Fuel Ethanol Market, By Source, By Product, By Application, By Industry Vertical, By Country, and By Region - Industry Analysis, Market Size, Market Share & Forecast from 2024-2032
Fuel Ethanol Market size was valued at USD 121,123 Million in 2023, expanding at a CAGR of 5.1% from 2024 to 2032.
Ethyl alcohol used as fuel is known as fuel ethanol. It is primarily used as a biofuel addition for gasoline and is most frequently utilized as motor fuel. Most often, biomass like maize or sugarcane is used to make it. Europe, America, and Brazil are major users of mixed gasoline including ethanol. Two types of biomass are used to make fuel ethanol: natural biomass and synthetic biomass. One renewable energy source that may be created from agricultural feedstock is natural source ethanol. Common crops like maize, sugarcane, potatoes, and cassava may be used to make it. When manufactured synthetically, fossil fuel is the raw material used by the petrochemical industries. At the moment, 93% of ethanol fuel is derived from natural sources, while 3% is made from synthetic ones.
Fuel Ethanol Market- Market Dynamics
Rising initiative towards reduction of GHG emissions to propel market demand
Ethanol fuel is a renewable fuel that is becoming increasingly popular as a motor fuel and is used in high concentrations in most gasoline since it is environmentally friendly and minimizes air pollution. Fuel ethanol's profitable growth prospects are attributable to factors such as emission reduction measures and GHG control legislation. In 2016, the Canadian government ratified the Paris Agreement, announcing a target of roughly 30% reduction in emissions by the end of 2030. According to a NITI Aayog study, the Indian government has stressed 20% ethanol blending by 2025, which would enhance growth for E20, E85, and other products. With strong rules in place to regulate and restrict carbon emissions from petroleum-based fuels, as well as the depletion of fossil fuel supplies, demand for Fuel Ethanol such as E85, E20, and others is rising, propelling the fuel ethanol business.
Fuel Ethanol Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.1% over the forecast period (2024-2032)
Based on source segmentation, the natural segment is expected to dominate the market during the forecast period
Based on industry vertical segmentation, the automotive segment is expected to grow at the fastest rate over the forecast period
Based on region, the Asia Pacific is expected to grow at a rapid rate over the projected period
Fuel Ethanol Market- Segmentation Analysis:
The Global Fuel Ethanol Market is segmented based on Source, Product, Application, Industry Vertical, and Region.
Based on the source, the global market is divided into synthetic and natural. The natural segment is expected to dominate the market during the forecast period. The growing scope for natural sources of fuel ethanol is substantial compared to synthetic sources, consequently minimizing carbon emissions. The high starch content of natural sources, such as potatoes, corn, sugarcane, and others, contributes to a decrease in greenhouse gas emissions. The use of natural sources of ethanol is also being impacted by the growing use of biofuels, strict laws for monitoring controlled carbon emissions, and the depletion of fossil fuel resources. Therefore, it is projected that over the forecast period, the fuel ethanol market's natural source segment will expand at a quick pace.
Based on the industry vertical, the market is segmented into automotive, oil & gas and others. The automotive segment is expected to grow at the fastest rate over the forecast period owing to government initiatives to control the pollution levels emitted by vehicles.
Fuel Ethanol Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The Asia Pacific is expected to grow at a rapid rate over the projected period. Growing gasoline consumption and growing disposable income in nations like China, Japan, and India are the main drivers of the region's market's revenue growth. Furthermore, the constantly expanding automobile sector, the rise in alcohol use, and shifting consumer tastes and preferences are all contributing to the region's market's revenue growth. The region's market's revenue increase may also be attributed to the accessibility of affordable feedstock.
Fuel Ethanol Market- Competitive Landscape:
The key players operating in the market are INEOS, BP Plc, Cargill Incorporated, Solvay SA, HPCL Biofuels Limited, Sasol Limited, Braskem S.A., SABIC, Mitsubishi Chemical Corporation and LyondellBasell Industries Holdings BV among others. These players perform various strategies to capture a major market share. Strategies like merger & acquisition, agreement, collaboration, product launches and others.
Recent Developments:
In September 2023, the commercial availability of Lummus Technology's ethanol to sustainable aviation fuel (SAF) process technology was announced. The technology offers operators a large-scale, economically proven way to lower greenhouse gas emissions from the aviation sector.
SCOPE OF THE REPORT
The scope of this report covers the market by its major segments, which include as follows:
GLOBAL FUEL ETHANOL MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
INEOS
BP Plc
Cargill Incorporated
Solvay SA
HPCL Biofuels Limited
Sasol Limited
Braskem S.A.
