Home > Chemicals & Materials > Biobased Chemicals > Biobased Chemical Feedstocks > Hydrotreated Vegetable Oil Market

Hydrotreated Vegetable Oil Market Analysis

  • Report ID: GMI11238
  • Published Date: Sep 2024
  • Report Format: PDF

Hydrotreated Vegetable Oil Market Analysis

Based on source of feedstock, the market is segmented into food and feed crops, animal fats, used cooking oils, palm oil mill effluent and others. Food and feed crops held the dominant market share of USD 16.7 billion in 2023 and are expected to grow significantly with CAGR of 12.7% till 2032. Food and feed crops are the main feedstock because they are widely available and suitable for large-scale production. This segment mainly uses crops like soybeans and canola, which are common and cost-effective. Animal fats and used cooking oils also play a big role, offering sustainable options and reducing waste. Palm oil mill effluent and other sources, such as non-edible vegetable oils, algae oils, and refining byproducts, are becoming more popular. However, these emerging sources currently make up a smaller part of the market.
 

Hydrotreated Vegetable Oil Market Revenue Share, By Grade, (2023)

Based on grade, the hydrotreated vegetable oil market is segmented into Class 1: premium grade HVO, Class 2: standard grade HVO, Class 3: basic grade HVO and Class 4: specialty grade HVO. Class 2: Standard Grade HVO accounted for major market share in 2023 is projected to grow through 2032 at a CAGR of 13%. Class 2: standard grade HVO leads because it balances performance and cost. This makes it ideal for transportation and industrial uses. Standard Grade HVO meets key quality standards and is more affordable than Class 1: premium grade HVO, which is more expensive for specialized uses. The wide use of Standard Grade HVO shows it is suitable for general use and meets industry needs for a reliable and affordable renewable fuel.
 

Based on technology type, the market is segmented into standalone hydrotreating technology and co-processing technology. Standalone hydrotreating technology is the leading method because it is efficient and can produce high-quality HVO from various feedstocks. This technology works independently, allowing for production facilities that focus on optimizing output and quality. In contrast, co-processing technology combines HVO production with existing refining processes but is less common. The standalone method's better control over the hydrotreatment process makes it the market leader and widely used.
 

Based on application, the hydrotreated vegetable oil market is segmented into sustainable aviation fuel, automotive fuel, marine fuel, industrial power generation, heating fuel, agricultural equipment fuel and lubricants. Automotive fuel is the main use of HVO because it works well with diesel engines and helps reduce emissions. HVO can replace regular diesel, making it very attractive for the transportation sector, which needs cleaner fuels. This common use in vehicles drives most of the market demand, showing HVO's role in supporting sustainable transportation and meeting environmental standards.
 

Europe Hydrotreated Vegetable Oil Market Size, 2021 - 2032 (USD Billion)

Europe stands out as the leading region in the, propelled by rigorous environmental regulations and robust backing for renewable fuels. The European Union's bold sustainability objectives, coupled with incentives for cleaner energy, have markedly accelerated HVO adoption throughout the continent. According to the European Environment Agency (EEA), the EU aims to reduce greenhouse gas emissions by at least 55% by 2030. Furthermore, Europe's advanced production facilities and established market infrastructure solidify its leadership. This preeminence underscores Europe's dedication to curbing carbon emissions and championing renewable energy innovations.

Authors: Kiran Pulidindi , Manish Dhiman

Frequently Asked Questions (FAQ) :

Market size for hydrotreated vegetable oil was USD 24.2 billion in 2023 and is expected to register over 13.3% CAGR from 2024-2032 due to the rising use of HVO as a direct substitute for traditional diesel, capitalizing on its seamless compatibility with current engines and infrastructure worldwide.

Hydrotreated vegetable oil industry from the food and feed crops segment is expected to register 12.7% CAGR from 2024-2032 due to their widespread availability and suitability for large-scale production.

Europe industry held a major share in 2023 and is expected to register a commendable CAGR from 2024-2032 due to rigorous environmental regulations and robust backing for renewable fuels in the region.

ALFA LAVAL, Cepsa, Desmet, DIAMOND GREEN DIESEL, Neste, Preem, Repsol, Shell, TotalEnergies, UPM Biofuels, Valero Energy, and World Energy, are some of the major hydrotreated vegetable oil companies worldwide.

Hydrotreated Vegetable Oil Market Scope

Buy Now


Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 240
  • Countries covered: 18
  • Pages: 310
 Download Free Sample