Global Flexfuel Market Size and Trends

Global flexfuel market size is estimated to be valued at US$ 9,357.0 Mn in 2023 and is expected to reach US$ 19,427.0 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 11% during forecast period (2024 to 2031)

Flexfuel which is also known as flexible fuel vehicles (FFVs) are automobiles with internal combustion engines that can run on more than one fuel and also a mixture. Typically, flexfuel vehicles can operate with a blend of up to 85% ethanol fuel (E85) and 15% gasoline or petrol. The ability of flexfuel vehicles to run on more than one fuel makes them attractive options as they provide fuel flexibility and reduce dependence on gasoline. The key drivers of the flexfuel market growth include supportive government policies, rising crude oil prices, a growing global automotive market, and decreasing dependence on fossil fuels.

Global Flexfuel Market Trends:

Product development of flexible fuel additives: Leading fuel additive companies are developing specialized flex-fuel additives that enhance engine performance across wider ethanol blend ranges. Fuel injector cleaners, corrosion inhibitors, lubricity improvers, and combustion catalysts are some additives that optimize engine operation on ethanol blends from E15 to E85. The growing product development focus will improve flex-fuel vehicle performance and drive their adoption.
Emergence of E85 as a preferred lex-fuel lend: Among various ethanol-gasoline blends, E85 has emerged as the most preferred flexfuel option due to its higher bio-based composition (85% ethanol), capability to reduce emissions significantly as compared to pure gasoline, and availability. Automakers are designing and optimizing engines to maximize performance on E85.
Growth in hybrid flexfuel vehicles: Automotive Original Equipment Manufacturers are combining hybrid and flexfuel technologies to develop environmentally friendly hybrid flex-fuel models. These vehicles allow drivers to run on any blend of ethanol and gasoline and also switch between electric and combustion modes. The hybrid-flexfuel combination enhances fuel efficiency, cuts emissions, and provides greater fuel flexibility. Advancements in hybrid powertrains will spur the launch of more hybrid flexfuel variants.

Global Flexfuel Market Trends: