Fuel Ethanol Market

Global Fuel-Ethanol Market Overview

Fuel-Ethanol Market Size was valued at USD 91.25 billion in 2023. The Fuel-Ethanol industry is projected to grow from USD 100.12 Billion in 2024 to USD 147.98 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.23% during the forecast period (2024 - 2032). Increased environmental concerns, the need to reduce GHG emissions, the introduction of second and third-generation bioethanol, and new product launches and R&D. Amongst major key players are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fuel-Ethanol Market Trends

• Increasing demand for fuel ethanol in the automotive sector drives market growth

The application of fuel in the automotive industry is one of the major market drivers for the market's growth. The automotive sector has grown rapidly over the past few years and has faced many challenges in controlling air pollution. Ethanol is blended with gasoline concentrations of up to 10% to 15% to address the increasing air pollution caused by automobiles. The usage of fuel ethanol delivers major benefits in terms of increased thermal efficiency, improved fuel economy, and helps in cold starts during the winter season. Brazil and the U.S. are leading the globe in applying ethanol as biofuel. This factor drives the market CAGR.

Additionally, the increased usage of fuel ethanol in commercial vehicles is anticipated to drive the market growth rate. Fuel Ethanol is extensively used in the transportation and automotive industries. Gasoline with low ethanol mixes, such as E15 and E10, can be used in conventional automobiles. E15 comprises 10.5% to 15% ethanol, whereas. E10 is a mix of 90% gasoline and 10% ethanol. Furthermore, increasing fuel economy regulations for conventional vehicles in nations such as India, China, the United States, and Brazil are expected to boost the market in the forecast period.

Moreover, investments in the last few years and recent development due to the importance of the Impact of the transportation industry on the environment led to the demand for the fuel ethanol in the market. The major developing countries are creating strategies toward climate goals for 2030. The major market players focus on unlocking the potential for fully zero carbon by 2050. These are some of the major factors that will create immense opportunities for market growth during the forecast period. Surging expenditure on ethyl alcohol manufacturing facilities by market players further offers numerous growth opportunities. For instance, Flint Hills Resources L.P., Archer Daniels Midland Company, and Pacific Ethanol, Inc. are a few of the major market players in the U.S. WhichFlint Hills Resources L.P. has purchased an ethyl alcohol manufacturing facility named Southwest Georgia Ethanol, LLC, located in the U.S. The company aims to increase its presence and deal with the increasing demand in the U.S. market. Thus, driving the Fuel-Ethanol market revenue.

Fuel-Ethanol Market Segment Insights

Fuel-Ethanol Source Insights

Based on type, the Fuel-Ethanol market segmentation includes Synthetic and Natural. The natural segment dominated the market because natural ethanol is produced from agricultural feedstocks, such as corn, sugarcane, and wheat. Natural Ethanol is considered a more sustainable fuel than synthetic Ethanol, as it is produced from renewable resources. Governments in many countries offer subsidies and tax breaks for producing natural Ethanol, making it more attractive to producers. Furthermore, Natural Ethanol is produced from the fermentation of sugars or starches from agricultural feedstocks. Corn, sugarcane, and wheat are the most common feedstocks for natural ethanol production. Natural Ethanol is a renewable fuel, which means it can be produced from resources replenished over time.

Figure1:  Fuel-Ethanol Market, by Source, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fuel-Ethanol Raw Material Insights

Based on raw materials, the Fuel-Ethanol market segmentation includes maize, wheat, industrial beets, sugarcane, cereals & starch, and others. The maize segment dominated the market because maize is the most widely available and affordable feedstock for ethanol production. Maize is a relatively efficient feedstock for ethanol production, meaning that a lot of Ethanol can be produced from a relatively small amount of maize. Furthermore, Maize is a widely grown crop, which makes it readily available for ethanol production. Maize is a relatively inexpensive crop, making it an affordable ethanol production feedstock.

Fuel-Ethanol Application Insights

The Fuel-Ethanol market segmentation, based on Application, includes passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment dominated the market because passenger cars are the most widely used vehicles in the world, and they are a major source of transportation emissions. There are more passenger cars in the world than any other type of vehicle. This means that there is a large potential market for ethanol-powered passenger cars. Passenger cars are a major source of transportation emissions. Ethanol-powered passenger cars can help to reduce these emissions. Furthermore, the passenger car segment is expected to remain the dominant segment of the fuel-ethanol market in the coming years. This is due to the continued growth of the automotive industry and the increasing demand for cleaner fuels.

