North America Biodiesel Market Size - By Feedstock (Animal Fat, Vegetable Oil), By Application (Transportation, Power Generation), Country Outlook & Forecast, 2024 – 2032

North America Biodiesel Market Size - By Feedstock (Animal Fat, Vegetable Oil), By Application (Transportation, Power Generation), Country Outlook & Forecast, 2024 – 2032

North America Biodiesel Market size will witness 7.4% CAGR between 2024 and 2032, majorly led by robust technological advances for making biodiesel production more efficient and cost-effective. As per Clean Fuels Alliance America, the U.S. produced 4 billion gallons of biodiesel in 2023. Rising innovations in feedstock processing, catalytic processes, and biodiesel production equipment are leading to enhanced yield and reduced production costs. The hefty investments in production facilities, distribution networks, and infrastructure development, the construction of new biodiesel plants and the expansion of existing ones to meet the rising demands will anchor the market growth.

The North America biodiesel industry is segmented into feedstock, application and country.

In terms of feedstock, the industry size from the animal fat segment will foresee robust growth by 2032. Animal fat-based biodiesel is widely used in commercial vehicles like buses and trucks for reducing emissions and dependence on fossil fuels. It is also highly preferred as it provides reliable backup power for critical infrastructure, such as hospitals and data centers, with reduced emissions. Surging penetration in sensitive environments, such as national parks, to minimize ecological impacts during power generation and transportation will favor the segment growth.

Based on application, the North America biodiesel market share from the power generation segment will accrue significant growth rate from 2024 to 2032, due to its renewable nature and lower environmental impacts. Biodiesel is widely used in backup generators for hospitals, data centers, and other critical infrastructure to ensure reliable power supply during outages. Biodiesel generators also complement solar and wind energy systems as they provide a reliable power source when renewable sources are intermittent for ensuring a consistent energy supply.

Canada biodiesel industry size will record notable CAGR through 2032, impelled by the need for cleaner alternatives to conventional diesel on account of the strong commitment to reducing greenhouse gas (GHG) emissions under several international agreements. Investments in infrastructure, including production facilities and distribution networks, are expanding the capacity and reach of biodiesel across the country. Surging consumer awareness of environmental issues and the benefits of renewable fuels will also boost the regional product demand.