Automotive Biofuels Market Report

Automotive Biofuels Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2015 To 2022

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  • Report ID: GVR1645
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Global automotive biofuels market has been witnessing strong growth over the past few years on account of its increasing application in flex-fuel vehicles and the trend is expected to continue over the forecast period. Flex-fuel vehicles allow end-users to choose their customized biofuel-fossil fuel blend which is expected to support automotive biofuels market growth over the next seven years. Stringent government regulations favoring use of high percentage biofuel blend is expected to spur the demand for bioethanol, which in turn is expected to augment automotive biofuels market growth over the projected period. Moreover, rising fossil fuel prices coupled with increasing air pollution associated with fossil fuels is further expected to complement the market growth over the forecast period. Increasing sales of end-users including commercial and passenger vehicles is further expected to drive the market growth. In addition, increasing environmental concerns coupled with growing GHG policies is expected to boost biofuels demand over the next seven years. Increased vehicle performances coupled with strong support from vehicle manufacturers is one of the key driving factors for the market growth. However, lack of awareness towards the advantages of biofuel in automotives coupled with rising consumer concerns that biofuels may damage vehicle engines is expected to remain the restraining factor for the market.

Based on fuel types, automotive biofuels market can be segmented into bioethanol, biodiesel, cellulosic ethanol and others including biobutanol and bioDME. Biodiesel was the largest product segment in 2013 followed by bioethanol and cellulosic ethanol. Increasing application of biodiesel in commercial and passenger vehicles especially in flex-fuel vehicles is expected to be the key factor to drive biodiesel market. Government mandate to run the vehicles with minimum 10% ethanol blend is expected to spur bioethanol demand over the next seven years.

Europe was the largest regional market for automotive biofuels in 2013 followed by North America and Latin America. Stringent regulation from government bodies including EU commission made it mandatory to run vehicles with minimum 10% bioethanol (E10) blends, and this has been increasing the demand for automotive biofuels market in Europe. North America and Latin America markets are expected to witness significant growth over the forecast period on account of its increasing application in flex-fuel vehicles. Asia Pacific market is expected to be the fastest growing regional market for both automotive ethanol and biodiesel owing to increasing demand from India and China.

Some prominent key players are engaged in spreading awareness towards advantages of biofuels in automotives through branding and marketing campaigns which is expected to propel market growth over the next seven years. In addition, application of low cost feed stock including animal fats and recycled oil is expected to have a positive impact on industry participants to maintain their profits margins and fight against higher production costs. Establishing partnerships with efficient distributors and retailers is expected to drive market competitiveness. Key market players in automotive biofuels market include BlueFire Renewables, Australian Renewable Fuels Limited, Aventine Renewable Energy, Inc., Renewable Energy Group, Inc., Raizen Energia Participacoes S.A and Advanced BioFuels.


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