by Flexfuel, also known as flexible-fuel, is a type of fuel that is composed of gasoline and methanol or ethanol in any proportion. Flexfuels allow the use of different combinations of fuels in a single combustion engine. Flexfuel vehicles are capable of running on various combinations of gasoline and methanol or ethanol. Flexfuels offer advantages such as lower emissions than gasoline, improved fuel economy at times and provide alternative fuel choices. Growing environmental concerns and a need to reduce dependence on imported oil is driving increased focus on alternative fuels across the world.
The global flexfuel market is estimated to be valued at US$ 93.57 Bn 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.
Market key trends:
One of the key trends in the flexfuel market is the rising adoption of E85 flexfuel vehicles. E85 is a type of flexfuel blend that contains up to 85% denatured ethanol and 15% gasoline. Many vehicles in countries like Brazil, United States and Sweden are compatible with E85 flexfuels. Original equipment manufacturers are introducing more E85 compatible vehicles to leverage the benefits of ethanol such as lower emissions. This is expected to further drive the demand for E85 flexfuels during the forecast period.
Porter’s Analysis
Threat of new entrants: The global flex-fuel market has moderate threat from new entrants due to the presence of stringent regulations regarding emissions and fuel efficiency standards. However, flex-fuel vehicles promise higher fuel efficiency which can attract new players.
Bargaining power of buyers: Buyers have moderate bargaining power in this market as flex-fuel vehicles provide multiple fuel options to consumers and also increase fuel efficiency of vehicles.
Bargaining power of suppliers: Suppliers have moderate bargaining power owing to the need for specialized components and technologies required for flex-fuel vehicles. This limits the number of suppliers.
Threat of new substitutes: Hydrogen fuel cell vehicles can emerge as substitutes but their large-scale adoption may take time due to lack of refueling infrastructure and high costs.
Competitive rivalry: The global flex-fuel market witnesses high competition due to the presence of major automakers offering flex-fuel vehicles.
Key Takeaways
The Global Flex-Fuel Market Size is expected to witness high growth over the forecast period supported by stringent emission regulations and rising demand for fuel-efficient vehicles.
Regional analysis: North America dominates the global flex-fuel market due to supportive government policies and availability of flex-fuel pumps and vehicles in the region. However, Asia Pacific is expected to witness the fastest growth owing to the increasing vehicle production and sales in China and India.
Key players: Key players operating in the flex-fuel 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, Raízen, Valero Energy Corp., Andersons Inc, Archer Daniels Midland Company, DuPont, BP, Royal Dutch Shell, Green Plains Renewable Energy Inc.
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