Overview of the global ethanol bus market

Technavio’s market research analyst predicts the global ethanol bus market to grow at a CAGR of more than 10% between 2017 and 2021. Countries across the globe have come up with stringent emission norms to minimize global warming by reducing emissions. Governments are making efforts worldwide to minimize the negative effects of global warming and reduce GHG emissions. As greater number of countries are implementing emission standards, the use of hybrid and alternative fuel vehicles like the ethanol bus is expected to increase during the forecast period. Hybrid powertrain systems are rapidly gaining momentum in several countries as they reduce fuel consumption and vehicle emissions. Hybrids have become the most viable alternative to emission-related issues where major OEMs have shifted their focus to the development of various hybrid vehicle models. With the rapidly growing demand for fuel-efficient vehicles among consumers, the use of ethanol buses will subsequently increase during the forecast period.

At present, the market is witnessing a gradual industrial shift towards the use of second-generation ethanol. Second-generation ethanol is made from cellulosic feedstock and has better energy balance than the first-generation ethanol as the cellulosic feedstocks consume lesser fossil fuel energy in the production process. Cellulosic ethanol is likely to reduce GHGs by over 86% compared to its first-generation counterpart, which is likely to have reduced GHGs of up to 52%. With cellulosic ethanol use to have faster growth rates than biodiesel, the market for second-generation ethanol will witness massive growth in the coming years.

Competitive landscape and key vendors

Scania is one of the leading manufacturers of buses and heavy trucks in the world. The company has complete control over the global ethanol bus market as there are no major players operating in this market space. Scania develops and distributes heavy and medium trucks, manufactures engines including industrial and marine engines, power generators, portable gensets, and ethanol bus and truck engine, and several types of buses and coaches. At present, the company is collaborating with several universities, research institutions, and suppliers to augment its penetration in new markets and customer segments.

Geographical segmentation and analysis of the ethanol bus market

• Sweden
• Brazil
• Netherlands
• Argentina
• France
• India

Brazil has adopted the alternative fuel economy with full support from the government, which has increased its ethanol consumption considerably. Owing to its 1973 oil crisis, the Brazilian government mandated the mixing of ethanol, ranging from E20 to E25. The country has been a part of the BEST project, which aims at promoting the use of bioethanol as an alternative fuel to petrol or diesel, globally. This will lead to the growth of the bioethanol market. 

Growth drivers, challenges, and upcoming trends:  Hybrid ethanol-electric buses

Upcoming trends such as hybrid ethanol-electric buses are gaining huge popularity in the market. Owing to the growing concerns to reduce emissions beyond the levels practically allowed by ethanol, hybrid ethanol-electric buses are expected to operate full-scale during the forecast period. On the basis of powertrain operations, the hybrid electric bus can be categorized into parallel, series, and series parallel hybrid buses. Parallel hybrid buses are the most commonly produced type of hybrid electric bus, equipped with a smaller battery pack and an internal combustion engine.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the ethanol bus market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global ethanol bus market?
• What are the key market trends impacting the growth of the global ethanol bus market?
• What are the challenges to market growth?
• Who are the key vendors in the global ethanol bus market?
• What are the market opportunities and threats faced by the vendors in the global ethanol bus market?
• Trending factors influencing the market shares of Sweden, Brazil, Netherlands, Argentina, France, and India.
• What are the key outcomes of the five forces analysis of the global ethanol bus market?

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Related reports:

• Global Ethanol-based Vehicle Market 2016-2020