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October 2025
The Asia Pacific renewable diesel market size is calculated at USD 2.85 billion in 2024, grew to USD 3.16 billion in 2025, and is projected to reach around USD 8.08 billion by 2034. The market is expanding at a CAGR of 10.98% between 2025 and 2034. Growing demand for sustainable fuel alternatives is the key factor driving market growth. Also, stringent government support for decarbonization, coupled with the ongoing urbanisation in the region, can fuel market growth further.
The growing demand for decarbonized transportation is the major factor driving market expansion. The market encompasses the production, distribution, and consumption of green diesel, also called hydrotreated vegetable oil (HVO), in the region. This fuel is created from renewable feedstocks such as animal fats and waste oils through hydro processing and is identical to traditional diesel, allowing its use in current infrastructure and engines without modifications.
Key technological shifts in the market are focusing on diversifying feedstocks, optimizing manufacturing methods, and integrating biorefineries to enhance sustainability and cost-effectiveness. These innovations are boosted by regional decarbonization goals, with a substantial move towards next-generation processes.
Companies such as Wilmar International, which is a major agribusiness firm in Singapore, are producing biodiesel with other products such as oleochemicals from its extensive agricultural feedstocks. Moreover, companies such as TMO Renewables in China are creating cutting-edge technology to use low-cost agricultural residues for the production of biofuel.
| Country/Region | Key Regulations |
| China | China has national standards for B5 biodiesel blends and the pure biodiesel component. It provides tax and investment support for biodiesel production. |
| India | The country's primary policy aims to increase biofuel use, reduce import reliance, and cut emissions. The revised 2018 policy set an indicative target of 5% biodiesel blending by 2030, with a focus on non-edible oilseeds |
| Japan | Japan has also proposed a 10% SAF mandate by 2030, indicating a growing focus on decarbonizing aviation. |
The ongoing development of cutting-edge biofuels and integrated biorefineries, which can create a range of renewable products, such as jet fuel, naphtha, and diesel, is a major factor creating lucrative opportunities in the market.
Furthermore, collaboration among feedstock suppliers, technology providers, and end-users is boosting advancements and propelling the commercialization of innovative renewable diesel technologies.
The demand for renewable diesel, especially in North America and Europe, has triggered competition for various feedstocks, which is a major factor hindering market growth. Moreover, renewable diesel production generally involves higher costs than manufacturing conventional petroleum diesel. This is a major hurdle to making it cost-effective in the APAC market.
| Report Attributes | Details |
| Market Size in 2025 | USD 3.16 Billion |
| Expected Size by 2034 | USD 8.08 Billion |
| Growth Rate from 2025 to 2034 | CAGR 10.98% |
| Base Year of Estimation | 2024 |
| Forecast Period | 2025 - 2034 |
| Segment Covered | By Type, By Feedstock, By Production Technology, By Application, By End-User |
| Key Companies Profiled | World Energy, Valero Energy Corporation, Diamond Green Diesel (DGD), Eni S.p.A., PBF Energy Inc., Gevo, Inc., Wilmar International, Musim Mas, IOI Group, Adani Wilmar, Sunshine Kaidi New Energy Group, GrainCorp, Cargill, Clariant, Sterling and Wilson |
How Much Share Did the Pure Renewable Diesel (HVO100) Segment Held in 2024?
The pure renewable diesel (HVO100) segment dominated the market with an approximate share of 55% over the forecast period. The dominance of the segment can be attributed to its compatibility with existing infrastructure and supportive corporate and government policies. Additionally, HVO100 can decrease the overall lifecycle CO₂ emissions by up to 90% in comparison to fossil diesel, based on the feedstock.
The algae-derived renewable diesel segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be credited to the technological advancements in diesel production, along with the supportive government policies. Innovations in genetic modification are optimizing the development of algae strains with faster growth rates, enhancing overall efficiency.
Which Feedstock Type Segment Dominated the Asia Pacific Renewable Diesel Market in 2024?
