Ethanol Market: Factor Analysis, Region, Techniques, Research Methodology, Market Dynamics by 2025

Market Scenario:

Ethanol is a major alcoholic beverage that is found in spirits, ale, cider, wine and beer. Rise in consumption of alcohol in North America as well as Europe is anticipated to fuel the market growth over the future years. Varying lifestyle along with rise in demand of western culture in Asia-Pacific region is expected to propel the demand of alcohol in this region. This factor is projected to positively influence the growth of ethanol market over the forecast years.

Factors such as rising demand from end-user industries such as food & beverage and bio-fuel are also propelling this market growth. The rise in automotive industry is estimated to be the key driving factor for market growth over the future years. Ethanol is extensively used as either fuel or fuel additive in the automobile sector. Rise in disposable income along with population expansion is estimated to fuel the automotive sales as well as increase ethanol demand. High environmental concerns are expected to positively impact the demand for ethanol as fuel additive. The major countries have re-modeled their regulations so as to promote the usage of ethanol as bio-fuel in automotive sector.

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Key Players:

The major players in the global ethanol market include:
• Diago
• The Andersons Inc.
• United Breweries
• AB Miller
• Advanced Bioenergy LLC Pure Energy Inc Kirin British Petroleum
• Cargill Corporation
• Archer Daniels Midland Company
• VeraSun Renewable Energy
• Stake Technology
• Alternative Energy Sources
• Heineken
• Aventine renewable Energy
• Pernod Richard

Various technical innovations coupled with low cost feedstock are anticipated to fuel global market growth. Industrial methylated spirits obtained by adding together methanol to ethanol finds its usage as a solvent in chemical industries as well as in domestic burners for cooking and heating purpose. The ethanol intake along with denatured alcohol is fatal as well as soporific in nature. These properties are projected to dampen the market growth and present challenges to industry participants. Across the world in the year 2007, the share of automotive needing liquid fuel was observed to be 100% and it is expected to decrease by more than 3% by 2020. The budding usage of hybrid fuel engine is likely to challenge the growth of this market over the forecast years.

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Market Segments:

Based upon application, the global ethanol market was segmented into communication, transportation, health & hygiene, food safety, environment, textiles, recreation, housing, bio-medical, agriculture and others. The major demand for ethanol is raised from transportation application. Depending upon source, the ethanol market is classified into rapeseed, corn starch, rice, sugarcane, wheat, and soy bean. The U.S. utilizes corn starch at a foremost rate and South America use sugarcane as feedstock. The European ethanol market is obtained from rapeseed crop.

The rising demand from fuel cells application is anticipated to drive the ethanol market growth over the future years. The commercial fuel cells function on methanol, reformed natural gas as well as hydrogen. As ethanol possesses properties such as low cost & toxicity, wide availability and high purity, it comes across as an alternative. The extensive research and development is being undertaken on thermally integrated systems, auto-thermal reforming systems, as well as direct-ethanol fuel cells for commercial feasibility.

The North American market comes across as the chief regional market due to the usage of ethanol as fuel. The rigid government regulations fuelling the usage of bio-fuel to reduce environment pollution are projected to drive ethanol market growth in the region. However, the Asia-Pacific market is anticipated to grow at a high rate due to high demand from automotive industry. The increasing environmental concerns coupled with maturing oil & gas wells are expected to propel regional market growth.

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