Ethanol Car Global Market Report 2024

The ethanol car market size has grown strongly in recent years. It will grow from $592.24 billion in 2023 to $650.5 billion in 2024 at a compound annual growth rate (CAGR) of 9.8%. The growth observed in the historical period can be attributed to policy shifts towards renewable energy, early consumer interest in eco-friendly vehicles, support from the farm lobby and ethanol production, early industry collaborations for ethanol development, and a focus on achieving energy independence.

The ethanol car market size is expected to see strong growth in the next few years. It will grow to $911.45 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The anticipated growth in the forecast period can be attributed to advancements in ethanol engine efficiency, regulatory support for renewable fuels, government investment in biofuels, global efforts for carbon neutrality, and concerns over rising oil prices and energy security. Major trends expected in the forecast period include the evolution of environmental regulations, technological advancements in ethanol engines, a focus on renewable energy sources, government incentives and subsidies, and a global emphasis on achieving energy independence.

The anticipated surge in the adoption of sustainable automotive technologies is set to drive the growth of the ethanol car market. Sustainable automotive technologies encompass environmentally friendly and socially responsible practices within the automotive industry, aiming to reduce its environmental impact while fostering economic growth and social well-being. Ethanol plays a prominent role in sustainable automotive technologies, offering environmental benefits, diminishing oil dependence and greenhouse gas (GHG) emissions, and serving as a carbon-neutral fuel. Notably, a survey conducted by Zebra Technologies Corporation in December 2022 revealed that 87% of Millennials prioritize sustainability when selecting a car, with 76% of Baby Boomers and 78% of Gen Xers following suit. Additionally, 80% of automotive industry decision-makers acknowledge the growing consumer expectation for more personalized and sustainable vehicle options in 2022. Consequently, the increasing adoption of sustainable automotive technologies propels the growth of the ethanol car market.

The growing demand for biofuels is poised to be a significant driver for the ethanol car market. Biofuels, derived from organic materials such as plants and animal waste, serve as renewable alternatives to conventional fossil fuels. Ethanol cars, running on bioethanol, contribute to the promotion of biofuels by offering a cleaner and more sustainable option compared to gasoline, thereby reducing greenhouse gas emissions. As per the International Energy Agency's report in 2022, global biofuel demand is projected to be 6% higher, reaching 9100 million liters per year (MLPY), compared to 2021. Hence, the rising demand for biofuels fuels the growth of the ethanol car market.

High ethanol prices are expected to pose a significant challenge for the ethanol car market. Ethanol-blended fuels may sometimes carry a higher price tag than regular gasoline, potentially deterring budget-conscious consumers. The elevated cost of fueling an ethanol car may offset any potential savings related to environmental benefits or fuel efficiency. Current projections from Trading Economics in September 2023 anticipate ethanol prices reaching $2.40 per gallon by the quarter's end and approximately $2.57 per gallon within the next 12 months. Consequently, the high prices of ethanol act as a hindrance to the growth of the ethanol car market.

Major companies within the ethanol car market are focusing on innovative product development, such as flex-fuel engines, to enhance their market profitability. A flex-fuel engine, also known as a flexible-fuel engine or FFV (Flexible Fuel Vehicle), is an internal combustion engine designed to operate on a variety of fuels, typically a blend of gasoline and ethanol, such as E85 (85% ethanol and 15% gasoline). Toyota Motor Corporation, for instance, launched the electrified flex-fuel Innova HyCross car in India in August 2023. This vehicle, equipped with a flex-fuel engine, operates solely on ethanol (E100) generated from plants and features a lithium-ion battery pack for electric-only mode.

In February 2023, Toyota Kirloskar Motor, a collaborative automotive venture based in India and a producer of ethanol cars, entered into a partnership with the Indian Sugar Mills Association (ISMA). Through this collaboration, the companies seek to advance the adoption of flex fuel technologies and enhance awareness and endorsement of ethanol as a sustainable biofuel in India. The Indian Sugar Mill Association represents a collective of private sugar industries based in India.

Major companies operating in the ethanol car market report are Volkswagen AG, Toyota Motor Corporation, Fiat Chrysler Automobiles, Peugeot Citroën Automobiles S.A., Stellantis NV, Ford Motor Company, Mercedes-Benz Group AG, General Motors Corp., Bayerische Motoren Werke AG, Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Kia Motors Corporation, Deere And Company, Volvo Group, Tata Engineering and Locomotive Company Limited, Jaguar Land Rover Automotive plc, Cummins Inc., Scania CV AB., Mitsubishi Motors Corporation, Delphi Technologies, Rolls Royce plc, Parker Hannifin Corporation, Isuzu Motors Ltd., Mahindra And Mahindra Limited, Maruti Suzuki India Ltd., Dongfeng Motor Corporation.

Asia-Pacific was the largest region in the ethanol car market in 2023. The regions covered in the ethanol car market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the ethanol car market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The ethanol car market consists of sales of internal combustion engine, engine control module (ECM), and flexible fuel vehicles (FFVs). Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The primary types of products associated with ethanol cars are starch-based, sugar-based, and cellulosic. Starch-based ethanol is produced from crops containing intricate chains of sugar molecules, such as corn, wheat, or barley. Drive types encompass front-wheel drive, rear-wheel drive, and all-wheel drive, accompanied by various blends such as E10 to E26, E25 to E86, and above E86. Ethanol cars come in various vehicle classes, including hatchbacks, sedans, SUVs, and others, utilized across different applications such as conventional fuel vehicles, flexible fuel vehicles, and more.

The ethanol car market research report is one of a series of new reports that provides ethanol car market statistics, including the ethanol car industry global market size, regional shares, competitors with an ethanol car market share, detailed ethanol car market segments, market trends and opportunities, and any further data you may need to thrive in the ethanol car industry. This ethanol car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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