO on a greater scale. The automotive industry is expected to use HVO more frequently in the following years due to its better mileage, less carbon and greenhouse gas emissions, and decreased reliance on non-renewable fossil fuels.
However, the COVID-19 pandemic has maintained a significant impact on companies all across the world. Several countries with rapid economic growth have also experienced economic instability as a result of this crisis. Due to the lack of treatments or vaccines for the viral infection, numerous industry experts and participants have been forced to implement various mitigation strategies. Additionally, the global economy suffered greatly from a sharp decline in mobility and reduced road transport due to the coronavirus outbreak.
Recent Developments:
- In Sept 2023, Petrochemical manufacturer LG Chem and Eni (ENI.MI) are investigating the possibility of building a biorefinery in South Korea. In the next years, Eni thinks biofuels derived from vegetable oil, leftover cooking oil, and grease will be crucial to the decarbonization of the truck, aircraft, and shipping industries.
Competitive Landscape
Some of Hydrotreated Vegetable Oil Market players are:
- Eni S.p.A.
- St1 Oy
- Neste
- Valero Energy Corporation
- PT Pertamina
- Repsol
- TotalEnergies
- UPM
- Phillips 66
- Chevron Renewable Energy Group, Inc.
- Green Biofuels Limited
- Petrobras
- ECB Group
- Preem AB
- Colabit Sweden AB
Market Segmentation:
The Hydrotreated Vegetable Oil Market is segmented based on application, end-user, feedstock, and technology. The market is segmented as Renewable Diesel and Sustainable Aviation Fuel (SAF) based on application. The end-user segment includes Transportation, Agricultural Machinery, Industrial, and Others (Residential Buildings, Commercial Buildings, and Data Centers). By feedstock type, the market is segmented into Edible Vegetable Oils, Crude Palm Oil, Used Cooking Oil, Tall Oil, Animal Fats, and Others (Non-Edible Vegetable Oil, Sludge Palm Oil Mill Effluent, and Refining Byproducts). The technology type segment includes Standalone Hydrotreating Technology and Co-Processing Technology.
Based On Application, The Renewable Diesel Segment Is Accounted As A Significant Contributor In The Hydrotreated Vegetable Oil Market
The Renewable Diesel category is expected to hold a significant share of the global Hydrotreated Vegetable Oil Market in 2022. This is because it has a lower impact on the environment than conventional fuel. Pure HVO is made from renewable raw resources; therefore, no additional carbon dioxide (CO2) is released into the atmosphere during production. Co-processing up to 10% renewable feedstock (such as animal fats, leftover cooking oil, and vegetable oil) in an existing hydrotreating plant for little to no capital expenditure is expected to be the starting point for many refiners' biofuel journeys. Before dedicated machines are developed for 100% biofeeds, this might be a low- to no-capital-cost solution for generating hydrotreated vegetable oil (HVO), potentially bridging the gap and meeting standards.
The Transportation Segment Witnessed Growth At A Rapid Rate
The Transportation component is projected to grow at a rapid rate in the global Hydrotreated Vegetable Oil Market owing to more people choosing to use vehicles that emit no pollutants. The HVO promises a more sustainable fuel that can now be utilised in Euro 6 standard diesel engines and can cut a truck's emissions by up to 90%. HVO might serve as a beacon for road transport businesses as emissions rules are allegedly expected to become stricter.
The North America Hydrotreated Vegetable Oil Market Holds A Significant Revenue Share In The Region
The North America Hydrotreated Vegetable Oil Market is expected to report the highest market share in terms of revenue in the near future. This can be attributed to the governmental restrictions on the use of renewable energy sources. With the support of numerous regulations that encourage HVO investments, such as the costs associated with Renewable Identification Numbers, Renewable Fuel Standards, biodiesel blender credits, and LCFS credits, HVO is expected to experience rapid growth in the United States. Moreover, some of the significant market contributors to the Asia-Pacific region include Malaysia, China, India, and Indonesia. The price differential between palm oil and crude for biodiesel has increased as prices are at their most significant level in the forecast period.
Hydrotreated Vegetable Oil Market Report Scope:
|
Report Attribute |
Specifications |
|
Market Size Value In 2022 |
USD 20.05 Bn |
|
Revenue Forecast In 2031 |
USD 111.46 Bn |
|
Growth Rate CAGR |
CAGR of 21.1% from 2023 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn, Volume (KT) and CAGR from 2023 to 2031 |
|
Historic Year |
2019 to 2022 |
|
Forecast Year |
2023-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Application, End-User, Feedstock, And Technology |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ;The UK; France; Italy; Spain; China; Japan; India; South Korea; South East Asia; South Korea; South East Asia |
|
Competitive Landscape |
Eni S.p.A., St1 Oy, Neste, Valero Energy Corporation, PT Pertamina, Repsol, TotalEnergies, UPM, Phillips 66, Chevron Renewable Energy Group, Inc., Green Biofuels Limited, Petrobras, ECB Group, Preem AB, and Colabit Sweden AB. |
|
Customization Scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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