USD 1.5 billion
Global HVO (Hydrotreated Vegetable Oil) Market Size, Share, Growth Analysis, By Feedstock(Vegetable Oil, Animal Fats), By Application(Transportation, Power Generation) - Industry Forecast 2024-2031
Report ID:
SQMIG10E2007 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|
Tables:
63 |
Figures:
75
Global HVO (Hydrotreated Vegetable Oil) Market Insights
Global HVO (Hydrotreated Vegetable Oil) Market size was valued at USD 1.5 billion in 2021 and is poised to grow from USD 1.57 billion in 2022 to USD 2.21 billion by 2030, growing at a CAGR of 4.4% in the forecast period (2023-2030).
Hydro processing is an alternative process to esterification, which is used to produce diesel from biomass. Straight chain paraffinic hydrocarbons with a high cetane number and no aromatics, oxygen, or sulphur are known as HVO/HEFA.HEFA offers numerous benefits over FAME (Fatty Acid Methyl Esters), such as reduced NOx emissions, better storage stability, and better cold flow properties. As a result, HEFA can typically be used in all diesel engines. Moreover, its use as an aviation (bio jet) fuel has been approved. HVO can be produced from a wide range of materials containing triglycerides and fatty acids. Within this range of materials, HVO is flexible in its feedstock requirements, allowing the use of a wide range of low-quality waste and residue materials that still lead to the production of hydrocarbon drop-in products. The key additional feedstock needed is hydrogen, which currently comes from a fossil source.
The key drivers that are propelling growth of the HVO market, such as increasing demand for biofuels, government regulations and initiatives, and rising awareness of the need to reduce carbon emissions. Additionally, the report outlines the challenges faced by the HVO market, such as feedstock availability, cost competitiveness, and infrastructure requirements. Various governments across the globe are implementing strict regulations and policies to reduce carbon emissions and promote sustainable development. As HVO is a renewable diesel alternative, it is gaining traction as a more environmentally-friendly fuel option. This is expected to drive the demand for HVO in the coming years. The production of HVO requires significant investment in terms of technology and infrastructure. This results in high production costs, which is a major challenge for market growth. Moreover, the availability of cheap fossil fuels poses a threat to the adoption of HVO as a fuel alternative.
US HVO (Hydrotreated Vegetable Oil) Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Vegetable Oil
Growth Rate
4.4% CAGR
Global HVO (Hydrotreated Vegetable Oil) Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
Global HVO (Hydrotreated Vegetable Oil) Market Size By Feedstock 2022-2030 (%)
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Global HVO (Hydrotreated Vegetable Oil) Market Segmental Analysis
Global HVO (Hydrotreated Vegetable Oil) market is segmented by feedstock, application, and region. Based on feedstock, the market can be segmented into vegetable oil, animal fats, and waste oil. Based on application, the market can be segmented into transportation, power generation, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
HVO (Hydrotreated Vegetable Oil) Market Analysis by Feedstock
By type, the market can be segmented into vegetable oil, animal fats, and waste oil. The vegetable oil segment is expected to dominate the market due to its wide availability and high energy content. This segment includes oils such as palm oil, soybean oil, rapeseed oil, and sunflower oil. These oils are commonly used in food production and have been identified as suitable feedstocks for the production of renewable diesel alternatives such as HVO. In addition, vegetable oils have high energy content and can produce high yields of HVO, making them a cost-effective feedstock.
The animal fats segment is also expected to witness significant growth due to the increasing adoption of animal fats as a feedstock in the production of HVO. Animal fats such as tallow, lard, and poultry fat are abundant and can be sourced from various industries such as the meat processing industry. The use of animal fats as a feedstock has several advantages, including reducing waste and improving the overall environmental sustainability of the industry. In addition, animal fats have similar properties to vegetable oils and can produce high-quality HVO.
HVO (Hydrotreated Vegetable Oil) Market Analysis by Application
By service type, the market can be segmented into transportation, power generation, and others. The transportation segment is expected to dominate the HVO market due to the increasing demand for renewable diesel alternatives in the automotive industry. The rising concerns over environmental pollution and the need to reduce carbon emissions have led to the adoption of sustainable energy sources in the transportation sector. HVO is gaining popularity as a renewable diesel alternative as it is produced from renewable feedstocks and has a low carbon footprint.
The transportation segment can be further sub-segmented into various categories such as road, marine, and aviation. The road transportation segment is expected to witness significant growth due to the increasing adoption of HVO in the commercial vehicle and passenger car segments. HVO can be blended with fossil diesel and used in existing diesel engines, making it a viable option for the transportation industry.
The aviation segment is also expected to witness significant growth as HVO has been approved for use as a bio jet fuel. This has led to increased demand for HVO as an aviation fuel alternative, which is expected to drive the growth of the transportation segment in the coming years.
