Bioethanol Market Outlook 2031
The global bioethanol market size was USD 78.24 Billion in 2022 and is projected to reach USD 139.07 Billion by 2031 expand at a high CAGR 6.6% during the forecast period, between 2023 - 2031. Bioethanol is a clear, colorless liquid that degrades naturally and is regarded as a green fuel. Bioethanol, a gasoline substitute, is a biofuel derived from natural sources such as maize, sugarcane, and corn, which can be used as an alternative source of petroleum.
Bioethanol is mainly produced from food crops but the introduction of second and third-generation biofuel technology, the reliance on food crops for bioethanol production are significantly reduced. The primary focus of manufacturers is on generating bioethanol from forest and agricultural leftovers as well as energy crops such as switchgrass, miscanthus, and sugarcane bagasse.
As bioethanol is entirely composed of biological products, its combustion produces cleaner emissions. With this advantage, bioethanol is mostly used in the automobile sector as an octane booster to reduce engine knocking. The hydrolysis and sugar fermentation processes can be used to make bioethanol from biomass.
Bioethanol Market Trends, Drivers, Restraints, and Opportunities:
- Increasing environmental concerns and strict government regulations to use eco-friendly components have led to manufacturers' preference for bioethanol production. This is a primary factor influencing the market growth.
- Rising demand for bio-ethanol blending in gasoline as well as favorable government initiatives to create and use greener fuels are propelling the market forward.
- Advanced technology and increased R&D for the generation of ethanol from algae and expansion of research are expected to boost the market demand.
- Heavy investment cost of cellulosic ethanol as well as rising concerns over the usage of food crops for fuel generation are projected to hinder the expansion of the market.
- Increasing switch to other alternative components such as bio-butanol and less mileage delivered of gas are hampering the market growth.
- Advancement of second and third-generation biofuels is projected to open up new opportunities for market expansion.
Scope of The Bioethanol Market Report:
The report on the global bioethanol market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Bioethanol Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 - 2021
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Forecast Period
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2023–2031
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Segmentation
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Fuel Blends (E5, E10, E15 to E70, E70 to E75, E85, and Others), Feedstock (Cellulose-based, Corn-based, Starch-based, Sugar-based, and Others), Raw Materials (Corn, Sugarcane, Wheat, and Others), End-Users (Alcoholic Beverages, Cosmetics, Paint & Coatings, Pharmaceuticals, Transportation, and Others)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered
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Archer Daniels Midland; Raizen; Tereos; Pannonia Bio; Valero Energy Corporation; CropEnergies AG; Green Plains; The Andersons Inc.; POET LLC; and Sekab Biofuels & Chemicals AB
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Bioethanol Market Segment Insights:
E10 segment is projected to hold significant market share
Based on fuel blends, the bioethanol market can be segmented into E5, E10, E15 to E70, E70 to E75, E85, and others. The E10 segment is projected to hold significant market share during the forecast period as many nations in Europe and other regions have enforced the use of E10 fuel blends in the automobiles industry.
The deployment of the fuel blend type helps in reducing GHG emissions of the fuel. As a result, the segment is rapidly expanding at a robust growth rate in the coming years.
Corn-based segment is anticipated to account for a substantial share
On the basis of feedstock, the market is fragmented into cellulose-based, corn-based, starch-based, sugar-based, and others. The corn-based segment is anticipated to account for a substantial share of the market due to the easy availability of corn and maize as well as the development of efficient technologies around the world. Grain-based bioethanol is mostly produced through the dry milling process.
Sugarcane segment to register a healthy growth rate
In terms of raw materials, the bioethanol market is segregated into corn, sugarcane, wheat, and others. The sugarcane segment is projected to register a healthy growth rate in the coming years. Sugarcane mills are quickly becoming one of the world's most important sources of bioethanol, which is increasingly derived from molasses.
Demand is being driven by disinfecting and coalescing properties. The introduction of low-carbon fuel regulations is likely to accelerate the use of molasses as a feedstock for bioethanol production. Ethanol generated from sugarcane is a more environmentally friendly fuel, with direct emissions that are up to 90% lower than those of diesel or gasoline.
Transportation segment to expand at a robust pace
Based on end-users, the market is divided into alcoholic beverages, cosmetics, paint & coatings, pharmaceuticals, transportation, and others. The transportation segment is anticipated to expand at a robust pace during the projected timeline. Bioethanol is a less expensive and more ecologically friendly alternative compared to gasoline or petroleum-fueled vehicles.
A little amount of bioethanol is blended with pure gasoline to create bioethanol blends, which burn more effectively and emit no carbon dioxide. This expands the usage of bioethanol in the transportation industry; so, bioethanol fuel are in high demand among many nations worldwide.
North America is expected to dominate the market
In terms of regions, the bioethanol market is classified as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. North America is expected to dominate the market in the coming years owing to the rising demand for large-scale production of the component and wide application of the products across several industries.
The region is one of the world's largest consumers of automobile fuel and employs a variety of ethanol fuel blends. Countries such as the United States and Canada have made greater bioethanol blends in automobiles mandatory. The United States is also one of the world's leading producers of bioethanol.
Segments
By Fuel Blends
- E5
- E10
- E15 to E70
- E70 to E75
- E85
- Others
By Feedstock
- Cellulose-based
- Corn-based
- Starch-based
- Sugar-based
- Others
By Raw Materials
- Corn
- Sugarcane
- Wheat
- Others
By End-Users
- Alcoholic Beverages
- Cosmetics
- Paint & Coatings
- Pharmaceuticals
- Transportation
- Others
By Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
By Key Players
Competitive Landscape
Key players in the global bioethanol market are Archer Daniels Midland; Raizen; Tereos; Pannonia Bio; Valero Energy Corporation; CropEnergies AG; Green Plains; The Andersons Inc.; POET LLC; and Sekab Biofuels & Chemicals AB. These players are widely engaged in various business development activities such as collaborations, agreements, mergers & acquisitions, production capacity expansion, new product launches, and partnerships to increase their market share.
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