Global Flexfuel Cars Market is Estimated to Witness High Growth Owing to Opportunity of Reduce Vehicle Emission
Flexfuel Cars Market |
Flexfuel cars, also known as flexible-fuel vehicles, are automobiles that run on more than one type of fuel such as gasoline, ethanol or methanol fuel blends. These vehicles have additional fuel injection components that allow them to use multiple fuels. Advantages of flexfuel cars include reduction in vehicle emission, less dependency on gasoline and flexibility in fuel choice. With growing environmental concerns around conventional fuel vehicles, flexfuel cars provide a sustainable transportation solution and have gained popularity globally.
The global Flexfuel Cars Market is
estimated to be valued at US$ 124.52 Bn in 2023 and is expected to exhibit a
CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new
report published by Coherent Market Insights.
Market Opportunity:
The opportunity of reduce vehicle emission from flexfuel cars is driving their
adoption globally. Ethanol blended fuels produce less harmful emissions
compared to conventional fuels. As flexfuel cars can run on ethanol blended
gasoline, their use significantly reduces emission of greenhouse gases like
carbon dioxide from the transportation sector. Flexfuel vehicles when operated
on high blend ethanol fuels can reduce tailpipe emissions by 30% for carbon
monoxide and non-methane organic gases. With stringent emission norms
worldwide, flexfuel cars provide an efficient solution to lower vehicular
pollution and minimize environmental impact of transportation sector. This is a
major factor propelling growth of the global flexfuel cars market during the
forecast period.
Porter's Analysis
Threat of new entrants: The global flexfuel cars market requires high R&D
investments to develop new technologies, which poses significant entry
barriers. Bargaining power of buyers: Buyers have moderate bargaining power due
to the availability of multiple automobile brands offering flexfuel vehicles.
Bargaining power of suppliers: Suppliers have moderate bargaining power given
the need for technological innovation and specialized components required in
flexfuel cars. Threat of new substitutes: Potential threat from new
energy-efficient vehicle technologies being developed in the industry.
Competitive rivalry: Intense competition exists among established brands to
gain market share through product innovation and competitive pricing.
SWOT Analysis
Strengths: Growing consumer demand for fuel-efficient vehicles. Weaknesses:
High upfront costs of flexfuel vehicles. Opportunities: Stringent government
regulations pushing automakers to reduce emissions. Threats: Uncertain crude
oil prices impacting demand.
Key Takeaways
Global
Flexfuel Cars Market Size is expected to witness high growth over the
forecast period of 2023 to 2030 supported by rising environmental
consciousness.
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