by Market Overview:
India biofuels market consists of bioethanol and biodiesel. Bioethanol is mainly produced from sugarcane molasses and biodiesel is produced from non-edible oils such as Jatropha, Karanja etc. Major end-use application of biofuels in India includes transportation fuel blending with petrol and diesel. The Government of India has promoted domestic production and usage of biofuels to reduce import dependence on crude oil and to tackle environmental challenges.
The India Biofuels Market was valued at US$ 2.56 Bn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI
Market Dynamics:
Growing demand for cleaner fuel alternatives and supportive government policies are the major drivers of India biofuels market. The Government of India has set an ambitious target of reaching 20% ethanol blending with gasoline by 2025 in order to reduce crude oil import dependence and carbon emissions. It has implemented various schemes such as interest subvention, subsidy on ethanol production, free customs and excise duty for biofuels which is promoting investments in domestic biofuels value chain. Additionally, Pradhan Mantri JI-VAN Yojana aims to cultivate Jatropha on wastelands which will supply non-edible feedstock for biodiesel production. This will further strengthen domestic biofuel supply chain in coming years.
Segment Analysis
The India biofuels market is dominated by the bioethanol sub segment. Bioethanol, primarily used for blending with gasoline accounts for over 70% of the Indian biofuel market owing to government programs like Ethanol Blended Petrol program. Under this program, oi marketing companies are mandated to blend 10% of ethanol in petrol nationwide which has boosted bioethanol demand in the country.
PEST Analysis
Political: The government of India has launched supportive schemes and policies like National Policy on Biofuels 2018 to promote the domestic production of biofuels. It has set an ambitious target of 20% blending of ethanol in petrol and 5% blending of bio-diesel by 2030.
Economic: India imports over 80% of its crude oil requirements. Biofuels help reduce import dependence and conserve foreign exchange. It also creates new jobs and income opportunities in rural areas.
Social: Use of biofuels helps address environmental issues like reducing emissions. It also ensures energy security for the transport sector of the country.
Technological: Companies are focusing on advancing technologies for second-generation biofuel production using agricultural waste feedstock which is more sustainable than first-generation biofuels. Integrated biorefineries are also being established.
India Biofuels Market Segmentation
By Feedstock
- Ethanol
- Biodiesel
- Biogas
- Others (PVO, SVO, Biobutanol, etc.)
By Application
- Fuel
- Power Generation
- Others (chemicals, solvents, etc.)
By Technology
- First Generation
- Second Generation
- Third Generation
Key Takeaways
The India Biofuels Market Size is expected to witness high growth, exhibiting a CAGR of 22% over the forecast period of 2023-2030, due to increasing focus on renewable energy sources and energy security concerns. The market size is projected to reach US$ 8.45 Bn by 2030 from US$ 2.56 Bn in 2023.
On a regional basis, North India dominates the market owing to the abundance of sugarcane cultivation making it favourable for bioethanol production. States like Uttar Pradesh and Haryana contribute nearly 50% to the domestic ethanol supply. South India is also emerging as a major market led by bioethanol production in Karnataka and availability of non-edible oilseed crops in Andhra Pradesh and Tamil Nadu for biodiesel production.
Key players operating in the India biofuels market are Reliance Industries, Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, Tata Chemicals, Praj Industries, Cargill India, Emami Agrotech, Godrej Agrovet, Pan Bio Energy. Major players are investing in second-generation technologies and integrated biorefineries to leverage future opportunities. Collaborations within oil marketing companies and farmers collective are also on the rise.
Reasons to Buy the India Biofuels Market Report:
- In-depth analysis of the market on the global and regional levels.
- Major changes in market dynamics and competitive landscape.
- Segmentation on the basis of type, application, geography, and others.
FAQ’s
- Which of the top India Biofuels Market companies compare in terms of sales, revenue, and prices?
- Which businesses serve as the India Biofuels Market’s distributors, traders, and dealers?
- How are market types and applications and deals, revenue, and value explored?
*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
