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The bioethanol market size is estimated to increase by USD 93.17 billion, at a CAGR of 14.12% between 2023 and 2028. The market's growth is dependent upon various factors, notably the increasing demand for consistent supply of clean energy technologies, concerns regarding atmospheric impact and energy security, and supportive government policies. The global market is turning to biomass resources, such as sugarcane, to generate fuel. This shift is driven by the desire to decrease greenhouse gas emissions and lessen dependence on non-renewable fossil fuels, as electric vehicles (EVs) gain popularity. These trends collectively influence the market's direction, encouraging innovation, investment, and the implementation of sustainable energy solutions. With the increasing emphasis on minimizing environmental impact and ensuring energy security, stakeholders are motivated to invest in technologies and practices that foster cleaner, more dependable energy sources. These factors contribute to market expansion, setting the stage for ongoing growth and progression in the ever-evolving energy sector.
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The bioethanol market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market share growth by the starch segment will be significant during the forecast period. In 2020, the starch market segment held a substantial market share and is anticipated to maintain this position throughout the forecast period. The expansion of the starch segment can be attributed to the escalating demand from Asia Pacific and North America, as well as the global availability of a diverse range of starch-rich crops. Among these crops, corn starch is the leading choice, boasting a starch content of approximately 70%-73%. In North America, starch-based crops, with corn being the primary feedstock, dominate the production landscape.
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The starch segment showed a gradual increase in market share from USD 26.54 billion in 2018. In the production of starch-based bioethanol, grains such as wheat, barley, corn, and rye, as well as starch-rich raw materials like tapioca, cassava, and potato, serve as essential feedstocks. The hydrolysis process breaks down the complex chemical bonds within starch, resulting in simple sugars such as glucose. Subsequently, glucose undergoes fermentation, generating bioethanol and carbon dioxide as byproducts. Starch, a complex carbohydrate, necessitates hydrolysis to convert it into its monomeric components. This process is crucial in the bioethanol manufacturing industry for the efficient conversion of starch into bioethanol.
Bioethanol plays a significant role as a fuel and additive in the transportation industry worldwide. The depleting fossil fuel reserves and the rising number of automobiles are driving the demand for transportation fuel. This trend is reflected in the policies of governments globally, making bioethanol a crucial component in the transportation sector. In addition, when combined with emulsifiers, bioethanol is utilized as fuel for modified diesel engines, primarily for greenhouse gas savings in heavy vehicles and buses in urban areas. Consequently, the transportation segment of the global bioethanol market is poised for expansion during the forecast period.
North America is projected to contribute 43% by 2028. Technavio's analysts have elaborately explained the regional trends and drivers that shape the bioethanol market during the forecast period.
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North America has been a leading region in the global bioethanol market and is anticipated to maintain this position throughout the forecast period. The US government's commitment to the bioethanol industry is evident through its provision of special grants, loans, and funds to producers of feedstock and bioethanol, as well as related research and development activities. These initiatives have fostered technological advancements and process improvements, resulting in enhanced quality and yield over the years. In Canada, the government is advocating for the adoption of biofuels to decrease carbon emissions from vehicles. The country's focus is on expanding biofuel manufacturing plants, which is projected to boost demand for bioethanol during the forecast period. The North American bioethanol market's growth is underpinned by government support and a commitment to reducing carbon emissions. This commitment is driving technological advancements, increasing production efficiency, and expanding the market.
The rising demand for bioethanol stems from a combination of factors, including growing concerns over climate change and the need to reduce reliance on traditional fuel sources. This renewable energy resource is derived from various sources, such as agricultural and forest residues, energy crops, and crop residues. Bioethanol's high octane value and antiknock properties make it an excellent fuel additive, meeting the blending mandates set by regulatory bodies like the Environmental Protection Agency (EPA). Through processes like distillation and dehydration, raw materials such as sugarcane molasses and corn are converted into bioethanol, ensuring physical stability and homogeneity. As the demand for bioethanol grows in industrial and power generation sectors, the market capitalizes on the availability of raw materials and advancements in biodegradable and anti-corrosive technologies.
This positions bioethanol as a sustainable alternative for transportation and medical applications, reducing greenhouse gas emissions and contributing to a more eco-friendly energy landscape. Bioethanol's versatility and environmental benefits make it an essential component in the global energy transition. Its production process, which involves converting renewable resources into a usable fuel, aligns with the goals of reducing carbon emissions and promoting sustainable energy solutions. The market's continued growth is driven by advancements in renewable fuels and the increasing awareness of the environmental impact of traditional fuel sources. Bioethanol's role as a renewable, sustainable, and high-performing fuel additive is set to expand in various industries, making it a crucial player in the global energy market.
