Flexfuel or flexible-fuel vehicles are vehicles that can operate on more than one type of fuel like gasoline blends of up to 83% ethanol (E85), gasoline–methanol blends (M85), diesel–biodiesel blends, and pure gasoline or ethanol. Flexfuel vehicles give more choices to drivers and allow them to opt for cleaner, cheaper and more abundant renewable fuels as needed. These vehicles offer improved performance and reduced emissions, thanks to efficient fuel injection systems that help optimize the fuel-air mix for any blend of petrol and ethanol or methanol.
The global flexfuel Market is estimated to be valued at US$ 93.57 Bn or Mn 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 Dynamics: One of the key drivers for the growth of the global flexfuel market is the rising demand for alternate fuel vehicles. Flexfuel vehicles help reduce dependence on imported oil and offer a cleaner transportation option by enabling the use of biofuel blends. Many countries provide incentives for production and purchase of flexfuel vehicles to boost the alternate fuels industry. Also, flexfuel vehicles score better on emission standards with optimized injection of renewable fuel mixes. This has prompted both automakers and consumers to increasingly adopt flex-fuel technology powered by ethanol, biodiesel or other bio-based blends. However, despite the advantages, lack of widespread availability of biofuels limits the popularity of flexfuel vehicles in some regions currently.
SWOT Analysis
Strength: The global flexfuel market provides an environment-friendly alternative to conventional fuels. Flexfuel technology allows vehicles to operate on various mixtures of gasoline and ethanol or methanol. This provides greater flexibility to consumers. Also, flexfuel vehicles give independence from oil imports as ethanol can be produced locally from sugarcane or corn.
Weakness: Flexfuel vehicles are slightly more expensive than conventional gasoline vehicles due to additional components required to process different fuel mixtures. There is also a lack of widespread availability of flexfuel pumps which restricts the refueling options for owners.
Opportunity: Many countries offer tax benefits and incentives for flexfuel vehicles to promote their adoption. This helps increase their affordability. The rise in oil prices also makes flexfuel an attractive proposition. Rapid expansion of flex-fuel stations across major regions presents an opportunity to popularize these vehicles.
Threats: Lower global oil prices can reduce the cost benefits of flexfuel relative to gasoline. Success of electric vehicles poses a threat as they directly compete for the same environment-conscious market segment. Governments winding down subsidies and tax exemptions can negatively impact flexfuel sales.
Key Takeaways
Global Flexfuel Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 93.57 Billion in 2023 and grow at a CAGR of 9.2% during the forecast period.
Regional analysis: North America currently dominates the global flexfuel market owing to supportive government policies and availability of flexible fuel pumps and vehicles across major countries like the US. The Asia Pacific region is expected to be the fastest growing market with China, India, and Brazil emerging as key countries promoting ethanol blended fuels.
Key players: Key players operating in the global 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. Takara Bio and ViaCyte have a significant market share based on their research in developing cell therapy products for diabetes treatment.
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