Flex Fuel Engine is anticipated to have CAGR of ~4.2% over 2019-2028. A flexible-fuel vehicle (FFV) or flex-fuel vehicle is an alternative fuel vehicle with an internal combustion engine. It is designed to run on more than one fuel, usually gasoline which is blended with either ethanol or methanol fuel, and both fuels are stored in the same common tank. The key factors driving the growth of the flex fuel engine include the rise in the regulations for the emissions released by the engines. Furthermore, the increase in the steep depletion of the natural gasoline sources, which ultimately is anticipated to propel the growth of the industry. The advancements include the surge in cleaner alternative fuels and cutting-edge power systems for vehicles, which are important to improve, flex fuel engine efficiency.
Top Driver: Improvement in power systems to boost the industry
Flex Fuel Engine is projected to grow with the rise in the investment over the development of newer alternatives for the fuel especially natural resources which are estimated to be depleting. The need of the hour is to bring innovation in the power systems so that the cost-efficiency is attained. This posed the key players to improve the power systems to combat with the demand in the efficiency. The vehicle emission has now also become a leading trouble for the environment and hence is causing disasters and other health problems, due to which the government norms have been enforced to control the same, which is expected to propel the market growth. The key players are being supported with the surge in the development of the various vehicles, improvised such that the emissions aren’t harmful for the environment.
Passenger Vehicles to Make Crucial Contribution to Growth of Global Flex Fuel Engine Market
The vehicle type segment is classified as Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), Passenger Vehicle (PV), Luxury Vehicles and Sports Utility Vehicle (SUV). Among these vehicle types, the passenger vehicles are attributed to gain maximum revenue shares in the forecast period. This owes to the surge in the population and steep rise in the disposable income. These aspects would help the flex fuel engine market to grow at a higher pace in the coming years. The heavy commercial vehicles are experiencing highest CAGR due to the increase in the number of establishment of manufacturers from various industries, who are susceptible to transport the raw materials or the finished goods to different places. The growth in the industry verticals are anticipated to help the industry shoot up in the coming years.
Surge In Demand For Fuel-Efficient Vehicles To Benefit North America Market
North America is experiencing highest revenue growth than any other country and is anticipated to grow further in the next few years. This owes to the rise in the demand for the fuel efficient in the region which would help the market to boost. The growth in the disposable income of the individuals is also attributing to help the industry to flourish in the coming years. Furthermore, Asia-Pacific is expected to experience highest CAGR in the coming years. Due to the rise in the production of the luxury vehicles and high-end vehicles are estimated to help the industry grow. The surge in the demand for alternatives in the region would boost the market.
Due to outbreak of COVID-19, the downfall in the manufacturing and sales of the majority of the industries has been observed, due to the lockout situation. The lockout is enforced by the government in order to minimize the spread of the viral disease. Furthermore, the flex fuel engine industry is also drastically experiencing a downturn, due to the reduction in the disposable income of majority of the group.
Players to Focus on advanced Flex Fuel Engine
The global Flex Fuel Engine market leaders include Volkswagen, Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Toyota Motor Corporation, Ford Motor Company, General Motors Company, and AUDI. The surge in the strategy planning of the mergers and acquisitions carried out by the key play players would help the industry grow in the coming years.
Ford Motor Company: In February 2020, The Competition Commission of India (CCI) approved Mahindra & Mahindra’s acquisition of majority stake in a subsidiary of Ford Motor Company, which will form a joint venture in the country.
Volkswagen: In July 2019, Ford and Volkswagen are expanding their commercial-vehicle alliance to include autonomous driving and electric vehicles, yet another example of an industry that is badly in need of consolidation preferring partnerships over full-blown business combinations. The pair announced a partnership in January, collaborating on light trucks and commercial vehicles. In a Wednesday research report, Credit Suisse analyst Daniel Schwarz evaluated potential impacts of expanding that agreement.
GAC Honda Automobile Co., Ltd.: In March 2020, GAC Honda Automobile Co., Ltd. (GAC Honda), a joint venture company of Honda in China, announced that it will absorb its wholly owned subsidiary, Honda Automobile (China), Co., Ltd., effective April 1, 2020. As a result of this merger, Honda Automobile (China) will be renamed as the Guangzhou Development District Factory of GAC Honda.
Scope of the Report
By Vehicle Type
By Fuel Type
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