The hydrotreated vegetable oil (HVO) market is projected to grow from US$ 21.2 billion in 2024 to US$ 70.0 billion by 2034, advancing at a compound annual growth rate (CAGR) of 12.7% over the next decade.
Demand for HVO, often referred to as ‘green biodiesel,’ is reaching new heights due to its eco-friendly properties. Its use is expanding, either blended or in pure form, as a substitute for traditional fuels such as kerosene, gasoline, and diesel in diesel engines.
Key players are keen to establish a presence in this rapidly growing market, driven by strict environmental regulations and the rising popularity of HVO. Companies are increasingly focusing on expanding their portfolios with eco-friendly products.
In developed nations like the United States and the United Kingdom, the use of HVO for power generation is gaining traction. Utilities are leveraging HVO to provide reliable energy during public safety power outages, supporting the shift towards a lower-carbon future.
Meanwhile, in Asian countries such as South Korea, Japan, and Australia, HVO production is expected to reduce reliance on oil imports and become a significant source of revenue growth.
Key Takeaways from the Hydrotreated Vegetable Oil Market Report
- The hydrotreated vegetable oil market had acquired a remuneration of US$ 18.3 billion by 2023. During the historical period, the market grew at a CAGR of 16.2%.
- Based on type, the pure HVO is a leading segment, expanding at a CAGR of 12.5% over the forecast period.
- By application, the transportation segment has attained a share of 43% in 2023.
- The United States hydrotreated vegetable oil market, by the end of 2034, is expected to account for US$ 12.5 billion by the end of the forecast timeframe. The market is projected to expand at a 13% CAGR in the next ten years.
- Based on the growth rate, the market in South Korea is expected to expand at a stupendous rate of 15% over the projected period.
- On the basis of value, China’s hydrotreated vegetable oil industry is projected to attain US$ 11 billion.
News Coverage of Hydrotreated Vegetable Oil Market
- In August 2023, ACCIONA introduced a unique initiative for the Fargo-Moorhead flood diversion plan in the United States. It is the first time that the firm is using renewable biofuels produced from hydrotreated vegetable waste oil to support the heavy machinery used for civil works. This project is executed by the Fargo-Moorhead project combined with North American Construction Group and Shikun & Binui USA.
- In September 2021, mega-corporations of South Korea like Dansuk Industrial and LG Chem planned to make a joint investment to launch a sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) plant at the Daeson location.
- In September 2023, Italy-based Eni Sustainable Mobility (SM), and South Korea based LG Chem Ltd. tentatively agreed to construct a production plant of hydrotreated vegetable oil in South Korea.
Competitive Analysis of the Hydrotreated Vegetable Oil Market
- The hydrotreated vegetable oil (HVO) industry is highly competitive, with major players expanding production and adopting digital tools to enhance operations. Many companies offer pure HVO, a sought-after fuel, and are utilizing co-processing technology to boost power output and efficiency.
- Increased production capacity and ongoing R&D in renewable diesel are benefiting downstream customers by reducing costs and improving reliability. Strategic partnerships, mergers, and acquisitions are also shaping the industry landscape.
- In developed markets like the U.S., Neste and Valero Energy lead, with Neste’s dominance driven by strong sales of its pure HVO fuel and growing demand for diesel alternatives.
Report Preview: https://www.futuremarketinsights.com/reports/hydrotreated-vegetable-oil-market
Market Segmentation of Hydrotreated Vegetable Oil by Type, Application, and Regions
Based on Type, the Industry is Bifurcated into:
- Pure HVO
- Co-Processing
Different Applications for Renewable Diesel are as Follows:
- Transportation
- Industrial Power Generators
- Others
Different Regional Markets are as Follows:
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America
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