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Stringent legislation of emission standards, and governmental intervention by way of subsidies, and tax incentives are expected to foster market growth in the medium to long run. Both developed and developing markets are expected to lend traction to the market's growth in the future. China and India, within Asia-Pacific, represent lucrative markets to mine.

The world ethanol market stands enthused by rising consumption patterns in end-use markets. Fuel-ethanol is witnessing unprecedented interest encouraged largely by the ban on MTBE (a gasoline additive used to increase octane levels) in several countries and its resulting replacement by ethanol. Regulatory riders imposed by most governments in the developed markets are additionally helping perk up demand for ethanol in fuels.

In the United States, the renewable fuels standard mandates the use of approximately 8 billion gallons of ethanol by the year 2012. The need to skirt stinging hikes in crude oil prices, reduce green house gas emissions, and lower international dependence on oil, is encouraging governmental intervention in fostering consumption of ethanol.

For instance, consumption of ethanol will be upheld by government subsides, and incentives which are being offered at both the state and federal levels in most countries. The rising popularity of flexible fuel vehicles (FFVs) and oxydiesel, a blend of ethanol and diesel fuel, are also expected to boost the world ethanol market.

Technology developments, which enable blending more than 10% ethanol in gasoline, is expected to result in increased consumption of ethanol in fuels. Development of new technologies and emergence of new end-use applications are expected to bring in new growth opportunities. United States and Brazil dominate world production of ethanol. Ethanol production is aligned with the yields of sugarcane crops, given the fact that over 50% of the world sugarcane produce is used in manufacturing ethanol.

Ethanol: A Global Strategic Business Report
As stated by a recent report published by Global Industry Analysts Inc., South America and the United States dominate the world ethanol market, together cornering over 66.5% of total volume sales estimated in the year 2008. About 90% of ethanol demanded in South America is consumed by Brazil. Ethanol consumption in Brazil is expected to reach 7.45 billion gallons by 2015. Sales of ethanol in Canada, one of the fastest growing markets worldwide, are expected to rise by approximately 208.25 million gallons between the period 2008 to 2012.

Global growth is forecast to be led by the use of ethanol in fuels. In the fuels end-use market, volume consumption of ethanol is projected to grow at double-digit rates, and rise by about 7,597 million gallons between the period 2008 to 2012. Asia-Pacific dominates the global food & beverage end-use market with a 64.2% share estimated in the year 2008. The solvent end-use market in the United States is projected to consume over 230 million gallons of ethanol by the year 2015. In Europe, Germany and France collectively account for 35.5% of the regional ethanol market as estimated in 2008.