The bioethanol market growth during the forecast period (2021–2030) will be driven by the surging need for sustainable and eco-friendly fuels, rising energy consumption, and increasing volume of greenhouse gas emissions in the environment. Moreover, the rapid depletion of natural resources will also facilitate the market growth in the foreseeable future. According to P&S Intelligence, the market was valued at $38.0 billion in 2020. Additionally, the soaring number of research and development (R&D) initiatives in this domain, owing to the large-scale availability of biomass, will also augment the market growth in the foreseeable future.
One of the key growth drivers for the market is the depleting reserves of natural resources, primarily on account of the surging energy consumption. Non-renewable resources, such as natural gas and crude oil, are available in limited quantities and thus, need to be preserved for sustainable development. Since bioethanol is primarily obtained through the fermentation of sugars derived from starch-intensive crops, it has the potential to serves as a promising alternative fuel. Besides, the harmful effects associated with oil also encourage people to opt for eco-friendly substitutes.
The end user segment of the bioethanol market is classified into transportation, cosmetics, alcoholic beverages, pharmaceuticals, and others, such as paints and coatings and chemicals. Among these, the transportation category held the largest market share in 2020, and it is projected to retain its market dominance throughout the forecast period. This can be owed to the rising implementation of government initiatives mandating the use of bioethanol as a biofuel in the transport sector. In comparison to conventional fuels, bioethanol is cheaper, cleaner, and more effective.
Globally, the North American bioethanol market generated the highest revenue in 2020, and it is expected to continue this trend throughout the forecast period. This can be primarily attributed to the implementation of favorable biofuel policies and large-scale production of bioethanol in the region, owing to the rising environmental concerns. The Governments of the U.S. and Canada have mandated the use of bioethanol blends in automobiles. Moreover, the increasing production of corn-based bioethanol, escalating focus on energy efficiency, and surging crop yields will also support the market growth in the region in the upcoming years.
Therefore, the escalating need for alternative fuels and rapid depletion of fossil fuel reserves will contribute to the market growth in the forthcoming years.
No comments:
Post a Comment