Fuel-Ethanol Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Fuel-Ethanol market area will dominate this market, owing to the presence of a well-established automotive sector. Moreover, strict regulations over particulate emissions will boost market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2:  FUEL-ETHANOL MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Fuel-Ethanol market accounts for the second-largest market share due to growing government support for using Ethanol as a fuel and rising greenhouse emissions, and the growing usage of Ethanol as a vehicle fuel will likely boost the market growth in this Region. Further, the German Fuel-Ethanol market held the largest market share, and the UK Fuel-Ethanol market was the fastest-growing market in the European Region.

The Asia-Pacific Fuel-Ethanol Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption and usage of fuel ethanol in the automotive industry. Moreover, China’s Fuel-Ethanol market held the largest market share, and the Indian Fuel-Ethanol market was the fastest-growing market in the Asia-Pacific region.

India intends to increase the amount of maize diverted for ethanol production in 2024 in order to meet the demands of its fuel-blending program, increasing output by almost ten times in only five years. As part of a plan to address India's needs for biofuels, the Union government has also approved a plan to purchase maize at federally set minimum support prices (MSP) and deliver it to distilleries.

As there is a drive for alternative fuels to reduce carbon emissions, India and Brazil are in talks to form a technology collaboration in 2024 to increase the utilization of ethanol. Brazil is a country in South America that has a long history of employing ethanol in its automobiles, and there are many things to learn from them.

India started selling ETHANOL 100 in 2024 at 183 Indian Oil locations in Maharashtra, Karnataka, Uttar Pradesh, New Delhi, and Tamil Nadu as part of a calculated move towards greener fuel options.Hardeep Singh Puri, the Union minister of petroleum and natural gas, introduced the high-octane, environmentally friendly gasoline, noting that the government plans to combine 20% ethanol with petroleum by 2025–2026.In response to the Prime Minister's directive that gasoline contain 20% ethanol by 2025–2026, the oil marketing companies (OMCs) increased the availability of E20 to 12,000 locations in less than a year.

Fuel-Ethanol Products Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Fuel-Ethanol market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Fuel-Ethanol industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Fuel-Ethanol industry to benefit clients and increase the market sector. In recent years, the Fuel-Ethanol industry has offered some of the most significant advantages to medicine. Major players in the Fuel-Ethanol market, including Archer Daniels Midland Company (US), DowDuPont (US), BP PLC (UK), Cropenergies AG (Germany), Petrobras (Brazil), Pannonia Bio (Hungary), Cristal Union (France), Alcogroup (Belgrade), Tereos (France), Valero Marketing and Supply Company (US), and BlueFire Renewables Inc (US)., and others, are attempting to increase market demand by investing in research and development operations.

The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. ADM Continues Growth in High-Value Flavor Segment with Acquisition of Flavor Infusion International.

Flint Hills Resources is a leading refining company primarily in the Midwest and Texas. Flint Hill Resources produces essential products that power and improve people's lives, including reliable transportation fuels that keep us moving and chemical building blocks that help to make modern life possible. Flint Hills Resources and VP Racing Fuels collaborated to bring gas stations, VP Racing automotive life brand to Upper Midwest.

Key Companies in the Fuel-Ethanol market include

• Archer Daniels Midland Company (US)
• DowDuPont (US)
• BP PLC (UK)
• Cropenergies AG (Germany)
• Petrobras (Brazil)
• Pannonia Bio (Hungary)
• Cristal Union (France)
• Alcogroup (Belgrade)
• Tereos (France)
• Valero Marketing and Supply Company (US)
• BlueFire Renewables Inc (US)

Fuel-Ethanol Industry Developments

December 2021: ADM Continues Growth in High-Value Flavor Segment with Acquisition of Flavor Infusion International.

June 2020: Flint Hills Resources and VP Racing Fuels collaborated to bring gas stations, VP Racing automotive life brand to Upper Midwest.

