PUBLISHER: The Business Research Company | PRODUCT CODE: 1436309
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436309
Fuel ethanol, commonly known as ethyl alcohol, is an alcohol variant produced from sources such as corn, sugarcane, grains, and, occasionally, paper waste. It serves as the predominant form of alcohol in many alcoholic beverages, derived from the fermentation of a mash composed of grains or sugarcane. Beyond its role in alcoholic drinks, fuel ethanol is frequently blended with gasoline to enhance fuel oxygenation at gas stations. Moreover, ethanol fuel is utilized as a power source for automobiles.
The main fuel ethanol products are starch-based, sugar-based, and cellulosic-based fuel ethanol. Starch-based crops are processed in dry or wet mills to create ethanol. In the dry-milling process, corn is ground into flour and then fermented into ethanol with the help of byproducts such as distillers' grains and carbon dioxide. The starch-based ethanol is used to produce bioenergy. The various sources include synthetic and natural that are used in making fuel ethanol from raw materials such as fuel, maize, wheat, industrial beets, sugarcane, cereal and starch, and other raw materials. It is used in several applications, such as conventional vehicles and flexible fuel vehicles. It is used by various end-users, such as, automotive, oil and gas, and others.
The fuel ethanol market research report is one of a series of new reports from The Business Research Company that provides fuel ethanol market statistics, including fuel ethanol industry global market size, regional shares, competitors with a fuel ethanol market share, detailed fuel ethanol market segments, market trends and opportunities, and any further data you may need to thrive in the fuel ethanol industry. This fuel ethanol market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The fuel ethanol market size has grown strongly in recent years. It will grow from $96.06 billion in 2023 to $102.32 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The expansion observed in the historical period can be attributed to the growth of the automotive industry, government policies and regulations promoting the use of biofuels, the demand for ethanol as an industrial solvent, shifts in consumer behavior, and economic growth.
The fuel ethanol market size is expected to see strong growth in the next few years. It will grow to $131.64 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The anticipated growth in the forecast period can be attributed to the increasing demand for biofuels and renewable energy sources, the rising adoption of ethanol as a fuel additive, the expansion of the chemical and pharmaceutical industries, the growing demand for ethanol-based beverages, and the increasing demand for ethanol in the transportation sector. Major trends expected in the forecast period include a focus on research and development by industry players, technological advancements, the dominance of the fuel and fuel additives application segment, and mergers and acquisitions.
The fuel ethanol market is poised for growth due to the rising consumption of ethanol in the automobile industry. Ethanol is utilized as a fuel to power automobiles, and the demand for it in Europe is predicted to rise by 10% in 2022. S&P Global Commodity Insights reports an expected increase in fuel ethanol production as well. The heightened consumption of ethanol in the automotive sector contributes significantly to the growth of the fuel ethanol market.
The fuel ethanol market is expected to witness growth due to the expansion of the oil and gas industry. Embracing fuel ethanol as a biofuel, the oil and gas sector benefits from reduced greenhouse gas emissions, improved octane levels, enhanced combustion efficiency, and decreased carbon monoxide and particulate emissions. According to the US Energy Information Administration, there is an increase in U.S. crude oil output to 12.4 million b/d in 2023, reflecting the sector's expansion. Additionally, the U.S. experienced record-high natural gas consumption, reaching 86.6 billion cubic feet per day in September 2022. These factors contribute to the growth of the fuel ethanol market.
Technological advancement is a prominent trend. Major companies in this sector are actively developing innovative technologies to strengthen their market position. For instance, in October 2022, Honeywell, a US-based conglomerate corporation, introduced ethanol-to-jet fuel (ETJ) processing technology. This technology allows manufacturers to convert ethanol from corn, cellulosic biomass, or sugar into sustainable aviation fuel (SAF), reducing greenhouse gas emissions by 80% over its full lifecycle compared to petroleum-based jet fuel.
Major companies are actively forming partnerships to develop new products and strengthen their market positions. Collaborations and partnerships in the fuel ethanol market foster innovation, leverage complementary expertise, and accelerate the development and commercialization of advanced therapies by combining resources and capabilities. For example, in March 2022, Twelve, a US-based chemical technology company, partnered with LanzaTech Inc., a US-based biotechnology company specializing in carbon capture and conversion of carbon-rich waste gases into sustainable fuels and chemicals. This partnership aims to eliminate fossil fuels from the manufacturing of ethanol by using Twelve's carbon transformation technology and LanzaTech's Continuous Stirred Tank Reactor (CSTR) to convert CO to ethanol.
In June 2021, POET, a US-based biofuel company specializing in bioethanol production, acquired the ethanol assets of Flint Hills Resources for an undisclosed amount. This strategic move is expected to increase POET's ethanol production by 40%, reaching an annual output of 3 billion gallons. Flint Hills Resources, a US company engaged in refining, chemicals, polymers, and biofuels, owns and operates ethanol plants that will contribute to POET's expanded production capabilities.
Major companies operating in the fuel ethanol market report are Mitsubishi Chemical Corporation, Valero Energy Corporation, The Andersons Inc., Aemetis Inc., British Petroleum Company PLC, Cargill Incorporated, Archer Daniels Midland Company, LyondellBasell Industries Holdings B.V., Sasol Limited, Solvay SA, DuPont de Nemours Inc., Delta-T Corporation, Raizen S.A., Green Plains Inc., Renewable Energy Group Inc., Flint Hills Resources, CropEnergies AG, Abengoa Bioenergy, Aventine Renewable Energy Holdings Inc., Big River Resources LLC, Red Trail Energy LLC, Marquis Energy LLC, ICM Inc., Panda Energy International Inc., POET LLC, Pacific Ethanol Inc., BlueFire Renewables, Advanced BioEnergy LLC, White Energy Inc., Andersons Ethanol Group LLC, Glacial Lakes Energy LLC
North America was the largest region in the fuel ethanol market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fuel ethanol market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the fuel ethanol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The fuel ethanol market consists of sales of gasoline, flex fuel, and ethanol blended petrol. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Fuel Ethanol Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on fuel ethanol market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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 historic and forecast market growth by geography.
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