Global automotive biofuels market to reach $149.25 b in 2018

Global automotive biofuels market has generated revenues of $94.61 billion in 2013 and estimates to reach $149.25 billion in 2018, reports new analysis from Frost & Sullivan.

The study has covered automotive biodiesel and ethanol.

The United States is the major producer and consumer of automotive ethanol, followed by Brazil and China.

However, in US, higher vehicle fuel efficiency has reduced gasoline consumption creating an ethanol blend fall, limiting the market from attaining its potential. The country has no chances to offer sufficient growth opportunities for cellulosic ethanol manufacturers.

The biodiesel industry is likely to stay strong in North America as well as in Latin America, although Europe will continue to be the primary consumer and producer of biodiesel. Asia-Pacific will be the fastest-growing market for automotive ethanol and biodiesel, said, Shray Sharma, materials and food research analyst, Frost & Sullivan Chemicals.


The increasing sales of commercial and passenger vehicles including flex-fuel vehicles with customized biofuel-fossil fuel blends will drive the automotive biofuels consumption globally.

The mandatory implementation for higher biofuel percentage will increase their usage than E10 ethanol blends, adding to biofuel demand.

In the midst of raw material price variation, access to feedstock remains crucial for biofuel manufacturers to make profits, forcing for integration opportunities. Biodiesel producers have to seek low-cost feedstock options to withstand rising costs.

In addition, vendors face the challenge from consumers carrying the concern that biofuels may damage vehicle engines.

As per estimates, fewer than 10 percent of the total 10.6 million flex-fuel vehicles on the road in US use higher E85 ethanol blend. Price subsidies announced on fossil fuels also eliminate the incentives on biofuels.

Manufacturers have to multiply end-user awareness through branding and marketing campaigns. Maintaining relation to customers and establishing partnerships with efficient retail networks will also enhance competition among companies, suggested Sharma.

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