The global bio ethanol market size is anticipated to expand at a CAGR of 14.21% during the forecast period, between 2021 and 2028 and to reach USD 97.6 billion by 2028. Growing need to reduce greenhouse gas emissions, availability at low-cost, and many countries have mandated the use of bio ethanol fuel blends are some factors driving the market.
Bio ethanol is an alcohol or ethanol made from microbial fermentation using enzymes. Enzymes are added for converting vegetable sugar into alcohol. Bio ethanol fuel is produced from natural materials, mostly from carbohydrates produced in sugar or starch-bearing plants. These plants include sugarcane, corn, sweet sorghum, and lignocellulosic biomass.
The process of bio ethanol production includes fermentation, distillation, rectification, and dehydration. Bio ethanol provides benefits such as the exhaust gases of bio ethanol are clean, burn cleaner, and helps reduce the emission of greenhouse gases.
Market Trends, Drivers, Restraints, and Opportunities
- Rising environmental concern and stringent bio-fuel policies for reducing greenhouse gas emissions are boosting the market.
- Increasing initiatives by governments to promote the use of greener fuels and expanding the production bio-ethanol drive the market.
- Growing demand for bio-ethanol blending in gasoline and increasing demand of bio ethanol in the pharmaceutical industry are fueling the market.
- The availability of bio-butanol as a substitute product and rising preference adoption of bio-butanol are restricting the market.
- Less consumption of bio ethanol due to the less mileage provided by vehicles using it as fuel is hampering the market.
- Rising demand for electric vehicles reduces the demand for fossil fuel consumption among consumers, thus hindering the market.
- Increasing consumption of bio ethanol by the aviation & transportation industry for reducing the energy consumption per liter is creating opportunities in the market.
- Growing research activities to produce bio ethanol from algae is creating lucrative opportunities in the market.
Scope of Bio Ethanol Market report
The report on the global bio ethanol market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Bio Ethanol Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Raw Materials (Corn, Wheat, Sugarcane, Industrial Beets, and Others), Types (Starch-based, Sugar-based, and Cellulose-based), Technologies (Dry Mills and Wet Mills), Fuel Blends (E5, E10, E15 to E70, E75 & E85, and Others), End-users (Transportations, Alcoholic Beverages, Cosmetics, Pharmaceuticals, Power Generation, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Abengoa, ADM, bp p.l.c., Cristalco, CropEnergies AG, GranBio, Green Plains Inc, Pannonia Bio Zrt., POET, LLC, Raízen, Sekab, Tereos, The Andersons, Inc, Valero Energy Corporation, and White Energy
Bio Ethanol Market Segment Insights
Corn segment to grow during the anticipated period
In terms of raw materials, the global bio ethanol market is segmented into corn, wheat, sugarcane, industrial beets, and others. The corn segment constituted a significant share of the market in 2020 and is anticipated to grow during the forecast period, due to growing production of corn-based bio ethanol worldwide. Corn ethanol offers approximately 39% low greenhouse gas emission and is used for cosmetic. Moreover, corn-based ethanol is blended with gasoline to create various mixtures such as E10, E15, and E85 that help reduce air pollution, which is anticipated to fuel the segment during the forecast period.
Starch-based segment is projected to hold a significant market share
On the basis of types, the market is segregated into starch-based, sugar-based, and cellulose-based. The starch-based segment is expected to hold a significant share of the market during the forecast period owing to increasing production of starch-based ethanol among manufacturers. Starch-based bio ethanol is easier to produce as compared to sugar- and cellulose-based ethanol. The starch-based ethanol is produced from corn by using dry mill technology.
Dry mills segment to grow at a significant pace in the near future
Based on technologies, the bio ethanol market is bifurcated into dry mills and wet mills. The dry segment constituted a significant share of the market in 2020 and is projected to grow in the near future. Dry milling requires less investment for producing bio ethanol than the wet mills technique. Additionally, growing adoption of corn-based bio ethanol, which uses the dry mill technology, in various industries is expected to boost the segment during the forecast period.
E10 segment to grow in the forecasted period
In terms of fuel blends, the market is classified as E5, E10, E15 to E70, E75 & E85, and others. The E10 segment constituted a significant share of the market in 2020 and is projected to grow in the near future due to rising demand among consumers. Moreover, growing initiatives to reduce the greenhouse gas emission in many countries in Europe has mandated the use of E10 fuel blend in vehicles. These factors are anticipated to propel the segment during the forecast period.
Transportations segment to hold significant market share
On the basis of end-users, the bio ethanol market is categorized as transportation, alcoholic beverages, cosmetics, pharmaceuticals, power generation, and others. The transportation segment accounted for a significant share of the market in 2020. The segment is projected to grow during the forecast period due to its increasing adoption in transportation fuel, as it costs lesser than other fuels. Bio ethanol is an eco-friendly substitute for petroleum fuel or gasoline.
Moreover, a small percent of bio ethanol is mixed with pure gasoline for preparing bio ethanol blends that burns more efficiently by producing zero carbon emission. However, many countries have mandated the use of bio ethanol. Moreover, several regulatory bodies such as Renewable Energy Directive (EU RED) and Renewable Fuel Standard (RFS) mandated the use of bio ethanol in transportation.
North America estimated to account for significant market share
Based on regions, the global bio ethanol market is fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America constituted a significant share of the market in 2020, due to the growing production and consumption of bio ethanol and abundant availability of raw material. The bio-refineries of North America are increasing the production capacity of bio ethanol due to the rising demand for motor gasoline.
Moreover, North America is the largest consumer of vehicles fuel in the world and uses different bio ethanol fuel blends for different applications. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period, due to increasing support by governments for increasing the producing bio ethanol blending up to 10%, which is expected to create opportunities for India-based sugar mills in the near future.
By Raw Materials
- Industrial Beets
By Fuel Blends
- E15 to E70
- E75 & E85
- Alcoholic Beverages
- Power Generation
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
- CropEnergies AG
- Green Plains Inc
- Pannonia Bio Zrt.
- POET, LLC
- The Andersons, Inc
- Valero Energy Corporation
- White Energy
Key players in the global bio ethanol market include Abengoa, ADM, bp p.l.c., Cristalco, CropEnergies AG, GranBio, Green Plains Inc, Pannonia Bio Zrt., POET, LLC, Raízen, Sekab, Tereos, The Andersons, Inc, Valero Energy Corporation, and White Energy. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.hana