The global ethanol market is characterized by the
prominent presence of companies such as Solvay Group, Flint Hill
Resources, LP, POET, LLC, Valero Energy Corporation, The Andersons,
Inc., Green Plains, Inc., Pacific Ethanol, Inc., Mitsubishi Chemical
Corporation, Cargill, Incorporated, and Archer-Daniels-Midland
Company, finds Transparency Market Research (TMR). Players strive to
tap on vast lucrative opportunities arising out of the burgeoning
demand from several end-use industries, notably automobile and
alcoholic beverages. Several manufacturers are focusing on technology
advancements in production technologies to thrive.
The global market for ethanol stood at US$71.8 bn
in 2017 and is anticipated to garner a revenue US$105.0 bn by end of
the forecast period of 2017–2022. The global market is projected to
rise at a CAGR of 7.9% during the period.
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According to the type of feedstock used, the key
segments are coarse grain-based, sugarcane-based, and wheat-based
ethanol. Of these, coarse grain-based ethanol is projected to emerge
as the most attractive segment, rising at a healthy CAGR of 8.0%
during 2017–2022. Of note, during the period, the absolute prospect
created by this segment could supersede all other types of feedstock.
Regionally, North America is anticipated to
account for the major revenue share of the global market. The
regional market is projected to clock a CAGR of 8.1% during the
assessment period and is expected to touch a valuation of US$48.3
billion by 2022 end. Europe is a prominent regional market for
ethanol and is forecast to generate a revenue of US$3.4 billion, in
absolute terms, in between 2017 and 2025.
Demand for Cleaner and Cost-Effective Fuel in
Automobile Sector to Bolster Uptake
The ethanol market is driven primarily by the
extensive demand for the chemical compound in the automobile sector.
The use of ethanol as a clean-burning fuel and as a fuel additive is
instrumental in reducing greenhouse gas emissions and reducing
dependence on oil in various economies world over. The staggering
rise in automobiles in a number of industrialized nation is providing
a robust thrust to the adoption of ethanol as an eco-friendly fuel in
the automobile sector.
The ethanol market is as also garnered huge gains
from the rising number of gasoline stations in advanced nations,
particularly the U.S., providing blended ethanol. The growing number
of ethanol biorefineries in developed regions is also catalyzing the
growth of the market. Ethanol is deemed to be safer and eco-friendly
option than most hydrocarbon octane sources, thereby accounting for
its vast popularity in the automobile sector.
The emerging popularity of alcoholic beverages is
also stoking the demand for ethanol. The rising application of
ethanol in making premium quality alcoholic beverages is boosting the
market. The miscellaneous use of ethanol in making explosives,
paints, and perfume is also accentuating the global market.
Prevailing Regulations in Some Nations may
hinder Growth
The prominent use of ethanol in making a variety
of personal care products and household cleaning products is also
boosting the market. The market also benefits from the popular use of
ethanol as a key ingredient in sanitizers as it can wipe out
microorganisms.
However, the highly flammable nature of ethanol
elevates the cost of its transportation, which negatively impacts the
growth of the market. The unfavorable regulatory landscape in a
number of developed nations regulating its end-use applications may
also hinder the growth of the market. Nevertheless, the rising
popularity of ethanol as biofuels in supporting a low-carbon economy
is expected to create lucrative prospects in the years to come.
Furthermore, the rise in production of ethanol in supporting the
economic growth of several countries is a key factor working in favor
of the ethanol market.
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The study presented here is based on a report by
Transparency Market Research (TMR) titled “Ethanol Market
(Feedstock - Coarse grain-based, Sugarcane-based, and Wheat-based;
End Use - Fuel, Industrial Solvents, Beverages, and Cosmetics) -
Global Industry Analysis, Size, Share, Growth, Trends and Forecast
2017–2022”
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