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Transportation Grade Bioethanol Market By End Use (Passenger Vehicles, Light Commercial Vehicles, Medium and High Commercial Vehicles, Aviation) By Raw Material (Sugarcane, Corn, Wheat, Others) By Fuel Blend (E5, E10, E15 to E75, E85 to E100)- Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global transportation grade bioethanol market report explores the critical analysis of the transportation grade bioethanol industry using key parameters. The report consists of investment strategies, the need for investments in the transportation grade bioethanol industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the transportation grade bioethanol industry, as well as how economic and non-economic barriers are helping the transportation grade bioethanol market grow. Moreover, the report analyzes the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

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Key Highlights of the report

How are the major segments performing in the Transportation Grade Bioethanol Market?

  • In 2021, the passenger vehicles category was the leading segment in end-use. It is growing due to increased environmental concerns combined with tightening GHG policies. It will drive the demand for bioethanol in passenger vehicles in the next few years. Additionally, increased sales of commercial and passenger cars are expected to feed the market.

  • In 2021, the sugarcane category led the transportation grade bioethanol market as a whole, and this trend is anticipated to remain for the entire projection period. This is due to the large use of sugarcane to produce transportation-grade bioethanol.

  • In 2021, the E10 segment in fuel blend will lead the market. This market's high share is mainly attributed to government initiatives, environmental concerns, and Asia's growing demand for E10.

Which region dominated the Transportation Grade Bioethanol Market?

In 2021, North America was one of the major contributors to the global transportation grade bioethanol market. The increasing use of bioethanol due to the growing preferences for renewable resources and environmentally friendly fuel drives the demand for bioethanol in this region. In addition, the region’s strong government support for using biofuel instead of fossil fuel to reduce its carbon footprint is another reason for the demand for bioethanol rising.

What is the competitive environment of the Transportation Grade Bioethanol Market?

The transportation grade bioethanol industry's competitive environment offers information on the total economic profit made by suppliers and businesses, the sales and revenues produced in this sector, the transportation grade bioethanol market share globally, the business organization overview, the expansion of the new plant, and the opportunities for the industrial transportation grade bioethanol market. For instance, Pelican Acquisition LLC acquired Alto Ingredients, Inc.'s fuel ethanol manufacturing facility in Stockton, CA, in November 2021, settling its remaining debt with USD 16.2 million of the proceeds.

Executive Summary

What are all Technical developments being developed in the Transportation Grade Bioethanol Industry Market?

Increasing public concern and government regulations on carbon emissions and environmental health protection have prompted increased research and development initiatives to develop new technologies. Researchers are currently focusing on synthesizing bioethanol from lignocellulosic materials for enhanced bioethanol. The process involves separating non-hydrolyzed cellulose and solid residues, hydrolyzing biomass to extract fermentable 5- and 6-carbon sugars, and distilling the product.

Which are the key investments by the players in the Transportation Grade Bioethanol Industry Market?

Various investments are made among the key players to boost bioethanol production. For instance, Gujarat Alkalies and Chemicals Ltd. and GAIL India signed an agreement to establish a bioethanol plant in Gujarat worth $135.2 million in December 2021. Further, Using low-cost green loans to fund a large part of its investment, Rayonier Advanced Materials Inc. entered into a long-term agreement to purchase 2G bioethanol from a petrochemical company in June 2021.

Some of the major players in the market are CropEnergies AG, Cristal Union, Archer-Daniels-Midland Company, Petrobras, Tereos S.A, Alcogroup S.A., Vivergo Fuels Limited, BlueFire Renewables Inc., Pannonia Bio Zrt., Aemetis, Inc., BP p.l.c., POET, LLC, Green Plains Inc., Valero Energy Corporation, Raizen S.A., GranBio, Vertex Bioenergy, Beta Renewables S.p.A., and Tezkim, Almagest.

What are the Major Driving Factors for the Transportation Grade Bioethanol Market?

Factors driving the market's growth include favorable initiatives, blending mandates by regulatory bodies, and growing environmental concerns regarding fossil fuel usage and the need for biofuels. The rise in bioethanol as a fuel in commercial vehicles is expected to drive the bioethanol market. Further, it is simple to use, biodegradable and non-toxic. It is manufactured domestically from vegetable oil. In addition, bioethanol is not only sustainable, and it’s a more environmentally friendly, cleaner-burning option that can be used in petrol engines without modification, thus allowing many countries to reduce their reliance on foreign oil reserves. These factors lead to the growth of the market for bioethanol.

What are the Major Risks for the Transportation Grade Bioethanol Market?

An increase in the adoption of electric vehicles is expected to hamper the growth of the bioethanol market. Factors such as government initiatives, zero emissions, subsidies & tax rebates have compelled the manufacturers to provide electric vehicles around the world. These lead to demand for electric vehicles, which hinders the growth of the bioethanol market.

Which is the key End-user in the Transportation Grade Bioethanol Market

The passenger vehicles segment dominated the transportation grade bioethanol market in 2021. This large market share can be attributed to factors such as the increasing demand for passenger and commercial vehicles, rising fuel prices, and government regulations that support bioethanol blends. The automotive industry is expected to boost demand for biodiesel blends. According to the European Automobile Manufacturers’ Association (ACEA), in 2021, 66 million passenger vehicles were registered globally, an increase of 4% in registrations compared to the previous year, 2020. In 2021, the Indian government mandated the automobile manufacturers to offer vehicles running 100% on biofuels in the next six months due to the increasing demand for commercial vehicles in India, an increase of 26.7% of new registrations compared to the previous year, 2020. Thus, the increasing registration of passenger vehicles, skyrocketing prices of petroleum, and environmental concerns regarding emissions are expected to drive the bioethanol market in passenger vehicles.

