by Ethanol derivatives are widely used as automobile fuel additives and industrial solvents across various industries. Some key ethanol derivatives include ethyl acetate, ethylene glycol, and ethanolamine which find applications as solvents in paints & coatings, pharmaceuticals, and personal care industries. Growing automobile fleet and stringent vehicular emission norms have increased the consumption of gasoline-ethanol blends as fuels. Ethanol is mixed in small proportions with gasoline to increase fuel octane number and reduce emissions from vehicles. Industrial applications of ethanol derivatives include their use as solvents, chemical intermediates, and extractants.
The global Ethanol Derivatives Market is estimated to be valued at US$ 11.76 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One major trend gaining prominence in the Global ethanol derivatives market size is growing adoption of bio-based feedstocks for production. Earlier, ethanol was primarily produced from grains like corn. However, with increasing concerns about food versus fuel debate, producers are exploring use of non-food based feedstocks like sugarcane bagasse and agricultural residue. This is leading to development of advanced technologies for cellulosic ethanol production from lignocellulosic biomass. Shift towards sustainable production using bio-based raw materials is expected to drive the ethanol derivatives market, especially in regions with policies promoting biofuels.
Porter’s Analysis
Threat of new entrants: The ethanol derivatives industry requires significant capital investments for establishing production plants. Existing key players also enjoy economies of scale. This poses barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, differentiated products of major players reduce impact of substitution.
Bargaining power of suppliers: Major players have established global supply networks for raw materials. This reduces suppliers’ bargaining power.
Threat of new substitutes: Substitutes include other biofuels and petroleum-based products. However, stringent environmental regulations boost demand for green products.
Competitive rivalry: The industry has major global players. Intense competition on pricing and quality influences profitability.
Key Takeaways
The global ethanol derivatives market is expected to witness high growth.
Regional analysis: North America dominates the market currently due to strong government support and availability of feedstock. Asia Pacific is expected to grow at the fastest paceduring the forecast period with increasing transportation fuel demand in China and India.
Key players: Key players operating in the ethanol derivatives market are Tesab Engineering Ltd., Terex Corporation, ThyssenKrupp AG, Metso Corporation, FLSmidth & Co. AS, McCloskey Equipment, Keestrack NV, Westpro Machinery Inc., Puzzolana Machinery Fabricators LLP, Astec Industries Inc., and Sandvik AB. Companies are focusing on capacity expansions and new product launches to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
