- Bioethanol is ethanol that is produced by processing biological matter. This biological matter consists of either waste products or specifically grown crops.
- Bioethanol could replace fossil fuel in automobile and power industries, as the emissions produced by burning of ethanol are less volatile. Consequently, numerous companies are presently investing in the bioethanol market.
Key Drivers and Restraints of Global Bioethanol Market
- Energy security has been a major concern around the world for the last few years. Countries are focusing on energy security, as the demand for energy has been increasing significantly for the last few years due to robust economic expansion, population growth, increase in income of consumers, and discovery of new uses of energy. Crude oil is still the leading natural resource preferred by the automotive industry. Asia Pacific, Europe, and North America are leading importers of crude oil globally. However, countries could use bioethanol as a substitute for crude oil, which would reduce the dependency on crude oil. Hence, increase in focus on enhancing energy security is expected to provide lucrative opportunities to the global bioethanol oil market.
- Implementation of stringent rules and regulations to minimize carbon emission and greenhouse gases is another key factor driving the bioethanol market. This has encouraged companies to focus on better, cleaner, and inexpensive fuel. Bioethanol is a cleaner and cost-effective solution.
- Increase in use of electrical vehicles is anticipated to restrain the market in the near future. Sales of e-vehicles have been increasing for the last few years, and this trend is expected to remain the same during the forecast period. This would lead to lower consumption of fossil fuel and bioethanol fuel. Thus the increase in the use of electrical vehicles is anticipated to restrain the bioethanol market in near future.
Global Bioethanol Market: Segmentation
- The global bioethanol market can be segmented based on source, fuel blend, and end-user
- In terms of source, the global bioethanol market can be classified into wheat, sugar, beet, corn, straw, wood, and other. The production of bioethanol from sugar and corn is expected to witness higher demand from end-users during the forecast period.
- Based on fuel blend, the global bioethanol market can be bifurcated into power E5, E10, E15, E70, E75, E85, and other. Demand for bioethanol is estimated to increase in the E10 segment due to higher use in the automobile industry.
- Based on end-user, the global market can be split into automobile, power generation, petrochemical, and others. The automobile segment is expected to lead the market due to regulations enacted by governments on the use 10% bioethanol in vehicles. This trend is anticipated to continue during the forecast period.
Global Bioethanol Market: Regional Segmentation
- Based on region, the global bioethanol market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global bioethanol market in 2019. The region is expected to maintain its dominance during the forecast period, owing to government regulations to lower carbon emission and the presence of a large number of manufacturing companies in the region.
- The market in Asia Pacific and Latin America is likely to expand significantly during the forecast period owing to rapid increase in investment in the manufacture of bioethanol in countries such as China, India, Brazil, and Mexico.
- Europe is estimated to be a key region of the global bioethanol market in the near future. Governments in of countries in Europe are promoting the use of bioethanol in automobiles, which in turn is anticipated to propel the market in the region during forecast period.
- The bioethanol market in Middle East & Africa is anticipated to expand at a steady pace during the forecast period. Rise in investments in the production of bio-based energy is expected to drive the bioethanol market in the region in the near future.
COVID-19 Impact on Bioethanol Market
- COVID-19 spared all across the globe within a short period of time and affected the automobile and power industries worldwide. Demand for bioethanol was hampered initially due to the lockdown. However, relaxation of the lockdown is boost the demand for bioethanol again. Therefore, COVID-19 marginally affected the global bioethanol market.
Key Players Operating in Global Bioethanol Market
- bp p.l.c.
- BlueFire Renewables, Inc
- CropEnergies AG
- POET, LLC.
- Royal Dutch Shell PLC
Global Bioethanol Market: Research Scope
Global Bioethanol Market, by Feedstock
- Sugar Beet
Global Bioethanol Market, by Fuel Blend
Global Bioethanol Market, by End-user
- Power Generation