The North America Oil Based Biofuel Market was valued at USD 20.5 billion in 2025 and is estimated to grow at a CAGR of 9.1% to reach USD 49.4 billion by 2035.
Growth across the region is supported by stable, multi-year federal volume requirements that provide long-term demand visibility for oil based biofuels. These regulatory frameworks allow producers and refiners to plan feedstock sourcing strategies more effectively, optimize co-processing operations, and justify capital investment in pretreatment and conversion capacity. The structured nature of fuel standards enables biodiesel and renewable diesel to contribute toward broader advanced fuel targets, ensuring high utilization across production assets. Ongoing updates to compliance mechanisms reinforce regulatory continuity and oversight, which further strengthens investor confidence. In parallel, regional low-carbon fuel programs are accelerating deployment of diversified feedstock strategies and encouraging long-term supply agreements linked to carbon intensity performance. As carbon reduction targets become more stringent, credit economics continue to favor fuels with lower lifecycle emissions, supporting increased production of renewable diesel and sustainable aviation fuel derived from waste-based inputs. In addition, clean fuel regulations across North America are reinforcing demand for low-carbon diesel by requiring lifecycle emission reductions and enabling tradable credit mechanisms tied to compliant fuel supply.
The biodiesel segment held 54.2% share in 2025 and is expected to grow at a CAGR of 8.4% through 2035. Consistent blending requirements and standardized fuel quality specifications continue to support stable demand across core U.S. markets. Industry-led quality assurance initiatives and ongoing technical standard enhancements have improved compatibility with modern engine systems, addressing concerns related to performance, fuel stability, and long-term equipment reliability. This combination of policy enforcement and technical validation has reinforced biodiesel’s role within regional fuel supply chains, supporting distribution across rail, trucking, and agricultural logistics networks while maintaining competitiveness against conventional diesel and alternative renewable fuels.
The transportation application segment accounted for 74% share in 2025 and is projected to grow at a CAGR of 10% through 2035. Transportation remains the primary end-use sector for oil based biofuels in North America due to continued reliance on liquid fuels across freight movement, fleet operations, and heavy equipment usage. Fleet operators are increasingly adopting higher biofuel blends and renewable diesel to meet internal emissions targets while maintaining operational flexibility and refueling convenience. As electrification adoption remains limited for long-distance and off-road use cases, oil based biofuels continue to serve as an immediately deployable and scalable decarbonization solution, reinforcing transportation’s dominant contribution to overall market demand.
United States Oil Based Biofuel Market accounted for 93% share in 2025, generating USD 19.1 billion. Market growth in the country is underpinned by a combination of federal policy consistency and large-scale industrial deployment. Performance-based tax incentives have shifted industry focus toward lower-carbon feedstocks and operational efficiency improvements across refining assets. The U.S. market is further characterized by widespread refinery conversions that utilize existing petroleum infrastructure to produce renewable diesel and sustainable aviation fuel at commercial scale, reinforcing the country’s leadership position within the regional market.
Key companies operating in the North America Oil Based Biofuel Market include Neste Oyj, Valero, ADM, Chevron Corporation, Shell plc, Phillips 66, Darling Ingredients Inc., Bunge Limited, Cargill Incorporated, Marathon Petroleum Corporation, TotalEnergies SE, ExxonMobil Corporation, World Energy LLC, Louis Dreyfus Company, Wilmar International Limited, POET LLC, Targray Group, Crimson Renewable Energy Holdings LLC, Verbio, and Gevo, Inc. Companies active in the North America oil based biofuel market are strengthening their market position through capacity expansion, feedstock diversification, and strategic integration across the value chain. Leading players are investing in pretreatment technologies and refinery upgrades to improve yield efficiency and carbon intensity performance. Many companies are securing long-term feedstock supply agreements to reduce cost volatility and ensure compliance with evolving fuel standards. Portfolio expansion into renewable diesel and sustainable aviation fuel is enabling producers to capture higher-margin opportunities.
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Growth across the region is supported by stable, multi-year federal volume requirements that provide long-term demand visibility for oil based biofuels. These regulatory frameworks allow producers and refiners to plan feedstock sourcing strategies more effectively, optimize co-processing operations, and justify capital investment in pretreatment and conversion capacity. The structured nature of fuel standards enables biodiesel and renewable diesel to contribute toward broader advanced fuel targets, ensuring high utilization across production assets. Ongoing updates to compliance mechanisms reinforce regulatory continuity and oversight, which further strengthens investor confidence. In parallel, regional low-carbon fuel programs are accelerating deployment of diversified feedstock strategies and encouraging long-term supply agreements linked to carbon intensity performance. As carbon reduction targets become more stringent, credit economics continue to favor fuels with lower lifecycle emissions, supporting increased production of renewable diesel and sustainable aviation fuel derived from waste-based inputs. In addition, clean fuel regulations across North America are reinforcing demand for low-carbon diesel by requiring lifecycle emission reductions and enabling tradable credit mechanisms tied to compliant fuel supply.
