April 16, 2024

Electric Vehicles Is Fastest Growing Segment Fueling The Growth Of Global Flexfuel Market

Market Overview:

Flexfuel allows vehicles to operate on multiple types of fuel like ethanol or gasoline. It offers advantages like better fuel economy, lower emissions, and reduced dependency on imported petroleum. The growing demand for eco-friendly vehicles is increasing the need for flexfuel in the automotive industry.

Market key trends:

One of the major trends in the flexfuel market is the rising adoption of electric vehicles. Many leading automakers are focusing on developing electric vehicles that can operate on flexfuel to reduce emissions. Flexfuel-powered electric vehicles allow using renewable sources like ethanol for charging. This helps cut carbon footprint as ethanol emits less greenhouse gases than gasoline. It also avoids the dependency on electric charging infrastructure. Several electric SUVs and sedans compatible with E85 flexfuel are gaining popularity in countries like the United States and Brazil. The increasing demand for low-emission vehicles is expected to drive the electric vehicles segment in the global flexfuel market during the forecast period.

Segment Analysis
The global flexfuel market can be segmented into E85 fuel, E15 fuel, E30 fuel, E70 fuel and E100 fuel. Among these, the E85 fuel segment dominated the market in 2022, accounting for around 65% of the total share. E85 fuel offers better fuel efficiency and reduced emissions levels as compared to conventional gasoline. The widespread availability of vehicles compatible with E85 fuel and growth in corn-based ethanol production have propelled the demand for E85 fuel globally.

Key Takeaways

The global Flexfuel Market Demand  is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing demand for cost effective and low carbon emission fuels.

Regional analysis:
North America accounted for the largest share in the global flexfuel market in 2022. The region has established production facilities and also offers incentives and subsidies for use of flexfuel. The U.S is the largest producer and consumer of ethanol-based fuel. However, Asia Pacific is expected to witness the highest growth over the forecast period due to rapid industrialization and growing vehicle fleet in countries like China and India.

Key players:
Key players operating in the global flexfuel market are Poet LLC, Cargill, Purfresh Inc., Aceites Manuelita S.A., Abengoa Bioenergy, Bunge Limited, CropEnergies AG, Cristal Union, Darling Ingredients Inc., Eco-Energy, Advanced Bioenergy LLC, Flint Hills Resource, Raízen, Valero Energy Corp., Andersons Inc, Archer Daniels Midland Company, DuPont, BP, Royal Dutch Shell, Green Plains Renewable Energy Inc.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it