by The global flexfuel market involves production and sale of vehicles that can run on more than one type of fuel such as gasoline, ethanol or methanol. Flexfuel vehicles provide better fuel efficiency and help reduce vehicular emissions. They offer consumers an affordable and convenient option to drive on renewable fuel and lower their carbon footprint.
The global flexfuel market is estimated to be valued at US$ 30 billion in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing focus on renewable energy solutions and reducing dependence on crude oil imports is a major driver behind the adoption of flexfuel vehicles globally. Governments across countries like Brazil, United States and Canada are promoting the usage of renewable fuels like ethanol through various incentives and mandates. Their focus is to replace at least 15% of gasoline consumption with renewable ethanol by 2025. This is expected to significantly drive the demand for flexfuel vehicles in the coming years, facilitating the market growth. Additionally, availability of flex fuel compatible vehicles from top automakers and lower operating costs compared to gasoline is supporting wider consumer acceptance.
SWOT Analysis
Strength: Flexfuel vehicles can run on more than one type of fuel such as gasoline and ethanol or methanol. This provides energy security and reduces dependence on oil imports.
Weakness: Flexfuel vehicles cost more than conventional vehicles. Limited availability of flex fuel pumps restricts the use of alternative fuels.
Opportunity: Rising crude oil prices and depleting fossil fuel reserves are prompting governments to promote the use of alternative fuels. Growing environmental concerns are also driving the adoption of flex fuel vehicles.
Threats: Lower oil prices reduce the cost benefits of using flex fuels. Established gasoline infrastructure poses a challenge to the expansion of flex fuel pumping stations.
Key Takeaways
The Global Flexfuel Market Growth is expected to witness high growth over the forecast period of 2024 to 2031.
The Americas dominates the global market currently. Within the Americas, the U.S flexfuel market accounts for the major share due to the presence of around 17 million flexfuel vehicles. Brazil is another major market in the region supported by government initiatives and incentives.
Europe is forecast to be the second largest flexfuel market during the forecast period. Countries like Germany, Sweden, France and Italy have started adopting flexfuel vehicles to reduce their dependence on oil imports.
Key players operating in the flexfuel market are Ford Motor Company, Volkswagen, General Motors, Toyota Motor Corporation, Mitsubishi, Fiat Chrysler Automobiles, Nissan, Volvo, Honda, Renault, and Kia Motors. Major players are focusing on research and development of new engine technologies that enable running vehicles on varied fuel blends. They are also investing in flex fuel pumps and partnering with gas station owners to promote the installation of flexfuel infrastructure.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
