Bio-Alcohol Market size was valued at USD 55.9 billion in 2022. The Bio-Alcohol industry is projected to grow from USD 60.81 Billion in 2023 to USD 119.41 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2023 - 2032). The fluctuating price of crude oil and the rise in scarcity of non-renewable resources are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The rising demand for biofuels drives market CAGR for the Bio-Alcohol market. With increasing concerns over climate change and the depletion of fossil fuels, there has been a growing demand for renewable energy sources. Biofuels from organic matter such as crops or waste materials have emerged as a viable alternative to traditional fossil fuels. Bio-alcohol is a biofuel used in various transportation, heating, and power generation applications. The rising demand for biofuels is expected to drive the growth of the bio-alcohol market.
Additionally, In recent years, there have been significant technological advancements in the production of bio-alcohol, which have improved the efficiency and cost-effectiveness of the process. For example, genetically modified microorganisms have enabled bio-alcohol production from non-food sources such as waste materials and cellulose. Additionally, the development of new fermentation processes has increased the yield of bio-alcohol production. These technological advancements are expected to drive the growth of the bio-alcohol market by making bio-alcohol production more efficient and cost-effective.
Many governments worldwide have made new policies and regulations to promote the use of biofuels to reduce greenhouse gas emissions and achieve energy security. Different regions are binding targets for using renewable energy sources in transport, leading to a significant increase in biofuel demand. Such initiatives are expected to boost bio-alcohol demand and grow the market.
For instance, the bio-alcohol market has seen significant growth in recent years, and this trend is expected to drive the Bio-Alcohol market revenue.
The Bio-Alcohol Market segmentation, based on application, includes infrastructure, transportation, medical, power generation, and others. The transportation segment generated the most revenue. Bio-alcohols are used as fuel additives in gasoline and diesel engines to reduce emissions and improve fuel efficiency. In addition, bio-alcohols can be used as a standalone fuel in flex-fuel vehicles and as a blend with gasoline in conventional vehicles.
The Bio-Alcohol Market segmentation, based on type, includes bioethanol, bioethanol, biobutanol, and BDO. The bioethanol category generated the most revenue. Ethanol is the most commonly used bio-alcohol, accounting for most of the market share. Ethanol is used as a fuel additive in gasoline, as a solvent in the pharmaceuticals and personal care industries, and as a beverage.
Figure 1: Bio-Alcohol Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Bio-Alcohol market area will dominate this market. The demand for bio-alcohol in North America is driven by the government's focus on reducing greenhouse gas emissions and promoting the use of renewable fuels. In addition, the increasing demand for biofuels in the transportation sector, especially in the United States, is expected to drive the growth of the bio-alcohol market in the region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BIO-ALCOHOL MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Bio-Alcohol market accounts for the second largest market share in the environmental market. The European Union has set targets to increase the share of renewable energy in the transportation sector, and biofuels, including bio-alcohol, are expected to play a significant role in achieving these targets. In addition, the region has a well-developed infrastructure for producing and distributing biofuels, which further supports the market's growth. Further, the German Bio-Alcohol market held the largest market share, and the UK Bio-Alcohol market was the fastest-growing market in the European region.
The Asia-Pacific Bio-Alcohol Market is expected to witness significant growth in the Bio-Alcohol market. The increasing need for alternative fuels and the growing awareness of the benefits of renewable energy drive the demand for bio-alcohol in the region. The region is also home to several government initiatives aimed at promoting the use of biofuels, which is expected to support the market growth further. Moreover, China’s Bio-Alcohol market held the largest market share, and the Indian Bio-Alcohol market was the fastest-growing market in the Asia-Pacific region.
For instance, the increasing concerns over environmental degradation and the need for efficient Bio-Alcohol solutions. The expansion and growth of the industry have been aided due to the increasing government focus on environmental protection and sustainable development.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Bio-Alcohol market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Bio-Alcohol industry must offer cost-effective items to monitor and control environmental pollution and natural disasters.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Bio-Alcohol industry to benefit clients and increase the market sector. The Bio-Alcohol industry has offered some of the most significant medical advantages in recent years. Major players in the Bio-Alcohol market, including Fulcrum Bioenergy Inc., BASF SE, E.I. du Pont de Nemours & Co., Cool Planet Energy Solutions, Mitsubishi Chemical Corporation, Harvest Power Inc., Mascoma LLC, Myriant Corporation, others, are attempting to increase market demand by investing in research and development operations.
