Automotive biofuels market is set to grow

Sales of commercial and passenger vehicles, particularly flex-fuel vehicles that allow end users to choose customised biofuel-fossil fuel blends have increased.

New analysis from Frost & Sullivan, Strategic Analysis of the Global Automotive Biofuels Market, has found that the market generated revenues of $94.61 billion (€73.63 billion) in 2013 and estimates this will reach $149.25 billion in 2018.

The relationship between manufacturers and distributors is key to achieving efficient logistics.

The US is the primary producer and consumer of automotive ethanol, followed by Brazil and China. However, higher vehicle fuel efficiency has lowered petrol consumption in the US and created an ethanol blend wall.

'The biodiesel industry is likely to stay strong in North America as well as in Latin America, although Europe will continue to be the primary consumer and producer of biodiesel,' says Frost & Sullivan chemicals, materials and food research analyst Shray Sharma. 'Asia-Pacific will be the fastest-growing market for both automotive ethanol and biodiesel.'