Global Fuel Ethanol Market, By Source (Synthetic, Natural) Raw Material (Maize, Wheat, Industrial Beets, Sugarcane, Cereals & Starch, Others) Application (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) - Industry Trends and Forecast to 2030.
Fuel Ethanol Market Analysis and Size
In the production of fuels, natural gases and crude oil are extensively employed all over the globe. However, these sources are anticipated to be depleted within the next 40 to 50 years. They also harm the environment by releasing harmful gases such as carbon dioxide, nitrogen oxides, carbon monoxide, and particulate matter. As a result, there has been a trend toward using environment-friendly biofuels that reduce carbon emissions rates. Thus, the increasing need to decrease carbon emissions from gasoline in the transportation and automotive industries is projected to surge the usage of fuel ethanol in the coming years.
Data Bridge Market Research analyses that the fuel ethanol market is expected to undergo a CAGR of 6.73% from 2023 to 2030. This indicates that the market value, USD 105.76 billion in 2022, would rocket up to USD 178.07 billion by 2030. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand..
Fuel Ethanol Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to (2015 - 2020)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Source (Synthetic, Natural) Raw Material (Maize, Wheat, Industrial Beets, Sugarcane, Cereals & Starch, Others) Application (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Market Players Covered
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DuPont (U.S.), POET, LLC (U.S.), CropEnergies AG (Germany), ADM (U.S.), Shell PLC. (U.K.), Cargill, Incorporated. (U.S.), Dow (U.S.), BP PLC (U.K.), Petrobras (Brazil), Pannonia Bio Zrt (Hungary), Cristal Union Group (France), ALCOGROUP SA (Belgrade), Tereos (France), BlueFire Renewables Inc (U.S.), Vivergo Fuels (U.K.), Abengoa, S.A. (Spain), Fulcrum BioEnergy (U.S.), Green Plains (U.S.), Flint Hills Resources (U.S.)
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Market Opportunities
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Market Definition
Ethanol fuel is ethyl alcohol; this is the same type of alcohol found in alcoholic beverages which are used as fuel. It is most generally used as a motor fuel, mostly as a biofuel additive for gasoline. It is generally made from biomass such as sugarcane or corn. Ethanol is a feasible alternative fuel that can be used completely or blended with gasoline.
Global Fuel Ethanol Market Dynamics
Drivers
- Increasing demand for fuel ethanol in the automotive sector
The application of fuel in the automotive industry is one of the major market drivers for the market's growth. The automotive sector has grown rapidly over the past few years and has faced many challenges in controlling air pollution. Ethanol is blended with gasoline concentrations of up to 10% to 15% to address the increasing air pollution caused by automobiles. The usage of fuel ethanol delivers major benefits in terms of increased thermal efficiency, improved fuel economy, and helps in cold starts during the winter season. Brazil and U.S. are the nations leading the globe, in terms of applying Ethanol as biofuel.
- Growing usage of fuel ethanol in conventional automobiles
The increased usage of fuel ethanol in commercial vehicles is anticipated to drive the market growth rate. Fuel Ethanol is extensively used in the transportation and automotive industries. Gasoline with low ethanol mixes, such as E15 and E10, can be used in conventional automobiles. E15 comprises 10.5% to 15% ethanol, whereas. E10 is a mix of 90% gasoline and 10% ethanol. Also, increasing fuel economy regulations for conventional vehicles in nations such as India, China, the United States, and Brazil are expected to boost the global market in the forecast period.
Opportunities
- Increase in investments and development
The presence of investments in the last few years and recent development due to the importance of the Impact of the transportation industry on the environment led to the demand for the fuel ethanol in the market. The major developing countries are creating strategies toward climate goals for 2030. The major market players focus on unlocking the potential for fully zero carbon by 2050. These are some of the major factors that will create immense opportunities for market growth during the forecast period.
