February 24, 2024
Flexfuel Market

The Global Flexfuel Market Driven By Increasing Demand For Fuel Efficiency Is Estimated To Reach US$ 93.57 Billion By 2023

Flexfuel, also known as flexible-fuel, is an alternative fuel made of gasoline and methanol or ethanol. Flexfuel vehicles have an internal combustion engine designed to run on petroleum-based fuel, like gasoline or diesel fuel, as well as on alternative fuels containing methanol, ethanol flex fuel, and/or natural gas. Flexfuel vehicles offer consumers greater choice and energy independence from volatile gas prices. Flexfuel vehicles allow motorists to choose fuels based on availability and costs. The growing energy demands paired with fluctuating gas prices have driven automakers to produce flexfuel vehicles on a large scale.

The global Flexfuel Market is estimated to be valued at US$ 93.57 Billion in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Flexible-fuel vehicles use readily available renewable fuels like ethanol and methanol blended with gasoline. This provides better fuel efficiency and reduces emissions as compared to conventional gasoline vehicles. Also, flexfuel can be produced using various raw materials such as corn, sugarcane, and cellulosic biomass, providing energy security. The rising demand for fuel-efficient vehicles along with strict emission norms will propel the flexfuel vehicle adoption rate over the coming years.

Market key trends:

One of the major trends in the Global Flexfuel Market Size is the shift towards ethanol fuel blends like E10, E15, and E85. Ethanol fuel or ethyl alcohol is renewable and cleaner-burning biodiesel mixed with gasoline. E10 fuel contains 10% ethanol and 90% gasoline, which is the most popular blend used in conventional vehicles in countries like the United States. E15 fuel has a higher ethanol content of 15%, while E85 has the highest at 85% making it suitable for flexfuel vehicles. Most of the flex fuel vehicles sold today can run on any ethanol blend from E10 to E85. The increasing production and availability of corn-based and sugarcane ethanol is driving its demand as an automotive fuel.

Porter’s Analysis

Threat of new entrants: Entry barriers are moderate as it requires significant investments to set up manufacturing plants and R&D facilities.

Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players operating in the market.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute raw materials.

Threat of new substitutes: Threat from substitutes is low as flexfuel vehicles offer unique benefits over conventional vehicles.

Competitive rivalry: Intense rivalry exists among existing players to gain higher market share.

Key Takeaways

The global Flexfuel Market is expected to witness high growth. The market size for 2024 is estimated to be US$ 93.57 Bn, indicating significant opportunities.

Regional analysis comprises- Latin America dominates currently due to the presence of Brazil which was one of the early adopters of flexfuel technology. The USA and Europe are also important markets.

Key players operating in the Flexfuel Market are Poet LLC, Cargill, and Pur. Poet LLC is one of the largest producers of biofuels in North America. Cargill is a global leader in agriculturally-based ingredients and bioindustrial markets. Pur is another prominent player in production and distribution of biofuels and bioproducts.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it