Power Generation Segment The power generation segment is also expected to witness significant growth due to the increasing demand for sustainable energy sources. HVO can be used as a fuel in power plants to generate electricity, and its low carbon footprint makes it an attractive option for the power generation industry.
Global HVO (Hydrotreated Vegetable Oil) Market By Feedstock, 2022 (%), 2023 (%)
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Global HVO (Hydrotreated Vegetable Oil) Market Regional Insights
North America dominated the global Hydrotreated Vegetable Oil (HVO) market due to the growing demand for renewable energy sources and increasing concerns over environmental pollution. The region is a significant consumer of HVO, and its dominance is expected to continue during the forecast period. The transportation sector is expected to be the largest contributor to the HVO market in North America. The increasing demand for renewable diesel alternatives in the transportation industry and the need to reduce carbon emissions are driving the growth of the HVO market in the region. HVO is gaining popularity as a renewable diesel alternative as it is produced from renewable feedstocks and has a low carbon footprint. The rising demand for HVO in the transportation sector is expected to drive the growth of the market in North America. The United States is expected to dominate the HVO market in North America due to the presence of a large number of manufacturers and suppliers. The country has a significant number of oil refineries and chemical plants that produce HVO, and its demand is expected to increase due to the growing adoption of renewable energy sources in the country. The increasing use of HVO as a fuel in power plants and as a bio jet fuel alternative in the aviation industry is also expected to drive the growth of the HVO market in the United States. Canada is also expected to witness significant growth in the HVO market due to the presence of a large number of biomass resources in the country. The Canadian government is actively promoting the use of renewable energy sources and has implemented various policies and initiatives to support the growth of the HVO market in the country. The increasing use of HVO as a fuel in the transportation sector and as a bio jet fuel alternative in the aviation industry is expected to drive the growth of the HVO market in Canada.
On the other hand, Asia-Pacific (APAC) is one of the fastest-growing regions in the Hydrotreated Vegetable Oil (HVO) market, driven by the increasing demand for renewable diesel alternatives and the rising concerns over environmental pollution. The region is home to some of the world's fastest-growing economies, such as China and India, which are investing heavily in renewable energy sources. China is the largest consumer of HVO in the region, with a significant share of the market attributed to the transportation sector. The Chinese government has set ambitious targets to reduce carbon emissions, which has led to increased demand for renewable diesel alternatives. The country is also investing heavily in the development of biofuels and has introduced policies to promote the use of biofuels in the transportation sector. This is expected to drive the growth of the HVO market in the region. India is another major market for HVO in the region, with significant growth potential due to the country's increasing energy demand and the rising concerns over environmental pollution. The Indian government has set targets to achieve 40% renewable energy capacity by 2030, which is expected to drive the growth of the HVO market in the country. The transportation sector is expected to be the primary driver of the HVO market in India, with increasing adoption of renewable diesel alternatives in the automotive industry. Other countries in the region such as Japan, South Korea, and Australia are also investing heavily in renewable energy sources, which is expected to drive the growth of the HVO market in these countries. The increasing adoption of electric vehicles and the need for sustainable energy sources in the transportation sector are expected to drive the growth of the HVO market in the region. However, the high production costs and the availability of cheap fossil fuels are some of the constraints that may hinder the growth of the HVO market in the region. The lack of government policies and incentives to promote the use of renewable energy sources may also be a challenge for the growth of the market in some countries.
Global HVO (Hydrotreated Vegetable Oil) Market By Geography, 2022-2030, 2024-2031
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Global HVO (Hydrotreated Vegetable Oil) Market Dynamics
HVO (Hydrotreated Vegetable Oil) Market Drivers
Increasing Government Initiatives towards Reducing Carbon Emissions
- One driver for the growth of the Hydrotreated Vegetable Oil (HVO) market is the increasing number of government initiatives towards reducing carbon emissions. Many countries are setting ambitious targets to reduce their carbon footprint, which is driving the demand for renewable energy sources and alternative fuels. Governments are introducing policies and incentives to promote the use of biofuels and renewable diesel alternatives in the transportation sector, which is a significant consumer of HVO. The need to address environmental concerns and reduce dependence on fossil fuels is driving the growth of the HVO market, as it provides a sustainable and environmentally friendly alternative to traditional diesel.Top of Form
Increasing demand for sustainable and environmentally friendly transportation fuels
- The increasing demand for sustainable and environmentally friendly transportation fuels can significantly drive the HVO market. With the rising concerns about climate change and the need to reduce carbon emissions, there is a growing demand for renewable diesel alternatives. HVO, being a renewable fuel, provides a sustainable and environmentally friendly alternative to traditional diesel. The transportation sector is a significant consumer of HVO, and the shift towards sustainable energy sources is driving the growth of the market. The need to reduce dependence on fossil fuels and address environmental concerns is driving the demand for renewable diesel alternatives like HVO.
