BURLINGAME, Calif., Feb. 16, 2024 /PRNewswire/ -- According to CoherentMI, India Ethanol market was valued at US$ 2.43 Billion in 2023 and is anticipated to reach a value of US$ 6.83 Billion by 2030 at a CAGR of 15.9% during forecast period 2023 and 2030.
Market Dynamics:
The India Ethanol Market is expected to witness high growth due to the increasing demand for biofuels. Ethanol is a renewable source of energy and is primarily used as a feedstock for biodiesel production. The growing concern for energy security and environmental sustainability is driving the demand for biofuels in India. Additionally, the government initiatives and policies promoting the use of biofuels, such as the National Policy on Biofuels, are further fueling the growth of the ethanol market in India.
Furthermore, the rise in the global crude oil prices and the need for reducing carbon emissions are compelling the adoption of biofuels in various sectors, including transportation and power generation. Ethanol, being a clean and renewable fuel, is gaining traction as a viable alternative to traditional fossil fuels. These factors are expected to drive the growth of the India Ethanol Market during the forecast period.
India Ethanol Market Report Snapshot:
Report Coverage | Details |
Study Period | 2023 - 2030 |
Base Year of Estimation | 2022 |
CAGR | 15.9 % |
Largest Market | India |
Market Concentration | High |
Major Players | Praj Industries, Triveni Engineering & Industries Ltd, Shree Renuka Sugars, Balrampur Chini Mills Ltd., Bajaj Hindusthan Sugar Ltd. and Among Others. |
Segments Covered | By Source, By End User, By Grade, By Blending, By Application Method, By Region |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Growth Drivers | • Supportive Government Policies |
Restraints & Challenges | • High Feedstock Costs |
Key Market Takeaways:
- India Ethanol Market Size is anticipated to witness a CAGR of 15.9% during the forecast period 2023-2030, owing to the increasing demand for ethanol as a fuel source. On the basis of the source segment, molasses is expected to hold a dominant position, owing to its widespread availability and sustainability.
- On the basis of the end-use segment, the fuel segment is expected to dominate the market, driven by the need for cleaner and less toxic fuels in various industries.
- India is expected to hold a dominant position in the Ethanol Market over the forecast period, due to its advanced infrastructure and government support for renewable energy.
- Key players operating in the India Ethanol Market include Praj Industries, Triveni Engineering & Industries Ltd, Shree Renuka Sugars, Balrampur Chini Mills Ltd, and Bajaj Hindusthan Sugar Ltd, among others. These players have a strong presence in the market and focus on product innovation and strategic collaborations to maintain their competitive edge.
Market Trends:
Increasing investments in ethanol production: In recent years, there has been a significant increase in investments in ethanol production facilities in India. Companies are expanding their ethanol production capacities to meet the growing demand for biofuels. This trend is driven by government incentives and subsidies, as well as the rising need for clean and sustainable energy sources.
Growing demand for ethanol as a solvent: Apart from its use as a biofuel, ethanol is also widely used as a solvent in various industries, including pharmaceuticals, cosmetics, and chemicals. The increasing demand for ethanol as a solvent is attributed to its excellent solvent properties, low toxicity, and eco-friendly nature. This trend is expected to contribute to the growth of the India Ethanol Market in the coming years.
Recent development:
- In March 2022, Praj Industries introduced Enfinity, a unique technique for producing ethanol straight from rice straw.
- In January 2021, in Pune, IOCL debuted E100 pilot fuel, India's first 100% ethnol-blended fuel. This green fuel alternative will aid in the reduction of air pollution and petroleum imports.
Read complete market research report, "India Ethanol Market, By Source, By End User, By Grade, By Blending, By Application Method, By Region, and other Segment Forecast 2023-2030", Published by CoherentMI.
Increasing Demand for Ethanol as a Fuel Source in India
The first market opportunity in the India Ethanol Market is the increasing demand for ethanol as a fuel source. With the rising concerns about environmental pollution and the depletion of fossil fuels, there has been a growing focus on renewable energy sources. Ethanol, being a renewable fuel, has gained significant popularity in recent years.
Ethanol is primarily used as a blending component in gasoline to reduce harmful emissions and improve fuel efficiency. The Indian government has set a target to achieve 20% ethanol blending in petrol by the year 2030. This has resulted in a surge in demand for ethanol as fuel.
On the basis of the source segment, molasses is expected to dominate the market. Molasses is a by product of the sugar industry and is widely available in India. It is considered a sustainable source of ethanol production, making it the preferred choice for fuel production.
India Ethanol Market is anticipated to witness a CAGR of 15.9% during the forecast period 2023-2030, owing to the increasing demand for ethanol as a fuel source. On the basis of the source segment, molasses is expected to hold a dominant position, owing to its widespread availability and sustainability.
Growing Demand for Ethanol in Industrial Applications
The second market opportunity in the India Ethanol Market is the growing demand for ethanol in industrial applications. Ethanol has diverse applications across various industries, including industrial solvents, cosmetics, pharmaceuticals, automotive, and others.
In the industrial sector, ethanol is widely used as a solvent due to its excellent solvency properties. It is used for the production of paints, coatings, adhesives, and cleaning agents. The increasing industrial activities in India, especially in sectors such as pharmaceuticals and automotive, have led to a high demand for ethanol as a solvent.
On the basis of the end-use segment, the fuel segment is expected to dominate the market. The use of ethanol as a fuel not only reduces emissions but also has lower toxicity levels compared to conventional fuels. This makes it suitable for use in various industries, including automotive and pharmaceuticals.
India Ethanol Market is anticipated to witness a CAGR of 15.9% during the forecast period 2023-2030, owing to the growing demand for ethanol in industrial applications. On the basis of the end-use segment, the fuel segment is expected to hold a dominant position, driven by the need for cleaner and less toxic fuels in various industries.
India Ethanol Market Segmentation:
- By Source
- Molasses
- Sugar Cane Juice
- Grains
- Others
- By End Use
- Fuel
- Industrial Solvents
- Beverages
- Cosmetics
- Pharmaceuticals
- Automotive
- Others
- By Grade:
- Denatured Alcohol
- Undenatured Alcohol
- Rectified Spirit
- Specially Denatured Alcohol
- Fuel Ethanol
- By Blending:
- E5
- E10
- E15
- E20
- E25
- E70
- E85
- E95
- By Application Method:
- Starch-based
- Sugar-based
- Cellulosic
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Top Questions Answered in this Report:
1. What factors are impeding the growth of the India Ethanol Market?
2. What are the primary drivers fueling the growth of the India Ethanol Market?
3. Which segment dominates as the leading component in the India Ethanol Market?
4. Who are the key players actively participating in the India Ethanol Market?
5. Which region is expected to take the lead in the India Ethanol Market?
6. What is the projected CAGR of the India Ethanol Market?
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