The Automotive Flex Fuel Engine Market size was valued at USD 24.5 Billion in 2023. The Automotive Flex Fuel Engine industry is projected to grow from USD 25.97 Billion in 2024 to USD 39 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.21% during the forecast period (2024 - 2032). The global desire for more carbon-neutral vehicles to combat rising pollution levels and stringent emission regulations are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global desire for more carbon-neutral vehicles to combat rising pollution levels drives the market for flex-fuel engines forward over the forecast period. Flex fuels have several benefits, including domestic production potential and renewability, which might reduce the nation's dependency on imported petroleum. E85 stimulates flex-fuel engines because it emits less benzene and greenhouse gases than petrol. For instance, the Chevrolet Silverado HD and GMC Sierra HD, both of which are equipped with Flex Fuel-capable engines that can run on E85 ethanol and petrol, were introduced by General Motors Company in June 2020. Such developments are anticipated to fuel market growth for flex-fuel engines throughout the forecast period. Thus, driving the automotive flex fuel engine market revenue.
The main source of ozone, particulate matter, and other pollutants that cause smog is transportation. There are severe risks to one's health from air pollution. Poor air quality makes Asthma and bronchitis worse, which also increases the risk of other serious diseases like cancer and places a significant financial burden on the healthcare system. Up to 30,000 premature deaths are brought on by particle pollution each year. Moving pollution sources are referred to as mobile sources. These sources include motorized equipment, engines, and vehicles that generate exhaust and evaporative pollutants. On-road sources are automobiles used to transport people or goods on public roads. Examples of off-road sources include automobiles, engines, and machinery used in construction, agriculture, recreation, and various other purposes.
Governments worldwide are enacting stringent environmental regulations to lessen the environmental impact of the automotive industry. For instance, the US government was urged to enact harsh auto emissions regulations starting in September 2021 by a group of 21 state solicitors general, the District of Columbia, and numerous sizable US cities. Automakers develop vehicles fueled by alternative fuels to offer a safer driving experience with minimal toxic emissions. In February 2021, Porsche, for instance, revealed intentions to start producing synthetic fuels, which are anticipated to cut CO2 emissions from cars by 85%. "emission regulations" control the release of air pollutants into the atmosphere. Governments frequently build them to adhere to air quality standards while safeguarding human life. Distinct areas and nations have distinct laws governing vehicle emissions. The European Union had set a target of 147 g/km for light commercial vehicles by 2020. The use of flex-fuel engines is propelled by rising environmental consciousness and tighter regulations on car emissions. Additionally, the market for flex-fuel engines has expanded due to the spike in demand for environmentally friendly vehicle engines.
Based on engine capacity, the Automotive Flex Fuel Engine Market segmentation includes full-size engine capacity and compact-size engine capacity. The full-size engine capacity segment is expected to grow fastest due to implementation of stringent emission norms for commercial vehicles and construction equipment to reduce carbon emissions.
Based on fuel type, the Automotive Flex Fuel Engine Market segmentation includes diesel and gasoline types. In 2022, the gasoline segment dominated the market as it is more viable to blend ethanol with gasoline. As well as, major automotive OEMs are investing in the development of ethanol-blended gasoline engines. Different grades of ethanol-blended gasoline, such as E85, E27, E20, and E10, are being used globally.
The Automotive Flex Fuel Engine Market segmentation, based on vehicle type, includes passenger vehicles and commercial vehicles. In 2022, the passenger vehicles sector led the overall market for automotive flex-fuel engines. The rising demand for passenger vehicles and lower-emission technologies drives this market segment. Additionally, passenger automobiles must adhere to stricter safety rules than commercial vehicles. These elements are behind the expansion of the passenger vehicle market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Up until 2032, North America is expected to maintain its market dominance. Due to the existence of nations like the US, Canada, and Mexico that fuel market demand in this area, North America holds the highest market share in the global industry. Additionally, the market is more in demand due to the rising demand for fuel-efficient cars and the rising per capita income.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's automotive flex-fuel engine market accounts for the third-largest market share as European engine manufacturers are focused towards development of low emission engines to suffice upcoming emission norms and flex fuel engines are efficient option for low emissions. Further, the German automotive flex fuel engine market held the largest market share, and the UK automotive flex fuel engine market was the fastest-growing market in the European region.
Being the fastest-growing region, the Asia-Pacific region holds the second-largest market share in the global market due to the existence of populous nations like India, China, Australia, and several other nations that fuel market demand in this region. Another element that boosts market demand is rising investment and high-end and luxury car production.
Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive flex fuel engine market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive flex fuel engine industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive flex fuel engine industry to benefit clients and increase the market sector. The automotive flex fuel engine industry has offered some of the most significant advantages in recent years. Major players in the automotive flex fuel engine market, Mitsubishi Motors Corporation (Japan), Nissan Motor Co. Ltd. (Japan), Volvo Cars (Sweden), AUDI (Germany), Fiat Chrysler Automobiles (UK), Toyota Motor Corporation (Japan), Honda Motor Co. Ltd. (Japan), General Motors Company (US), Ford Motor Company (US) and Volkswagen (Germany) are attempting to increase market demand by investing in research and development operations.
Nissan Motor Corporation, commonly abbreviated as Nissan, is a global Japanese automaker headquartered in Nishi-ku, Yokohama. The labels under which the firm distributes its cars are Nissan, Infiniti, and formerly Datsun. Nismo is the name of their in-house performance tuning line of goods, including automobiles. The organization's first predecessor is the Nissan Zaibatsu or Nissan Group. To gain an advantage over its rivals, Nissan Motor Co. Ltd. (Japan) invests a sizeable amount of money in the research and development of flex-fuel engines. This will assist the business in increasing sales revenue.
Volkswagen, sometimes known as VW, is a German automaker headquartered in Wolfsburg, Lower Saxony. Ivan Hirst, a British Army officer, revived the German Labour Front's 1937 global brand after World War II. It is best known for the iconic Beetle and serves as the flagship brand of the Volkswagen Group, the largest automaker by global sales in 2016 and 2017. China is the group's largest market, accounting for 40% of sales and profits. Audi, SEAT, Porsche, Lamborghini, Bentley, Bugatti, Scania, MAN, and Koda are just a few of the automotive and truck brands that fall under the umbrella of the Volkswagen Group, a huge international organization. The global headquarters of Volkswagen Group is situated in Wolfsburg, Germany, the birthplace of Volkswagen. Volkswagen has decided to turn Brazil into a hub for flex-fuel engines that operate on ethanol or petrol for hybrid vehicles starting in 2021.
Mitsubishi Motors Corporation (Japan): March, 2024: The company revealed plans to expand its flex fuel engine technology to more models by 2025, aiming for a 30% increase in production capacity and Mitsubishi announced the launch of a new flex fuel version of its popular SUV, featuring improved fuel efficiency and lower emissions.
Fiat Chrysler Automobiles (UK): May, 2024: Fiat Chrysler introduced a new flex fuel engine in its compact car lineup, promising better performance and efficiency and the company committed to increasing the production of flex fuel vehicles by 40% by 2026, aiming to meet growing consumer demand for sustainable options.
February 2022: In Brazil, BMW unveiled a 3-series vehicle with ethanol-compatible fuel. The new BMW 3 series can run on ethanol and operate normally. The 3-series 2.0-liter four-cylinder B48 turbo engine has been slightly tweaked to operate on ethanol-based gasoline.
July 2021: Volkswagen has decided to turn Brazil into a hub for flex-fuel engines, which can operate on either ethanol or petrol and are used in hybrid vehicles. The objective is to export the technology and the upcoming engines to nations in Latin America and farther-off locations like South Africa and India.
Automotive Flex Fuel Engine Market Segmentation:
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 24.5 Billion |
| Market Size 2024 | USD 25.97 Billion |
| Market Size 2032 | USD 39 Billion |
| Compound Annual Growth Rate (CAGR) | 5.21% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material Type, Vehicle Type, and Region |
| Geographies Covered | North America, Asia Pacific, Europe, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Mitsubishi Motors Corporation (Japan), Nissan Motor Co. Ltd. (Japan), Volvo Cars (Sweden), AUDI (Germany), Fiat Chrysler Automobiles (UK) and Toyota Motor Corporation (Japan) |
| Key Market Opportunities | Increasing demand of lower emission vehicles |
| Key Market Dynamics | Stringent emission norms and the development of fuel-efficient technologies |
Automotive Flex Fuel Engine Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Flex Fuel Engine Market size was valued at USD 23.1 Billion in 2022.
The Automotive Flex Fuel Engine Market is projected to grow at a CAGR of 5.21% during the forecast period, 2024-2032.
North America had the largest Automotive Flex Fuel Engine Market share.
The key players in the market are Mitsubishi Motors Corporation (Japan), Nissan Motor Co. Ltd. (Japan), Volvo Cars (Sweden), AUDI (Germany), Fiat Chrysler Automobiles (UK) and Toyota Motor Corporation (Japan).
The gasoline category dominated the automotive flex fuel engine market in 2022.
The passenger vehicle had the largest Automotive Flex Fuel Engine Market share.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
