Automotive Biofuel Market: Introduction
- Biofuels can be derived indirectly from commercial, agricultural, industrial, and household waste. They possess several advantages and can exist in three different states: solid, liquid, and gas. Bioethanol and biodiesel are the two forms of biofuel utilised in automobiles.
- Bioethanol is made by dissolving cells living organisms into sugars, which are subsequently fermented to make ethanol ‒ a type of alcohol. It can also be produced by extracting starch from plants such as maize and wheat, which is subsequently converted into sugar.
- Biodiesel is produced by combining vegetable oil or animal fat with alcohol. Rapeseed, soybeans, coconut, algae, palm oil, and jatropha plants are all good sources of biofuel. On their own, both bioethanol and biodiesel contain less energy per litre than pure petrol or diesel; however, when mixed together they improve combustion performance and reduce emissions of harmful gases such as carbon monoxide and sulfur oxide.
Global Automotive Biofuel Market: Drivers
- Demand for biofuels is being driven by a surge in fossil fuel prices and the pollution that caused due to them
- Government rules aimed at reducing vehicular emissions are encouraging the usage of automotive biofuels. Government policies that encourage the adoption of a high percentage biofuel blend are projected to boost consumption of bioethanol.
- The trend of increasing use of flex-fuel cars is likely to continue during the forecast period. End-users can choose their own biofuel-fossil fuel blend in flex-fuel vehicles, which is likely to boost the automotive biofuels market.
- Increased sales of commercial and passenger cars is predicted to propel the market. Furthermore, rise in environmental concerns combined with increasingly stringent GHG policies is projected to drive the demand for biofuel in the next few years.
Global Automotive Biofuel Market: Restraints
- The market is being restrained by a lack of information about benefits of biofuels in autos and rising customer concerns that biofuels would damage vehicle engines
- Awareness about the availability and benefits of biofuels is low in underdeveloped and less-developed countries, which is likely to restrain their widespread adoption
Global Automotive Biofuel Market: Opportunities
Increasing investments in research and development of new feedstock is also driving the global biofuels market. Governments across the world are consistently working toward reducing carbon emissions, thereby implementing policies to increase the blend percentage of biofuels. For instance, the Government of India has announced an increase in its ethanol blend percentage up to 20% by 2030. Surge in sales of passenger and commercial vehicles is expected to boost the global automotive biofuel market during the forecast period. Government policies aimed at increasing the usage of biofuels in energy and transportation sectors to provide transportation and mobility solutions are projected to offer significant opportunities for the market.
Global Automotive Biofuel Market: Challenges
- High NOx emissions and low efficiency of pure biofuel (B100) remain primary obstacles to the widespread use of biofuel in the industrial and transportation sectors. Procurement of feedstock and scaling up levels of output to be able to generate fuels on a wide scale are two prominent issues primarily faced by the automotive biofuel market.
- Most conventional engines can only run on a combination of biofuels and diesel or petrol. Thus, engine modifications are required to ensure that a vehicle can run fully on biofuels, which also hampers the market.
Global Automotive Biofuel Market: Regional Outlook
Europe is expected to account for a notable share of the global during the forecast period owing to government rules requiring automobiles to run on a minimum blend of bioethanol. The market in Europe is likely to be closely followed by North America and South America, which is anticipated to expand considerably during the forecast period due to an increase in flex-fuel vehicle applications and flex-fuel vehicles become more common in these regions. The market in Asia Pacific is projected to expand at a rapid pace owing to a rise in the demand for biofuel in India and China. Government entities, notably the European Commission, have made it essential to run vehicles with a minimum of 10% bioethanol (E10) mixes, which has increased the demand for automotive biofuels in Europe.
Key Players in Global Automotive Biofuel Market
Key market players dominating the global automotive biofuel market are:
- Banchak Petroleum
- Green Biologics Ltd.
- Algenol
- Chemtex
- Dupont
- Sino-Can energy
- LanzaTech
- Sinopec
- Shengguan Group
- TMO Renewables
- Wilmar International
- ADM
- INEOS Enterprises
- Neste
- Renewable Energy
- Aemetis
- AJ Oleo Industries
- Chemrez Technologies
- Copersucar
- Ekarat Pattana
- Gevo
- GranBio
- North Queensland Bio Energy
- Pacific Ethanol
Global Automotive Biofuel Market: Research Scope
Global Automotive Biofuel Market, by Biofuel Type
- Biodiesel
- Bioethanol
- Others
Global Automotive Biofuel Market, by Vehicle Type
- Two-Wheeled Vehicle
- Three-Wheeled Vehicle
- Passenger Cars
- Sedan
- Hatchback
- Utility Vehicles
- Light Commercial Vehicles
- Buses & Coaches
- Trucks
- Off-highway Vehicles
Global Automotive Biofuel Market, by Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Nordic Region
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC
- Turkey
- South Africa
- Rest of Middle East & Africa
