Cellulosic Ethanol Market Size & Share, by Feedstock (Energy Crop, Agricultural Waste, Municipal Solid Waste, Forest Residue); Process (Dry Grind, Wet Mill); Application (Gasoline, Detergent); End-user (Transportation, Power Generation, Heating) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5048
  • Published Date: Jun 17, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Cellulosic Ethanol Market size is projected to reach USD 90 Billion by the end of 2035, growing at a CAGR of 37% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of cellulosic ethanol was surpassed USD 7 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 Market
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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

2022

Forecast Year

2023-2035

CAGR

~37%

Base Year Market Size (2022)

~ USD 7 Billion

Forecast Year Market Size (2035)

~ USD 90 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Cellulosic Ethanol Segmentation

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 2035 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:

     Feedstock

  • Energy Crop
  • Agricultural Waste
  • Municipal Solid Waste
  • Forest Residue

    Process

  • Dry Grind
  • Wet Mill

    Application

  • Gasoline
  • Detergent

    End-Use

  • Transportation
  • Power Generation
  • Heating

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Cellulosic 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 2035. 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.

Research Nester
Cellulosic Ethanol Market Share
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Companies Dominating the Cellulosic Ethanol Landscape

top-features-companies
    • 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

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:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 5048
  • Published Date: Jun 17, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing need for biofuels to save the environment is anticipated to bring in lucrative growth opportunities for the expansion of market size.

The market size of cellulosic ethanol is anticipated to attain a CAGR of ~37% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Clariant International Ltd., Novozymes, Aemetis, Inc., ENERKEM Inc., Iogen Corporation, Praj Industries Limited, BlueFire Renewables, BP p.l.c., Clariant AG, The Dow Chemical Company, and other key players.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by feedstock, process, application, end-user, and by region.

The gasoline segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Rising concerns regarding the infrastructure along with the tough competition from the food sector and the lack of an efficient distribution network are estimated to be the growth-hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Cellulosic Ethanol Market Report Scope
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