Global Fuel Ethanol Market by Application (Conventional Vehicles, Flexible Fuel Vehicles), by Product (Starch-Based, Cellulosic, Sugar-Based) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

In 2016, the global fuel ethanol market was valued at USD 64.52 million. In the coming years, ethanol will be more popular as a bio-based additive due to rising carbon emissions from gasoline.

The major buyers of this product in the last few years have been North America, Europe, Central & South America and Europe. Many developing countries in Asia Pacific, such as South Korea, India, China and China, are large crude oil importers. These countries can benefit from the use of ethyl Alcohol as a blending ingredient to improve energy security and vehicle efficiency.

Volume of U.S. Fuel Ethanol Market by Product, 2014-2025 (Billion Liters).

In 2016, the U.S. held the largest share of global industry volume. In the coming years, technological developments, the presence of major market players and strict regulations regarding greenhouse gas emissions will drive product demand.

Among the top players in the U.S. are Archer Daniels Midland Company, Pacific Ethanol, Inc., Flint Hills Resources LP, and Pacific Ethanol, Inc. Flint Hills Resources LP bought Southwest Georgia Ethanol, LLC, an ethyl alcohol production facility, in January 2015. It is located in Georgia, U.S.A. The company plans to increase its presence and cater to the growing demand on the U.S. markets.

Pacific Ethanol, Inc. entered into a technology-licensing agreement with Edeniq, Inc., a major developer of ethyl alcohol processing technology. The company was able to use Edeniq's Cellunator and Pathway technologies to manufacture cellulose-based alcohol in Madera, California.

The U.S. is a big consumer of starch-based ethyl Alcohol as a gasoline additive. This product is made using dry milling technology and corn kernel feedstock. The country's auto producers approved the use E15 and E85 product mixes regulated by the U.S. E.P.A. in 2015. AUDI and FCA Group are some of the major automotive players that approved the use E15 blend.

Product Insights

Ethanol can be made from renewable or biobased feedstock. Depending on the type of feedstock, the market can be divided into three segments: starch-based (sugar-based), cellulosic (cellulosic).

In 2016, the largest share of the global market was held by the starch-based segment. It is expected to grow at a 5.8% CAGR by 2025. Starch-based products are made from starch-rich raw materials like corn, wheat and barley. These products are high in starch and can reduce greenhouse gas (GHG), emissions to a significant extent.

According to The U.S. Department of Energy, corn-based ethyl alcohol has reduced airborne emissions by almost 20%. Cassava is expected to be a valuable feedstock in the future, especially in countries like China and Thailand. It has a high starch content, and can produce ethyl alcohol with a high octane and anti-knocking properties.

The market is expected to see significant growth in cellulosic orcellulose-based ethylalcool during the forecast period. This market segment will likely see the fastest growth due to the fact that it is made from bio waste, such as wood chips and corn stover, wheatgrass, and fruit peels.

Application Insights

The use of ethanol fuel is widely used in the automotive and transportation sectors. The largest industry application was conventional fuel vehicles in 2016. This segment is expected to grow at a significant CAGR of 5.7% in terms of volume during the forecast period 2017-2025.

Volume of global fuel ethanol market by application, 2016, (%)

E10 and E15 are low-ethanol gasoline blends that can be used in conventional vehicles. E10 is a mixture of 10% ethanol, 90% gasoline, and E15 10.5 to 15% respectively. In the future, product consumption will rise due to rising fuel economy requirements for conventional vehicles in countries like the U.S. and Brazil.

The fastest growth segment in the industry is expected to be flexible fuel vehicles (FFVs). These vehicles are made up of internal combustion engines that can run on gasoline or ethanol-gasoline mixtures beyond E10. Also known as flexfuel, these vehicles can also be used to transport a variety of ethanol-gasoline fuels. E85 is 51%-83% ethanol mixed with gasoline.

The rapid production of FFVs from Brazil, the U.S. and other countries within the European Union will help to increase fuel ethanol usage in the coming years. E85 blend has been a key component of the automotive industry, with major manufacturers like Volvo, Toyota Group and Dacia. The product can also be used for space heating, steam generation, and power generation.

Regional Insights

This industry is expected grow at a rapid rate, especially in developing countries. The long-term energy supply will be improved by regulatory policies and mandates in India, China and Mexico regarding the use of fuel oil in the transportation and automotive sectors.

North America held the largest market share, representing 59.4% in 2016's total volume. Because of its established automotive industry and strict regulations regarding particulate emissions, this region is expected to be the fastest-growing consumer of the product. This is likely to be the case in the U.S.

Canada, Mexico and other countries in North America have implemented various environmental policies to boost industry growth. Canada, for example, signed the Paris Agreement in 2016. It also announced its future targets to reduce emissions by 30% by 2030. This regulatory scenario will encourage the use of low-carbon intensity fuels, and ultimately impact future ethyl alcohol consumption.

In 2016, the second largest consumer of the industry was South America, followed by Europe. In the coming years, Brazil and Argentina will likely continue to produce flexible fuel vehicles. Among the major players in this market are GranBio-API and Raizen S.A.

Asia Pacific will likely experience the fastest growth over the forecast period. The rise in foreign investment and government initiatives toward sustainable development will likely promote biofuels over coming years. This is likely to happen in China, India and other countries in Southeast Asia.

Competitive Insights

High fragmentation is evident in the market. The industry's competitiveness is influenced by its product consumption, its penetration in regional applications industries, the security and feedstock of raw materials, and the high degree of forward integration.

Archer Daniels Midland Company, Pacific Ethanol, Inc., Flint Hills Resources LP, E.I. Some of the key players in the industry include du Pont de Nemours and Company, Cargill, Inc., Valero Energy Corporation, BP plc, and Raizen S.A.

The report covers segments

This report predicts revenue growth and volume at the global, regional and country levels. It also provides analysis of industry trends for each sub-segment from 2014-2025. Grand View Research has divided the global ethanol fuel market by product, region, and application.

• Product Outlook (Volume: Million Liters; Revenue, US Million, 2014-2025)

  • Starch-based

  • Sugar-based

  • Cellulosic

• Application Outlook (Volume: Million Liters; Revenue: USD Million, 2014-2025)

  • Conventional fuel vehicles

  • Flexible fuel vehicles

  • Other

• Regional Outlook (Volume: Million Liters; Revenue: USD Million, 2014-2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

Up Market Research published a new report titled “Fuel Ethanol Market research report which is segmented by Application (Conventional Vehicles, Flexible Fuel Vehicles), by Product (Starch-Based, Cellulosic, Sugar-Based), By Players/Companies Sugar-based, Cellulosic, Product Outlook (Volume Million Liters; Revenue USD Million 2014 - 2025)Starch-basedSugar-basedCellulosic, Starch-based”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Fuel Ethanol Market Report Segments:

The market is segmented by Application (Conventional Vehicles, Flexible Fuel Vehicles), by Product (Starch-Based, Cellulosic, Sugar-Based).

Fuel Ethanol Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Fuel Ethanol Market

Overview of the regional outlook of the Fuel Ethanol Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Fuel Ethanol Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Fuel Ethanol Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Conventional Vehicles

                2. Flexible Fuel Vehicles

                1. Starch-Based

                2. Cellulosic

                3. Sugar-Based

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Fuel Ethanol Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
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Reasons to Purchase the Fuel Ethanol Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.