ID: MRFR/CnM/5835-HCR | February 2021 | Region: Global | 140 pages
Ethanol, also called ethyl alcohol, drinking alcohol, or simply alcohol is a simple alcohol which is often abbreviated as EtOH. It is highly flammable and volatile in nature. Ethanol occurs in the form of colorless liquid with a strong characteristic odor. Ethanol can be produced synthetically as well as biologically. Ethanol produced by fermentation of renewable food crops such as sugarcane, maize, wheat, sorghum, beet, and other starches is called bioethanol, and it is the eco-friendly alternative biofuel. It is a psychoactive chemical which directly acts on the central nervous system (CNS) and hence it is the widely used in various types of alcoholic drinks. The product is primarily used as solvent in various chemicals industries. In addition, ethanol is gaining popularity as an efficient alternative fuel. It has significant penetration in the major end-use industries such as automotive, foods and beverages, chemicals, personal care and cosmetics, and pharmaceuticals. Ethanol is one of the most promising alternative fuel to be used completely or in blended form with gasoline (2–85% (v/v)). The energy equivalent of bioethanol is lower than that of petroleum, but the combustion of bioethanol is cleaner because it contains oxygen that allows the engine for complete combustion of the gasoline when used in the blended form, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.
According to the MRFR, the global ethanol market is projected to grow at a robust CAGR of 4.5% to reach USD 117 Billion by the end of 2027. The primary factors favoring growth of the global ethanol market are the increasing demand for the product in the rapidly growing end-use industries such as automotive, food and beverages, and chemicals. The rising environmental concerns and growing need to reduce GHG emissions are driving the market growth for ethanol and is expected to remain the major driving factor during the forecast period. The rapid growth of the automotive sector on account of various dynamics of this industry such as fuel efficiency, automotive light-weighting, and emission regulations. This is expected to favor the market growth during the forecast period.
However, unfavorable regulatory landscapes and high transportation cost owing to its high flammability may hamper growth of the market in coming years.
Global Ethanol Market Share, by End-Use, 2019 (%)
Source: MRFR analysis
Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa are the five regions studied for the global Ethanol market. Asia-Pacific is projected to grow at the highest CAGR on account of surging demand for the product as an alternative source of energy, Additionally, demand for ethanol is increasing at a robust growth rate in pharmaceuticals and chemicals industry. Moreover, rapid technological advancements in the industrial sector on part of the government initiative and rapid growth of the renewable energy sector are expected to be the key factors driving the regional market growth in the coming years.
North America has dominated the global ethanol market owing to high demand for ethanol as an alternative fuel in automotive. In addition, strict regulations against the vehicular pollution such as Corporate Average Fuel Economy may drive growth of the market for ethanol in this regional market. Europe is another substantial market for Ethanol. The increasing demand for Ethanol in the well-established automotive and energy sectors in this region is expected to drive the regional market growth during the review period.
Lastly, the market in the Middle East and Africa and Latin America are projected to witness a healthy growth during the forecast period on account of growing demand for ethanol in chemicals industry and recreational applications.
The global ethanol market has been segmented on the basis of form, product, end-use, and region.
Based on feedstock, the global ethanol market has been segregated into coarse grains, sugar crane, wheat, maize, molasses, sugar beet, biomass and others.
By application, the market has been categorized into industrial solvent, fuel, energy, fertilizer and others.
On the basis of end-use industry, the market has been divided into automotive, food and beverages, chemicals, personal care and cosmetics, pharmaceuticals and others.
The global ethanol market has been studied with respect to five regions—Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa.
Some of the key players in the global ethanol market are Kirin Holdings Company (Japan), Aventine renewable Energy (US), United Breweries (India), Archer Daniels Midland Company (US), The Andersons, Inc. (US), British Petroleum (UK), Advanced BioEnergy LLC (US), Cargill Corporation (US), VeraSun Renewable Energy (US), and Pernod Richard (France), among others
|Market Size||USD 117 Billion (2027)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Feedstock, Application, End-Use Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Kirin Holdings Company (Japan), Aventine renewable Energy (US), United Breweries (India), Archer Daniels Midland Company (US), The Andersons, Inc. (US), British Petroleum (UK), Advanced BioEnergy LLC (US), Cargill Corporation (US), VeraSun Renewable Energy (US), and Pernod Richard (France)|
|Key Market Opportunities||
|Key Market Drivers||Rapid technological advancements in the industrial sector on part of the government initiative and rapid growth of the renewable energy sector are expected to be the key factors driving the regional market growth|
Frequently Asked Questions (FAQ) :
The global ethanol market would record growth by 8.23% CAGR during the forecast period of 2018 to 2023.
Lack of support from regulations and high transportation costs can deter the ethanol market from growth.
Industries to profit from the ethanol market growth are food & beverages, automotive, personal care & cosmetics, chemicals, pharmaceuticals, and others.
North America has the scope to dominate the ethanol market and retain its previous market stand.
Asia Pacific would grow with the fastest CAGR over the forecast period market 2018 to 2023.