PUBLISHER: The Business Research Company | PRODUCT CODE: 1729081
PUBLISHER: The Business Research Company | PRODUCT CODE: 1729081
Fuel ethanol is a biofuel made primarily from fermented plant materials such as corn, sugarcane, or other biomass. It is an alcohol (ethyl alcohol or C2H5OH) that is blended with gasoline to create a more sustainable and cleaner-burning fuel alternative. The primary purpose of fuel ethanol is to reduce dependence on fossil fuels, lower greenhouse gas emissions, and enhance energy security by using renewable sources.
The fuel ethanol market consists of sales, by entities (organizations, sole traders or partnerships), of ethanol produced primarily from biomass, such as corn and sugarcane. Ethanol serves as a renewable fuel that is commonly blended with gasoline to create mixtures such as E10 (10% ethanol) and E85 (51% to 83% ethanol mixed with gasoline), enhancing fuel performance and reducing emissions in internal combustion engines.
The global fuel ethanol market was valued at $52,455.31 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 11.00%.
Steady Expansion Of The Automotive Industry
A steady expansion of the automotive industry boosted the growth of the fuel ethanol market during the historic period. As the automotive industry expands, the demand for fuel rises, presenting opportunities for the adoption of ethanol-blended fuels (such as E10, E15, and E85) as a cleaner and more sustainable alternative to traditional fossil fuels. For instance, in February 2024, according to the Society of Motor Manufacturers and Traders, a UK-based trade association, in January, British car manufacturing output increased by 21.0% to 82,997 units, with export volumes rising 11.6%, production for the UK market soaring 64.5%, and electrified vehicle production growing 4.5% to 29,590 units. Additionally, in September 2022, according to the Statistics released by the Japan Automobile Dealers Association, a Japan-based organization for automobile dealers and Japan Light Motor Vehicle and Motorcycle Association, a Japan-based organization for protecting the ownership of light motor vehicles and motorcycles, in Japan, a total of 4,779,086 new cars were sold in 2023, marking a 13.8% year-on-year increase and the first rise in five years. Therefore, a steady expansion of the automotive industry contributed to the growth of the fuel ethanol market.
Advanced Flex-Fuel Engine Enables Fully Ethanol-Operated MPV
Major companies operating in the fuel ethanol market are increasingly focusing on advanced flex-fuel engines that enable fully ethanol-operated multi-purpose vehicles (MPVs). Flex-fuel engines are designed to run on varying ethanol blends, including 100% ethanol, offering significant reductions in greenhouse gas emissions compared to traditional fossil fuels. This focus aligns with government policies promoting biofuel adoption and reduces dependency on petroleum-based fuels, particularly in regions like Brazil, where ethanol is readily available. For instance, in August 2023, Toyota Motor, a Japanese-based automotive manufacturer, unveiled the world's first fully ethanol-powered car equipped with a flex-fuel engine. This prototype of the electrified Innova Hy Cross flex-fuel is in compliance with the latest emission standards, Bharat Stage 6. The Toyota Innova Hy Cross flex-fuel MPV is designed to operate exclusively on ethanol, a plant-derived fuel categorized as E100. Additionally, it will incorporate a lithium-ion battery pack capable of providing sufficient power to enable the vehicle to operate in electric vehicle (EV) mode.
The global fuel ethanol market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 9.19% of the total market in 2023.
Fuel Ethanol Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global fuel ethanol market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for fuel ethanol? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The fuel ethanol market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider fuel ethanol market; and compares it with other markets.
3) By Raw Material; Maize; Wheat; Sugarcane; Other Raw Materials