Flexfuel, also known as flexible-fuel vehicles, are vehicles that run on more than one fuel such as gasoline, ethanol or methanol fuels and can switch between different fuels automatically without any engine modification. Flexfuel vehicles use flex-fuel engines that can operate on various mixtures of fuels. Ethanol is a popular alternative fuel used in flexfuel vehicles, made from plant materials and considered to be renewable fuel with lower carbon intensity. Ethanol flexfuel vehicles have better performance compared to gasoline and offer lower emissions. They provide consumers with greater flexibility of choice at the fuel pump. The growing need to reduce dependence on petroleum imports and mitigate climate change is driving demand for alternative fuels like ethanol.

The global Flexfuel Market is estimated to be valued at US$ 93.57 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

Government policies and initiatives are promoting use of flex fuel vehicles to leverage ethanol as an alternative fuel. Many countries are offering tax incentives and subsidies for consumers purchasing flex fuel vehicles. For instance, Brazil has emerged as a leader in flexfuel technology and alternative fuels adoption due to various government programs and mandates over past decades favoring sugarcane ethanol use. Stringent emission norms are also pushing automakers to develop more efficient flexfuel vehicles. Flexible fuel technology allows improved engine efficiency and reduced emissions. Flexfuel vehicles offer fuel flexibility and energy security benefits. The advantage of running on multiple fuel options encourages consumers in regions with fluctuating fuel prices. Flexfuel vehicles paired with growing biofuel infrastructure are expected to gain more traction going ahead.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the global flexfuel market is moderate. High capital requirements for infrastructure development act as a barrier for new players.

Bargaining power of buyers: The bargaining power of buyers in the flexfuel market is high due to the presence of multiple established players providing varied options to buyers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are multiple raw material suppliers but the switching costs are relatively high.

Threat of new substitutes: Threat from substitutes is low as flexfuel offers unique properties compared to traditional gasoline.

Competitive rivalry: The global flexfuel market witnesses high competitive rivalry due to the presence of numerous international and domestic players competing on pricing and product innovation.

Key Takeaways

The Global Flexfuel Market Growth is expected to witness high growth over the forecast period. The global Flexfuel Market is estimated to be valued at US$ 93.57 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030.

The market in Asia Pacific region is expected to grow at fastest pace owing to increasing flexfuel vehicle sales led by robust economic growth in key countries like China and India. Asia Pacific region dominates the global flexfuel market and is expected to maintain its leading position during the forecast period driven by rising consumer awareness towards eco-friendly fuels. Countries like China, India, and Japan are major contributors to the regional market growth.

Key players –

Key players operating in the flexfuel market are Poet, DuPont, Verbio, Green Plains, and Raízen. Poet is one of the leading players focussed on developing advanced biofuel technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it