Press release
Fuel Ethanol Market: Reducing Carbon Emissions and Enhancing Energy Security
Fuel ethanol is a renewable fuel made from various plant materials collectively known as biomass and even waste biomass, which can be used in existing motor engines without modification. Fuel ethanol is used as an additive to the gasoline to increase the octane content in the fuel.
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Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
North America is projected to witness growth at the highest CAGR in terms of revenue, during the forecast period.
The major companies profiled in this report include Braskem, BP PLC, Cargill Incorporated, INEOS, HPCL Biofuels Limited, Lyondell Basell Industries Holdings BV, Mitsubishi Chemical Corporation, SABIC, Sasol Limited, Solvay SA.
Other companies that are not profiled in the global fuel ethanol industry report include Archer Daniels Midland Company, KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels.
The increase in innovation and development of technology in the improvement of the efficiency of the extraction of biofuels (which includes fuel ethanol) from the biomass has positive impact on the future development of the market.
The increase in investment of major oil manufacturers in the procurement of fuel ethanol from the fuel ethanol producers to improve the gasoline octane content, to reduce the production of carbon soot and to fallow the government regulations to reduce the carbon emission are major factors driving the growth of fuel ethanol industry.
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Increase in technology to extract the ethanol fuel from non-food crops with economical cost, the government policies and initiatives to support the green industries, which can provide extra income to the farmers and also reduce the carbon emission during improper handling of the agricultural waste.
The presence of global fuel giants such as Shell, Hindustan Petroleum Corporation Limited has reached various partnership, collaboration, and acquisition in regards with the biofuel related companies in order to commercialize the biofuel, will create opportunities for the growth of the fuel ethanol market.
In addition to the above mentioned factors, these fuel ethanol can be used in the power generation sector using the existing infrastructure diesel fired power plants is another positive factor for the fuel ethanol market forecast growth.
The rapid innovation and investment of new entrants to develop alternative processing method for ethanol fuel and the presence of very few refineries to meet the on-going demand for ethanol fuel is a negative impact on the development of the fuel ethanol market growth.
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The stringent regulation of the government to the manufacturer to follow the guidelines has led to the additional investment of the ethanol fuel producer.
The low availability of fuel has limited the blending capacity of the fuel, which led to lowering of the efficiency.
On the basis of source, the global fuel ethanol market is segmented into synthetic and natural. The natural segment accounted for the largest share in 2021.
On the basis of product, the market is segmented into starch-based, sugar-based and cellulosic. The starch-based segment is expected to possess highest incremental $ opportunity till 2031.
On the basis of application, the market is bifurcated into conventional vehicles, and flexible fuel vehicles. The conventional vehicle segment was the major fuel ethanol market share contributor in 2021.
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On the basis of end-use industry, the global market is classified into automotive, oil & gas, and others. The automotive segment is expected to dominate the market till 2031
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
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