SABIC
Mitsubishi Chemical Corporation
LyondellBasell Industries Holdings BV
GLOBAL FUEL ETHANOL MARKET, BY SOURCE- MARKET ANALYSIS, 2019 - 2032
Synthetic
Natural
GLOBAL FUEL ETHANOL MARKET, BY PRODUCT- MARKET ANALYSIS, 2019 - 2032
Sugar Based
Starch Based
Cellulosic
GLOBAL FUEL ETHANOL MARKET, BY APPLICATION- MARKET ANALYSIS, 2019 - 2032
Conventional Vehicles
Flexible Fuel Vehicles
GLOBAL FUEL ETHANOL MARKET, BY INDUSTRY VERTICAL- MARKET ANALYSIS, 2019 - 2032
Automotive
Oil and Gas
Others
GLOBAL FUEL ETHANOL MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032
North America
The U.S.
Canada
Europe
Germany
France
Italy
Spain
United Kingdom
Russia
Netherlands
Sweden
Poland
Rest of Europe
Asia Pacific
India
China
South Korea
Japan
Australia
Thailand
Indonesia
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
United Arab Emirates
Israel
Turkey
Algeria
Egypt
Rest of MEA
Table of Contents
1. Fuel Ethanol Market Overview
1.1. Study Scope
1.2. Market Estimation Years
2. Executive Summary
2.1. Market Snippet
2.1.1. Fuel Ethanol Market Snippet by Source
2.1.2. Fuel Ethanol Market Snippet by Product
2.1.3. Fuel Ethanol Market Snippet by Application
2.1.4. Fuel Ethanol Market Snippet by Industry Vertical
2.1.5. Fuel Ethanol Market Snippet by Country
2.1.6. Fuel Ethanol Market Snippet by Region
2.2. Competitive Insights
3. Fuel Ethanol Key Market Trends
3.1. Fuel Ethanol Market Drivers
3.1.1. Impact Analysis of Market Drivers
3.2. Fuel Ethanol Market Restraints
3.2.1. Impact Analysis of Market Restraints
3.3. Fuel Ethanol Market Opportunities
3.4. Fuel Ethanol Market Future Trends
4. Fuel Ethanol Industry Study
4.1. PEST Analysis
4.2. Porter's Five Forces Analysis
4.3. Growth Prospect Mapping
4.4. Regulatory Framework Analysis
5. Fuel Ethanol Market: COVID-19 Impact Analysis
5.1. Pre-COVID-19 Impact Analysis
5.2. Post-COVID-19 Impact Analysis
5.2.1. Top Performing Segments
5.2.2. Marginal Growth Segments
5.2.3. Top Looser Segments
5.2.4. Marginal Loss Segments
6. Fuel Ethanol Market Landscape
6.1. Fuel Ethanol Market Share Analysis, 2023
6.2. Breakdown Data, by Key Manufacturer
6.2.1. Established Players' Analysis
6.2.2. Emerging Players' Analysis
7. Fuel Ethanol Market - By Source
7.1. Overview
7.1.1. Segment Share Analysis, By Source, 2023 & 2032 (%)
7.1.2. Synthetic
7.1.3. Natural
8. Fuel Ethanol Market - By Product
8.1. Overview
8.1.1. Segment Share Analysis, By Product, 2023 & 2032 (%)
8.1.2. Sugar Based
8.1.3. Starch Based
8.1.4. Cellulosic
9. Fuel Ethanol Market - By Application
9.1. Overview
9.1.1. Segment Share Analysis, By Application, 2023 & 2032 (%)
9.1.2. Conventional Vehicles
9.1.3. Flexible Fuel Vehicles
10. Fuel Ethanol Market - By Industry Vertical
10.1. Overview
10.1.1. Segment Share Analysis, By Industry Vertical, 2023 & 2032 (%)
10.1.2. Automotive
10.1.3. Oil and Gas
10.1.4. Others
11. Fuel Ethanol Market- By Geography
11.1. Introduction
11.1.1. Segment Share Analysis, By Geography, 2023 & 2032 (%)
11.2. North America
11.2.1. Overview
11.2.2. Fuel Ethanol Key Manufacturers in North America
11.2.3. North America Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
11.2.4. North America Market Size and Forecast, By Source, 2019 - 2032 (US$ Million)
11.2.5. North America Market Size and Forecast, By Product, 2019 - 2032 (US$ Million)
11.2.6. North America Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
11.2.7. North America Market Size and Forecast, By Industry Vertical, 2019 - 2032 (US$ Million)