by Flexfuel cars or flexible fuel vehicles are designed or modified to run on more than one fuel, usually gasoline blended with ethanol or methanol fuel. Ethanol as an automotive fuel provides advantages such as enhanced performance, reduction in emissions, and independence from oil imports. Flexfuel cars allow consumers to choose fuel based on availability and fuel prices. Ethanol fuel is typically cheaper than gasoline, allowing flexfuel vehicles to run more economically. The growing demand for economical and fuel efficient vehicles along with government initiatives and policies promoting biofuels have significantly boosted the demand for flexfuel cars.
The global Flexfuel Cars Market is estimated to be valued at US$ 124.52 Bn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the flexfuel cars market is the adoption of flexfuel vehicles in developing nations. Countries like Brazil, China, and India have emerged as lucrative markets for flexfuel cars due to expanding middle-class population and rapidly growing automotive industry. For instance, Brazil has the largest flex-fuel car fleet in the world with over 90% of new vehicles sold being flex-fuel. Major automakers are focusing on these developing nations by launching affordable flexfuel models. Furthermore, stringent fuel efficiency and emission regulations in regions like Europe and North America are encouraging OEMs to develop hybrid and electric vehicles that can run on multiple fuels. This is expected to further propel the demand for flexfuel cars over the forecast period.
Porter’s Analysis
Threat of new entrants: The global flex fuel cars market has moderate threat of new entrants due to the presence of established players and requirement of high initial investments.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives and flexibility in switching to alternative fuel options.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute raw materials and flexibility of OEMs to switch to alternative suppliers.
Threat of new substitutes: Threat of substitutes is low as flex fuel vehicles provide benefits over conventional vehicles in terms of reduced dependency on oil imports.
Competitive rivalry: The global market is moderately competitive due to presence of numerous regional and international players offering varied fuel options.
Key Takeaways
Global Flexfuel Cars Market Size is expected to witness high growth. The market size for 2023 is estimated to be US$ 124.52 Bn while growing at a CAGR of 8.3% during the forecast period of 2023 to 2030.
Regional analysis: North America dominates the global flex fuel cars market owing to supportive government policies and regulations along with availability of advanced infrastructure in the region. The USA represents the fastest growing market in the region.
Key players: Key players operating in the flexfuel cars market are Merck KGaA, Solvay, DAIKIN INDUSTRIES, Ltd., Navin Fluorine International Limited, Gujarat Fluorochemicals Limited, Otto Chemie Pvt Ltd, Regal Remedies Limited, and Rational Labs Private Limited.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