- Growing expenditure on ethyl alcohol manufacturing facility
Surging expenditure on ethyl alcohol manufacturing facilities by market players further offers numerous growth opportunities within the market. For instance, Flint Hills Resources L.P., Archer Daniels Midland Company, and Pacific Ethanol, Inc., are a few of the major market players in the U.S. In which Flint Hills Resources L.P. has purchased an ethyl alcohol manufacturing facility named Southwest Georgia Ethanol, LLC, located in the U.S. The company's goals are to increase its presence and deal with the increasing demand in the U.S. market.
Restraints/ Challenges
- The fluctuating price of raw material
Fuel ethanol is mainly made of numerous metals such as steel, aluminum, nickel, chromium, and other materials. As a result, fluctuations in the costs of such materials may surge fuel ethanol prices, which may hamper the market's growth. For instance, according to the China Nonferrous Metals Association's analysis, aluminum prices increased sharply by 50% up to US$3,000 per ton in September 2021. It further states that the costs of other metals, including nickel and copper, are also anticipated to rise considerably in 2022. Thus, fluctuating prices of materials used to manufacture fuel ethanol may restrain the market's growth during the forecast period.
This fuel ethanol market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, Impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the fuel ethanol market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the Impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.
Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
COVID-19 Impact on the Global Fuel Ethanol market
COVID-19 has adversely affected the global economy with overwhelming effects on global trade, simultaneously affecting industrial establishments, households, business, financial institutions, and infrastructure companies. The novel coronavirus has affected numerous markets ad caused lockdowns in various countries, which has restricted the market's growth.
The shutdown of industrial manufacturers led to a drop in the automobile demand for transportation. The shutdown of the transportation industry in most countries all over the globe led to a drop in the fuel ethanol market demand. The reduction in the use of transportation facilities during the outbreak negatively impacts the growth of the global market. However, in the post-pandemic era, the fuel ethanol market is anticipated to rise and witness lucrative growth during the forecast period.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Development
- In March 2022, Ganesh Benzoplast Limited, K N Agri Resources Ltd, Golden Agri International Enterprises Pte. Ltd. (Singapore), and numerous investors, through Bluebrahma Clean Energy Solutions Pvt Ltd. is, venturing into the manufacturing of Ethanol. This venture was possible with the acquisition of a 100% share of an ongoing distillery located in Nasik, Maharashtra, named Sagar Industries and Distilleries Pvt. Ltd. (SIDPL).
Global Fuel Ethanol Market Scope
The fuel ethanol market is segmented on the basis of source, raw material and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Source
- Synthetic
- Natural
Raw Material
- Maize
- Wheat
- Industrial Beets
- Sugarcane
- Cereals & Starch
- Others
Application
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Fuel Ethanol Market Regional Analysis/Insights
The fuel ethanol market is analyzed and market size insights and trends are provided by country, source, raw material and application as referenced above.
The countries covered in the fuel ethanol market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the fuel ethanol market in terms of market share revenue owing to the presence of a well-established automotive sector. Moreover, strict regulations over particulate emissions and the growing usage of ethanol as a vehicle fuel will likely boost the market growth in this region.
Asia-Pacific will expect to be the fastest-growing region during the forecast period of 2023-2030 due to the increasing adoption and usage of fuel ethanol in the automotive industry. Furthermore, growing government support for the usage of Ethanol as a fuel and rising greenhouse emissions on a global level will expect to enhance the growth of the market in this region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, Impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Fuel Ethanol Market Share Analysis
The fuel ethanol market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to fuel ethanol market.
Some of the major players operating in the fuel ethanol market are:
- DuPont (U.S.)
- POET, LLC (U.S.)
- CropEnergies AG (Germany)
- ADM (U.S.)
- Shell PLC. (U.K.)
- Cargill, Incorporated. (U.S.)
- Dow (U.S.)
- BP PLC (U.K.)
- Petrobras (Brazil)
- Pannonia Bio Zrt (Hungary)
- Cristal Union Group (France)
- ALCOGROUP SA (Belgrade)
- Tereos (France)
- BlueFire Renewables Inc (U.S.)
- Vivergo Fuels (U.K.)
- Abengoa, S.A. (Spain)
- Fulcrum BioEnergy (U.S.)
- Green Plains (U.S.)
- Flint Hills Resources (U.S.)
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