Cellulosic Ethanol Market size was valued at USD 12.84 billion in 2024 and is likely to exceed USD 752.01 billion by the end of 2037, expanding at over 36.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of cellulosic ethanol is evaluated at USD 16.6 billion.
The growing demand for energy across the globe is anticipated to escalate the usage of cellulosic ethanol. As ethanol is considered to be both a fuel and a gasoline additive, cellulosic ethanol is vital to maintain energy security.
One of the major factors for the expansion of the global cellulosic ethanol market size expansion is the remarkable advantage of cellulosic ethanol that it is made from non-food crops and waste biomass which makes it environment-friendly. This benefit eliminates the rising concern of food insecurity as well as biodiversity while enhancing energy efficiency and attracting key players to invest in the sector.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
36.4% |
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Base Year Market Size (2024) |
USD 12.84 billion |
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Forecast Year Market Size (2037) |
USD 752.01 billion |
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Regional Scope |
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Feedstock (Energy Crop, Agricultural Waste, Municipal Solid Waste, Forest Residue)
The energy crop segment in the cellulosic ethanol market is anticipated to generate the largest revenue share by the end of 2037 and hold a 34% share. Energy crops are a type of non-food crops usually used to help in manufacturing pure cellulosic ethanol and help in making other biofuels. Energy crops are encouraged to be used as feedstock in producing cellulosic ethanol. This is impelled by the increased demand for producing renewable fuels from biomass. In addition, the usage of energy crops in cellulosic ethanol as a biofuel feedstock is escalating. This is owing to the conscious need of reducing greenhouse gas emissions and help the environment. Also, the rising concern related to global warming and increasing awareness about the earth’s temperature is anticipated to favor segment growth.
Application (Gasoline, Detergent)
The gasoline segment is set to garner 58% share of the cellulosic ethanol market during the forecasted timeframe. This can be attributed to the rising use of gasoline for different types of purposes such as transportation and in the most spark-ignited internal combustion engines. Furthermore, the growing population and their increasing demand for automobiles are also anticipated to help in expanding the segment value over the next years. It has to be noted that there were almost 1.4 billion motor vehicles across the world by the end of 2022.
Our in-depth analysis of the global market includes the following segments:
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Feedstock |
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Process |
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Application |
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End-Use |
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North American Market Forecast
The North American cellulosic ethanol market is projected to be the largest with a share of about 35% by 2037. The availability of cheap feedstock in large quantities is the primary factor for market growth in the region for producing cellulosic ethanol. Furthermore, the rising concern regarding environmental issues is also projected to aid the production of cellulosic ethanol owing to its environmental benefits in the major region including the United States and Canada. In 2021, the United States produced almost 15 billion of fuel ethanol production. Also, the United States and Brazil accounted to produce 85% of the world’s ethanol together.
APAC Market Analysis
The Asia Pacific cellulosic ethanol market is set to hold 24% of the revenue share by the end of the projected timeframe, owing to the need to minimize the strategic risk related to the availability of petroleum products. Moreover, Australia, China, and India have seen a considerable increase in crude oil prices, low feedstock prices, and stronger government mandates which are estimated to favor creating a positive outlook for cellulosic ethanol market expansion.
Author Credits: Rajrani Baghel
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