Bioethanol Market Report

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

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  • Report ID: GVR2237
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Global bioethanol market is expected to grow significantly over the forecast period owing to the rising demand for a cleaner and renewable source of energy. Bioethanol is a biodegradable, renewable energy resource which is produced from biomass through sugar fermentation and chemical process. Bioethanol forms an attractive alternative to conventional fuel sources owing to its high octane value and lower greenhouse gas emissions. Moreover, depleting conventional resources of energy and increasing focus on renewable sources of energy is expected to augment market growth over the next seven years. Furthermore, technological advancements and increasing R&D to produce ethanol from algae is expected to boost the demand owing to its faster rate of production and natural occurrence in sea which will reduce the cost of production. In addition, the consumption is likely to increase on account of low prices in comparison to other fuels including diesel and petrol. However, large arable land is required for crop cultivation that is used for producing ethanol which is expected to restrict market growth over the projected period. Moreover, farmer’s willingness to switch to fuel crops from food crops is likely to cause shortage of crops for food across the globe.

Bioethanol can be used as a transportation fuel, fuel for power generation, feedstock in chemical industry, fuel for fuel cells and in cogeneration systems, in cosmetics industry and in manufacturing processes owing to its clean burning and easy availability. Rapid growth in the transport and automotive sector all over the globe is likely to propel the consumption for these fuels over the next seven years. Fluctuating oil prices and rising dependence on conventional sources will drive the bioethanol market growth over the forecast period. Moreover, increasing consumption of power is likely to spur the use of ethanol in power plants and chemical industry. In addition, government and environmental regulations from European Union and the U.S. will surge the market growth over the projected period. Rapidly growing cosmetic industry is further predicted to propel the growth in the near future. Furthermore, it can be blended with petrol or diesel which makes it environment friendly and improves the efficiency of the fuel owing to high octane value, thus leading to energy security. Blending ethanol with conventional fuel does not require change of vehicle engines which will spur the demand for bioethanol as a fuel over the projected period. Encouraging the use of this renewable resource is likely to impact the agricultural sector and rural economy on account of higher demand for fuel crops.

North America is one of the largest markets for bioethanol and will grow substantially over the forecast period pertaining to government and environmental regulations particularly in the U.S. Moreover, technological advancements and rapidly growing automotive industry is predicted to contribute significantly over the next seven years towards rising consumption in this region. Latin America will provide an ocean of opportunity for bioethanol market owing to the availability of arable land and high soil fertility particularly in Brazil and Columbia. High production of sugar cane in Brazil is likely to increase the production of these fuels in this region. Europe is predicted to grow over the forecast period on account of environment and government regulations from the European Union including Biofuels Directive and mandatory blending obligations of biofuel to fossil fuels in Germany. Rising demand for energy self-sufficiency from European countries including France, Germany, Sweden, Netherlands, Belgium and Spain will augment the use of this biofuel in this region. Moreover, rising import bills as a result of oil imports is predicted to encourage countries to switch to this cleaner and cheaper fuel alternative in the near future. Asia Pacific is expected to provide ample of opportunities for bioethanol market on account of large population and availability of fertile land in India, Thailand and China. Moreover, India being an agricultural country is predicted to contribute significantly towards the development of this fuel. MEA is further expected to aid demand growth as a result of large agricultural area in African countries and cheap labour costs.

Global key players for bioethanol market include CropEnergies, British Sugar, New Generation Biofuels Holdings, Inc., Vivergo Fuels Limited, Butalco GmbH, Global Green SA, St1 Biofuels Oy, Abengoa Bioenergy, Honeywell, Beckons Industries Ltd., Praj Industries Ltd., Green Future Innovations, Inc., ADM, Aventine Renewable Energy Holdings, Inc., Brasil Ecodiesel Ind Com Biocom Oleos S.A. and MetGen Oy.


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