India Ethanol Market to Grow at a CAGR of 12.68% During the Forecast Period
Supportive government
policies, initiative to make India self-sufficient in energy-sector, increase
in income of farmers from ethanol production are influencing the demand for India
ethanol market through FY2027F.
According to TechSci Research
report, “India Ethanol Market - Industry
Size, Share, Trends, Competition, Opportunity and Forecast, FY2017-FY2027F” The India Ethanol Market stood
at USD2805.38 million in 2021 and is expected to grow
at a CAGR of 12.68% during the forecast period on account of factors like favorable government policies, rapidly
surging demand from Oil Marketing Companies (OMCs), assistance from automobile sector,
easily available raw material, and rise in income of farmers, etc.
The
Ethanol industry is booming in India with a lot of scope in the future. Its
production has doubled from 2017 to 2021, whereas demand has risen by three
times for the same period. The consumption is driven
primarily by the government's desire to support the sugar sector by boosting
ethanol production. The central government is
targeting blending of 10% ethanol in petrol till end of 2022, and same target
is raised to 20% till 2025, which was earlier set to be met till 2030. Also, to achieve these
targets the government had allowed rice, maize, and surplus food grains to be
used for ethanol production. To further reduce the nation's dependency on
foreign oil, the government is focusing on manufacturing vehicles equipped with
flex engines that will be E20 compatible, less polluting, and cost-efficient. The
flourishing healthcare and chemical industries within the country are expected
to increase the demand for industrial ethanol in the coming years.
Additionally, the sudden outbreak and
spread of the COVID-19 pandemic has led to increased demand for Ethanol in the
disinfectants and sanitizer market. Also, lawmakers' supportive policies, rules
and regulations, and environmental awareness among the general public across
the globe are expected to foster market growth during the forecast period.
Despite the market drivers, there are
few challenges that inhibit the growth of the ethanol market in India.
Sugarcane molasses is the major resource for bioethanol production, and an
inconsistent supply of raw materials holds the major liability for bearish
response to blending targets.
Ethanol is a highly flammable liquid
hence requires a lot of safety and risk assessment measures in all the stages
from production to storage, and in transportation phases. The non-uniform
distribution of raw material throughout the country demands compulsory transportation
and storage, especially inter-state movement, encountering diverse climatic and
topographic conditions. Also, A large segment of India's existing vehicle fleet
may have compatibility issues with fuel blends above 10% Ethanol, and it may
reduce vehicle efficiency by up to 6-7%. Another major challenge is the growing
popularity of electric vehicles due to the cheaper electricity required to run
the vehicle and zero emissions.
Browse over 19 market
data Figures spread through 70 Pages and an in-depth TOC on " India Ethanol Market"
https://www.techsciresearch.com/report/india-ethanol-market/3860.html
The India Ethanol Market is
segmented based on type, raw material, purity, application, regional
distribution and competitional landscape. In terms of type, the market is
fragmented into Bioethanol and Synthetic Ethanol. The Bioethanol
segment dominated the market in FY2021 with a share of around 98.25% because of
eco-friendly nature and easily available feedstock. By Raw Material, the market
is segmented into Sugar & Molasses Based, Grain Based, Algal Biomass,
Lignocellulosic Biomass. Among these, sugar and molasses based is the most
dominant and widely used raw material but due to environmental concerns, more
emphasis is being given to use of grains, as they are in surplus, from last
four years.
Key market players in the India
Ethanol Market include:
·
India Glycols Limited.
·
Balrampur Chini Mills Limited
·
Shri Renuka Sugars Limited
·
Triveni Engineering and Industries Limited
·
Godavari Biorefineries Limited
·
Dalmia Bharat Sugar and Industries Limited
·
Bajaj Hindustan Sugars Limited.
·
Simbhaoli Sugars Limited
·
East India Distilleries Parry Limited
·
Mawana Sugars Limited
India Ethanol Market is consolidated with a lot of well-established
players having presence in all regions, with several players possessing
leadership in certain regions, among others. India Glycols Ltd holds the
highest market share and is among the top five market players in India. Balrampur
Chini Mills Limited ranks second in terms of market share in the overall India Ethanol
Market. The company has a strong market hold in the sugar industry.
Additionally, there are other
prominent players such as Shree Renuka Sugars Limited., Triveni Engineering
& Industries Limited., Godavari Biorefineries Limited, Dalmia Bharat Sugar
and Industries Limited, Bajaj Hindustan Sugar Limited., Simbhaoli Sugars Limited.,
East India Distilleries Parry Limited, Mawana Sugars Limited., among others,
holding a significant position in the India Ethanol Market.
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“The need for Ethanol has
risen in recent years, especially during COVID-19, as it is used as main
component in disinfectants and hand sanitizers. Because of rising consumer
awareness, demand of fuel, potable spirits, beverages, personal care products,
etc., is rising which directly favors the growth of Ethanol market. Favorable government
policies and initiatives are acting as huge push to increase ethanol demand in
the country. These factors may influence the growth of the India Ethanol Market
in the upcoming five years”, said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based global management consulting firm.
“India Ethanol Market By
Type (Bioethanol v/s Synthetic
Ethanol), By Raw Material (Sugar and Molasses Based, Grain Based,
Lignocellulosic Biomass, Algal Biomass), By Purity (Denatured v/s Undenatured),
By Application (Fuel & Fuel Additives, Industrial Solvents, Disinfectant,
Personal Care, Beverages, Others), By Region,
Competition, Forecast & Opportunities, FY2017-FY2027F”, has evaluated the future growth potential of
India Ethanol market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in India Ethanol market.
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