The ethanol market is estimated to be valued at US$ 2,773.5 Mn in 2023 and is expected to exhibit a CAGR of 8.25% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethanol is a clear, colorless, flammable alcohol produced by the natural fermentation of sugars. It is primarily used as a gasoline additive to increase octane rating and reduce vehicle emissions. It is also utilized as an industrial solvent and chemical intermediate in the production of products such as plastic, paints, adhesives and cleaners. The US leads the global consumption of ethanol, majorly fueled by the federal Renewable Fuel Standard program that mandates a certain volume of renewable fuels, including ethanol, to be blended into gasoline.
Market Dynamics:
Rising usage of ethanol as a gasoline additive is expected to drive the market growth over the forecast period. The blending of ethanol with gasoline improves engine performance, reduces toxic tailpipe emissions and dependence on imported petroleum. Moreover, ethanol is also gaining traction as a renewable chemical feedstock and fuel. The chemical industry extensively utilizes ethanol in producing products like polyethylene terephthalate (PET), polystyrene, polyvinyl chloride (PVC) and solvents. Increasing demand from end-use chemical applications will further support the ethanol market expansion through 2030.
SWOT Analysis
Strength: Ethanol is a renewable source of energy and is more environmentally friendly than gasoline. It can be mass produced relatively easily from corn and other plant materials. Ethanol also burns cleaner than gasoline and produces lower emissions.
Weakness: Ethanol production requires arable land, which competes with food production. Infrastructure such as pipelines are missing for ethanol transport. Ethanol contains less energy per gallon than gasoline, so vehicles need to use more fuel to travel the same distance.
Opportunity: Governments in many countries are promoting the use of biofuels like ethanol through incentives and mandates to reduce dependence on fossil fuels. Growing concern about environmental pollution is also driving the adoption of cleaner burning ethanol fuel.
Threats: Fluctuations in corn prices directly impact ethanol production costs. Dependence on government subsidies and mandates also introduce uncertainty. Traditional oil companies are lobbying against ethanol policies to protect their interests in gasoline.
Key Takeaways
The Global Ethanol Market is expected to witness high growth, exhibiting CAGR of 8.25% over the forecast period, due to increasing global focus on reducing fossil fuel dependence and curbing vehicular emissions. North America currently dominates the ethanol market, accounting for over 35% of the global sales in 2022, owing to strong production and policies supporting ethanol blending in the region.
The Asia Pacific region is expected to be the fastest growing market for ethanol during the forecast period. Countries like China and India are promoting ethanol fuel to reduce their oil import dependence as well as curb rising air pollution. Additionally, growing middle class and motorization rate in Asia Pacific is increasing gasoline demand, thereby driving ethanol adoption.
Key players operating in the ethanol market are Archer Daniels Midland Company, POET LLC, Valero Energy Corporation, Green Plains Inc., Flint Hill Resources. Major players are investing in capacity expansion as well as developing technologies to produce ethanol more efficiently and cost effectively. Strategic partnerships across the value chain are also helping companies to strengthen their position in the market.
Read More - https://www.dailyprbulletin.com/emerging-applications-of-bio-based-ethanol-to-drive-growth/
