India Biofuels Market set to Witness Rapid Growth Owing to Increasing Demand for Green Fuels
The India biofuels market has witnessed significant growth over the past few years due to rapid industrialization and urbanization. Biofuels like bioethanol and biodiesel are increasingly being used in the transportation and power generation sectors. They provide an affordable and sustainable alternative to conventional fossil fuels.
The government of India has implemented favorable policies and regulations to promote the production and usage of biofuels. It has set a target of achieving 20% ethanol-blending in petrol and 5% biodiesel-blending in diesel by 2031 under its National Policy on India Biofuels.
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 of 2024-2031.
Key Takeaways
Key players operating in the India biofuels market are Reliance Industries, Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Tata Chemicals. These players are focusing on capacity expansion and new project development to cater to the growing demand. For instance, Indian Oil Corporation has set up second-generation ethanol plants with a capacity of 300 kiloliter per day.
There is significant scope for increasing biodiesel production in India given the availability of non-edible oils like soybean, cottonseed and palm oil. The government is promoting public-private partnerships for the development of advanced biofuels like cellulosic ethanol. It aims to reduce dependence on costly crude oil imports by substituting 20% of fossil fuels with biofuels by 2031.
Major global biofuel players are keen on entering the Indian market and setting up production facilities to capitalize on the country's renewable energy goals. Companies like Neste, ADM, POET and Copersucar are exploring partnerships with Indian firms for joint ventures and technology transfers. This will help India emerge as a global biofuels leader and meet its climate commitments.
Market Drivers
Supportive Policies: Favorable policies like the National Biofuels Policy, ethanol blending program and tax incentives on biofuels are driving higher investments and production capacities in India. The target of 20% ethanol blending by 2025 will significantly boost demand.
Feedstock Availability: Abundant availability of feedstocks like sugarcane molasses, corn, cassava and non-edible oils provides a solid raw material base for the biofuels industry in India. This ensures sustained supply and keep costs competitive.
Market Restraints
High Capital Requirement: Setting up commercial scale second and third generation advanced biofuel plants require massive capital investments, which is a challenge for domestic players in India.
Technology Issues: Commercial production of cellulosic ethanol and algae-based biodiesel is still at a nascent stage in India due to technical bottlenecks in raw material pre-treatment and conversion processes. This constrains large scale deployment.
Segment Analysis
The India biofuels market is dominated by ethanol as it accounts for over 70% of the market share. Ethanol supplies have increased in the country due to the government mandating petrol to have 10% blend of ethanol. The government focus on reducing petroleum imports and providing additional revenue to sugarcane farmers is driving the growth of ethanol segment. Ethanol blended petrol is widely available in states with high sugarcane production like Uttar Pradesh, Maharashtra, Karnataka, Andhra Pradesh and Telangana. biodiesel production is limited however its usage is expected to grow in the coming years in industrial and transportation sectors.
Global Analysis
The South Asia region accounts for over 55% share of India biofuels market led by strong demand from transportation and power generation sectors in countries like India. Government support through policies and incentives to reduce fossil fuel dependence along with availability of key feedstocks is promoting biofuels usage. North America region is another major market growing at around 20% owing to the United States mandating use of specific volume of advanced biofuels each year. Growth strategy adopted by leading companies like partnerships, capacity expansions and investments in R&D are helping biofuels gain acceptance in regions with stricter environmental regulations and emission norms like Europe.
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's growth between 2024 and 2031.
:- Accurate calculation of the size of the India Biofuels and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- India Biofuels 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 vendors
FAQ’s
Q.1 What are the main factors influencing the India Biofuels?
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 companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the India Biofuels’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?
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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