Market Overview
The global fuel ethanol market was worth USD 84,552 million in 2021. It is expected that it will grow by 6.8% CAGR in the upcoming years. Due to the rising carbon emissions from gasoline, ethanol will become more popular in the future as a bio-based ingredient.
The product's increasing popularity as fuel is driving the demand. Another factor driving the market growth is the rising popularity of alcoholic drinks. Both natural and petrochemical raw materials can be used to make ethanol. Natural sugars are fermented with yeast in the natural process. In the coming years, ethanol will be a more popular bio-based additive due to the rising need to reduce carbon emissions from gasoline. North America is still the largest consumer, followed by Central & South America and Europe.
Driving Factors
Ethanol as a biofuel
The use of Ethanol as a biofuel is a key market contributor. However, due to the rapid growth of the automobile industry, managing air pollution has become more difficult in recent years. Due to rising environmental-related concerns, there is an increase in the automobile industry and an increase in the use of ethanol-fuel-based vehicles.
Restraining Factors
Ill effects on health
Excessive alcohol consumption can have adverse effects on the body, particularly the liver. The liver helps detoxify the blood from toxins. Long-term alcohol abusers are more likely to develop chronic liver disease, also known as cirrhosis.
There are further adverse effects as well, such as amnesia and a lack of cognition, sluggish motor responses, and decreased sensation. Growing awareness of these detrimental effects hampers market growth for ethanol.
Market Key Trends
Flexible Fuel Vehicles :
The forecast period will see significant growth in flexible fuel vehicles (FFVs). These vehicles can be powered by internal combustion engines, which can burn gasoline or ethanol-gasoline mixtures higher than E10 (also known as flex fuel). E85 is a combination of gasoline and ethanol that contains 51-83 percent ethanol.
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Recent Developments
Ganesh Benzoplast Limited and Golden Agri International Enterprises Pte. Ltd. (Singapore), K N Agri Resources Ltd, and other investors, via Bluebrahma Clean Energy Solutions Pvt Ltd., are attempting to manufacture Ethanol together with Extra Neutral Alcohol. (ENA). This is done through the acquisition of 100% of an existing distillery, Sagar Industries and Distilleries Pvt. Ltd. Ltd. (SIDPL).
Indian gasoline is currently fueled with 5-6% ethanol. According to official forecasts, ethanol blends with gasoline of 10% and 22% will be possible by 2022, and 2030 respectively. The Indian sugar plant will be able to reap the benefits of this 11 % blend, which will require 3.4 billion liters of bioethanol.
Key Players
Market players can expect to see new growth opportunities from the increased adoption of eco-friendly products. Recent developments in the global marketplace have prompted changes in the value chain. Manufacturers relied initially on two to three suppliers for raw materials. There is a risk as contingency plans may not always work out.
Following are the key market players in the industry: Archer Daniels Midland Company, Pacific Ethanol Inc., Flint Hills Resources, du Pont de Nemours, Cargill Inc., Valero Energy Corporation, BP plc, Raizen S.A., Cropenergies ag, Ford motor company, Pannonia Bio, Other Key Players.
Market Segmentation
The market of Ethanol Fuel can be segmented by region (North America, Europe, APAC, South America, and the Middle East and Africa). By Product Type, the market has been segmented into Starch-based, Sugar-based, and Cellulosic. By Application, the market has been further divided into, Conventional Fuel Vehicles, Flexible Fuel Vehicles, and another basis of Applications.
FAQ
What is the market size of the fuel ethanol market in 2021?
The global fuel ethanol market was worth USD 84,552 million in 2021.
What are the opportunities for new market entrants?
New initiatives by governments to fund Ethanols education institutes are the key market opportunity
What segments are covered in the Ethanol Market report?
The segments covered are product type, application method used, and region.
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