Fuel-Ethanol Market Segmentation

Fuel-Ethanol Source Outlook

• Synthetic
• Natural

Fuel-Ethanol Raw Material Outlook

• Maize
• Wheat
• Industrial Beets
• Sugarcane
• Cereals & Starch
• Others

Fuel-Ethanol Application Outlook

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Fuel-Ethanol Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America

Fuel-Ethanol Source Outlook (USD Billion, 2018-2032)

• Synthetic

• Natural

Fuel-Ethanol Raw Material Outlook (USD Billion, 2018-2032)

• Maize

• Wheat

• Industrial Beets

• Sugarcane

• Cereals

• Starch

• Others

Fuel-Ethanol Application Outlook (USD Billion, 2018-2032)

• Passenger Car

• Light Commercial Vehicle

• Heavy Commercial Vehicle

Fuel-Ethanol Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Fuel-Ethanol by Source

    • Synthetic

    • Natural

  • North America Fuel-Ethanol by Raw Material

    • Maize

    • Wheat

    • Industrial Beets

    • Industrial Beets

    • Sugarcane

    • Cereals

    • Starch

    • Others

  • North America Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• US Outlook (USD Billion, 2018-2032)

• US Fuel-Ethanol by Source

  • Synthetic

  • Natural

• US Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• US Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• CANADA Outlook (USD Billion, 2018-2032)

• CANADA Fuel-Ethanol by Source

  • Synthetic

  • Natural

• CANADA Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• CANADA Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Fuel-Ethanol by Source

    • Synthetic

    • Natural

  • Europe Fuel-Ethanol by Raw Material

    • Maize

    • Wheat

    • Industrial Beets

    • Industrial Beets

    • Sugarcane

    • Cereals

    • Starch

    • Others

  • Europe Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Germany Outlook (USD Billion, 2018-2032)

• Germany Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Germany Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Germany Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• France Outlook (USD Billion, 2018-2032)

• France Fuel-Ethanol by Source

  • Synthetic

  • Natural

• France Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• France Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• UK Outlook (USD Billion, 2018-2032)

• UK Fuel-Ethanol by Source

  • Synthetic

  • Natural

• UK Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• UK Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• ITALY Outlook (USD Billion, 2018-2032)

• ITALY Fuel-Ethanol by Source

  • Synthetic

  • Natural

• ITALY Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• ITALY Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• SPAIN Outlook (USD Billion, 2018-2032)

• Spain Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Spain Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Spain Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Rest Of Europe Outlook (USD Billion, 2018-2032)

• Rest Of Europe Fuel-Ethanol by Source

  • Synthetic

  • Natural

• REST OF EUROPE Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• REST OF EUROPE Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Fuel-Ethanol by Source

    • Synthetic

    • Natural

  • Asia-Pacific Fuel-Ethanol by Raw Material

    • Maize

    • Wheat

    • Industrial Beets

    • Industrial Beets

    • Sugarcane

    • Cereals

    • Starch

    • Others

  • Asia-Pacific Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• China Outlook (USD Billion, 2018-2032)

• China Fuel-Ethanol by Source

  • Synthetic

  • Natural

• China Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• China Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Japan Outlook (USD Billion, 2018-2032)

• Japan Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Japan Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Japan Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• India Outlook (USD Billion, 2018-2032)

• India Fuel-Ethanol by Source

  • Synthetic

  • Natural

• India Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• India Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Australia Outlook (USD Billion, 2018-2032)

• Australia Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Australia Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Australia Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

• Rest of Asia-Pacific Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Rest of Asia-Pacific Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Rest of Asia-Pacific Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Fuel-Ethanol by Source

    • Synthetic

    • Natural

  • Rest of the World Fuel-Ethanol by Raw Material

    • Maize

    • Wheat

    • Industrial Beets

    • Industrial Beets

    • Sugarcane

    • Cereals

    • Starch

    • Others

  • Rest of the World Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Middle East Outlook (USD Billion, 2018-2032)

• Middle East Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Middle East Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Middle East Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• Africa Outlook (USD Billion, 2018-2032)

• Africa Fuel-Ethanol by Source

  • Synthetic

  • Natural

• Africa Fuel-Ethanol by Raw Material

  • Maize

  • Wheat

  • Industrial Beets

  • Industrial Beets

  • Sugarcane

  • Cereals

  • Starch

  • Others

• Africa Fuel-Ethanol by Application

• • • Passenger Car

    • Light Commercial Vehicle

• • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Fuel-Ethanol by Source

    • Synthetic

    • Natural

  • Latin America Fuel-Ethanol by Raw Material

    • Maize

    • Wheat

    • Industrial Beets

    • Industrial Beets

    • Sugarcane

    • Cereals

    • Starch

    • Others

  • Latin America Fuel-Ethanol by Application

    • Passenger Car

    • Light Commercial Vehicle