Favorable government policies are significantly contributing to the expansion of the bioethanol market. As concerns over the environment and energy security continue to rise, governments have responded with legislative and regulatory actions mandating the blending of biofuels. The increasing demand for transportation fuel, driven by the depletion of fossil fuel reserves and the growing number of automobiles, is expected to boost the market. Several countries have established targets for the use of biofuels, either as a pure mix or as blends. For instance, Germany and India are regulating the use of ethanol in their public transportation systems.
Governments also offer incentives, such as grants, special loans, and tax credits, to meet these targets. For example, the US government offers loan guarantees of up to USD 250 million under the Biorefinery Assistance Program for the construction and retrofitting of commercial-scale biorefineries that produce bioethanol. These government initiatives and incentives are instrumental in driving production and consumption on a global scale.
The growing preference for biofuels over traditional fossil fuels is the major factor fueling the expansion of the bioethanol market. Bioethanol, also referred to as grain alcohol, possesses characteristics akin to conventional fuels. Additionally, it offers the potential to replace conventional transportation fuels. The advantages of biofuels include:
Enhanced safety: Bioethanol boasts a lower flammability rate than gasoline.
Optimized energy security: By embracing bioethanol, the reliance on petroleum can be reduced since it can be derived from various organic feedstocks, such as agricultural waste and organic municipal solid waste.
Decreased greenhouse gas (GHG) emissions: Bioethanol is often labeled as 'carbon neutral' due to its ability to maintain the carbon emission balance. Plants absorb the same amount of carbon during growth that is released during fuel combustion.
The price volatility of crude oil may hinder the expansion of the bioethanol market. Crude oil derivatives, including diesel and gasoline, serve as the primary alternatives to bioethanol. The unforeseen fluctuations in crude oil prices have resulted in a significant drop in oil trading values. This decrease in oil prices is due to a disequilibrium in the global crude oil market's supply and demand, which has negatively impacted the demand for bioethanol and other alternative renewable fuels. The low crude oil prices have widened the price disparity between traditional fuels and biofuels.
Nevertheless, governments offer subsidies to renewable biofuels to encourage investment. With crude oil prices on the decline, governments must increase subsidies to boost biofuels' appeal. This will necessitate additional financial resources from the governments, and a lack of such funding will impact biofuels' sales and the expansion of the global market.
The bioethanol market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the bioethanol market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Green Plains Inc. - The company's key offerings include biofuels such as bioethanol and octane fuel.
The bioethanol market growth and trends report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Beyond fuel, bioethanol plays a crucial role in pharmaceutical applications, enhancing solubility and serving as a drug delivery system. Despite its benefits, environmental concerns persist, including land use change, deforestation, biodiversity loss, and habitat destruction. To mitigate these issues, the industry is adopting sustainable practices, adhering to environmental regulations set by the EPA, and exploring sustainable alternatives in various industries. Key feedstocks, such as starch crops, sugarcane bagasse, switchgrass, and miscanthus, are utilized in the production process to create bioethanol, along with agricultural and forest residues, algae, and wasted crops. These feedstocks contribute to the market's viability as a biodegradable and renewable energy source, reducing carbon emissions and lessening reliance on traditional fuels. Bioethanol's anti-corrosive and antiknock properties are valuable, but challenges like weak lubricity remain, prompting ongoing research and innovation.
Bioethanol's growth as a sustainable alternative to traditional fuels is significant, driven by concerns over global warming and greenhouse gas emissions. Derived from renewable sources like sugarcane, maize, and switch grass, bioethanol boasts a low carbon footprint and decreases dependency on fossil fuels, bolstering energy security. With its high octane value and antiknock characteristics, bioethanol acts as an effective fuel additive, enhancing transportation fuel performance while decreasing emissions. Its production process includes sugar fermentation of feedstocks like molasses and beet, with algae emerging as a promising feedstock due to its biodegradability and homogeneity. As the chemical industry evolves, bioethanol's low viscosity and anti-corrosiveness make it a preferred choice for industrial applications, driving further adoption and market expansion amidst the rise of electric vehicles (EVs) and increasing blending mandates.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.12% |
Market Growth 2024-2028 |
USD 93.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.8 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Germany, Canada, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abengoa SA, Aemetis Inc., ALTO INGREDIENTS Inc., Archer Daniels Midland Co., BP Plc, Cristal Union Group, DuPont de Nemours Inc., Green Plains Inc., Honeywell International Inc., Pannonia Bio Zrt., POET LLC, Praj Industries Ltd., Sekab, Shell plc, SZVG eG, Tereos Participations, The Andersons Inc., United Petroleum Pty Ltd., and Valero Energy Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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