by Flexfuel cars, also known as flexible-fuel vehicles, are designed to operate on more than one fuel such as gasoline/petrol and ethanol or methanol-based fuels. These vehicles provide an alternative to gasoline and help reducing dependence on crude oil imports. Flexfuel cars offer various advantages including lower fuel costs as ethanol and methanol based fuels are cheaper than gasoline. The adoption of such vehicles also helps reducing greenhouse gas emissions. The global flexfuel cars market is diversifying due to availability of multiple fuel options.
The global Flexfuel Cars Market is estimated to be valued at US$ 124.52 Bn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: The growth of the global flexfuel cars market is predominantly driven by rising adoption of flex-fuel engines across the automotive industry. Flex-fuel engines can operate on different mixtures of gasoline and ethanol or methanol. This provides car manufacturers flexibility to produce vehicles suitable for markets with varying fuel infrastructure and availability. The increasing focus on reducing dependency on crude oil is also promoting adoption of flexfuel engines and cars compatible with alternative fuels.
SWOT Analysis
Strength: Flexfuel cars have the ability to run on more than one type of fuel like gasoline/petrol and ethanol blends up to E85. This provides more options to consumers and helps in reducing dependence on gasoline.
Weakness: Flexfuel cars have higher production costs as compared to regular gasoline cars due to additional components needed to support different fuel blends. Limited availability of E85 fuel pumps is also a challenge.
Opportunity: Growing push for more eco-friendly vehicles amid rising environmental concerns provides scope to popularize flexfuel cars. Many countries offer tax benefits for flexfuel vehicles to promote their adoption.
Threats: Slow expansion of E85 fuel infrastructure and consumer hesitancy in investment due to uncertainty over flexfuel technology longevity are key threats. Changing emission norms may require upgrade of components in coming years.
Key Takeaways
The global Flexfuel Cars market is expected to witness high growth. The Global Flexfuel Cars Market Size is projected to reach US$ 124.52 Billion by 2023 from US$ 85.54 Billion in 2018, expanding at a CAGR of 8.3% during the forecast period.
Regional analysis: North America currently dominates the global flexfuel cars market led by high sales in the US. Government initiatives to enhance the usage of biofuels along with supportive policies for flex-fuel vehicles are driving demand. The Asia Pacific region is anticipated to be the fastest growing market in the coming years mainly due to large vehicle production base in countries like India.
Key players: Key players operating in the flexfuel cars market are Merck KGaA, Solvay, DAIKIN INDUSTRIES, Ltd., Navin Fluorine International Limited, Gujarat Fluorochemicals Limited, Otto Chemie Pvt Ltd, Regal Remedies Limited, and Rational Labs Private Limited. These companies are focusing on expanding their product portfolios and setting up manufacturing facilities at strategic locations to tap growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
