The bioethanol market revenue was around $38.0 billion in 2020, and it is projected to grow at a substantial CAGR in the near future. The main factors accountable for the growth of the market are the rising necessity for sustainable alternative fuels, exhaustion of natural resources, increasing consumption of energy, and more greenhouse gas production. Furthermore, the hefty amount of biomass is increasing the research in the domain, which is one of the reasons for the growth of the industry.
North America had the highest revenue in the bioethanol market in 2020, and it is also expected to be the market leader in the future, due to the extensive production of bioethanol. Furthermore, the U.S. and Canada have approved the usage of bioethanol blends in vehicles. On top of the favorable biofuel policies, the swift growth in the production of corn-based bioethanol, rise in crop yields, and strong focus on energy efficiency are responsible for the market development.
Bioethanol has been mainly used as a transportation fuel, and thus, the transport category had the largest share in 2020. It is predicted to maintain its dominance in the near future as well, based on end user segment. This has much to do with the biofuel blending-related regulations by the regulatory bodies of many countries. Bioethanol is lucrative and eco-friendly as compared to its counterparts, which inspires people to use it as a fuel for their automobiles.
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The largest share in the bioethanol market was held by the solid category in 2020. It would have a considerable growth rate in the near future, based on feedstock type. This is mainly because ethanol from sugarcane is a sustainable fuel with up to 90% lower emissions compared to or diesel gasoline. Ethanol formed from biomass has been accepted as an apt fuel for automobiles since the invention of automobiles, mainly the ones with spark-ignited engines.
With the constant growth in the price of fuels, there is a need for switching to alternative fuels. The growing research activities for workable production methods of bioethanol are developing as a trend in the bioethanol market. Extensive research is being conducted so that making bioethanol from plant residues, which are apt for the production of second-generation bioethanol (SGB), can be enhanced. Numerous projects have been initiated to replace petrol and diesel with bioethanol.
Natural reserves are depleting at a high pace because of an increase in the consumption of energy. This acts as the main factor for growth in the bioethanol market, consistent with the rising efforts for attaining energy efficiency. Since bioethanol is largely produced by the fermentation of the sugars of starch-containing crops. it is a promising alternate fuel to substitute the non-renewable ones, whether in automobiles or any other operation.
The stalwarts in the bioethanol market have been involved in client wins to consolidate their position in the market. For example, In January 2020, TATA Projects Limited publicized having received numerous orders in the oil & gas refinery sector, valued at around $809.7 million. Out of these orders, three of them were from HPCL Rajasthan Refinery Ltd. (HRRL) and one from Bharat Petroleum Corporation Limited (BPCL). The order received from BPCL in Odisha was for a projected production capacity of 1 lakh liters per day.
Hence, the industry is projected to grow with the exhaustion of non-renewable fuel at a rapid pace.
