Global Flexfuel Market Size
Flexfuel provides an alternative fuel option that can function with gasoline,
ethanol, or any combination of both. It offers benefits like reducing
emissions, supporting renewable fuels and energy independence and security.
Flexfuel vehicles can adapt to the fuel that is most available and affordable.
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 2023-2030, as highlighted in a new report published by
Coherent Market Insights.
Market key trends:
Governm
ent initiatives promoting the use of flexfuel vehicles is significantly
driving the growth of global flexfuel market. Many governments around the world
offer incentives for flexfuel vehicles adoption to reduce dependence on
imported oil. For instance, the Brazilian government introduced its first
incentive program for flexfuel vehicles in 2003 which provided tax exemptions
and subsidies to domestic flexfuel vehicles and the infrastructure supporting
alternative fuels like ethanol. This boosted sales of flexfuel vehicles in the
country. Similarly, various U.S. states also provide tax credits and other
benefits to promote flexfuel vehicles. Rising oil prices and increasing
awareness about ecological benefits of alternative fuels are further
encouraging more consumers opt for flexfuel vehicles. Consumers are attracted
to flexfuel vehicles as it provides fuel-flexibility and helps cutting down
fuel costs. With supportive governmental policies and growing environmental
consciousness, the demand for flexfuel vehicles is expected to rise
significantly over the forecast period.
Segment Analysis
The global flexfuel market is dominated by the E85 segment, which accounts for
over 60% of the market share. E85 is a gasoline-ethanol fuel blend, containing
up to 85% denatured ethanol and 15% unleaded gasoline. It has been one of the
most popular flexfuel alternatives in the United States and Brazil over the
years due to their widespread availability at service stations and government
incentives for use. The high percentage of ethanol in E85 makes it more
environmentally friendly with lower greenhouse gas emissions compared to
regular gasoline. Flexible-fuel vehicles that can operate on E85 tend to be
more fuel-efficient as well. Other emerging segments in the flexfuel market
include E75, E100 and blends containing methanol.
Key Takeaways
Global
Flexfuel Market Size is expected
to witness high growth over the forecast period driven by policies promoting
cleaner fuels and fuel security. Government initiatives and mandates to
increase ethanol blending rates and production of flex-fuel vehicles have
boosted adoption across several countries.
Regional Analysis
North America currently dominates the flexfuel market with the United States
leading consumption. The U.S. has a well-established infrastructure for ethanol
fuels like E85 with around 3,300 fuel stations supplying E85 nationwide. Brazil
has emerged as another major regional market for flexfuels. Favourable policies
and widespread flexfuel vehicle production in Brazil have made it the global
leader in utilizing fuel ethanol. Continued investments into expanding
dispensing infrastructure and flex-fuel vehicles are likely to help retain
market share.
Key players
Key players operating in the flexfuel market include Takara Bio Inc., PromoCell
GmbH, Merck KgaA, PeproTech Inc., Astellas Pharma Inc., Thermo Fisher
Scientific, Lineage Cell Therapeutics Inc., and STEMCELL Technologies Inc.
Flexible-fuel vehicles that can operate on E85 tend to be more fuel-efficient
as well.
Takara Bio Inc. is a global leader in bio-therapeutics, stem cell research, and
regenerative medicine and provides human pluripotent stem cell culture and
differentiation products. PromoCell GmbH is a leading provider of human stem
cell culture systems, media and supplements for cell science including
cardiomyocyte cells. Merck KgaA offers bioRxiv, a platform for scientists to
share unpublished preprints in life sciences and has strong presence in culture
media and reagents segment.
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