The Bioethanol Market is expected to reach a total of USD 77.85 Billion by the end of 2028 with a 5.58 % CAGR from 2023-2028
The bioethanol Market has a decent growth pace in the global market, which is mainly driven by demand for naturally fermented ethanol, which finds use in various end-user industries.SEKAB, a Sweden-based E-Technology company, has been selected to technologically assist Nordfuel’s Biorefinery in Finland which is scheduled to be functional by 2021. This facility will produce biofuel and Bioethanol from softwood residues and has pooled in an investment totaling close to EURO 150 million.
What is Bioethanol?
Bioethanol is ethyl alcohol obtained from the fermentation of various renewable sources like corn, wheat, grain sorghum & sweet sorghum, cassava, barley, potato, sugarcane, sugar beet, and cereals. Even though ethanol can also be derived as a by-product from a chemical reaction with ethylene and other petroleum products, these chemicals are non-renewable sources and, hence, it is not known as bioethanol. It is mainly employed as a fuel alternative for petroleum fuel. Bioethanol fuel is eco-friendly that has comparatively lower emissions than coal and gasoline which harm the environment. Apart from fuel, bioethanol is employed in alcoholic beverages, pharmaceuticals, and cosmetics. Food crops are used to produce bioethanol; nevertheless, with the introduction of second & third-generation biofuel technologies, the dependence on food crops for producing bioethanol has reduced. The manufacturers' focus is more on utilizing agricultural & forest residues and energy crops like miscanthus, switchgrass, and sugar cane bagasse for producing bioethanol.
Bioethanol is a kind of alcohol produced by fermentation, generally from carbohydrates produced in sugar or starch crops like corn, sugarcane, or sweet sorghum. Cellulosic biomass, obtained from non-food sources, like trees and grasses, is also being developed as a feedstock for ethanol production.
Bioethanol Market Segmentation:
Starch-Based
Sugar-Based
Cellulose-Based
Among the mentioned feedstock types, the starch-based feedstock segment is the largest and is expected to have the fastest growth rate in the forecast as mentioned earlier period. The growth is mainly attributed to the fact that starch-based Bioethanol uses barley, wheat, and corn as raw products, which is preferred by many as they are more organic.
Transportation
Pharmaceuticals
Cosmetics
Alcoholic Beverages
Of the mentioned, the transportation segment is the fastest growing and mainly due to the increasing usage of fuels in automobiles.
The increased usage of transportation fuels has driven the demand for various blending types. Of the mentioned, the E blend segment is the fastest growing and is expected to lead the global market by the end of the projected forecast period.
REPORT METRIC |
DETAILS |
Market Size Available |
2022-2028 |
Base Year |
2022 |
Forecast Period |
2023-2028 |
CAGR |
5.58% |
Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
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Market Leaders Profiled |
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Bioethanol Market Drivers:
Bioethanol is employed in fuel blending, alcoholic & non-alcoholic beverages, food aroma, cosmetics, pharmaceuticals, inks & paints, and power generation. The global bioethanol market expansion is mainly dependent on the transportation fuel market extension as transportation fuel accounts for around 90% of the total bioethanol business. Rising population, increasing urbanization, and ever-rising call for energy together with increasing environmental worries are some of the factors expected to drive bioethanol consumption at a holistic level. Besides that, a low carbon footprint when compared to its traditional counterparts, and government support at the policy level and in the type of tariffs are the other two factors estimated to promote the application of bioethanol as a transport fuel across various regions. Different rules for clean air and deduction in greenhouse gases, etc. are also estimated to play a significant role in fuelling the market. The global bioethanol market is expected to raise highly over the outlook period due to the increasing call for a cleaner and renewable source of energy. The factors driving the global bioethanol market are an increase in environmental worries that results in the inclination of manufacturers towards bioethanol production, blending mandates by regulatory bodies like EPA (Environmental Protection Agency), and more raw material availability. Furthermore, the development of second & third-generation biofuels is estimated to create innumerable expansion opportunities in the global bioethanol market.
Rising competition from other oxygenates or octane enhancers and the increasing call for electric & hybrid vehicles are the factors that are probable to restrain the global bioethanol market expansion.
Research and development, product trials, market approach, effective use of government initiatives, etc. will prove to be useful measures for improving profitability in the bioethanol industry. In order to the efforts of global thought leaders, environmentalists, and different stakeholders working to promote the alteration of traditional oil with bioethanol, major opportunities lie ahead for market participants to create the marketability of their product.
More investment prices of cellulosic ethanol and concerns about the employment of food crops for fuel production are estimated to hamper the global bioethanol market expansion during the foreseen period.
Market Segmentation based on the Region:
a. Middle East
b. Africa
North America is one of the biggest bioethanol markets and will raise highly over the foreseen period relating to government and environmental rules, particularly in the US. Furthermore, technological developments and the quickly developing automotive business is estimated to contribute highly over the next seven years towards increasing consumption in this region. Latin America bioethanol market will offer an ocean of opportunity for the bioethanol market due to the availability of arable land and high fertility in the soil, particularly in Brazil and Columbia. High production of sugar cane in Brazil is probable to escalate the creation of these fuels in this region.
Europe bioethanol market is estimated to rise over the forecast period on account of the environment and government rules from the European Union, including the Biofuels Directive and compulsory blending obligations of biofuel to fossil fuels in Germany. An increasing call for energy self-sufficiency from European countries involving France, Germany, Sweden, Netherlands, Belgium, and Spain will boost the employment of this biofuel in this region. The Asia Pacific bioethanol market is estimated to offer ample opportunities for business on account of the huge population and availability of fertile land in India, Thailand, and China. Furthermore, India is an agricultural country estimated to contribute highly towards the advancement of this fuel. MEA is further expected to aid demand expansion as a result of a vast agricultural area in African countries and cheap labor expenses.
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