Market Size of Flex-fuel Vehicle Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 104 Billion |
| Market Size (2029) | USD 143 Billion |
| CAGR (2024 - 2029) | > 5.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Flex-fuel Vehicle Market Analysis
The Flex-fuel Vehicle Market size is estimated at USD 104 billion in 2024, and is expected to reach USD 143 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The market for flex-fuel vehicles (FFV) was not impacted by the COVID-19 pandemic as severely as other automotive industries. However, with limited options for an FFV in the market, it did witness a slight decline in sales, considering the restrictions imposed by the respective governments. However, with the situation easing and life returning to normalcy, the FFV market is anticipated to grow during the projected period.
Most of the vehicles running are fueled using conventional fossil fuels, which has led to an increase in toxic exhaust gas emissions. To control vehicular pollution, multiple county governments have put forth several emission restrictions for IC (internal combustion) engine-powered vehicles. These restrictions have opened the scope for research on vehicles running on flex fuels.
In the market, there are various categories and types of FFV from E10 to E85 and above. According to the tests conducted, FFVs running on E85 fuel produce 23% less NOx, 30% less CO, and 4-6% lower CO2. Due to numerous factors, including reduced tailpipe emissions, domestic production capabilities of ethanol-based fuels, and limiting the use of naturally occurring fossil fuels, the demand for FFVs is expected to increase during the forecast period.
The demand for flex-fuel vehicles is growing significantly in the United States and the Latin American region. It is estimated that more than 84% of the world's ethanol is produced by the United States and Brazil.
