Dublin, April 02, 2025 (GLOBE NEWSWIRE) -- The "India Biodiesel Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The size of the India biodiesel market is expected to reach around US$ 0.69 billion by 2033. However, in 2024, it was valued at US$ 0.37 billion, and from 2025 to 2033, the CAGR is likely to be around 7.05%, driven by increasing adoption of sustainable fuels, government initiatives for renewable energy, and a rising focus on reducing carbon emissions in the transportation and industrial sectors.
Biodiesel is being used in power plants and generators to produce electricity, thus assisting the renewable energy projects across India. It supports the circular economy by using waste cooking oil and agriculture by-products in the country that is aligned with the sustainability objective of India while reducing the usage of fossil fuel.
Growth Drivers in the India Biodiesel Market
Government Initiatives and Policies
The Indian government has launched a range of initiatives and policies aimed at promoting the production and utilization of biodiesel, one of the key components of sustainable energy. Among these efforts is the National Bio-Energy Mission, which serves as a cornerstone for the country's commitment to increasing the use of renewable fuels. This mission is not only giving a framework for the development of biodiesel projects but also offers various incentives and subsidies to encourage investment and participation in this eco-friendly sector.
By fostering a supportive environment for sustainable fuels, these policies are significantly contributing to the growth of the biodiesel market and paving the way for a greener future. In 2018 India issued its National Policy on Biofuels, which provided for targets of 20% ethanol blending by 2030 and 5% biodiesel blending by 2030, specified feedstock requirements for various fuels, and outlined the responsibilities of 11 ministries to coordinate government actions.
Increasing Environmental Consciousness
As worries about air pollution and the emissions of greenhouse gases continue to rise, the need for cleaner and more sustainable fuel alternatives, such as biodiesel, has become increasingly urgent. Public awareness regarding the detrimental effects of fossil fuels on the environment, coupled with a significant commitment from governments to prioritize environmental protection, has catalyzed the adoption of biodiesel across various sectors.
This growing momentum reflects a collective effort to transition towards energy sources that not only reduce harmful emissions but also contribute to a more sustainable and eco-friendly future. The Ministry of Environment, Forest and Climate Change (MoEF&CC), Government of India envisages to celebrate the World Environment Day 2023 with a thrust on the Mission LiFE. The concept of LiFE, introduced by the Hon'ble Prime Minister of India, aims to promote sustainable living by encouraging individuals to make changes in their lifestyles and emphasizes responsible and conscious use of resources to safeguard and conserve the environment.
Availability of Feedstocks
The supply of raw materials essential for biodiesel production in India has experienced significant growth, encompassing sources like used cooking oil, waste biomass, and oilseeds. This rich and varied array of feedstocks not only guarantees a consistent and reliable influx of raw materials but also helps drive down production costs. As a result, this abundance of resources is crucial in fostering the expansion of the biodiesel market, paving the way for a more sustainable energy landscape in the country.
According to a ScienceDirect article, India is expected to have 411.8 million vehicles in operation by 2030, with 260.1 million and 34.6 million being gasoline- and diesel-powered cars, respectively. The demand for gasoline and diesel fuels will rise dramatically from the current level by 2030, and India will have to deal with the ensuing problems. India must use biofuels, including biodiesel, in the transportation sector to reduce the impact of these fuels.
Challenges in the India Biodiesel Market
High Production Costs
The production of biodiesel continues to be hindered by high expenses, primarily stemming from the cost of feedstocks and the sophisticated technology necessary for its efficient manufacturing. These factors contribute to a limited cost competitiveness when compared to conventional diesel fuel, creating significant barriers to its widespread adoption. As a result, the growth of the biodiesel market faces considerable challenges, making it difficult for this renewable energy source to gain traction in the broader fuel landscape.
Supply Chain and Distribution Issues
India faces tremendous barriers in developing an efficient and effective supply chain for the production of biodiesel. India suffers from less efficient networks that are also more prone to logistics bottlenecks, which result in delays and ultimately affect the biodiesel availability within the expected timelines. This causes a major problem in the extensive use of this fuel source and limits the maximum benefits from this source of energy for the sake of sustainability. It still persists with fossil fuel-based sources.
India Biodiesel Fuel Market
The India biodiesel fuel market is expanding as the country focuses on sustainable and renewable energy solutions. Biodiesel, derived from feedstocks such as used cooking oil, jatropha, and palm oil, is increasingly adopted to reduce carbon emissions and enhance energy security. With government initiatives like the National Bio-Energy Mission and incentives for biodiesel production, the market is growing. Additionally, biodiesel blends such as B5 and B20 are being utilized in transportation and industrial sectors, supporting India's transition to greener fuels and reducing dependence on fossil fuels. February 2024, Over the next five years biofuel demand is set to expand 38 billion litres, a near 30% increase from the last five-year period. In fact, total biofuel demand rises 23% to 200 billion litres by 2028, with renewable diesel and biojet accounting for almost half of this growth with the remainder coming from ethanol and biodiesel.
India Biodiesel Power Generation Market
The biodiesel power generation market in India is experiencing significant growth, propelled by a surge in renewable energy initiatives. This shift is increasingly seeing biodiesel being utilized in power plants and generators for electricity production, playing a crucial role in India's transition towards cleaner energy sources. By embracing biodiesel, the country aims to decrease its dependence on fossil fuels, thereby contributing to a more sustainable and environmentally friendly energy landscape. This transition not only supports national energy security but also aligns with global efforts to combat climate change and promote renewable technologies.
India Vegetable Oil Biodiesel Market
The vegetable oil biodiesel market in India is experiencing robust growth, driven by the utilization of various feedstocks such as rapeseed, palm oil, and other oilseeds. This sustainable method of biodiesel production not only promotes the efficient use of natural resources but also plays a significant role in mitigating environmental impact. It aligns seamlessly with India's broader renewable energy objectives, reflecting the country's commitment to cleaner energy solutions and reducing its carbon footprint. By harnessing these local agricultural products, the market not only supports rural economies but also contributes to a more sustainable energy landscape in India.
Company Analysis: Overview, Recent Development, Revenue Analysis
- Archer Daniels Midland Company
- FutureFuel
- Neste's
- Renewable Energy Group, Inc.
- Bunge Global SA
- Wilmar
- Shell
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value (USD) in 2024 | $0.37 Billion |
| Forecasted Market Value (USD) by 2033 | $0.69 Billion |
| Compound Annual Growth Rate | 7.0% |
| Regions Covered | India |
Key Topics Covered:
1. Introduction
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. India Biodiesel Market
6. Market Share
6.1 Application
6.2 Feedstock
7. Application
7.1 Fuel
7.2 Power Generation
7.3 Others
8. Feedstock
8.1 Vegetable Oil
8.2 Animal Fats
9. Porter's Five Analysis
9.1 Bargaining Power of Buyers
9.2 Bargaining Power of Suppliers
9.3 Degree of Rivalry
9.4 Threat of New Entrants
9.5 Threat of Substitutes
10. SWOT Analysis
10.1 Strength
10.2 Weakness
10.3 Opportunity
10.4 Threat
11. Company Analysis
For more information about this report visit https://www.researchandmarkets.com/r/2hasbk
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
