by Market Overview:
The India biofuels market comprises products derived from biomass resources like plant and animal fats. Biofuels include biodiesel, bioethanol, biogas and others. Biofuels provide viable solutions for reducing dependence on fossil fuels and aid in minimizing carbon emissions. In India, biofuels are majorly produced from sugarcane juice, molasses, rice and wheat grains, and vegetable oils. The government is promoting domestic production and usage of biofuels to support farmers as well as curb vehicular pollution.
The India biofuels Market was estimated to be 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 key trends:
The India biofuels market is witnessing rising investments in infrastructure development for production and distribution of renewable transportation fuels. Major companies are expanding their presence through joint ventures, acquisitions and developing new generation biorefineries. Furthermore, favorable policies around advanced biofuels and international collaborations for technology upgradation are boosting the industry growth. The use of organic waste and biomass residues as feedstock for commercial scale biofuel generation using latest technologies is gaining tractions. Such trends are broadening raw material base and increasing process efficiencies in the market.
Porter’s Analysis
Threat of new entrants: Low infrastructure cost and low entry barriers allows new players to enter the India biofuels market. However, established players dominate in terms of production volume and distribution network.
Bargaining power of buyers: High as buyers can opt for fossil fuels due to low prices and choose from various biofuel producers and suppliers in the market.
Bargaining power of suppliers: Moderate as suppliers have to rely on agricultural commodities whose prices fluctuate. However, key suppliers can negotiate on pricing and supply contracts.
Threat of new substitutes: High as fossil fuels still dominate the energy sector due to lower costs compared to biofuels. Electric vehicles also emerging as a substitute.
Competitive rivalry: High due to presence of large established players competing on basis of production capacity, price and supply chain
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 at a CAGR of 22% over the forecast period due to increasing demand for cleaner fuels and government initiatives to promote biofuel usage and production. The market size is projected to reach US$ 2.56 Bn by 2030 from US$ 1 Bn in 2023.
Regional analysis: Southern region of India dominates the biofuels market due to presence of large sugar mills and distilleries. Maharashtra & Karnataka are major producers of fuel ethanol. North-Eastern states are emerging as feedstock production hubs due to abundant availability of resources like bamboo, castor seeds etc.
Key players: Reliance Industries, Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum are major players in fuel ethanol segment while Praj Industries, Tata Chemicals focuses on 2nd generation biofuels. Emami Agrotech and Godrej Agrovet are prominent players in biodiesel market. All key players are focusing on expanding production capacities to cater to growing demand.
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
