The global fuel ethanol market size was valued at $86.0 billion in 2021, and is projected to reach $134.5 billion by 2031, growing at a CAGR of 4.61% from 2022 to 2031.
Fuel ethanol is ethyl alcohol that is used as fuel. It is most often used as motor fuel, mainly as a biofuel additive for gasoline. It is commonly made from biomass such as corn or sugarcane. Ethanol blended fuel is widely used in Brazil, the U.S., and Europe. Most cars on the road today in the U.S can run on blends of up to 10% ethanol, and ethanol represented 10% of the U.S. gasoline fuel supply derived from domestic sources. Some flexible fuel vehicles are able to use up to 100% ethanol.
Natural source ethanol is a form of renewable energy that can be produced from agricultural feedstock. It can be made from very common crops such as sugarcane, potato, cassava, and corn. There has been considerable concerts about its production and uses relate to increased food prices due to large amount of arable land required for crops as well as the energy and pollution balance of the whole cycle of ethanol production, especially from corn. Currently 93% of ethanol fuel is produced form natural source, while 3% from the synthetic source.
The presence of investments in the past decade and recent emergence of the importance regarding the impact of transportation sector on the environment led to the demand for the fuel ethanol market. The major developing nations are making progress toward climate goals for 2030 and are essential to unlocking the potential for fully zero-carbon by 2050 are major driving factors for the growth of the market during the forecast period.
The major factors that hamper the development of the fuel ethanol are mainly due to the restrictions of the insufficient presence of feedstock and the presence of less efficiency conversion of biomass. In addition to this, this market also faces problems in regards with less number of refineries, which are unable support the ever-growing surge in the demand.
The fuel ethanol market is segmented on the basis of source, product, application, end-use industry and region.
On the basis of source, the global fuel ethanol market is segmented into synthetic and natural. On the basis of product, the market is segmented into starch-based, sugar-based and cellulosic. On the basis of application, the market is bifurcated into conventional vehicles, and flexible fuel vehicles. On the basis of end use industry, the global market is classified into automotive, oil & gas, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Braskem, BP PLC, Cargill Incorporated, INEOS, HPCL Biofuels Limited, Lyondell Basell Industries Holdings BV, Mitsubishi Chemical Corporation, SABIC, Sasol Limited, Solvay SA. Other companies that are not profiled in the report include Archer Daniels Midland Company, KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels. Rapid urbanization and surge in the development of transportation infrastructure has fuelled the demand for fuel ethanol market in order to reduce the impact of transportation sector on the environment. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership, in the development of the innovative products from manufacturers have helped to attain key developments in the global fuel ethanol market trends.
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for vehicles for transportation and the shutdown of transportation sector in most of the countries across the world led to decline in the demand of the fuel ethanol market. The decrease in utilization of transportation facilities across the globe during the outbreak has a negative impact on the development of the market.
Fuel ethanol is ethyl alcohol that is used as fuel. It is most often used as motor fuel, mainly as a biofuel additive for gasoline. It is commonly made from biomass such as corn or sugarcane. Ethanol blended fuel is widely used in Brazil, the U.S., and Europe. Most cars on the road today in the U.S can run on blends of up to 10% ethanol, and ethanol represented 10% of the U.S. gasoline fuel supply derived from domestic sources. Some flexible fuel vehicles are able to use up to 100% ethanol.
Natural source ethanol is a form of renewable energy that can be produced from agricultural feedstock. It can be made from very common crops such as sugarcane, potato, cassava, and corn. There has been considerable concerts about its production and uses relate to increased food prices due to large amount of arable land required for crops as well as the energy and pollution balance of the whole cycle of ethanol production, especially from corn. Currently 93% of ethanol fuel is produced form natural source, while 3% from the synthetic source.
The presence of investments in the past decade and recent emergence of the importance regarding the impact of transportation sector on the environment led to the demand for the fuel ethanol market. The major developing nations are making progress toward climate goals for 2030 and are essential to unlocking the potential for fully zero-carbon by 2050 are major driving factors for the growth of the market during the forecast period.
The major factors that hamper the development of the fuel ethanol are mainly due to the restrictions of the insufficient presence of feedstock and the presence of less efficiency conversion of biomass. In addition to this, this market also faces problems in regards with less number of refineries, which are unable support the ever-growing surge in the demand.
The fuel ethanol market is segmented on the basis of source, product, application, end-use industry and region.
On the basis of source, the global fuel ethanol market is segmented into synthetic and natural. On the basis of product, the market is segmented into starch-based, sugar-based and cellulosic. On the basis of application, the market is bifurcated into conventional vehicles, and flexible fuel vehicles. On the basis of end use industry, the global market is classified into automotive, oil & gas, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Braskem, BP PLC, Cargill Incorporated, INEOS, HPCL Biofuels Limited, Lyondell Basell Industries Holdings BV, Mitsubishi Chemical Corporation, SABIC, Sasol Limited, Solvay SA. Other companies that are not profiled in the report include Archer Daniels Midland Company, KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels. Rapid urbanization and surge in the development of transportation infrastructure has fuelled the demand for fuel ethanol market in order to reduce the impact of transportation sector on the environment. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership, in the development of the innovative products from manufacturers have helped to attain key developments in the global fuel ethanol market trends.
COVID-19 analysis:
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for vehicles for transportation and the shutdown of transportation sector in most of the countries across the world led to decline in the demand of the fuel ethanol market. The decrease in utilization of transportation facilities across the globe during the outbreak has a negative impact on the development of the market.
Key Benefits For Stakeholders
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current trends and future estimations of the market from 2022 to 2031 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are elucidated in the study.
