by The biofuels market in India is primarily driven by the increasing demand for environmentally friendly fuels along with the government initiatives to promote biofuel usage. Biodiesel and ethanol are the major biofuels produced and consumed in the country. Biodiesel is produced using non-edible oils such as jatropha, karanja, and mahua, while ethanol is produced from sugarcane molasses as well as other feedstocks such as food grains. The government has implemented various policies such as the National Policy on Biofuels 2018 to achieve an ambitious target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2031. It is providing subsidies to facilitate setting up of new biodiesel production units and promoting research & development activities in the biofuel sector.
The Global India Biofuels Market Size Is Estimated To Be Valued At US$ 2.56 Billion In 2024 And Is Expected To Exhibit A CAGR Of 22% Over The Forecast Period 2024-2031, As Highlighted In A New Report Published By CoherentMI.
Market Dynamics
Increasing Government Support: The government of India has realized the potential of biofuels for reducing dependence on fossil fuels and curbing vehicular emissions. It is providing subsidies and incentives for biofuel production units to spur investments in this sector. The targets of 20% ethanol blending and 5% biodiesel blending by 2031 are expected to spur massive capacity additions in the coming years and drive the market growth.
Rising Environmental Awareness: There is growing awareness among consumers regarding vehicular emissions and their impact on climate change. This has boosted the demand for cleaner biofuels like ethanol and biodiesel which emit lesser greenhouse gases than conventional petrol and diesel. Various non-government organizations are educating people on using biofuels which is further expected to increase their consumption in the country.
Segment Analysis
India Biofuels Market is dominated by the Ethanol segment which holds around 65% share of the market. Ethanol is primarily used for blending in gasoline as fuel. It is widely used because blending ethanol with gasoline helps reduce greenhouse gas emissions and is also a more affordable renewable blend compared to other substitutes. The Ethanol production in India is primarily done from molasses which is a by-product of the sugar industry. Availability of cheap molasses along with policy push by the government through mandatory ethanol blending norms has drove the growth of this segment in the country.
Pest Analysis
Political: The Government of India has implemented various policies and programs to boost the production and usage of biofuels in the country. Mandatory ethanol blending targets set by the government and tax incentives for ethanol producers have pushed the biofuels sector.
Economic: India is among the largest producer and consumer of sugar in the world. Abundant availability of sugar cane molasses makes ethanol production economically viable. Ethanol blending reduces import dependence on crude oil and saves foreign exchange reserves for the country.
Social: Use of biofuels helps reduce vehicular pollution and mitigate climate change. It also provides additional income and livelihood opportunities for farmers involved in sugarcane and other biomass production.
Technological: Indian oil companies have upgraded their refineries and developed infrastructure and logistic capabilities to handle blended fuels with higher ratios of bioethanol. Continuous process innovations are helping ethanol producers improve yields and reduce costs.
Key Takeaways
The global India Biofuels Market is expected to witness high growth supported by the domestic policy push for higher ethanol blending. The global India Biofuels Market is estimated to be valued at US$ 2.56 Bn in 2024 and is expected to exhibit a CAGR of 22% over the forecast period 2024-2031.
South India and Maharashtra are the fastest growing and dominating regions in terms of ethanol production capacity.
Key players operating in the India Biofuels Market are Reliance Industries, Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Tata Chemicals. Reliance Industries and Indian Oil are the leading players with integrated operations across the value chain from ethanol production to marketing of fuel.
What are the key data covered in this India Biofuels Market report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the India Biofuels Market’s growth between 2024 and 2031.
:- Accurate calculation of the size of the India Biofuels Market and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behavior
:- India Biofuels Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of India Biofuels Market vendors
FAQ’s
Q.1 What are the main factors influencing the India Biofuels market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top India Biofuels Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the India Biofuels market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
- Source: CoherentMI, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