HVO (Hydrotreated Vegetable Oil) Market Restraints
High Production Costs
- One of the key restraints for the Hydrotreated Vegetable Oil (HVO) market is the high production costs involved in the manufacturing process. HVO requires significant investment in equipment and technology, and the feedstock used for production can also be expensive. Additionally, the process of converting the feedstock into HVO requires a significant amount of energy and resources, further adding to the production costs. These high costs may deter potential investors and limit the growth of the HVO market, particularly in regions where there are cheaper alternatives such as fossil fuels. However, ongoing research and development are aimed at reducing the production costs of HVO, which could make it more competitive in the long run.
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Global HVO (Hydrotreated Vegetable Oil) Market Competitive Landscape
The competitive landscape of the Hydrotreated Vegetable Oil (HVO) market is moderately fragmented, with several key players operating globally. These players are focusing on product innovation and expanding their production capabilities to maintain their market position. Additionally, strategic partnerships and collaborations with other players in the market are helping companies to expand their customer base and strengthen their market position. With the growing demand for renewable energy sources and the increasing focus on reducing carbon emissions, the HVO market is expected to witness significant competition among key players in the coming years. However, the market also offers opportunities for new entrants to introduce innovative products and technologies to gain a foothold in the industry.
HVO (Hydrotreated Vegetable Oil) Market Top Player’s Company Profiles
- Neste Corporation
- Total S.A.
- Eni S.p.A.
- Honeywell UOP
- Renewable Energy Group, Inc.
- Petrobras
- Diamond Green Diesel
- Haldor Topsoe A/S
- Valero Energy Corporation
- REG Synthetic Fuels, LLC
- Cargill, Inc.
- Baker Hughes Company
- Phillips 66 Company
- Archer Daniels Midland Company
- Exxon Mobil Corporation
- Aemetis, Inc.
- Preem AB
- World Energy
- PBF Energy Inc.
- Huntsman Corporation
HVO (Hydrotreated Vegetable Oil) Market Recent Developments
- In February 2023, Renewable Energy Group, Inc. announced the completion of its acquisition of Imperium Renewables, a leading producer of renewable diesel and other renewable products.
- In January 2022, ExxonMobil Corporation announced plans to invest $10 billion in lower-emission energy solutions, including the development of advanced biofuels and carbon capture technologies.
- In September 2021, TotalEnergies SE announced the acquisition of a 60% stake in H2Site, a French company specializing in hydrogen production and distribution.
- In June 2021, Neste Corporation announced plans to invest USD 1.5 billion to expand its renewable diesel production capacity in Singapore.
- In May 2021, Honeywell UOP announced the launch of its Ecofining™ process technology, which converts non-edible natural oils and animal fats into renewable diesel and jet fuel.
Global HVO (Hydrotreated Vegetable Oil) Key Market Trends
- One market trend in the Hydrotreated Vegetable Oil (HVO) market is the increasing demand for renewable fuels, driven by growing concerns about climate change and the need to reduce greenhouse gas emissions. HVO, also known as renewable diesel, is a low-carbon fuel made from renewable feedstocks such as vegetable oils and animal fats. As governments around the world implement more stringent regulations to reduce emissions from transportation and other sectors, demand for renewable fuels such as HVO is expected to grow significantly. Major players in the HVO market are investing heavily in expanding their production capacities to meet this growing demand.
Global HVO (Hydrotreated Vegetable Oil) Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Hydrotreated Vegetable Oil (HVO) market analysis, the market is poised for significant growth in the coming years, driven by the increasing demand for renewable fuels and the need to reduce greenhouse gas emissions. The market is characterized by the presence of major players who are investing heavily in expanding their production capacities and developing new technologies to enhance the efficiency and sustainability of HVO production. The market is segmented by application, with transportation being the largest segment, followed by power generation and others. Geographically, the Asia Pacific region is expected to be the fastest-growing market, due to the region's growing demand for renewable energy and stringent government regulations aimed at reducing emissions. However, the high production costs associated with HVO production remain a significant restraint on market growth. Nevertheless, ongoing technological advancements and economies of scale are expected to help reduce production costs and increase the competitiveness of HVO in the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 1.5 billion |
| Market size value in 2031 | USD 2.21 billion |
| Growth Rate | 4.4% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global HVO (Hydrotreated Vegetable Oil) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global HVO (Hydrotreated Vegetable Oil) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global HVO (Hydrotreated Vegetable Oil) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global HVO (Hydrotreated Vegetable Oil) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global HVO (Hydrotreated Vegetable Oil) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global HVO (Hydrotreated Vegetable Oil) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global HVO (Hydrotreated Vegetable Oil) Market Report Snapshots
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