Fuel Ethanol Market Size, Share & Trends Analysis Report By Product (Starch-based, Sugar-based, Cellulosic), By Technology (Wet Mill, Dry Mill), By Application (Conventional Fuel Vehicles), By Region, And Segment Forecasts, 2024 - 2030

Fuel Ethanol Market Size, Share & Trends Analysis Report By Product (Starch-based, Sugar-based, Cellulosic), By Technology (Wet Mill, Dry Mill), By Application (Conventional Fuel Vehicles), By Region, And Segment Forecasts, 2024 - 2030

Fuel Ethanol Market Growth & Trends

The global fuel ethanol market size is expected to reach USD 144.3 billion by 2030, registering a CAGR of 5.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. Asia Pacific is estimated to witness a fast paced growth during the forecast period. China, India, and Philippines are the key countries that are considered to positively impact the industry growth in the future.

The government of India is currently drawing efforts on enhancing the use of ethyl alcohol as an automotive fuel. The National Policy on Biofuels was implemented in India in 2009, which stated that the oil manufacturing companies were required to distribute petrol blended with a minimum of 5% ethyl alcohol. Furthermore, this policy proposed a target of 20% increase in the blending rate by the end of 2017 in the country.

Growth of the automotive industry in India is another vital factor that is expected to enhance the consumption of the product over the years ahead. Government of India is focusing on making automobile sector as one of the major drivers of the ‘Make in India’ initiative. The manufacturing output of passenger vehicles is likely to reach approximately 9.4 million units by the end of 2026, as stated by the Auto Mission Plan (AMP) 2016-26.

Significant blending mandates in Australia, China, and Philippines are considered to drive the market demand during the forecast period. Australia currently has an E7 ethanol blending mandate implemented in New South Wales. Furthermore, Australia focuses on reaching a 10% biofuels mandate by the end of 2020. In China, nine provinces have proposed a 10% ethanol blends that include Jilin, Henan, Heilongjiang, Liaoning, and Anhui.

Fuel Ethanol Market Report Highlights

• The starch-based dominated the market and accounted for a market share of 75.2% in 2023. These starch-based products can reduce greenhouse emissions and help control air pollution, which has encouraged their use, driving market demand.
• Conventional fuel vehicles dominated the market and accounted for a market share of 83.2% in 2023. This can be attributed to the growing requirements for boosting the fuel economy of these vehicles in several countries, which is expected to increase product consumption in the coming years.
• The North America fuel ethanol market dominated in 2023 and accounted for a market share of 56.4%. It can be attributed to the presence of the well-established automotive industry and its strict regulations over particulate emissions.
• Asia Pacific fuel ethanol market is expected to grow at the fastest CAGR over the forecast period. It can be attributed to the rising number of investments and the various government initiatives and developments for sustainable development.

Please note The report will be delivered in 2-3 business days upon order notification.