Global Ethanol-Based Vehicle Market to grow at a CAGR of 6.53% during the period 2016-2020

This research report provides a comprehensive analysis of global ethanol-based vehicle market until 2020. This research reports details the segmentation of ethanol-based vehicle market by vehicle type (passenger cars and commercial vehicles) and by geography (Americas, EMEA and APAC) This reports also analyses the key vendors in the market which include GM, Ford, Chrysler, Nissan, Toyota, Volkswagen, Mercedes, and BMW.

Market research analysts estimate the global ethanol-based vehicle market, to grow at a CAGR of more than 6% between 2016 and 2020. Vehicles that are ethanol-based of flexible- fuel vehicles (FFVs) are the most commercially viable among alternative vehicle propulsion technologies. These E85 vehicles are higher blend of ethanol that offers lower fuel economy, and are more popular in the passenger car segment. The US and Brazil are leading producers of ethanol fuel and represent the largest market for FFVs.

The new market research report provides a breakdown and analysis of the ethanol-based vehicle segments by technology.

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Of late, the market is witnessing considerable production of second-generation ethanol. Ethanol manufacturers, such as Novozymes and Diversa are promoting the commercialization of second-generation ethanol for use as an automotive fuel. This cellulosic ethanol offers an even energy balance in vehicles, and is expected to minimise GHGs by 86%,according to the report.

Passenger cars dominate the ethanol-based vehicle market, accounting for70% of the total market share. This segment is expected to register a healthier growth rate compared to commercial vehicles, because new models may be launched in this segment during the forecast period. Factors driving the sales of passenger FFVs include higher product availability and better awareness as automakers work to promote alternative-fuel based vehicles in response to government regulations and emission norms.

Global ethanol-based vehicle market for passenger cars 2015-2020 (millions of units)

The leading vendors in the global ethanol-based vehicle market are GM, Ford, Chrysler, Nissan, Toyota, Volkswagen, Mercedes, and BMW. Intense competition prevails in this market due to increased utilization of ethanol as an automotive fuel. Moreover, major OEMs are investing in alternative fuel vehicles.

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