June 16, 2024
India Biofuels Market

India’s Renewable Energy Goals Spur Growth In The Biofuels Market

The biofuels market in India has experienced significant growth in recent years driven by the government’s ambitious renewable energy targets. Biofuels such as biodiesel and bioethanol are produced from biomass including plants, animals, and waste organic matter and are commonly used in transportation fuels like petrol and diesel. Biofuels offer several advantages over conventional fossil fuels as they are carbon neutral and help reduce oil imports in the country. Moreover, biofuels Production can provide income generation opportunities for farmers.

The Global India Biofuels Market Size 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, As Highlighted In A New Report Published By CoherentMI.

With India aim to raise the share of renewable energy in the energy mix to 60% by 2027, there is increased production of biodiesel fromwaste cooking oil, animal fat, and non-edible vegetable oil. Leading oil marketing companies in the country are active in biofuel blending and distribution.

Market Key Trends:

India has implemented various policy support and incentives to boost biofuel production and utilization in the country. The government has set an ambitious target of blending 20% ethanol in petrol and 5% biodiesel in diesel by 2031 under its biofuel policy. It is encouraging second-generation advanced biofuels from biomass, municipal solid waste, and sewage plants. States like Maharashtra and Tamil Nadu are emerging as major biodiesel hubs leveraging availability of low-cost feedstock such as palm oil and non-edible oils. Global players are also expanding in India and forging partnerships with local companies to gain access to raw materials and distribution network. While biodiesel holds potential, challenges around availability of adequate feedstock at competitive prices persist. Technology advancements and development of specialized crops are expected to address some of these issues in the coming year        

Porter’s Analysis

Threat Of New Entrants: The threat of new entrants is moderate. Significant capital is required to set up biofuel production facilities. Regulations around land usage and environment protection also create barriers.

Bargaining Power Of Buyers: The bargaining power of buyers is high given the presence of many buyers for biofuels in India. Buyers can negotiate on price and quality standards.

Bargaining Power Of Suppliers: The bargaining power of suppliers is moderate. Key suppliers of feedstock are agriculturists and distillers. Suppliers have some control over prices and adequate supply sources are available.

Threat Of New Substitutes: The threat of substitutes is low as biofuels provide an alternative to conventional fossil fuels. New green technologies may evolve as substitutes over the long term.

Competitive Rivalry: Fierce competition exists among existing players to grow market share.

Key Takeaways

The global India Biofuels Market is expected to witness high growth. 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.

Regional analysis comprises The India biofuels market is dominated by players based in western and southern regions due to favorable agricultural conditions and higher biofuel demand. Key producing states include Maharashtra, Karnataka, and Gujarat.

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 major producers of ethanol for blending with gasoline. Tata Chemicals has a strong presence in biodiesel production.

The government of India has implemented policies like the National Policy on Biofuels to promote the production and usage of biofuels. Targets have been fixed to achieve 20% ethanol blending by 2031. Rising focus on reducing fossil fuel imports and curbing pollution will drive biofuels consumption in the transportation and power generation sectors. Ongoing investments in upgrading infrastructure will bolster market growth over the forecast period.

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:

  1. Source: CoherentMI, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it