The biodiesel segment held 54.2% share in 2025 and is expected to grow at a CAGR of 8.4% through 2035. Consistent blending requirements and standardized fuel quality specifications continue to support stable demand across core U.S. markets. Industry-led quality assurance initiatives and ongoing technical standard enhancements have improved compatibility with modern engine systems, addressing concerns related to performance, fuel stability, and long-term equipment reliability. This combination of policy enforcement and technical validation has reinforced biodiesel’s role within regional fuel supply chains, supporting distribution across rail, trucking, and agricultural logistics networks while maintaining competitiveness against conventional diesel and alternative renewable fuels.
The transportation application segment accounted for 74% share in 2025 and is projected to grow at a CAGR of 10% through 2035. Transportation remains the primary end-use sector for oil based biofuels in North America due to continued reliance on liquid fuels across freight movement, fleet operations, and heavy equipment usage. Fleet operators are increasingly adopting higher biofuel blends and renewable diesel to meet internal emissions targets while maintaining operational flexibility and refueling convenience. As electrification adoption remains limited for long-distance and off-road use cases, oil based biofuels continue to serve as an immediately deployable and scalable decarbonization solution, reinforcing transportation’s dominant contribution to overall market demand.
United States Oil Based Biofuel Market accounted for 93% share in 2025, generating USD 19.1 billion. Market growth in the country is underpinned by a combination of federal policy consistency and large-scale industrial deployment. Performance-based tax incentives have shifted industry focus toward lower-carbon feedstocks and operational efficiency improvements across refining assets. The U.S. market is further characterized by widespread refinery conversions that utilize existing petroleum infrastructure to produce renewable diesel and sustainable aviation fuel at commercial scale, reinforcing the country’s leadership position within the regional market.
Key companies operating in the North America Oil Based Biofuel Market include Neste Oyj, Valero, ADM, Chevron Corporation, Shell plc, Phillips 66, Darling Ingredients Inc., Bunge Limited, Cargill Incorporated, Marathon Petroleum Corporation, TotalEnergies SE, ExxonMobil Corporation, World Energy LLC, Louis Dreyfus Company, Wilmar International Limited, POET LLC, Targray Group, Crimson Renewable Energy Holdings LLC, Verbio, and Gevo, Inc. Companies active in the North America oil based biofuel market are strengthening their market position through capacity expansion, feedstock diversification, and strategic integration across the value chain. Leading players are investing in pretreatment technologies and refinery upgrades to improve yield efficiency and carbon intensity performance. Many companies are securing long-term feedstock supply agreements to reduce cost volatility and ensure compliance with evolving fuel standards. Portfolio expansion into renewable diesel and sustainable aviation fuel is enabling producers to capture higher-margin opportunities.
Comprehensive Market Analysis and Forecast
- Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
- Competitive landscape with Porter’s Five Forces and PESTEL analysis
- Market size, segmentation, and regional forecasts
- In-depth company profiles, business strategies, financial insights, and SWOT analysis
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Table of Contents
Chapter 1 Methodology & Scope
Chapter 2 Executive Summary
Chapter 3 Industry Insights
Chapter 4 Competitive landscape, 2025
Chapter 5 Market Size and Forecast, by Fuel, 2022-2035 (USD Million, Mtoe)
Chapter 6 Market Size and Forecast, by Application, 2022-2035 (USD Million, Mtoe)
Chapter 7 Market Size and Forecast, by Country, 2022-2035 (USD Million, Mtoe)
Chapter 8 Company Profiles
Companies Mentioned
The companies profiled in this North America Oil Based Biofuel market report include:- ADM
- Bunge Limited
- Cargill Incorporated
- Chevron Corporation
- Crimson Renewable Energy Holdings LLC
- Darling Ingredients Inc.
- ExxonMobil Corporation
- Gevo, Inc.
- Louis Dreyfus Company (LDC)
- Marathon Petroleum Corporation
- Neste Oyj
- Phillips 66
- POET LLC
- Shell plc
- Targray Group
- TotalEnergies SE
- Valero
- Verbio
- Wilmar International Limited
- World Energy LLC
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 135 |
| Published | January 2026 |
| Forecast Period | 2025 - 2035 |
| Estimated Market Value ( USD | $ 20.5 Billion |
| Forecasted Market Value ( USD | $ 49.4 Billion |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | North America |
| No. of Companies Mentioned | 21 |
