Global Flex Fuel Engine Market 2016-2020
About Flex Fuel Engines
Flex-fuel vehicles are segmented in terms of engine capacity such as compact-, mid-size, and full-size. In Brazil, there is a high penetration of compact-size engines in vehicles with approximately 70% market share, while in the US, there is a higher market share for full-size vehicles. However, apart from Brazil and the US, there is a very low penetration of flex-fuel vehicles in other parts of the world. China has flex-fuels vehicles running on methanol (M85), which are very less in number, while European countries such as Sweden and Finland have a marginal market share when it comes to flex-fuel engines.
Technavio’s analysts forecast the global flex fuel engines market to grow at a CAGR of 3.08% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global flex fuel engines market for 2016-2020. To calculate the market size, the report provides the performance and market dominance of each of the vendors in terms of experience, product portfolio, geographical presence, financial condition, and R&D.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Flex Fuel Engines Market 2016-2020
Technavio recognizes the following companies as the key players in the global flex fuel engines market: Ford, Volkswagen, General Motors, Honda, and Nissan.
Other Prominent Vendors in the market are: Fiat, Hyundai, Kia Motors, Mitsubishi, Renault, Toyota, and Peugeot.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is growing penetration of E85 vehicles in luxury brands. Flex-fuel is one of the dominant technologies across all the vehicle segments in Brazil with the exception of sports cars, off-road vehicles, and minivans, which do not come equipped with flex-fuel engines. Flex-fuel vehicles do not generate enough power to be used in sports cars and off-road vehicle and are generally used for fuel-economy. There is a growth in penetration of E85 vehicles in luxury brands. In October 2015, Audi started production in Curitiba in Brazil due to the increased demand for flex-fuel vehicles in Brazil, and to maintain its position in the premium segment.”
According to the report, one driver in market is high penetration of flex-fuel vehicles in Brazil. Brazil has the highest penetration of flex-fuel vehicles among all regions. In Brazil, more than 40% of the energy comes from alternative energy sources. In the transportation industry, ethanol accounts for 20% of the industry’s energy supply. After the 1973 oil crisis, Brazil stuck to the strategy of increasing domestic oil production by the state-owned oil company Petrobras and decrease the demand for petroleum by providing ethanol from sugarcane plants an alternative fuel. There is a high penetration of flex-fuel vehicles in Brazil accounting for around 94% of the market in 2015, which will increase to 96% by 2020.
Further, the report states that one challenge in market is introduction of advanced powertrain technologies. The introduction of advanced powertrain technologies such as direct injection and turbo-boosted engines will increase the expense and complexity of adding flex-fuel vehicle technologies to vehicles. OEMs are trying to downsize the engine capacity so as to produce fuel-efficient vehicles. In the US, the majority of the vehicles were with an engine capacity greater than 3L. Approximately 50% of the sales in the US in the light duty segment is for pickup trucks. They were earlier powered by large displacement engines like 3.5L V6 or 5L V8 engines but owing to the downsizing trend those bigger engines have been replaced by 2L turbocharged engines, which produce similar power but are 30% more fuel efficient.
Ford, Volkswagen, General Motors, Honda, Nissan, Fiat, Hyundai, Kia Motors, Mitsubishi, Renault, Toyota, and Peugeot.