The Asia-Pacific region will see the strongest growth in the use of ethanol and biodiesel by 2018, according to a report by London-based analyst Frost & Sullivan.
by Staff
October 6, 2014
Photo courtesy of Frost & Sullivan.
1 min to read
Photo courtesy of Frost & Sullivan.
The Asia-Pacific region will see the strongest growth in the use of ethanol and biodiesel by 2018, according to a report by London-based analyst Frost & Sullivan.
The report projects revenue generated by the automotive biofuels market to reach $149.25 billion globally by 2018 up from the $94.61 billion in revenue generated in 2013. The report only looked at ethanol and biodiesel among biofuels. The U.S. will remain the primary producer of ethanol followed by Brazil and China, according to the report.
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"Higher vehicle fuel efficiency has reduced gasoline consumption in the United States and created an ethanol blend wall [and is] restraining the market from reaching its potential," according to a release. "Nevertheless, the country will provide ample growth opportunities for cellulosic ethanol manufacturers."
Biofuel manufacturers must gain access to competitively-priced feedstock to sustain profits across the regions in the midst of raw material price fluctuations. Biodiesel producers must also look for low-cost feedstock options such as animal fat and recycled oil to fight rising production costs, according to the report.
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