India Biofuels Market Is Estimated to Witness High Growth Owing To Opportunity of Growing Environmental Concerns

India Biofuels Market Is Estimated to Witness High Growth Owing To Opportunity of Growing Environmental Concerns

Biofuels are renewable fuels produced from organic matter or waste. Biofuel such as biodiesel, ethanol and biomass are increasingly being used as an alternative fuel to petrol and diesel in India. The demand of biofuels has significantly increased in recent years due to growing environmental concerns regarding use of fossil fuels and their impact on climate change. Biofuels are deemed to have lesser greenhouse gas emissions as compared to petroleum-based fuels.

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.

Market Opportunity:

The growing environmental concerns regarding use of fossil fuels in India have opened immense potential for growth of biofuels market in the country. The Indian government has made stringent policies and regulations to promote use of cleaner biofuels in transport and industrial sectors. It has set an ambitious target of achieving 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2031. This growing emphasis on use of biofuels for reducing carbon emissions is expected to create huge business opportunities for biofuel producers and other stakeholders in the industry. The ethanol requirement is estimated to grow from current production level of 3.5 billion liters to 12.6 billion liters by 2024-25 as per government targets. This rising demand for biofuels is estimated to augment the growth of India biofuels market substantially over the forecast period.

Porter's Analysis

Threat Of New Entrants: The India biofuels market has moderate threat of new entrants given the need for high capital investments for setting up production facilities and stringent regulations.

Bargaining Power Of Buyers: There exists moderate bargaining power of buyers in the India biofuels market owing to the availability of alternatives and availability of substitutes.

Bargaining Power Of Suppliers: The bargaining power of suppliers in the India biofuels market is low due to the presence of multiple established raw material suppliers.

Threat Of New Substitutes: The threat of substitutes is moderate as biofuels have limited substitutes and emerging technologies make them more cost competitive.

Competitive Rivalry: The competitive rivalry in the India biofuels market is high due to the presence of established players.

Swot Analysis

Strength: India has a favorable policy environment for biofuels growth. There is abundant availability of feedstock. Biofuels provide environmental benefits.
Weakness: High production costs. Infrastructure constraints for distribution. Lack of demand due to expensive price.
Opportunity: Untapped markets in aviation and shipping sector for biofuels. Government schemes to promote biofuel blends.
Threats: Competition from conventional fuels. Dependency on monsoon for feedstock availability.

Key Takeaways

The India biofuels market is expected to witness high growth over the forecast period of 2024-2031 supported by favorable government policies and environmental targets. The market size for 2024 is projected to reach US$ 2.56 Bn, expanding at a CAGR of 22%.

Regional analysis indicates that the southern region, led by Karnataka and Tamil Nadu, dominates biofuel production capacity in India currently, accounting for over 60% share, given the availability of sugarcane feedstock. Going forward, states like Uttar Pradesh and Maharashtra are expected to witness fastest capacity additions.

Key players operating in the India biofuels market are Reliance Industries, Indian Oil, Bharat Petroleum, Hindustan Petroleum, and Tata Chemicals. Reliance Industries is the leading producer with an ethanol capacity of 600 kilolitres per day. Indian Oil and Bharat Petroleum are actively promoting ethanol blending under their E100 city initiatives. Several new plants are also coming up across the country to meet the rising blending targets.

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?

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