The global ethanol market will expand to USD 186 billion (EUR 156.7bn) in 2022 from USD 85.64 billion in 2016, according to a recent report by Zion Market Research. This represents a compound annual growth rate of 13.8% over the period.
According to the firm, the market will be mainly driven by rising crude oil prices, efforts to limit the increase in greenhouse gas emissions and government support for ethanol production. A major hindrance on the other hand is the need to use agricultural products for making significant amounts of ethanol.
Zion Market Research notes that ethanol is most widely used in the US and Brazil and says that Asia Pacific is expected to be the most attractive regional market during the forecast period because of growing demand from the chemical and automotive industry in emerging economies including India and China.
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Ethanol market forecast to grow to USD 186bn by 2022