October 2023
Bioethanol Market (By Application: Transportation, Alcoholic Beverages, Cosmetics, Pharmaceuticals, Others; By Feedstock: Starch based, Sugar based, Cellulose-based; By Fuel Generation: First generation, Second generation, Third generation; By Blend: E5, E10, E15 to E70, E75 & E85, Others (E85 to E100)) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030
The global bioethanol market size was estimated at USD 40.8 billion in 2021 and is predicted to hit around USD 124.5 billion by 2030, poised to grow at a CAGR of 13.2% during the forecast period 2022 to 2030.
Sugar cane molasses, starch crops, agricultural leftovers, and other discarded crops can all be used to make bioethanol. Manufacturers are focused on agricultural and forest leftovers, as well as energy crops such as miscanthus, switch grass, and sugarcane bagasse, for manufacturing. It may be used as a fuel both alone and in combination with other fossil energy. Bioethanol is a biodegradable, sustainable energy source produced from biomass by sugar fermentation and a chemical process. Because of its high-octane value as well as lower greenhouse gas emissions, bioethanol is an appealing alternative to traditional gasoline sources.
Fermentation, distillation, dehydration, and other industrial procedures are used in production. Bioethanol offers a variety of features, including physical stability, homogeneity, low viscosity, poor lubricity, anti-corrosiveness, and improved antiknock properties. Bioethanol's adaptability allows it to be utilised as a feedstock in the chemical industry, a fuel for generating power, a substitute for gasoline in road transport vehicles, and so on. Furthermore, one of the keys aims of the United Nations is to slow down and minimise global warming through the Sustainable Development Goals (SDG). Biofuels are critical in this regard. Furthermore, decreasing energy supplies and a greater emphasis on renewable energy sources are projected to drive market expansion. Due to its quick production rate and natural presence in the water, technological developments and increasing R&D to create ethanol from algae are predicted to enhance market demand, cutting production costs. Furthermore, because of the cheap prices relative to diesel and gasoline, usage will increase.
The COVID-19 epidemic has affected people's everyday life and changed the ethanol market needs for manufacturing usage in several nations. Despite these short-term repercussions, fuel ethanol requirements remain a viable option for future growth, and regional councils are working hard to promote market access in specific nations. As a result of the coronavirus pandemic, which is reducing gasoline usage and driving corn-based fuel off the market, some ethanol factories in the United States have reduced or reduced output. Governments have cut fuel needs as they encourage individuals to stay at home to prevent the COVID-19 outbreak.
Advanced technologies and expanding R&D for the manufacture of ethanol from algae are expected to drive market demand due to its quicker rate of production as well as natural occurrence in the sea, which lowers production costs. Growing environmental concerns about bioethanol production drive manufacturers' propensity, while blending rules from regulatory organizations such as the EPA (Environmental Protection Agency) and ample raw material availability drive market expansion. It is not necessary to change car engines since mixing ethanol with conventional gasoline promotes market expansion.
Bioethanol is composed of natural components that enable it to perform better than fossil fuels. Furthermore, combustion outcomes are more environmentally friendly than fossil fuels due to the absence of harmful sulphur and nitrogen molecules, and increased support for ecological arrangements is propelling market expansion. Aside from that, easing prohibitions on the sale of gasoline containing a high proportion of ethanol is rising the global market. Growing government initiatives to produce and use greener fuels are driving market expansion.
Report Coverage | Details |
Market Size in 2022 |
USD 46.18 Billion |
Market Size by 2030 |
USD 124.5 Billion |
Growth Rate from 2022 to 2030 | CAGR of 13.2% |
Base Year | 2021 |
Forecast Period | 2022 to 2030 |
Segments Covered | Application, Feedstock, Fuel Generation, Blend, and Geography |
Companies Mentioned | Archer Daniels Midland (US), POET LLC (US), Green Plains (US), Valero Energy Corporation (US), Tereos (France), Raizen (Brazil), Flint Hills Resources (US), Pacific Ethanol (US), The Andersons Inc. (US), Sekab Biofuels & Chemicals AB(Sweden) |
Key Market Drivers
Benefits of bioethanol as compared to conventional fuel-
Increasing research and development activities
Key Market Challenges
Key Market Opportunities
The transport end-use market sector of the bioethanol industry accounted for the biggest market share in terms of value and volume.
Bio-ethanol is used as a fuel and gasoline additive in the automobile and transportation industries. It is employed in combination with regular gasoline to power gasoline engines in cars. Bioethanol is less costly and less harmful to the environment than petroleum. To generate mixes that burn better efficiently and emit zero carbon dioxide, a little quantity of bioethanol is combined with pure gasoline. As a consequence, bioethanol fuel mixes are mandated in several nations throughout the world. As a result of the increasing usage of bioethanol with in transportation end-use industry, its market is growing.
The E-10 category had the greatest proportion of the bioethanol industry in 2021 and is expected to increase at a CAGR of 14.2% between 2022 and 2030. Blending bio-ethanol with conventional fuels improves their renewability. E10 is a gasoline mix that combines 90% ordinary unleaded fuel and 10% ethanol. Bioethanol is indeed a low-carbon biofuel that can help with transportation decarbonization. This may be put in the majority of new automobiles and light-duty diesel engines without modifying the engine or fuel system. Bioethanol consumption in the E10 sector is predicted to climb due to greater use in the automobile industry. To reduce global greenhouse gas (GHG) emissions, several governments in Europe and other areas have enforced the use of E-10 fuel mixes in cars. As a consequence, market for E-10 gasoline blends is increasing in a variety of end-use sectors, fueling market development.
In 2021, North America had a 36% share of the global bioethanol market. Bioethanol is used as a replacement for normal gasoline due to the government's severe environmental laws. Technical advancements and the rapidly expanding vehicle sector are likely to considerably contribute to boosting demand in this area over the next 7 years.
According to the United States Department of Energy, the nation is the world's leading ethanol producer, producing over 13.9 billion gallons in 2020. Furthermore, the usage of bioethanol blends in automobiles is required in the USA and Canada. Aside from favourable biofuel regulations, the industry is being spurred forward by significant growth in corn-based production of bioethanol, increased crop yields, and a growing emphasis on energy efficiency.
Segments Covered in the Report
By Application
By Feedstock
By Fuel Generation
By Blend
By Geography
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October 2023