Renewable Diesel Market to Reach $48.33B by 2032 | Growth Powered by Policy & Sustainability Trends | DataM Intelligence

Renewable diesel market to hit $48.33B by 2032, driven by clean energy mandates, green refinery upgrades, and sustainable fuel innovations.

NEW YORK, NY, UNITED STATES, June 11, 2025 /EINPresswire.com/ -- Market Overview :

The Renewable Diesel Market has witnessed remarkable momentum, reaching a valuation of US$ 24.67 billion in 2024. The market is projected to reach US$ 48.33 billion by 2032, growing at a steady CAGR of 8.77% between 2025 and 2032.As governments, industries, and consumers intensify their focus on sustainability, renewable diesel chemically identical to conventional diesel but derived from non-petroleum sources has emerged as a viable, drop-in fuel alternative.
Unlike biodiesel, renewable diesel is produced through hydroprocessing and delivers superior cold weather performance, longer shelf life, and seamless engine compatibility. These advantages, along with supportive policies and rising investments in green refineries, are fueling the global demand for renewable diesel across transportation, industrial, and power generation sectors.

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Market Drivers :

Policy Mandates and Carbon Regulations: Clean fuel standards and carbon reduction goals, especially in the U.S., EU, and Japan, are accelerating renewable diesel adoption.

Growing Demand from the Heavy-Duty Vehicle Sector: Logistics and fleet operators are transitioning to renewable diesel to meet emission compliance without engine modifications.

Rising Renewable Feedstock Availability: Innovations in waste oil, algae, and agricultural residue processing have made renewable diesel more scalable and economical.

Strategic Partnerships and Green Refinery Expansions: Oil majors and renewable firms are collaborating to upgrade or build new renewable diesel facilities.

Corporate Sustainability Commitments: Companies across industries are integrating renewable diesel into ESG goals and emission reporting frameworks.

Market Key Players are ;

The renewable diesel market is dominated by a mix of energy giants and specialized clean fuel companies actively investing in production capacity, feedstock innovation, and strategic alliances:

Neste Corporation

Diamond Green Diesel (DGD)

Valero Energy Corporation

Chevron Corporation

Phillips 66

Marathon Petroleum Corporation

World Energy

Eni S.p.A.

PBF Energy Inc.

Gevo, Inc.

These players are driving commercialization through scalable production technologies and tapping into global export markets to stay competitive.

Market Segmentation -

By Feedstock:

Waste Oils & Fats (used cooking oil, tallow)
Vegetable Oils (soybean, palm, canola)
Algae
Others (agricultural residues)

By End-use Industry:

Transportation (freight, public transit)
Industrial
Marine
Power Generation

By Region:

North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

Latest News of USA -

The U.S. continues to lead the renewable diesel market, driven by California’s Low Carbon Fuel Standard (LCFS) and supportive federal tax credits. In 2024, Chevron revealed plans to expand its El Segundo Refinery to triple its renewable diesel production. At the same time, Valero’s Diamond Green Diesel partnership with Darling Ingredients broke ground on a large-scale Texas facility with a target capacity of 470 million gallons annually.

Latest News of Japan -

Japan’s Ministry of the Environment has endorsed renewable diesel as part of its Green Growth Strategy, especially for reducing carbon in freight and aviation. ENEOS Corporation initiated a pilot program using domestically produced renewable diesel blends in commercial fleets in 2024.

Key Developments -

Neste Corporation expanded its Singapore refinery, making it the world’s largest renewable diesel facility.

Eni S.p.A. completed retrofitting its Livorno refinery for 100% renewable diesel output.

World Energy launched a new partnership with United Airlines to scale renewable jet fuel and diesel usage.

Gevo, Inc. secured funding to build a net-zero energy renewable diesel plant in South Dakota.

Phillips 66 completed its transition of the Rodeo Refinery in California into a fully renewable fuels facility.

Conclusion :

The renewable diesel market is on a transformative growth trajectory as climate change, carbon neutrality targets, and clean fuel mandates reshape global energy consumption. With improved engine compatibility, feedstock diversification, and aggressive refinery upgrades, renewable diesel is poised to play a pivotal role in the transition to net-zero emissions. As competition intensifies, market leaders will need to balance cost-efficiency, sustainability, and scalability to lead this evolving landscape.

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Sai Kumar
DataM Intelligence 4market Research LLP
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