India Aliphatic Hydrocarbons Market Size, Share, Growth, Trends, Industry Outlook and Analysis 2026-2034

India Aliphatic Hydrocarbons Market 2026-2034

According to IMARC Group's report titled "India Aliphatic Hydrocarbons Market Size, Share, Trends and Forecast by Product, Application, and Region, 2026-2034", The report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

How Big is the India Aliphatic Hydrocarbons Industry?

The India aliphatic hydrocarbons market size was valued at USD 141.96 Million in 2025 and is expected to reach USD 209.97 Million by 2034, exhibiting a growth rate (CAGR) of 4.44% during 2026-2034.

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India Aliphatic Hydrocarbons Market Trends:

In India, the aliphatic hydrocarbons market is experiencing dynamic shifts driven by evolving industry requirements and technological progress. The sector is witnessing significant uptake in paints and coatings applications, where controlled volatility and consistent solvency power are increasingly valued. With expanding manufacturing activity and infrastructure development gaining momentum, demand for these versatile solvents continues to strengthen across multiple downstream industries.

Growing preference for high purity, low odor grades is reshaping product specifications as manufacturers align with stricter performance and regulatory expectations. The market is particularly benefiting from the pharmaceutical sector's expansion, supported by government initiatives such as the PRIP scheme launched in October 2025, which allocated INR 5,000 crore to strengthen research and development in pharmaceuticals and MedTech. This investment is fostering innovation and creating sustained demand for reliable, high-grade aliphatic hydrocarbons across the value chain.

Environmental considerations are also influencing market dynamics, with India setting greenhouse gas emission intensity targets for nine industrial sectors under the Carbon Credit Trading Scheme in October 2025. These targets, covering 740 entities and aimed at significant emissions reductions by 2027, are encouraging wider adoption of aliphatic hydrocarbons in low VOC formulations. Industries are increasingly integrating these solvents to reduce environmental impact while maintaining application performance in paints, coatings, inks, and cleaning agents.
The automotive and industrial manufacturing sectors continue to drive consumption patterns.

According to the India Brand Equity Foundation, production in the Indian automobile industry reached 3,10,34,174 units in FY25, marking a 17% increase from June 2023, with exports rising 19% to over 5.3 million units. The electric vehicle market sold 1,00,000 units in CY24 and is projected to reach a USD 206 Billion opportunity by 2030. These developments are strengthening demand for aliphatic hydrocarbons used in surface preparation, cleaning, rubber processing, and formulation development across automotive value chains.

India Aliphatic Hydrocarbons Market Scope and Growth
Factors:

The India aliphatic hydrocarbons market holds substantial growth potential, underpinned by its strategic role across critical industrial applications. The sector is experiencing steady momentum driven by rising consumption in paints and coatings, adhesives, rubber processing, pharmaceuticals, and industrial cleaning segments. The India paints and coatings market, estimated at USD 8.8 Billion in 2024 and expected to reach USD 17.4 Billion by 2033, is significantly strengthening solvent consumption, particularly for grades offering controlled volatility and consistent performance.
Infrastructure development continues to be a major growth catalyst. India's National Infrastructure Pipeline expanded from 6,835 to 9,142 projects, with USD 1.9 Trillion invested. Railways earned USD 30.58 Billion while loading over 1.61 Billion Tonnes. The logistics market is projected to grow from USD 317.26 Billion in 2024 to USD 484.43 Billion by 2029, maintaining a robust growth trajectory. These large-scale infrastructure initiatives are driving sustained demand for construction chemicals, coatings, and sealants that rely on aliphatic hydrocarbons as key solvent components.

The rubber and polymer processing sector represents another significant demand driver. The India rubber processing chemicals market reached USD 387.95 Million in 2024 and is projected to reach USD 566.68 Million by 2033. Aliphatic hydrocarbons are increasingly used as processing aids, cleaning agents, and formulation components that support efficient compounding, smooth blending, and improved material performance in tire manufacturing, industrial rubber goods, and engineered polymers.
Feedstock dynamics are also shaping market accessibility and competitiveness. In a significant development in March 2025, Russia surpassed the UAE as India's top naphtha supplier for 2024-25, providing over half of India's 3 million tonnes import. With Russian naphtha priced USD 14-USD 15 per tonne cheaper than Middle Eastern alternatives, refiners are capitalizing on lower costs amid rising domestic petrochemical demands. This improved feedstock availability and competitive pricing are supporting market stability and enabling better cost structures for aliphatic hydrocarbon producers.

Refinery modernization and petrochemical integration efforts are further strengthening the sector's foundation. Indian Oil Corporation aims to expand its petrochemical intensity index to 15% by 2030 from 6.1% currently, which would involve boosting petrochemical capacity to 13.6 million mt/year by 2030 from 4.3 million mt/year. The Indian chemicals and petrochemicals sector is expected to grow to approximately USD 300 billion by 2025, with demand for chemicals predicted to nearly triple and the petrochemicals industry potentially reaching USD 1 trillion by 2040. These ambitious expansion plans signal sustained long-term demand for aliphatic hydrocarbons as essential intermediates and solvents in the growing petrochemical value chain.

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India Aliphatic Hydrocarbons Industry Segmentation:
The report has segmented the market into the following categories:

Breakup by Product:

• Saturated
• Unsaturated

Breakup by Application:

• Paints and Coatings
• Adhesives and Sealant
• Polymer and Rubber
• Surfactant
• Dyes
• Others

Breakup by Region:

• North India
• West and Central India
• South India
• East India

Competitor Landscape:

The competitive landscape of the aliphatic hydrocarbons market is characterized by a mix of established producers and emerging suppliers focusing on cost efficiency, product purity, and reliable supply capabilities. Companies compete through advancements in refining technologies, improved distribution networks, and tailored product grades for industries such as paints, adhesives, and pharmaceuticals.

Market participants are also prioritizing sustainability by optimizing energy consumption and reducing emissions during production. Growing interest in low VOC formulations is encouraging manufacturers to innovate and diversify their portfolios. Overall, competition is intensifying as players balance price pressures, regulatory compliance, and evolving customer expectations.

Recent News and Developments:

• March 2025: Russia surpassed the UAE as India's top naphtha supplier for 2024-25, providing over half of India's 3 million tonnes import. With Russian naphtha priced USD 14-USD 15 per tonne cheaper than Middle Eastern alternatives, refiners are keen to capitalize on lower costs amidst rising domestic petrochemical demands.

• October 2025: The Indian government launched the PRIP scheme, allocating INR 5,000 crore to strengthen R&D in pharmaceuticals and MedTech, supporting startups and MSMEs and promoting industry-academia collaboration, which is boosting innovation and reinforcing the need for reliable, high grade aliphatic hydrocarbons.

• October 2025: India set greenhouse gas emission intensity targets for nine industrial sectors under its Carbon Credit Trading Scheme, covering 740 entities and aiming to drive significant reductions in emissions by 2027, aligning with India's climate commitments under the Paris Agreement.

• October 2024: The Hydrocarbon Business of Larsen & Toubro secured a prestigious order from the government of India to undertake construction of a 1,200 MTPD NPK fertilizer plant, associated utilities, and off-site facilities, supporting downstream demand for petrochemical intermediates.

Other key areas covered in the report:

• COVID-19 Impact on the Market
• Porter's Five Forces Analysis
• Strategic Recommendations
• Market Dynamics
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape
• Top Winning Strategies
• Recent Industry News
• Key Technological Trends & Development

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