The global bio alcohol market is estimated to register robust growth in2016- 2022 and is expected to grow at CAGR of 9.21% during 2016-2022. The bio alcohol market is segmented on the basis of type, application and geography. The technology segment is segmented into butanol, ethanol and propanol. The application segment is categorizedinto transportation, infrastructure, medical and others. The transportation segment holds the largest market share in the application segment. The rising demand for bio alcohol in transportation segment is attributed by the increasing prices of crude oil and other gasoline products which are shifting the concern the use of bio alcohol. The rising use of butanol as transportation fuel is expected to boost the growth in both transportation and butanol segment in the global market. 85% of butanol blends can be used as transportation petrol engines.
The rising scarcity of fossil fuels and the rising environmental concerns due to increase in pollution is increasing the growth in the global bio alcohol market. The volatile crude oil prices and high control over greenhouse effectis boosting the global market. The rising environmental concerns is one of the major factor which is influencing the growth in the global market. Bio alcohol helps to reduce the emission of various harmful gases, which has enhanced the scope of bio alcohol in the global market. Various key players are indulging in various research and development activity to develop technology for bio alcohol to enhance efficiency which assists in capturingthe market potential available in the emerging economies. Market players are adopting the strategic moves to maintain position in the global bio alcohol market.
The bio alcohol market is majorly driven by rising scarcity of fossil fuels is increasing the scope of bio alcohol in global market. However,the lack of availability of raw materialsishampering the growth in the global market. The global bio alcohol market is having huge opportunities due to rising demand from various applications, growing demand from emerging countries and growing supportive regulationsis creatinghuge opportunities in the forecast period. The rising demand from emerging countries is the major factor which is injecting huge opportunity in the global market and is increasing the scope of global bio alcohol market.
On the basis of geography, North America, Europe, Asia Pacific and ROW are the major segments. The Europe holds the largest market share followed by North America, Asia Pacific and ROW in the global bio alcohol market. In 2014, the Europe market share accounted at 30% of the global market. The growth in the region is majorly driven by the increasing research and development expenditure by various key players, volatility of crude oil prices, and rising environmental concerns due to increasing pollution. In European market, Germany holds the largest market share. The growth is majorly driven by the increasing demand for butanol from the transportation sector reducing the harmful emissions from vehicles.