The global Flexfuel Market is estimated to be valued at US$ 93.57 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flexfuel is a type of fuel that is blended with gasoline and ethanol in varying ratios. Ethanol helps improve engine performance, reduces emissions, and lowers dependence on gasoline. Flexfuels can have up to 85% ethanol (E85) and the rest gasoline. Flexfuels provide flexibility in fuel choice and are especially useful for vehicle owners who routinely drive long distances. Flexfuels enable vehicles to utilize the cleanest burning fuel available - whether it's predominantly gasoline or a higher percentage of ethanol.
Market key trends:
Growing demand for fuel alternatives due to rising gasoline prices and concerns over fossil fuel dependence and emissions is driving the flexfuel market. Flexfuels utilize renewable ethanol from sources such as sugarcane and corn, providing a cleaner and sustainable fuel option. Growing fleets of flex fuel vehicles that can operate on varying ratios of gasoline and ethanol are also boosting adoption of flexfuels. Governments in countries such as Brazil, United States, and Canada offer incentives for production and use of flexfuels to reduce reliance on imports.
Porter’s Analysis
Threat of new entrants: New entrants in the flex fuel market face high capital requirements to establish production and distribution infrastructure. Bargaining power of buyers: Large fleet operators and automakers have significant bargaining power over flex fuel suppliers due to their bulk purchase volumes and potential for backward integration. Bargaining power of suppliers: Flex fuel producers have moderate bargaining power over raw material suppliers as alternative feedstock sources are available. Threat of new substitutes: Alternate fuels like biodiesel pose a moderate threat as substitutes but require infrastructure compatibility for widespread use. Competitive rivalry: The global flexfuel market is competitive with the presence of several international established players.
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 concerns regarding environmental pollution and initiatives by governments to promote the use of renewable fuels.
The North America region dominates the global flexfuel market and is expected to continue its dominance over the forecast period. This is attributed to the large strides made by the US and Canadian governments to adopt renewable and clean transportation fuels. Growing demand for E85 fuel from flex-fuel vehicles in the US is a major driver for the regional market.
Key players operating in the 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, RaÃzen, Valero Energy Corp., Andersons Inc, Archer Daniels Midland Company, DuPont, BP, Royal Dutch Shell, Green Plains Renewable Energy Inc. The market is dominated by large established players and emerging players are focusing on strategic collaborations and partnerships to gain market share.
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http://insightskies.weebly.com/blog/the-growing-need-for-low-carbon-fuels-to-mitigate-climate-change-is-anticipated-to-open-up-the-new-avenue-for-global-flexfuel-market
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