How is the Transportation Grade Bioethanol Market performing in regions?

In 2021, the global transportation grade bioethanol market was dominated by North America. In terms of production and consumption of bioethanol, the United States dominates the world, followed by Brazil, China, India, and Canada. Growing domestic motor gasoline consumption, which now includes almost 10% ethanol by volume, and higher renewable fuel standards (RFS) targets have caused bioethanol production to increase in recent years. Further, liquid fuel suppliers (gasoline, diesel, and home heating oil) must gradually reduce the carbon intensity of their products for use in Canada under the Canadian Clean Fuel Standard. This will reduce approximately 13% (below 2016 levels) in the carbon intensity of liquid fuels used in Canada by 2030. Several initiatives are underway, including the Canadian government's USD 1.5 billion investment in a Low-carbon and Zero-Emission Fuels Fund, which could enhance local fuel production and adoption.

The transportation grade bioethanol market in the Asia Pacific region is anticipated to grow fastest. Increasing government blend mandates and environmental concerns about petroleum diesel use have contributed to the rapid growth of this regional market. Also, the growing preference for replacing fossil fuels due to higher greenhouse gas emissions drives demand for bioethanol in Asian countries. Hence, with the increasing blend percentage in countries, like Indonesia, Thailand, Malaysia, and India, the Asia-Pacific region is projected to witness the fastest growth rate during the forecast period.

What is the regulatory landscape for the Transportation Grade Bioethanol Market?

The same regulations and codes apply to bioethanol blends as to other transportation fuels. It is important for stations considering blends above B5 to consult their state and local authorities for additional regulations and requirements. In October 2015, the federal UST regulation was updated by adding section CFR 280.32, which clarifies the 1988 compatibility requirement by requiring owners and operators to store certain regulated substances, including gasoline containing more than 10% ethanol.

What is the Market Size of the Transportation Grade Bioethanol regarding value?

The global transportation grade bioethanol market is anticipated to grow at a substantial CAGR of 5.50% in the upcoming years. The global transportation grade bioethanol industry was estimated to be worth USD 63.5 billion in 2021 and was expected to be worth USD 87.56 billion by 2028.

What are the major players planning for the future of the Transportation Grade Bioethanol Market?

The key regions and countries in the transportation grade bioethanol market mandated various bioethanol fuel blends to reduce greenhouse gas (GHG) emissions and increase vehicle fuel efficiency. By 2030, approximately 13% of liquid fuels used in Canada will be CO2-free because of the Canadian Clean Fuel Standard. Additionally, India plans to blend 20% ethanol into petrol by 2025. In Europe, the Renewable Energy Directive (RED), the Fuel Quality Directive (2009/30), and the Biofuel Directive (2003/30) are all mandatory directives supporting bioethanol consumption.

Segmentation of Global Transportation Grade Bioethanol Market-

Global Transportation Grade Bioethanol Market – By End Use

  • Passenger Vehicles

  • Light Commercial Vehicles

  • Medium and High Commercial Vehicles

  • Aviation

Global Transportation Grade Bioethanol Market – By Raw Material

  • Sugarcane

  • Corn

  • Wheat

  • Others

Global Transportation Grade Bioethanol Market – By Fuel Blend

  • E5

  • E10

  • E15 to E75

  • E85 to E100

Global Transportation Grade Bioethanol Market – By Region

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • South-east Asia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa

    • GCC Countries

    • South Africa

    • Rest of the Middle East and Africa

Frequently asked questions about the global transportation grade bioethanol market

The transportation grade bioethanol market also suffered from the COVID-19 pandemic. As governments urge people to stay home to combat COVID-19, fuel requirements have been reduced. Globally, several ethanol plants have reduced or ceased production due to the pandemic, reducing gasoline consumption and pushing corn-based fuels to the sidelines.

North America accounted for the highest share in the global transportation grade bioethanol market. The increasing use of bioethanol due to the growing preferences for renewable resources and environmentally friendly fuel drives the demand for bioethanol in this region.

There are various reasons for this market's growth, including the potential to reduce greenhouse gas emissions, the adoption of bioethanol as a fuel, the fact that bioethanol is a safer alternative to fossil fuels and the increasing demand from a variety of industries for bioethanol.

Passenger vehicles had a major share in 2021, with around 50% of the market revenue share. Besides, it is also projected to witness the fastest growth. It is growing due to increased environmental concerns combined with tightening GHG policies. It will drive the demand for bioethanol in passenger vehicles in the next few years.

The sugarcane segment had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period. This is due to the large use of sugarcane to produce transportation-grade bioethanol.

Transportation Grade Bioethanol Market Scope

Report Attribute Details
Market Value in 2021 USD 63.5 billion
Market Value in 2028 USD 87.56 billion
CAGR 5.50%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Oct 2022
Category:  Automotive & Transportation
Report ID:   60701
Report Format:   PDF
Pages:   120
Rating:    4.2 (60)
Delivery Time: 24 Hours to 48 Hours   
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