Transparency Market Research

Ethanol Market Could Rise at a CAGR of 7.9% During 2022

 

Albany, NY -- (SBWIRE) -- 12/19/2018 -- Global Ethanol Market: Snapshot

The global ethanol market is foreseen to gain a massive advantage in terms of demand while riding on a host of benefits of the chemical compound, from decreasing petroleum imports to reducing greenhouse gas emissions. With that mentioned, octane is considered to be one of the most significant benefits of ethanol. Compared to other gasoline additives on the earth, ethanol, boasting of a 113 octane rating, offers better engine knock resistance at a lesser cost. Even export markets are progressively spotting the appeal of using ethanol for its octane value. In order to explore the advantages of ethanol and its grander octane properties, gasoline producers in the U.S. could optimize their operations and reduce octane production at refineries.

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A lower-cost solution could be engaged with the help of ethanol for upgrading gasoline's octane content to minimum levels required for commercial sale. Besides being a lower-cost source of octane, ethanol could be a safer and cleaner option available than hydrocarbon octane sources.

As studied by seasoned research analysts, the global ethanol market could rise at a CAGR of 7.9% during the forecast timeframe 2017–2022 to touch a hefty valuation of US$105.0 bn by the final forecast year. In 2017, the market was valued at a US$71.8 bn.

Coarse Grain-based Ethanol Gives Nonpareil Performance to Rank Higher

The world ethanol market is prognosticated to be cataloged into three segments, i.e. coarse grain-based, sugarcane-based, and wheat-based ethanol, according to type of feedstock. Amongst these, the market could witness the dominance expected to be demonstrated by coarse grain-based ethanol until the end of the forecast period. The market for coarse grain-based ethanol could rise at a CAGR of 8.0%. The absolute growth earned by this market over the course of the forecast period could be greater than that of all other segments in the feedstock category.

In terms of end use, the world ethanol market is envisaged to be classified into fuel, industrial solvents, beverages, and cosmetics.

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North America Favored as Prominent Region with Top Revenue Share

On the basis of geography, the international ethanol market is prophesied to see a segmentation into different regions, where North America could be listed at the top in view of revenue share. The region could expand at an 8.1% CAGR. In 2017, it bagged a US$32.8 bn. On the slower side of growth is envisioned to be Japan, which could lose 5 basis points (BPS) in its share between 2017 and 2022 and account for a meager 1.3% share in the total revenue of the market in 2017. Asia Pacific except Japan (APEJ) and the Middle East and Africa (MEA) garnered a larger revenue share than Japan in the same year.