The vegetable oils segment held an approximately market share of 38% in 2024. The dominance of the segment can be linked to the growing product demand from power and transportation sectors, coupled with the ongoing trends towards stringent sustainability certifications. Also, growing consumption of vegetable oils in the cosmetics and food sectors is impacting positive segment growth soon.
The algae segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be driven by growing consumer demand for sustainable fuels and rapid economic expansion and industrialization in developing Asia Pacific economies, such as India. Moreover, combining algae biofuel production with other high-grade products like animal feed and nutraceuticals helps to counter the high production costs of the fuel alone.
Which hydrotreating Segment Dominated the Asia Pacific Renewable Diesel Market in 2024?
The hydrotreating segment dominated the market with a majority share in 2024. The dominance of the segment is owed to the growing product demand from the aviation sector for sustainable fuel and ongoing government support to reduce emissions. This process converts oils, fats, and greases (FOGs) into high-grade renewable diesel, which can smoothly substitute for traditional fossil diesel.
The Fischer-Tropsch synthesis segment is expected to grow at the fastest CAGR during the forecast period. The growth of the segment is due to growing product demand from hard-to-abate sectors such as aviation and the convenient properties of FT renewable diesel. Furthermore, studies have shown that FT diesel can substantially reduce carbon emissions throughout its lifecycle as compared to other fuels.
How Much Share Did the Road Transport Fuel Segment Held in 2024?
The road transport fuel segment held an approximate share of 73% in 2024. The dominance of the segment can be attributed to the ongoing innovations in biofuel production technologies, coupled with the government initiatives to minimize carbon emissions. Partnership between governments and the industry is essential for developing sustainable transportation solutions in the region.
The sustainable aviation fuel (SAF) segment is expected to grow at the fastest CAGR during the study period. The growth of the segment can be credited to the rapid innovations in SAF manufacturing technologies and feedstock availability. In addition, airlines are increasingly working towards carbon reduction targets, which leads them to adopt SAF as a sustainable alternative to conventional jet fuel.
Which End-User Type Segment Dominated the Asia Pacific Renewable Diesel Market in 2024?
The oil refineries & blenders segment dominated the market with most of the share in 2024. The dominance of the segment can be linked to the increasing need for low-carbon fuels and financial incentives like tax credits and rewards for minimizing carbon intensity. Furthermore, oil refiners can launch renewable feedstocks such as animal fats or used cooking oil (UCO) into their existing hydrotreating units with much less investment.
The marine transport operators' segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be driven by increasing investments from major players to develop strong port infrastructure. Moreover, collaborative efforts between market players and providers of renewable diesel are driving the segment's expansion.
The East Asia region dominated the market with a majority share in 2024.
The dominance of the region can be attributed to the robust decarbonization goals in developing countries such as China and Japan, along with the development of synthetic diesel fuels from renewable sources. In addition, innovations in renewable diesel production, like the Fischer-Tropsch synthesis, are enhancing the efficiency and cost-effectiveness of biofuel creation.
China Asia Pacific Renewable Diesel Market Trends
In the Asia Pacific, China dominated the market owing to the growing availability of waste-based feedstocks and ambitious climate goals. Also, China has expanded its imports of bio-based diesel fuels, such as palm oil biodiesel from Southeast Asia, to meet the demand of domestic feedstock supply, driving the country's growth soon.
The Southeast Asia region is expected to grow at the fastest CAGR over the forecast period. The growth of the region can be credited to the robust availability of agricultural feedstocks such as palm oil in the region, coupled with the increasing government support through biofuel mandates. Furthermore, the region has great potential to develop more advanced biofuels from waste products.
India Asia Pacific Renewable Diesel Market Trends
In East Asia, India is expected to witness the fastest growth over the forecast period due to growing demand to reduce dependence on fossil fuels to fulfil decarbonization goals. Mandates for biofuel blending, carbon pricing, and low-carbon fuel standards (LCFS) are also encouraging the adoption of renewable diesel in the country.
By Type
By Feedstock
By Production Technology
By Application
By End-User
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October 2025
October 2025
October 2025
October 2025
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