PUBLISHER: Allied Market Research | PRODUCT CODE: 1108592
PUBLISHER: Allied Market Research | PRODUCT CODE: 1108592
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.
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