- The profiles of key players along with their key strategic developments are enlisted in the report.
Key Market Segments
By Source
- Synthetic
- Natural
By Product
- Starch Based
- Sugar Based
- Cellulosic
By Application
- Conventional Vehicles
- Flexible Fuel Vehicles
By End Use Industry
- Automotive
- Oil and Gas
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Braskem S.A.
- BP Plc
- Cargill Incorporated
- INEOS
- HPCL Biofuels Limited
- LyondellBasell Industries Holdings BV
- Mitsubishi Chemical Corporation
- SABIC
- Sasol Limited
- Solvay SA
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FUEL ETHANOL MARKET, BY SOURCE
CHAPTER 5: FUEL ETHANOL MARKET, BY PRODUCT
CHAPTER 6: FUEL ETHANOL MARKET, BY APPLICATION
CHAPTER 7: FUEL ETHANOL MARKET, BY END USE INDUSTRY
CHAPTER 8: FUEL ETHANOL MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to this report titled, 'Fuel Ethanol Market,' the fuel ethanol market was valued at $86.0 billion in 2021, and is estimated to reach $134.5 billion by 2031, growing at a CAGR of 4.61% from 2022 to 2031.Fuel ethanol is a renewable fuel made from various plant materials collectively known as biomass and even waste biomass, which can be used in existing motor engines without modification. Fuel ethanol is used as an additive to the gasoline to increase the octane content in the fuel. The need for green energy source for the production of fuel led to the development of fuel ethanol manufacturers across the world. The increasing CO2 content in the environment has led to surge in the global warming in recent years, most of the CO2 emissions across the globe are mostly due to the use of automotive vehicles in the transportation industry.
The increase in innovation and development of technology in the improvement of the efficiency of the extraction of biofuels (which includes fuel ethanol) from the biomass has positive impact on the future development of the market. The increase in investment of major oil manufacturers in the procurement of fuel ethanol from the fuel ethanol producers to improve the gasoline octane content, to reduce the production of carbon soot and to fallow the government regulations to reduce the carbon emission are major factors driving the growth of fuel ethanol industry.
Increase in technology to extract the ethanol fuel from non-food crops with economical cost, the government policies and initiatives to support the green industries, which can provide extra income to the farmers and also reduce the carbon emission during improper handling of the agricultural waste. In addition to the presence of global fuel giants such as Shell, Hindustan Petroleum Corporation Limited has reached various partnership, collaboration, and acquisition in regards with the biofuel related companies in order to commercialize the biofuel, will create opportunities for the growth of the fuel ethanol market. In addition to the above mentioned factors, these fuel ethanol can be used in the power generation sector using the existing infrastructure diesel fired power plants is another positive factor for the fuel ethanol market forecast growth.
The rapid innovation and investment of new entrants to develop alternative processing method for ethanol fuel and the presence of very few refineries to meet the on-going demand for ethanol fuel is a negative impact on the development of the fuel ethanol market growth. The stringent regulation of the government to the manufacturer to follow the guidelines has led to the additional investment of the ethanol fuel producer. The low availability of fuel have limited the blending capacity of the fuel, which led to lowering of the efficiency. The above mentioned factors are all expected to hamper the development of fuel ethanol market opportunities during the forecast period.
The fuel ethanol market is segmented on the basis of source, product, application, end-use industry and region.
On the basis of source, the global fuel ethanol market is segmented into synthetic and natural. On the basis of product, the market is segmented into starch-based, sugar-based and cellulosic. On the basis of application, the market is bifurcated into conventional vehicles, and flexible fuel vehicles. On the basis of end-use industry, the global market is classified into automotive, oil & gas, and others.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include Braskem, BP PLC, Cargill Incorporated, INEOS, HPCL Biofuels Limited, Lyondell Basell Industries Holdings BV, Mitsubishi Chemical Corporation, SABIC, Sasol Limited, Solvay SA. Other companies that are not profiled in the report include Archer Daniels Midland Company, KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels. Rapid urbanization and surge in the development of transportation infrastructure has fuelled the demand for fuel ethanol market in order to reduce the impact of transportation sector on the environment. Additional growth strategies such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in the development of the innovative products from manufacturers have helped to attain key developments in the global fuel ethanol market trends.
Key findings of the Study
- Region wise, in terms of fuel ethanol market size, the North America is projected to witness growth at the highest CAGR in terms of revenue, during the forecast period.
- As per global fuel ethanol market analysis, by source, the natural segment accounted for the largest share in 2021.
- On the basis of product, the starch-based segment is expected to possess highest incremental opportunity till 2031.
- On the basis of application, the conventional vehicle segment was the major fuel ethanol market share contributor in 2021.
- On the basis of end use industry, the automotive segment is expected to dominate the market till 2031.
IMPACT OF COVID-19 ON THE GLOBAL FUEL ETHANOL MARKET
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for vehicles for transportation and the shutdown of transportation sector in most of the countries across the world led to decline in the demand of the fuel ethanol market. The decrease in utilization of transportation facilities across the globe during the outbreak has a negative impact on the development of the market.Companies Mentioned
- Braskem S.A.
- BP Plc
- Cargill Incorporated
- INEOS
- HPCL Biofuels Limited
- LyondellBasell Industries Holdings BV
- Mitsubishi Chemical Corporation
- SABIC
- Sasol Limited
- Solvay SA
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 363 |
| Published | May 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 86 billion |
| Forecasted Market Value ( USD | $ 134.5 billion |
| Compound Annual Growth Rate | 4.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
