Global Flex Fuel Engine Market 2016-2020

Overview of the global flex-fuel engine market

Technavio’s market research analyst predicts the global flex-fuel engine market to grow at a CAGR of more than 3% between 2016 and 2020. End users are increasingly opting for vehicles that are more fuel-efficient. Such requirements have prompted several vendors to come up with the electrification of critical mechanical components to improve the performance of the engines of the vehicles. Flexible fuel vehicles are designed to run on gasoline or gasoline-ethanol blends of up to 85% ethanol (E85). The use of ethanol in flex-fuel engines as a fuel choice is playing a crucial role in curbing GHG emission. The key feature of flex-fuel vehicles is their capability to function with a mixture of fuels such as gasoline and ethanol. Some of the major factors leading to the growing penetration of flex-fuel engines are a rise in the number of flex-fuel stations, an increase in the volume of the number of flex-fuel vehicles by automakers, and the growing competition from other alternative fuel engines such as electric vehicles, biodiesels, and fuel cells.

One of the latest trends gaining traction in the market is the growing penetration of E85 vehicles in luxury brands such as Audi and Mercedes. Audi A3 Sedan 1.4 TFSI Flex is the first Audi model car equipped with a flex-fuel engine, which can also operate on gasoline, ethanol, as well as both the fuels simultaneously. Similarly, Mercedes is also developing C180 model equipped with flex-fuel engines, which has a 1.6L turbo petrol engine and is likely to come up with 158 hp. The entry of such luxury brands as Mercedes-Benz and Audi in flex-fuel vehicles market will augment the overall growth of flex-fuel engine market during the forecast period.

Competitive landscape and key vendors

The global flex-fuel engine market comprises several prominent vendors such as Ford, Volkswagen, General Motors, Honda, and Nissan, who offer products that have a wide scope of applications. The increase in global emissions of GHG has fuelled the requirement for alternative fuels, thereby leading to massive growth opportunities for the market players. The product portfolio of leading vendors for flex-fuel vehicles is primarily confined to Brazil and the US and can be used on ethanol or gasoline or a blend of both.

Leading vendors in the market are -

• Ford
• Volkswagen
• General Motors
• Honda
• Nissan

Other prominent vendors in the flex-fuel engine market include Fiat, Hyundai, Kia Motors, Mitsubishi, Renault, Toyota, and Peugeot.

Product segmentation and analysis of the flex-fuel engine market

• Compact-size
• Mid-size
• Full-size

The compact-size segment had the highest market share and dominated the global market in 2015. The downsizing of several older generation engines has increased the volume units of engines falling into this segment. Several manufacturers are using technologies like forced induction and direct injection to minimize the size of vehicular engines. This not only makes the vehicle weight lighter but also reduces the friction in the engine. The increasing focus to reduce carbon emission by all major economies across the globe will be a major growth driver for this market segment.

Geographical segmentation and analysis of the flex-fuel engine market

• Brazil
• US

Brazil occupies the majority of the global flex-fuel engine market and has the highest penetration rate for flex-fuel vehicles. Flex-fuel is one of the leading technologies implemented across all the vehicle segments in Brazil. The growth of flex-fuel is exclusive to Brazil due to the country’s capacity to generate and dispense massive quantities of ethanol on the retail fuel market at affordable prices. With the growing demand for light-duty vehicle fuel, the country will witness high growth during the forecast period.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global flex-fuel engine market?
• What are the key market trends impacting the growth of the global flex-fuel engine market?
• What are the challenges to market growth?
• Who are the key vendors in the global flex-fuel engine market?
• What are the market opportunities and threats faced by the vendors in the global flex-fuel engine market?
• Trending factors influencing the market shares of Brazil and the US.
• What are the key outcomes of the five forces analysis of the global flex-fuel engine market?

Technavio also offers customization on reports based on specific client requirement.

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• Global Fuels Market 2016-2020
• Global Dual Fuel Engine Market 2016-2020
• Global Biofuels Market 2016-2020
• Global Fuel Additives Market 2015-2019