PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1408915
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1408915
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.
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.
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.
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.
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.
The scope of this report covers the market by its major segments, which include as follows: