The global industrial alcohol market size was valued at USD 92.5 billion in 2020 and is expected to reach USD 119.9 billion by 2027 at a compound annual growth rate (CAGR) of 3.8 % from 2020 to 2027. Industrial Alcohol Market size is witnessing a significant growth owing to surge in demand for petrochemicals, alternative fuels and other major applications including production of cosmetics, pharmaceuticals, paints, and coatings. Recent development of biofuels due to growing concern for energy security and demand for low-priced feedstock in chemical industry will drive of industrial alcohol market size in forecasted time frame.
Rising demand of organic solvents due to efficient properties including high octane number and flammability characteristics will lead to increase in demand of the industrial alcohol in transportation sector. It is a cleaner burning fuel which is blended with gasoline and diesel fuels to reduce the fuel consumption and emissions.
With the increasing environmental concerns and stringent government regulations supporting the development of bioethanol in developed countries will further boost industrial alcohol market. As per the Department of Energy’s GREET model, discusses fuel production pathways from various energy feedstocks. The use of bioethanol significantly reduces greenhouse gas emissions by 34% compared to petroleum-derived gasoline and without indirect emissions, average bioethanol decreases emissions by 44%, thus will supplement industrial alcohol market growth.
Organic solvents consisting of ethanol, methanol, and iso-butanol are most widely used solvents in chemical industry after water. The feedstock prepared from starch and corn is low cost and used to meet energy requirement in various industries. Increasing demand for ethanol, followed by methanol is projected to account for the largest market share in industrial alcohol market due to their wide range of applications in chemical industry.
Asia-Pacific is estimated to be the fastest-growing region for industrial alcohol market. In last few years, demand of industrial solvents in developing economies consisting of China, India, and Thailand increased substantially. The major factors that influence the demand in this region are availability of feedstock for low-cost production such as corn and sugarcane, government regulations in the energy sector, increased awareness on environment safety & carbon emissions. Increasing number of production facilities is expected to drive regional growth of industrial alcohol market in forecasted time frame. China started promotion of ethanol based fuel in five cities to reduce the consumption of petroleum in domestic market. The cities are Zhengzhou, Luoyang, Nanyang, Harbin and Zhaodong. Thailand is converting cassava stock held by the government into biofuel and using 10 percent ethanol on large scale in the domestic market.
North America chemical industry is witnessing rising production of industrial solvents from agricultural wastes and algae in countries including the U.S. and Canada. U.S is one of the world’s top ethanol producers representing more than 50 percent of the global production followed by Brazil. In last few years more than 90 percent of the gasoline sold in the region is blended with ethanol. U.S. ethanol has appeared as the low-cost conveyance fuel and high octane source in the world and major consumers of ethanol are Canada, Mexico, United Arab Emirates, and the Philippines. Ethanol is the most common industrial solvents used in Brazil. Nation’s building partnerships with developing countries to reduce the greenhouse-gas emissions and dependence of energy sector on imported fossil fuels.
Europe consumption will be dominated by countries are Germany, Spain, and Sweden. Sweden will be the leading country in the region in terms of use of ethanol as a fuel. In order to achieve a broader use of biofuels several government incentives implemented which will propel the growth of industrial alcohol market.
The major companies involved in industrial alcohol market are Cargill, Flint Hills Resources, RaizenEnergia, Green Plains, Cristalco, Grain Processing Corporation, MGP Ingredients and Greenfield Specialty Alcohols. The world is waking up to the fact that industrial fuel including ethanol reduces air pollution, extends oil supplies, and provides cheaper sources of energy. In last few years, ethanol has constituted 10% gasoline supply at pump stations providing high octane number and low prices. The concern regarding energy security shifting the focus of industry on alternative fuels produced domestically. Applications in various manufacturing industries not only reduce reliance on oil imports but also create more economic value.
Rising demand of organic solvents due to efficient properties including high octane number and flammability characteristics will lead to increase in demand of the industrial alcohol in transportation sector. It is a cleaner burning fuel which is blended with gasoline and diesel fuels to reduce the fuel consumption and emissions.
With the increasing environmental concerns and stringent government regulations supporting the development of bioethanol in developed countries will further boost industrial alcohol market. As per the Department of Energy’s GREET model, discusses fuel production pathways from various energy feedstocks. The use of bioethanol significantly reduces greenhouse gas emissions by 34% compared to petroleum-derived gasoline and without indirect emissions, average bioethanol decreases emissions by 44%, thus will supplement industrial alcohol market growth.
Organic solvents consisting of ethanol, methanol, and iso-butanol are most widely used solvents in chemical industry after water. The feedstock prepared from starch and corn is low cost and used to meet energy requirement in various industries. Increasing demand for ethanol, followed by methanol is projected to account for the largest market share in industrial alcohol market due to their wide range of applications in chemical industry.
Asia-Pacific is estimated to be the fastest-growing region for industrial alcohol market. In last few years, demand of industrial solvents in developing economies consisting of China, India, and Thailand increased substantially. The major factors that influence the demand in this region are availability of feedstock for low-cost production such as corn and sugarcane, government regulations in the energy sector, increased awareness on environment safety & carbon emissions. Increasing number of production facilities is expected to drive regional growth of industrial alcohol market in forecasted time frame. China started promotion of ethanol based fuel in five cities to reduce the consumption of petroleum in domestic market. The cities are Zhengzhou, Luoyang, Nanyang, Harbin and Zhaodong. Thailand is converting cassava stock held by the government into biofuel and using 10 percent ethanol on large scale in the domestic market.
North America chemical industry is witnessing rising production of industrial solvents from agricultural wastes and algae in countries including the U.S. and Canada. U.S is one of the world’s top ethanol producers representing more than 50 percent of the global production followed by Brazil. In last few years more than 90 percent of the gasoline sold in the region is blended with ethanol. U.S. ethanol has appeared as the low-cost conveyance fuel and high octane source in the world and major consumers of ethanol are Canada, Mexico, United Arab Emirates, and the Philippines. Ethanol is the most common industrial solvents used in Brazil. Nation’s building partnerships with developing countries to reduce the greenhouse-gas emissions and dependence of energy sector on imported fossil fuels.
Europe consumption will be dominated by countries are Germany, Spain, and Sweden. Sweden will be the leading country in the region in terms of use of ethanol as a fuel. In order to achieve a broader use of biofuels several government incentives implemented which will propel the growth of industrial alcohol market.
The major companies involved in industrial alcohol market are Cargill, Flint Hills Resources, RaizenEnergia, Green Plains, Cristalco, Grain Processing Corporation, MGP Ingredients and Greenfield Specialty Alcohols. The world is waking up to the fact that industrial fuel including ethanol reduces air pollution, extends oil supplies, and provides cheaper sources of energy. In last few years, ethanol has constituted 10% gasoline supply at pump stations providing high octane number and low prices. The concern regarding energy security shifting the focus of industry on alternative fuels produced domestically. Applications in various manufacturing industries not only reduce reliance on oil imports but also create more economic value.
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