According to a new report published by Allied Market Research titled, "Bio-Alcohols: Global Opportunity Analysis and Industry Forecast, 2014 – 2022," the global bio-alcohols market was valued at US$6404 million in 2015, and is expected to reach US$11 574 million by 2022, growing at a CAGR of 8.6%. Bioethanol is the largest segment by type and is expected to grow at a CAGR of 7.6% during the forecast period, in terms of revenue.
Factors that drive the growth of the bio-alcohols market are, the demand for greener fuel coupled with providing long-term energy security to supply energy in line with economic developments and sustainable environmental needs. Volatility in crude oil prices is also expected to provide significant growth opportunities to the bio-alcohol industry players. However, factors such as utilisation of food grains as feedstock and compatibility of biofuels with automotive frameworks may hamper the market growth during the forecast period.
In 2015, bioethanol was the leading segment, with more than four-fifths of the market share in terms of revenue, followed by biomethanol. Bioethanol offers higher octane fuel alternative for gasoline and it is used for other energy oriented applications such as power generation. These biofuels are environment friendly as they minimise the emissions generated from vehicles. The transportation segment generated the highest revenue in 2015, followed by power generation applications. The use of biofuels will reduce pollution and reduce the global dependence on non-renewable fuel sources. Bio-alcohols are generally used as additives with gasoline owing to incompatibility with metal, composite, or elastomeric components.
According to Eswara Prasad, Team Lead, Chemicals & Materials at Allied Market Research, "Strict regulations for automotive emissions along with prevalent need of securing long-term energy supply in emerging economies are the prime drivers for bio-alcohols market. However, infrastructural challenges associated with the use of these biofuels may hamper the market growth during the forecast period."
Bio-alcohols market key findings
- In 2015, North America dominated the global market with over three-fifths of the share in overall market in terms of revenue.
- Power generation is the fastest developing application growing at a high CAGR of 9.2% in terms of revenue, from 2016 to 2022.
- Biowaste is the fastest growing raw material segment with a CAGR of 14.8%, in terms of volume, during the forecast period.
- Biomethanol is estimated to develop with a CAGR of 16.2 in terms of revenue from 2016 to 2022, highest among all types.
- Thailand is expected to grow the fastest in Asia-Pacific region with a high CAGR of 12.0% during the forecast period.
In 2015, North America is the leading region owing to the Renewable Fuels Standard (RFS2) policy, which helped spur the production of biofuels. This policy requires that gasoline sold in the US to contain a minimum amount of renewable fuels. Further, Asia-Pacific is projected to be the fastest growing region, with a CAGR of 11.5% followed by Europe with 11.0% owing to the need for renewable fuels and increase in demand for eco-friendly energy solutions.
Read the article online at: https://www.hydrocarbonengineering.com/the-environment/09022017/global-bio-alcohols-market/