Bio-alcohols, comprising bio-ethanol, bio-methanol, bio-butanol, and bio-propanol, are commonly used as fuels. They are produced by microorganisms and enzymes through the fermentation of starches or sugars or cellulose. The two forms of bio-alcohols are first-generation and second generation. First-generation is made from crops such as sugar starch and vegetables, which can be used for human consumption. Second-generation are made from products that cannot be consumed by human beings such as stems, wood, and branches.
In the last few decades, the demand for fossil fuels has been increasing substantially. Fossil fuels are considered to be more expensive and claimed to be the main key reason behind global warming. Bio-alcohols are alternatives for fossil fuels. Exhaust gases of products are much cleaner, and their usage decreases the net emission of greenhouse gases by more than 37.1%. The amount of carbon dioxide consumed by crops during photosynthesis is equal to the amount of carbon dioxide released. Thus, bio-alcohols are eco-friendly, which is expected to drive their adoption during the forecasted period.
The growth of the bio-alcohol market is peopled by the increasing scarcity of non-renewable resources and fluctuating prices of crude oil. The demand for bio-fuels is increasing with the growing population and the subsequent rise in the demand for vehicles across emerging economies. Products are renewable, eco-friendly, and help in reducing carbon dioxide emissions. With technological developments, the use of cellulosic biomass is increasing in the industrial sector, which is expected to drive market growth in the coming years. Widespread availability is a key challenge that must be overcome to further provide impetus to market growth.
The global bio-alcohol market is expected to grow at a CAGR of 6.6% during the forecast period (2019–2026) to attain a value of USD 13498.9 million by 2026.
The global bio-alcohol market is segmented into type and application.
Based on type, the bio-alcohol market is segmented into bioethanol, bio-methanol, biobutanol, and BDO. The bioethanol segment is likely to account for a major market share during the forecast period, owing to the rising demand for eco-friendly and renewable sources of energy. Moreover, bioethanol is a conventional fuel source owing to its high octane value and low greenhouse gas emission.
Based on application, the bio-alcohol market is segmented into transportation, medical, power generation, and others. The transportation segment is likely to dominate the market during the forecast period, owing to the growing use of products in the sector, due to its benefits such as enhanced efficiency and optimal performance. Moreover, increasing population and increasing demand for vehicles are other factors expected to bolster market growth during the forecast period.
Geographically, the bio-alcohol market is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
In North America, government rules and regulations regarding the use of renewable resources have been increasing with a rise in crude oil prices and carbon dioxide emissions. Governments in North America are offering support in the form of loan guarantees to those who are manufacturing high-performance bio-based chemicals.
Europe is one of the largest consumers of products, driven by stringent government regulations regarding carbon emissions that target a sustainable greener environment. Germany’s automobile industry is focusing in using bio-based fuels to increase fuel efficiency.
Asia-Pacific is amongst the fastest growing regions in the bio-alcohol market, largely propelled by the growth of end-use industries that create demand for bio-ethanol in emerging countries such as China, India, and Japan.
Some of the key players in the bio-alcohol market are BASF SE, Fulcrum Bioenergy Inc, Cool Planet Energy Solutions, Harvest Power, Inc., Myriant Corporation, Mascoma LLC, Butamax Advanced Biofuels LLC, E.I. du Pont de Nemours & Co., Red Rock BioFuels LLC, and Mitsubishi Chemical Corporation.