Hyderabad, India, Jan. 06, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the renewable diesel market is valued to rise from USD 33.91 billion in 2025 to USD 50.26 billion by 2030, expanding at a CAGR of 8.19%. Once viewed as a niche biofuel, renewable diesel is now emerging as a practical replacement for conventional diesel, especially in long-haul transport, marine operations, and backup power systems due to its drop-in usability.
Policy incentives such as California’s LCFS and Europe’s RED III continue to support profitability, while low-cost refinery upgrades are speeding up capacity growth. Demand from sustainable aviation fuel production and large data-center generators is further strengthening market resilience, even as electrification advances in parallel.
Emerging Trends and Developments
Backup Power for Digital Infrastructure Gains Traction
Data centers are emerging as a new demand segment as operators seek cleaner options for backup generation. Renewable diesel is being used in large-scale generators with minimal impact on reliability, helping operators meet environmental commitments. This diversification beyond transportation adds resilience and higher-value opportunities to the overall market.
Seamless Use Across Existing Diesel Systems
Renewable diesel closely resembles conventional diesel, allowing it to move through current pipelines, storage, and engines without modifications or blending limits. This makes adoption simple for fleet operators, who can avoid infrastructure upgrades while maintaining reliable performance, even in cold climates. Its sulfur-free nature also helps marine operators comply with emission norms without additional equipment, strengthening its position against fuels that require entirely new distribution networks.
Rising Use in Heavy-Duty Transport
For sectors where electrification remains challenging, renewable diesel offers an immediate pathway to lower emissions without sacrificing range or performance. Trucking, construction, and off-road fleets are increasingly adopting it as a practical solution, benefiting smoother operations and reduced maintenance concerns while progressing toward sustainability goals.
Renewable Diesel Market Segmentation
By Type
- Pure Renewable Diesel (HVO100)
- Renewable Diesel Blends
- Co-processed Renewable Diesel
- Others (e.g., algae-derived)
By Feedstock
- Vegetable Oils (palm, soy, canola, etc.)
- Animal Fats
- Used Cooking Oil
- Algae
- Tall Oil and Waste Residues
- Others (e.g., municipal solid waste)
By Application
- Transportation Fuel
- Aviation (Sustainable Aviation Fuel – SAF)
- Marine
- Industrial Use
- Power Generation
- Others (military, agricultural equipment)
By End User
- Oil Refineries and Blenders
- Commercial Fleet Operators
- Airlines and Aviation Authorities
- Government and Defense
- Marine Transport Operators
- Industrial and Utility Sector
- Others
By Geography
North America
- United States
- Canada
- Mexico
Europe
- Germany
- United Kingdom
- France
- Italy
- Nordic Countries
- Russia
- Rest of Europe
Asia-Pacific
- China
- India
- Japan
- South Korea
- ASEAN Countries
- Rest of Asia-Pacific
South America
- Brazil
- Argentina
- Rest of South America
Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- South Africa
- Egypt
- Rest of Middle East and Africa
For a full breakdown of market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/renewable-diesel-market?utm_source=globenewswire
Regional Overview
North America continues to lead in revenue share, supported by long-standing low-carbon fuel incentives, ample agricultural inputs, and fast uptake among heavy-duty fleet operators. At the same time, aggressive capacity additions have sparked discussions around potential oversupply, encouraging producers to explore export routes. Competition for limited waste-based feedstocks between the United States and Canada remains a key vulnerability for the region.
Europe stands out as the fastest-moving market, powered by stricter transport decarbonization rules and rising sustainable aviation fuel mandates. Several countries are expanding advanced biorefineries that integrate with existing industrial hubs to improve efficiency. While alternative feedstocks from forestry residues help ease pressure, the region is increasingly reliant on imports, prompting closer scrutiny of supply traceability.
Explore Energy and Power Industry Research: https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=globenewswire
Renewable Diesel Key Players Overview
- Neste Oyj
- Renewable Energy Group (Chevron)
- TotalEnergies SE
- ENI S.p.A.
- Valero Energy Corp.
- Marathon Petroleum Corp.
- Phillips 66
- Diamond Green Diesel LLC
- Shell plc
- Preem AB
- BP plc
- OMV Group
- Gevo Inc.
- World Energy
- Repsol S.A.
- PBF Energy Inc.
- HF Sinclair Corp.
- Cepsa
- Ryze Renewables
- Louis Dreyfus Company
Check Out Related Industry Reports from Mordor Intelligence:
Renewable Energy Market: The market is segmented by technology, end-user, and geography, covering regions such as North America, Europe, Asia-Pacific, South America, and the Middle East and Africa, with market size and forecasts expressed in installed capacity (GW)
Read more about companies active in renewable energy at: https://www.mordorintelligence.com/industry-reports/global-renewable-energy-market-industry/companies?utm_source=globenewswire
Bunker Fuel Market: The market is segmented by fuel type and vessel category, reflecting different compliance and performance needs across the shipping industry. It also includes regional analysis across North America, Europe, Asia-Pacific, South America, and the Middle East and Africa to capture variations in demand and regulatory frameworks.
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