by Flexfuel, also known as flexible fuel, allows vehicles to operate on more than one type of fuel like gasoline blended with various percentage of ethanol. Flexfuel vehicles offer enhanced performance and fuel efficiency. They help reduce dependency on petroleum products and curb vehicular emissions.
The global Flexfuel Market is estimated to be valued at US$ 93.57 Billion in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising adoption of flexfuel vehicles has been a key trend propelling the global flexfuel market growth. Flexfuel vehicles allow using blends of gasoline and ethanol like E10, E15, E20, E25, E30, E50, E70, E75, E85 or even E100 and provide flexibility in fuel choice. This offers cost savings to consumers and energy security benefits. Various governments are promoting flexfuel vehicles and ethanol blended fuels through subsidies, tax exemptions and other policy incentives to support domestic agriculture and reduce dependency on oil imports. For instance, the governments of Brazil, United States and Canada have adopted favorable policies to increase production and usage of flexfuels. Such initiatives are fueling adoption of flexfuel vehicles globally.
SWOT Analysis
Strength: The global flexfuel market has strong growth potential due to increasing adoption of renewable fuels. The ability to operate on more than one fuel provides flexibility to users.
Weakness: Setting up infrastructure for distribution of flexfuel requires large investments. Awareness among consumers regarding advantages of flexfuel vehicles is still low in some regions.
Opportunity: Stringent emission norms in many countries are driving the demand for low-carbon fuels. Government incentives and initiatives for adoption of alternative fuels offer scope for market expansion.
Threats: Dominance of conventional fossil fuels poses challenge to flexfuel market. Market is fragmented with presence of various alternative fuels; customers have option to shift to other alternatives.
Key Takeaways
Global Flexfuel Market Size is expected to witness high growth. Growth will be driven by governmental support to popularize flexfuel vehicles in countries aiming to reduce dependency on imported oil and curb emissions. The Asia Pacific region currently dominates the market and is expected to retain market leadership during the forecast period. Countries like Brazil, the United States and Canada have established flexfuel infrastructure and a supportive regulatory environment which has propelled market growth. Key players operating in the flexfuel market are Takara Bio Inc., ViaCyte Inc., PromoCell GmbH, Merck KgaA, PeproTech Inc., Astellas Pharma Inc., Thermo Fisher Scientific, Lineage Cell Therapeutics Inc., and STEMCELL Technologies Inc., among others. Government initiatives and stringent emission norms will boost adoption of flexfuel vehicles. Growing environmental consciousness will favor market expansion globally in coming years.
Key players operating in the flexfuel market are focusing on capacity expansions and new product launches to strengthen their market position. For instance, in 2022 Merck KgaA announced plans to double Flexfuel production capacity at its plant in Darmstadt, Germany to meet rising demands. Growing flexfuel infrastructure in countries like the US will offer opportunities for companies. Though alternatives may pose competition but flexfuel being a green fuel has better growth potential compared to conventional fossil options.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
