Market Size of Ethanol as a Fuel in Germany (2017 – 2021)
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The Market value of Ethanol as a fuel in Germany reached $2,226.3 million in 2021
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During the same period, the industry witnessed a Market volume of 378.6 million gallons
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The industry recorded a historical decline (CAGR) of 0.2% between 2017 and 2021 in terms of value, while the underlying market volume declined (CAGR) by 0.6% between 2017 and 2021
Market Size of Ethanol as a Fuel in Germany (2017 – 2021)
With projected growth in population and demand for energy, an increase in greenhouse gas (GHG) emissions due to the use of conventional fuels creates an urgency to shift to low-carbon alternative fuels. The ongoing global efforts include the promotion of less-polluting fuels such as biofuels, biodiesel or bioethanol. Automobiles using diesel or gasoline have been a major source of GHG emissions, forcing governments to promote the use of blended fuels to reduce emissions. For example, countries such as France have mandated companies to produce such blended fuels for vehicles and are also promoting its use as aviation fuel. Companies such as Shell have taken steps to reduce their carbon footprint by a fifth by 2035. This has resulted in Shell producing ethanol.
Ethanol is produced by a sugar fermentation process and the main sources of sugar required for this production come from fuel or energy crops. Ethanol produced from energy crops such as corn, maize, and sorghum has a number of advantages over conventional fuels. It comes from a renewable source and unlike fossil fuels, it has fewer GHG emissions. With automobiles running on fossil fuels accounting for a major share of GHG emissions, there is a greater need to increase the use of these low-carbon fuels.
The global ethanol market is expected to grow as the world targets carbon neutrality by 2050. Germany is one of the five dominant markets, along with China, Brazil, the United States, and India.
The German ethanol market size is expected to be worth $2226 million in 2021, with a market volume of 379 million gallons. The country’s market value declined at a CAGR of 0.2% during 2017–21, and the market volume also declined at a CAGR of 0.6% during this period. During 2020–21, market value and volume saw a decline, which could be attributed to the COVID-19-induced lockdowns, decreasing the demand for fuels. However, the future of biofuels market looks bright as the world targets carbon neutrality.
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