Flexfuel or flex fuel is a type of fuel that is composed of a combination of gasoline and ethanol in variable ratios. Flexfuels provides various advantages over conventional fuels such as lower emissions and lower costs. Increased environmental pollution has driven demand for environment-friendly flexfuels.
The global Flexfuel Market is estimated to be valued at US$ 93.57 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: Increased adoption of ethanol blending technology is one of the key trends driving growth of the flexfuel market. Many countries such as Brazil have mandated blending of ethanol in gasoline for transportation. Brazil has achieved blending levels of up to 27.5% ethanol and is working towards increasing the volumes further. Advancements in technology have enabled design and manufacturing of flex fuel vehicles that can operate on any blend from zero-ethanol gasoline to up to 85% ethanol (E85). Increasing production capacity of ethanol globally is aiding the adoption of flexfuel technology. For instance, the US witnessed a rise of over 20% in ethanol production between 2019 and 2021. This has accelerated the demand for flex fuel vehicles and flexfuel in the country.
Segment Analysis
The global flexfuel market can be segmented based on application, which includes automotive, aircrafts, and others. The automotive segment dominates the market and accounts for over 70% share. This is because a majority of flex-fuel vehicles available commercially are used for private or commercial transportation purposes. Within the automotive segment, passenger vehicles constitute the largest sub-segment, given flex-fuel vehicles are increasingly adopted by individuals.
Key Takeaways
The Global Flexfuel Market Growth is expected to witness high growth over the forecast period. The market is estimated to reach a value of US$ 93.57 Bn by 2024, expanding at a CAGR of 15% during 2023 - 2030.
Regional analysis - The Asia Pacific region holds the highest share in the global flexfuel market currently. This can be attributed to growing demand for flex-fuel vehicles in emerging economies such as India and China. Strong government support through initiatives to boost ethanol blending is also propelling adoption. North America is also among the major markets for flexfuels globally, with the US being the dominant country-level market.
Key players - Key players operating in the flexfuel market are Poet, Cargill, Raizen, and COPENEX. Poet is the largest manufacturer and supplier of ethanol and has a widespread production facility presence across the US. Cargill is another major ethanol producer with operations worldwide. Raizen is a large producer based in Brazil with substantial flex-fuel vehicle fleet. COPENEX is a leading ethanol exporter from Brazil. These companies have further expanded flex-fuel offerings in light of rising environmental commitments.
For more insights, read- https://www.ukwebwire.com/global-flexfuel-market-trends-size-and-share-analysis/
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