Bioethanol Market By Type (Corn-based Ethanol, Sugarcane-based Ethanol, Others) By Blend (E10, E15 to E70, E75 to E85) By Application (Transportation, Alcoholic Beverages, Pharmaceuticals, Others) and Region - Global Forecast to 2026
31 January 2018
The global bioethanol market was valued at US$ 57,650 million in 2017 and is expected to register a CAGR of over 5%. The report offers in-depth insights, revenue details, and other vital information regarding the global bioethanol market and the various trends, drivers, restraints, opportunities, and threats in the target market till 2026. The report also offers insightful and detailed information regarding the various key players operating in the global bioethanol market, and their financials, apart from strategies, acquisitions & mergers, and market footprint. The global bioethanol market is segmented on the basis of type, blend, application, and region.
Bioethanol is a biodegradable, renewable energy resource that 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. Bioethanol is used in transportation, alcoholic beverages, and pharmaceuticals.
Global Bioethanol Market Dynamics:
Growing awareness regarding usage of biofuels is expected to drive the bioethanol market over the forecast period. Biofuels are renewable energy resource that is derived from the crops waste, manure, and plants grown for fuel. Most of the fossil fuels may expire someday were as biofuels are renewable fuel that can be generated from plants and these plants can be replanted again and again for fuel generation.
Rising awareness regarding the greenhouse gas emissions is expected to have a positive impact on the bioethanol market over the forecast period. Combustion emission is lower for bioethanol than that of fossil fuels. Ethanol is mixed with gasoline, the mixture burns cleaner and has higher octane levels than that of pure gasoline.
However, production cost and environmental effects during production are primary factors expected to hamper the growth of the global bioethanol market. Bioethanol manufacture has long process from growing plants, fermenting, and distilling. The entire production process is costly compared to fossil fuel extraction. Growing these crops require water, countries that do not receive sufficient rainfall will lead to rising in production cost of the ethanol fuel.
Various government policies across the world and growing agribusiness have boosted the production of ethanol. In the US, the government offered subsidies under Energy Policy Act 1978 to boost the farm income and stabilize the energy security. Later Clean Air Act was passed by the government in which the vendors of gasoline were ordered to oxygenate their products. Hence the favorable government policies and mandates for production of bioethanol is expected to create high potential revenue opportunities for existing as well as new entrants in the target market.
Market analysis by bioethanol type:
On the basis of type segmentation, corn-based bioethanol segment is expected to contribute major revenue share and expected to maintain its dominance over the forecast period. Corn-based bioethanol witness highest CAGR over 5.0%, owing to low prices and large availability of corn. Governments of North America and Latin America provide subsidies for corn production to promote corn production.
Market analysis by blend:
On the basis of blend segmentation, E15 to E70 segment is estimated to contribute major revenue share and expected to maintain its dominance over the forecast period. US government passed a regulation under Energy Independence and Security Act, which mandates consumption of renewable fuels in transportation sector. E70 blend is used as winter blend in US and Sweden as transportation fuel during cold weather to avoid starting problems of vehicles. While, the Brazilian government made mandated of blending ethanol with gasoline between 10% to 22%.
Market analysis by application:
Among all the application segments, transportation segment is expected to register highest CAGR over 5.5%. Bioethanol is used to blend the petrol that is used fuel in transportation. Ethanol burns clean and protects the engines, and often extends engine maintenance, boosting octane, and release low greenhouse gas emissions compared to pure gasoline.
Government initiatives to promote the use of bioethanol as fuel in transportation is expected to fuel the market growth over the forecast period. Bioethanol for Sustainable Transport (BEST) was a four-year plan started by European Union for promoting bioethanol as vehicle fuel in Europe.
Analysis by Region:
North America market is expected to dominate the global bioethanol market, and it accounts for largest market revenue over US$ 24,500 million in 2017 as compared to that of markets in other regions. Dominance by North America market is expected to continue over the forecast period with comparatively higher CAGR than that of other regions, owing to higher demand among consumers in countries in the region. Presence of leading bioethanol manufacturers in this region and increasing consumers of bioethanol in this region is expected to fuel the market growth over the forecast period.
North America is the largest producer and consumer of bioethanol. The renewable fuel standard (RFS) program started by the US government under Energy Policy Act of 2005 to reduce the greenhouse gas emission is anticipated to fuel the growth of the market over the forecast
The governments in the region have mandated the blending of ethanol with petrol. Blending oxygenates the fuel mixture so that it burns completely and reduce the harmful emissions. The most common blend used in the region is 10% ethanol with 90% of petrol.
In 2017, Latin America accounted for the second largest revenue share contribution to the global bioethanol market. Revenue from the bioethanol market in Brazil is expected to expand significantly over the forecast period, owing to increasing number of industries engaged in ethanol manufacturing, and abundant availability of sugarcane in the country.
Brazil is a major exporter of bioethanol, which is further expected to drive market growth. According to the Economic Commission for Latin America and the Caribbean (ECLAC), Brazil is the second largest producer of bioethanol. Most of the vehicles in Brazil are ran on ethanol fuel. Bioethanol accounts about 40% of the fuel consumed in the country.
The Asia Pacific is expected to be the fastest growing region in the global bioethanol market. China has been one of the largest importers of bioethanol in the Asia Pacific region and is expected to continue this trend over the forecast period. This can be attributed to rapidly growing transportation industry and rising demand for bioethanol for alcoholic beverages in the country.
Global bioethanol segmentation, by type:
- Corn-based Ethanol
- Sugarcane-based Ethanol
Global bioethanol segmentation, by blend:
- E15 to E70
- E75 to E85
Global bioethanol segmentation, by application:
- Alcoholic Beverages
Global bioethanol segmentation, by region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Archer Daniels Midland Company
- POET LLC
- Green Plains
- Valero Energy Corporation
- Flint Hills Resource
- Abengoa Bioenergy SA
- Royal Dutch Shell plc
- Pacific Ethanol, Inc.
- The Andersons
- 1.0 Chapter 1
- 1.1 Preface
- 1.2 Assumptions
- 1.3 Abbreviations
- 2.1 Report Description
- 2.1.1 Market Definition and Scope
- 2.2 Executive Summary
- 2.2.1 Market Snapshot, By Type
- 2.2.2 Market Snapshot, By Blend
- 2.2.3 Market Snapshot, By Application
- 2.2.4 Market Snapshot, By Region
- 2.2.5 Opportunity Map Analysis
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