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The global cellulosic ethanol market size is estimated to grow by USD 3,052.1 million between 2022 and 2027 and the size of the market is forecast to increase at a CAGR of 45.87%.The growth of the market depends on several factors, including rising food security concerns, increased environment and energy security concerns, and the rising need for renewable clean fuel.
This report extensively covers market segmentation by feedstock (energy crops, agricultural residues, organic MSW, and forest residues), application (detergent and gasoline), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rising need for renewable clean fuel is driving the market growth. Alternative fuels are gaining popularity worldwide due to various factors such as unpredictable global fuel prices, energy security concerns, and rising levels of emissions. Consequently, there is a growing demand for fuels that can reduce carbon emissions while still being commercially viable. To address this need, renewable biofuels have emerged as a potential solution as they can gradually replace the diminishing fossil fuel reserves. With continuous research and development, biofuels are now being scaled up for commercial use due to their performance capabilities similar to conventional gasoline and diesel.
Biofuel blends are being used in regular vehicles with minimal to no modifications required, which is further encouraging the use of blended fuels in vehicles. These biofuels produce less greenhouse gas emissions than traditional fuels, depending on the blend. Additionally, cellulosic ethanol is capable of reducing sulfur and hydrocarbon emissions, making it an attractive alternative to conventional fuel. Given the numerous benefits of cellulosic ethanol over conventional fuel, the demand for this fuel is expected to increase during the forecast period, making it a mainstream fuel worldwide.
The global cellulosic ethanol market faces a significant challenge in terms of securing a sufficient supply of feedstock in large enough quantities. Non-food crops, agricultural waste, forest residues, energy crops, and organic MSW products are all vital sources of feedstock for cellulosic ethanol. However, to achieve economies of scale, the industry must operate on a large scale, which requires a continuous and reliable supply of feedstock.
Maintaining a steady supply of feedstock is challenging, as feedstock prices are rising in the market, and harsh weather conditions can impact feedstock production. The availability and accessibility of feedstock may prove to be a significant obstacle for the industry. Furthermore, the declining prices of petrochemicals may impede the growth of the global cellulosic ethanol market during the forecast period.
Alternative to conventional transportation fuels is a major trend driving the market growth. Cellulosic ethanol is also called grain alcohol. It has similar physical and chemical properties as that of conventional fuel and has the potential to replace conventional transportation fuel such as gasoline. The benefits of cellulosic ethanol are:
Reduction in greenhouse gas: Cellulosic ethanol is commonly termed carbon neutral because it does not release any surplus carbon content. Plants and agricultural non-food crops absorb the same carbon content, which they release during fuel combustion, thus maintaining the carbon emission balance. These factors are expected to drive the growth of the market in focus during the forecast period.
The market share growth by the energy crops segment will be significant during the forecast period. Energy crops are used to produce cellulosic ethanol and other biofuels such as ethanol, propanol, and butanol. These are non-food crops, which require low cost and lesser maintenance to produce.
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The energy crops segment was valued at USD 40.08 million in 2017 and continued to grow until 2021. Energy crops can be segmented into two subcategories, that are, woody and herbaceous. Herbaceous energy crops mainly include grasses such as Arundo donax, Andropogon gerardii, Miscanthus giganteus, Panicum virgatum or switchgrass, elephant grass, and sweet sorghum. Woody energy crops are fast-growing trees such as poplar, sweetgum, silver maple, black locust, eucalyptus, and willow. They can also be used in the paper and pulp industry, and the leftovers or by-products can be used for cellulosic ethanol production. Woody energy crops generally produce 2%-10% more wood biomass per acre in comparison with natural forest trees. The increasing requirement for biomass to produce renewable fuels and growing awareness to minimize greenhouse gas and carbon emission are expected to boost the demand for energy crops as a biofuel feedstock during the forecast period.
The detergent application segment is expected to account for the largest market share of 77.77% during the forecast period. It is anticipated to grow at a growth rate of 41.75% and 42.82% in 2022 and 2023. The current environment has a higher awareness of personal hygiene and clean surroundings, which has increased demand for laundry and home cleaning products and accelerated the growth of the detergent market. Owing to these factors, the detergent application segment is expected to witness significant growth, further propelling the growth of the global cellulosic ethanol market during the forecast period.
North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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North America has the largest share of the global market. The region's key producers are the US, Brazil, Canada, and Argentina, which produced a major share of cellulosic ethanol in 2019. This is mainly due to the support extended by the government and the land available to produce the feedstocks. The US government supports the manufacturers of cellulosic ethanol through its special category loans, funds, and grants. Such support has led to extensive research in modern technology and processing to increase the quality of cellulosic ethanol. This will positively influence regional market growth.
In 2020, COVID-19 spread widely across North America negatively impacted the growth of the market. However, with the initiation of vaccination drives and the reopening of the manufacturing facilities of gasoline and detergent, the market has recovered itself. Additionally, the detergent market is expected to witness a growth rate of 4.42% and 4.87% between 2023 and 2024. Therefore, these factors are expected to propel the demand for cellulosic ethanol, thus, driving the growth of the market in focus during the forecast period.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
GranBio Investimentos S.A. - The company is involved in the production of biofuels, biochemicals, and advanced renewable materials. The key offerings of the company include cellulosic ethanol for personal care ingredients and industrial purposes.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cellulosic Ethanol Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cellulosic Ethanol Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 45.87% |
Market growth 2023-2027 |
USD 3,052.1 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
43.1 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, Germany, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BlueFire Renewables Inc., GranBio Investimentos S.A., Green Plains Inc., INEOS Group Holdings SA, Iogen Corp., Novozymes AS, Orsted AS, POET LLC, Praj Industries Ltd., Clariant International Ltd., Borregaard AS, COFCO Corp., DuPont de Nemours Inc., ENERKEM Inc., Eni Spa, Fiberight LLC, Shandong Longlive Bio-technology Co. Ltd., VERBIO Vereinigte BioEnergie AG, Vertex Bioenergy SL, and Raizen Energia SA |
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 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Feedstock
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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