India Ethanol Market is Anticipated to Witness High Growth Owing to Increasing Adoption in Automotive Industry

India Ethanol Market is Anticipated to Witness High Growth Owing to Increasing Adoption in Automotive Industry

Market Overview:

Ethanol is an ethyl alcohol produced through fermentation process of sugarcane or corn. It is primarily used as biofuel either alone or blended with gasoline. Ethanol has gained traction as an alternative fuel in automotive industry due to its clean burning property and ability to reduce greenhouse gas emissions. The government of India has implemented various schemes like Ethanol Blended Petrol Program to promote use of fuel-grade ethanol. The Indian ethanol market is dominated by sugarcane-based ethanol production. However, focus is increasing on establishing corn-based ethanol plants owing to higher yield than sugarcane. Evolving emission norms and push for renewable fuels in transportation sector have fuelled demand for ethanol over the years.

India Ethanol Market Size is estimated to be valued at US$ 2.43 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024-2031.

Key Takeaways:

Key players operating in the India Ethanol market are Piccadily Sugar & Allied Industries Ltd., Thiru Arooran Sugars Ltd., Ugar Sugar Works Ltd., Dhampure Speciality Sugars Ltd., Praj Industries, Triveni Engineering & Industries Ltd, E.I.D. Parry (India) Ltd., DCM Shriram Ltd., Mawana Sugars Ltd., Uttam Sugar Mills Ltd., Kothari Sugars And Chemicals Ltd., Avadh Sugar & Energy Ltd., The Ugar Sugar Works Ltd., Dwarikesh Sugar Industries Ltd., K.M.Sugar Mills Ltd., Shree Renuka Sugars, Balrampur Chini Mills Ltd., Bajaj Hindusthan Sugar Ltd., Dalmia Bharat Sugar and Industries Ltd., Dhampur Sugar Mills Ltd. The Government of India is focused on promoting domestic production of fuel-grade ethanol through various policy initiatives like interest subvention, financial assistance for grain-based distilleries, remunerative price, etc. which is a key growth opportunity. Major ethanol producers are expanding production capacity and innovating production technologies to strengthen their export presence in Southeast Asia and Africa which is an emerging trend.

Market Drivers:

-Increasing blending targets of ethanol in gasoline by Government of India from 5% to 20% by 2031 is expected drive ethanol demand significantly over the forecast period.

Market Restrains:

-Lack of dedicated logistics infrastructure for transportation of ethanol hinders efficient supply chain management and poses challenge to widening of mass adoption.

Segment Analysis

The India ethanol market is dominated by sugarcane based ethanol segment. This segment accounts for over 80% of the total ethanol production. India being one of the largest sugarcane producers, sugarcane based ethanol production is cost effective and dominated the market. However, grain based ethanol segment is emerging as it provides an alternative to sugarcane and help utilize excess food grain for ethanol production. Grain based ethanol is faster growing segment compared to sugarcane as it provides sustainable option for ethanol production without relying only on agricultural commodity.

Global Analysis 

Regionally, North India dominates the India ethanol market holding over 50% share. States like Uttar Pradesh, Haryana and Punjab are the major producers of sugarcane in the country. These states have well established sugar industry and cooperatives which aid in higher ethanol production. Whereas, Southern India is the fastest growing regional market. States like Andhra Pradesh, Tamil Nadu and Karnataka are emerging as ideal production regions due to their vast starch resources and conducive government policies supporting ethanol blending. The favorable climatic conditions further aid the cultivation of feedstock and making Southern India an attractive market for ethanol during the forecast period.

What Are The Key Data Covered In This India Ethanol Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the India Ethanol's growth between 2024 and 2031.

:- Accurate calculation of the size of the India Ethanol and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- India Ethanol 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 Ethanol vendors

FAQ’s

Q.1 What are the main factors influencing the India Ethanol?

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 Ethanol companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the India Ethanol’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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