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The ethanol-based vehicle market share is expected to increase by 760.85 thousand units from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.06%.
This ethanol-based vehicle market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers ethanol-based vehicle market segmentation by type (passenger cars and commercial vehicles) and geography (North America, South America, Europe, APAC, and MEA). The ethanol-based vehicle market report also offers information on several market vendors, including Daimler AG, Deere and Co., Ford Motor Co., General Motors Co., Nissan Motor Co. Ltd., Toyota Motor Corp., and Volkswagen AG among others.
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The government regulations mandating and promoting use of ethanol fuels in vehicles is notably driving the ethanol-based vehicle market growth, although factors such as subsidies to fossil fuel consumption may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the ethanol-based vehicle industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Ethanol-based Vehicle Market Driver
One of the key factors driving growth in the ethanol-based vehicle market is the government regulations mandating and promoting use of ethanol fuels in vehicles. The US Energy Independence and Security Act of 2007 consider ethanol an accurate solution to cut gasoline consumption and reduce dependence on petrol imports, though adoption rates have been mixed based on the EPA targets under Renewable Fuel Standard. The Philippines has an E10 mandate and is likely to have ethanol blending of 20% by 2020. In Australia, New South Wales has an E6 ethanol-blending mandate. India has an E5 ethanol mandate scheduled to be upgraded to E10 as soon as ethanol production and infrastructure. On a similar note, several countries such as Fiji, Indonesia, Malaysia, South Korea, Taiwan, Thailand, and Vietnam have been promoting the use of ethanol blends. Africa. Several other countries, such as Zambia and Nigeria, have a national ethanol target in place, and these are likely to be key drivers for Africa's ethanol-based vehicle market.
Key Ethanol-based Vehicle Market Trend
The second-generation ethanol commercialization to pick up is another factor supporting the ethanol-based vehicle market share growth. Until the early 2010s, the production and use of second-generation ethanol were limited only to the US. The market has registered considerable growth in the production of second-generation ethanol. Ethanol manufacturers, such as Novozymes and Diversa, are contributing to the development and commercialization of second-generation ethanol for use as an automotive fuel. Technavio expects the second-generation fuel to eat into the share of first-generation ethanol, even though the former is more expensive. As a result, the commercial use of fuel as an automotive fuel has been limited. Biodiesel has been trending in the market in terms of volume production, but cellulosic ethanol use is likely to register faster growth rates during the forecast period.
Key Ethanol-based Vehicle Market Challenge
The subsidies to fossil fuel consumption will be a major challenge for the ethanol-based vehicle market during the forecast period. According to the OECD, subsidies for fossil fuel production increased across 44 rich and emerging economies in 2019 by 38% to $55 billion as compared with 2018. Several emerging regions in APAC and South America prefer the use of petrol to renewable energy sources because of these subsidies. These pose a challenge to the consumption of ethanol, thereby restraining the growth of the ethanol-based vehicle market.
This ethanol-based vehicle market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global ethanol-based vehicle market as a part of the global automotive market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the ethanol-based vehicle market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the ethanol-based vehicle market encompasses successful business strategies deployed by the key vendors. The ethanol-based vehicle market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Ford Motor Co. -The company offers ethanol-based vehicles such as Cargo Van, Super Duty Chassis Cab, and more.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The ethanol-based vehicle market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the ethanol-based vehicle market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the automotive market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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56% of the market's growth will originate from North America during the forecast period. The US is the key market for ethanol-based vehicles in North America. Market growth in this region will be faster than the growth of the market in the South American, MEA and APAC regions.
The likely commercialization of second-generation ethanol may play a key role in the widespread consumption of FFVs in the US and more so at the global level. This will facilitate the ethanol-based vehicle market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The market in focus experienced a decline in 2020 due to the COVID-19 pandemic. Governments across the region imposed nationwide lockdowns to curb the spread of COVID-19. Like many other industries, automotive manufacturing was adversely impacted by the pandemic in 2020. Therefore, a decline in the production of vehicles affected the demand for ethanol-based vehicles. However, governments in the region are focusing on reviving industrial growth to give impetus to the sales and production of vehicles from 2021 onward.
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The ethanol-based vehicle market share growth by the passenger cars segment will be significant during the forecast period. The passenger car segment should grow at a higher rate than the commercial vehicle segment during the forecast period. Such a trend may stem from factors such as the rising awareness of biofuels and the impact of pollution on climate among consumers and government efforts to promote the use of ethanol-based vehicles. This will lead to widespread adoption of the technology. This segment may register a healthier growth rate compared with commercial vehicles because new models may be launched in this segment during the forecast period. Some factors driving the sales of passenger FFVs are higher product availability and better awareness among consumers, as automakers work to promote alternative-fuel-based vehicles in response to government regulations and emission norms.
This report provides an accurate prediction of the contribution of all the segments to the growth of the ethanol-based vehicle market size and actionable market insights on post COVID-19 impact on each segment.
Ethanol-based Vehicle Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2020 |
Forecast period |
2021-2025 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.06% |
Market growth 2021-2025 |
760.85 th units |
Market structure |
Concentrated |
YoY growth (%) |
2.20 |
Regional analysis |
North America, South America, Europe, APAC, and MEA |
Performing market contribution |
North America at 56% |
Key consumer countries |
US, Brazil, UK, China, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Daimler AG, Deere and Co., Ford Motor Co., General Motors Co., Nissan Motor Co. Ltd., Toyota Motor Corp., and Volkswagen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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