Global Market Size, Forecast, and Trend Highlights Over 2025-2037
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.
Cellulosic Ethanol Sector: Growth Drivers and Challenges
Growth Drivers
- Burgeoning Renewable and Sustainable Energy – Cellulosic ethanol is the second generation biofuel that is derived from different kinds of feedstock. Thus, with the increasing focus on generating renewable energy, the demand for cellulosic ethanol is anticipated to increase in the upcoming years. International Energy Agency (IEA) stated that in 2021 renewable electricity generation rose by almost 7%, equivalent to an increase of 522 TWh.
- Substantial Growth of the Agriculture Sector – Cellulose ethanol is mainly made with cellulosic feedstock such as grass, wood, crop residues, and other starch-based crops. Thus, with the development in the agriculture sector, it is estimated to generate profitable opportunities for global cellulosic ethanol market value by providing sufficient raw materials.
- Rising Concern Regarding Climate Change – Decision makers are supporting the use of cellulosic ethanol owing to the substantial reduction in emissions owing to the use of cellulosic ethanol when compared to the use of petroleum-based fuels for transportation, electricity, heat, and other purposes. The National Oceanic and Atmospheric Administration has stated that the earth’s temperature has risen by 2° F since 1880 and the rate of global warming has doubled since then.
- Increasing Use of Biomass – In the recent period, many biomass initiatives have been regulated by the governments of different nations. As a result, the utilization rate of cellulosic ethanol in the forthcoming period and aid in the expansion of global cellulosic ethanol revenue generation during the forecasted timeline.
Challenges
- Rising Concern Regarding Infrastructure – Cellulosic ethanol couldn’t be transported through pipes and requires proper roads and vehicles for transportation and distribution. The infrastructure needed for storage and processing is extremely important. These factors couple up to challenge cellulosic ethanol market growth in the assessment period.
- High Competition with the Food Sector for Resources like Land, Water, and Fertilizer
- Lack of a Distributed Network
Cellulosic Ethanol Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
36.4% |
|
Base Year Market Size (2024) |
USD 12.84 billion |
|
Forecast Year Market Size (2037) |
USD 752.01 billion |
|
Regional Scope |
|
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Customize this ReportCellulosic Ethanol Industry Regional - Synopsis
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.
Companies Dominating the Cellulosic Ethanol Landscape
- Clariant International Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Novozymes
- Aemetis, Inc.
- ENERKEM Inc.
- Iogen Corporation
- Praj Industries Limited
- BlueFire Renewables
- BP p.l.c.
- Clariant AG
- The Dow Chemical Company
In the News
- Clariant International Ltd. has announced that it has been successful in producing the first commercial cellulosic ethanol at its Sunliquid production plant from agricultural waste. Now, the company is targeting to produce approximately 50,000 tons of cellulosic ethanol per annum.
- Novozymes has launched two new powerful innovations in yeast and fiber that are aimed to bring significant efficiency to its ethanol plant and counteract other production challenges
Author Credits: Rajrani Baghel
- Report ID: 5048
- Published Date: Oct 14, 2024
- Report Format: PDF, PPT