TVS Motor Company, also known as TVS, founded in 1978, located in Chennai, Tamil Nadu, India, is an Indian international motorcycle manufacturer, the third largest motorcycle company in terms of revenue. TVS is the flagship of TVS Group, and its logo features a red horse. TVS is a company in the transportation business with a large fleet of trucks and buses under Southern Roadways. It was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle and the first to indigenously produce a four-stroke motorcycle. In July 2019, TVS India unveiled the TVS Apache RTR 200 Fi E100, the nation's first-ever ethanol-powered motorbike, which can run on flex and pure ethanol.
Badische Anilin und Soda-Fabrik also known as BASF SE, founded in 1865, located in Ludwigshafen, Germany, is a European international company and the largest chemical producer in the world. In July 2021, BASF entered an agreement with Eni for a joint research and development initiative to cut down the CO2 footprint within the transportation sector. The agreement aims to produce cutting-edge technology that will help develop high-quality bio-propanol using glycerin. The bio-propanol obtained from this advanced technology will easily become the ideal biofuel for producing gasoline. Thanks to bio-propanol's impressive physicochemical characteristics and extremely high- octane number, it will be a vital component for preparing premium gasoline.Key Companies in the Bio-Alcohol market include
Fulcrum Bioenergy Inc.
E.I. du Pont de Nemours & Co.
Mitsubishi Chemical Corporation
Harvest Power Inc.
Mascoma LLC
Myriant Corporation
In September 2021: Maersk invested in Waste Fuel, a Californian start-up working on converting waste into green bio-methanol, renewable natural gas, and sustainable aviation fuel. This investment should allow Waste Fuel to create biorefineries that deploy the most effective and sophisticated technologies for developing sustainable fuels from unwanted/unrecoverable waste. This waste would otherwise degrade and give out methane and various toxic emissions.
In June 2021: The Roadmap for Ethanol Blending in India by 2025 study was released by Prime Minister Narendra Modi.
In November 2022: Thermoplastic Polyurethane (TPU) 1180A10WDM, a new grade specifically designed for charging cables of fast charging heaps, was introduced by BASF.
In October 2022: the Neopentyl Glycol facility to be built by BASF in China at the Zhanjiang Verbund location. In October 2022, A cooperative venture for the commercial manufacturing of non-ionic surfactants was planned by BASF and Hannong Chemicals in the Asia Pacific region.
Bio-Alcohol Type Outlook
Bioethanol
Bioethanol
Biobutanol
BDO
Bio-Alcohol Application Outlook
Infrastructure
Transportation
Medical
Power Generation
Others
Bio-Alcohol Regional Outlook
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| Report Attribute/Metric | Details |
| Market Size 2022 | USD 55.9 billion |
| Market Size 2023 | USD 60.81 billion |
| Market Size 2032 | USD 119.41 billion |
| Compound Annual Growth Rate (CAGR) | 8.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Fulcrum Bioenergy Inc., BASF SE, E.I. du Pont de Nemours & Co., Cool Planet Energy Solutions, Mitsubishi Chemical Corporation, Harvest Power Inc., Mascoma LLC, Myriant Corporation |
| Key Market Opportunities | Increase in demand for biofuels and vehicles. |
| Key Market Dynamics | Increase in usage of cellulosic biomass with advanced technology development. |
Bio Alcohol Market Highlights:
Frequently Asked Questions (FAQ) :
The Bio-Alcohol Market size was valued at USD 55.9 Billion in 2022
The market is projected to grow at a CAGR of 8.80% during 2023-2032
North America held the largest share of the market
The key players in the market are Fulcrum Bioenergy Inc., BASF SE, E.I. du Pont de Nemours & Co., Cool Planet Energy Solutions, Mitsubishi Chemical Corporation, Harvest Power Inc., Mascoma LLC, and Myriant Corporation
The bioethanol Bio-Alcohol category dominated the market in 2022
Transportation had the largest share of the market
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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