The bioethanol market was valued at USD 58.44 billion in 2020 and is estimated to register a 7.65% CAGR with a valuation of USD 85.71 billion by 2030 during the forecast period of 2020-2030.
Bioethanol Market is ethanol produced using the residual of natural resources like corn, sugarcane, and maize. It can be used as a substitute for petrol. Bioethanol generation largely depends on the availability of agricultural and forest leftovers like sugarcane bagasse, switchgrass, and miscanthus. It is called a green fuel as it is biodegradable. Bioethanol is produced naturally and is eco-friendly when compared to fossil fuels. Bioethanol, on combustion, does not produce toxic gases like hydrogen sulfide, NOx, and lead derivatives.
As per the reports obtained by the Energy Information Administration, vehicles on the road are estimated to reach 1.7 million by 2035. The increased number of cars will create a demand for fuel, and fuel consumption is expected to reach 21.9 million gallons per day.
R&D and the advanced technology that can produce ethanol from algae have increased the demand for ethanol since the production rate is higher and algae occur naturally, reducing production costs. Ethanol production is eco-friendly and has abundant raw materials, which is a fundamental reason for the market growth.
Bioethanol blended with petrol/ gasoline enhances fuel efficiency and reduces the carbon footprint making it environment friendly. The absence of the need to alter engines to use ethanol-blended fuel is another driver of the bioethanol market. Growing demand for greener and better powers is also boosting the bioethanol market growth.
Bioethanol market analysis puts forth two segments based on raw material and application.
The bioethanol market is spread over five regions: North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. North America currently holds about 58% of the overall market because of the extensive maize production in this region. It is estimated to remain the most significant supplier during the forecast period. Latin America is the second largest shareholder, attributed to rich soil and aerated mass land availability in Brazil and Columbia. Brazil, amongst the largest sugarcane producers, has enhanced bioethanol production in this region. With the latest fuel blending regulations and environmental reforms, Europe is estimated to grow the fastest among all parts. With the availability of large populations and agriculture in Asia-Pacific, China, Thailand, and India are estimated to contribute to the market growth.
The leading bioethanol production companies are: