Bioethanol Market is Expected to Witness High Growth Owing to Increasing Demand for Clean Fuels

 

Bioethanol is bio-fuel produced by fermentation of sugar and starch crops including corn, sugarcane, wheat and sorghum. It is mainly used as biofuel in transport fuels such as gasoline. The key advantages of bioethanol are that it is renewable, reduces greenhouse emissions and relies less on petroleum. With rising concerns regarding vehicular emissions and climate change, many countries are promoting greater use of clean fuels such as bioethanol. The growing need for clean, affordable and sustainable fuel alternatives is further driving the demand for bioethanol.

The Global bioethanol market is estimated to be valued at US$ 13.7 Billion in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the bioethanol market are CropEnergies, British Sugar, New Generation Biofuels Holdings, Inc., Vivergo Fuels Limited, Butalco GmbH, and Global Green SA. CropEnergies is one of the largest producer of bioethanol in Europe. British Sugar is a leading sugar producer and exporter in the UK.

The key opportunities in the bioethanol market include expanding production capacities, developing advanced technologies to produce cellulosic ethanol, and greater blending of bioethanol in gasoline. Many countries are setting higher blending mandates to reduce dependence on fossil fuels.

Globally, the bioethanol market is witnessing rising investments and capacity additions. The US and Brazil are the largest producers currently. However, European countries are also promoting greater adoption of biofuels to meet climate targets. Countries like India and China are also expected to emerge as major markets in future.

Market Drivers

Increasing blending mandates by governments – Several countries have mandated higher blending of bioethanol with gasoline to reduce emissions. For example, the US and Brazil have blending mandates of 10-15%. This is a major driver of growth.

Growing need for cleaner transport fuels – With stringent emission norms and sustainability becoming a priority, there is a need to shift from petrol/diesel to cleaner alternatives like bioethanol in the transport sector. This is expected to drive higher demand.

Market Restraints

High production costs – Cellulosic ethanol requires advanced technologies which increase costs compared to corn-based ethanol currently. This restrains market growth.

Availability of feedstock – Sustained production requires assured supply of feedstock crops like corn, sugarcane at affordable prices. Any shortages can impact the bioethanol industry.


Segment Analysis
The bioethanol market is segmented by feedstock into sugarcane, corn, wheat, and others. The corn segment dominates the market since it is the major feedstock used for producing bioethanol in countries like the US. Corn contributes over 85% of the total bioethanol production in the US. The sugarcane segment holds the second position as Brazil is the largest producer of sugarcane-based bioethanol.

Global Analysis
The North American region currently dominates the global bioethanol market and is expected to continue its dominance during the forecast period as well. Countries like the US and Canada are the major producers of bioethanol, primarily from corn. The Asia Pacific region is anticipated to grow at the fastest rate during the forecast period. Countries like India, China, Indonesia are focusing on expanding their bioethanol production capacity. Brazil dominates the South American bioethanol market due to its vast sugarcane cultivation. Brazil is the second-largest producer of bioethanol globally, mainly produced from sugarcane. The EU region is also emerging as a prominent producer with countries like Germany, France significantly contributing to the regional market.

Comments

Post a Comment

Popular posts from this blog

Blowing Agents in Action: Enhancing Sustainability and Performance in Modern Engineering

Image
  Blowing Agents: Unleashing the Power of Expansion in Materials Blowing agents are a remarkable class of chemical compounds that play a pivotal role in various industries, revolutionizing the way materials are manufactured and utilized. These agents are essential additives employed to induce controlled expansion in materials, leading to the creation of diverse products with unique properties and applications. From lightweight foams in packaging to insulating materials and beyond, blowing agents have become indispensable in modern manufacturing processes. 1. Understanding Blowing Agents: Blowing agents are substances designed to generate gas when subjected to specific conditions, such as heat, pressure, or chemical reactions. The produced gas forms bubbles within the material matrix, resulting in a cellular structure with reduced density. This cellular structure not only imparts lightness to the material but also enhances its thermal and acoustic insulation properties. 2. Versatil...
Read more

Multi-Depth Corrugated Box Market Trends 2023 - Industry Insights, Competition Analysis, Growth Rate and Forecast by 2030

Image
  A multi-depth corrugated box is a type of shipping or storage box that has the ability to be adjusted to different depths, allowing for greater flexibility and efficiency in packaging and shipping. This type of box is made of corrugated cardboard, which consists of a fluted layer sandwiched between two flat layers. Multi-depth corrugated boxes are typically made with a series of perforations or scores that allow the box to be easily adjusted to different depths. For example, a box with a height of 10 inches might have perforations at 2-inch intervals, allowing it to be adjusted to a depth of 2 inches, 4 inches, 6 inches, 8 inches, or 10 inches, depending on the specific needs of the user. The advantages of using multi-depth corrugated boxes include reduced inventory costs, improved packing efficiency, and better use of storage space. By using a single box that can be adjusted to different depths, businesses can reduce the number of different box sizes they need to stock and simp...
Read more

Acid Pickling Roll Market Growth Accelerated by Adoption of Anti-Rust Acid Pickle Rolls

Image
  Acid pickle rolls help remove scale, rust or oxide films from metallic surfaces and accurately prepare them for subsequent processing such as coating or plating to improve corrosion resistance. The demand for acid pickling rolls have increased in various end-use industries such as automotive, oil & gas, marine, energy, and general engineering to enhance product durability. The global Acid Pickling Roll Market is estimated to be valued at US$ 1,167 Mn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market key trends: The growing adoption of anti-rust acid pickling rolls to increase product lifespan across various corrosion prone industrial applications has accelerated the growth of the acid pickling roll market. Acid pickling rolls equipped with advanced rust removal properties efficiently prepare metallic surfaces and ensure long term corrosion protection. Major mar...
Read more