India Biodiesel Market Size, Trends, Share & Forecast 2025

Q: Which industries are leading the adoption of biodiesel?

The transportation, power generation, agriculture, and marine sectors are leading the adoption of biodiesel, driven by sustainability goals and fuel efficiency needs.

Q: What are the key barriers to market adoption?

High production costs, feedstock supply limitations, and infrastructure challenges remain major bottlenecks, especially in developing regions.

Q: What is contributing to the growth of biodiesel solutions?

Rising environmental awareness, government incentives, and the push for energy diversification are encouraging increased use of biodiesel.

Q: How are emerging technologies influencing the biodiesel space?

Advanced transesterification, AI-based feedstock optimization, and better storage are boosting biodiesel production efficiency and scalability.

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Code: MTA4103

Publication Date: Jun 2025

What is the India Biodiesel Market Size & Growth Rate?

According to 6Wresearch internal database and industry insights, India Biodiesel market is expected to grow at a CAGR of 9.0% during the forecast period from 2025 to 2031.

The growth is being propelled by increasing demand for renewable energy sources, supportive government policies, and rising environmental concerns promoting cleaner fuel alternatives.

Key Growth Drivers of The Maket

Increasing focus on decreasing carbon emissions and relying on fossil fuels.
Rising use of biodiesel in the field of transport and industry.
Favorable state policies and mixing requisites across the globe.
Soaring prices of crude oil that are giving impetus towards bio-based alternatives.
Diversification of feedstock sources as waste oils and non-edible crops.
The advancement of the technology of production of biodiesel to enhance efficiency.

India Biodiesel market Trends

India Biodiesel market is projected to be influenced by several emerging trends, including the advancement of second-generation biofuels and increased emphasis on circular economy principles. Sustainable development of feedstock will increase through investment that is consistent with global environmental objectives. The increase in demand in the low-emission fuel alternatives is expected to engage production technologies. These trends will probably influence policy models in the region, favoring cleaner and more efficient energy systems.