U.S. FLEXFUEL CARS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

U.S. Flexfuel Cars Market Size and Trends

U.S. Flexfuel Cars market size was estimated to be valued at US$ 4.47 Billion in 2023 and is expected to reach US$ 6.95 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030. 

U.S. Flexfuel Cars Market Trends:

• Expanding E85 infrastructure: There has been growing momentum in 2025-2028 to expand E85 fueling infrastructure to serve the rising flex-fuel vehicle population. Till 2022, there were over 2,700 E85 stations across the U.S., led by major ethanol-producing states like Iowa, Illinois, Minnesota, and Nebraska. Government and industry partnerships are underway to install more E85 pumps and make higher ethanol blends more accessible for flexfuel vehicle owners.
• Use of bio-based Eethanol: The ethanol used in flexfuel vehicles is primarily made from corn. However, there is a shift towards adopting bio-based ethanol produced from agricultural and forestry waste and residues. Several pilot projects and commercial plants are coming online across the Midwest U.S. to produce cellulosic ethanol from biomass feedstock. The adoption of bio-based ethanol can further reduce the carbon intensity of flexfuel vehicles. With the help of the Renewable Fuel Standard, domestic ethanol production reached 16.1 billion gallons in 2021, up from 14.5 billion gallons in 2020, according to the U.S Energy Information Administration.
• Co-evolving with hybrid/electric Vehicles: Major automakers are aggressively transitioning to electric mobility. However, flex-fuel technology is expected to co-evolve rather than get replaced by electrification, with its emission reduction and energy security benefits. Manufacturers are increasingly taking a portfolio approach by having both plug-in hybrids/EVs and flex-fuel models across vehicle segments to meet sustainability goals. According to the U.S Department of Energy, electric vehicle sales rose over 80% from 2020 to 2021. As these alternative fuel vehicles continue to gain widespread adoption, it is reducing the demand and need for flexfuel cars.
• Flexfuel offerings expanding globally: While Brazil and the U.S. lead flexfuel vehicle adoption, markets like Canada, Thailand, Australia, India, and Europe are also witnessing growth. Automakers are launching flex-fuel models across pickup trucks, SUVs, and passenger cars in these emerging markets. The global expansion provides economies of scale for further development and adoption of flex-fuel technology. According to the Renewable Fuels Association, U.S ethanol production in 2021 reached 15.9 billion gallons and is projected to reach 16.4 billion gallons in 2022, the availability of which is supporting increased flexfuel vehicle usage.