The India Biomass Market Size was estimated at 4.71 (USD Billion) in 2023. The India Biomass Industry is expected to grow from 4.83(USD Billion) in 2024 to 10.97 (USD Billion) by 2035. The India Biomass Market CAGR (growth rate) is expected to be around 7.743% during the forecast period (2025 - 2035).
The India Biomass Market is presently experiencing substantial growth, which is being driven by a variety of key market drivers. Increased demand for renewable energy sources is one of the primary factors as the nation endeavors to decrease its carbon emissions and improve energy security. The Indian government's National Biofuel Policy and other initiatives are designed to encourage the utilization of biomass as an energy source, thereby expanding the market. In addition, the favorable environment for biomass energy is being influenced by the increasing awareness of environmental sustainability and the necessity of transitioning away from fossil fuels. With the abundance of agricultural residues and municipal residual waste that can be converted into bioenergy, the India Biomass Market offers a plethora of opportunities for exploration.
The government promotes the development of new enterprises in the biomass power generation and biogas production sectors by encouraging investments. Additionally, biomass energy is becoming more efficient as a result of technological advancements in biomass conversion processes, such as gasification and pelletization. In recent years, there has been an increasing emphasis on decentralized biomass energy solutions, particularly in rural areas with limited access to electricity. This trend is consistent with the Indian government's efforts to promote sustainable development and rural electrification. Additionally, numerous states are formulating policies to encourage the utilization of biomass for energy generation, which is further fostering market expansion.
In general, the India Biomass Market's evolving landscape is defined by the synergy between government policies, increasing energy demands, and a dedication to sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The India Biomass Market Industry is significantly influenced by governmental support and favorable policies aimed at promoting renewable energy. The Government of India has introduced various schemes to enhance the adoption of biomass energy, such as the National Biomass Cookstoves Initiative, which aims to replace traditional stoves with more efficient biomass stoves. Recent metrics indicate that India's energy policy includes a target of achieving 175 Gigawatts of renewable energy capacity by 2022, a significant portion of which is expected to come from biomass.
The Ministry of New and Renewable Energy (MNRE) reports that policies fostering biomass power generation have led to an increase of approximately 2,800 Megawatts of installed biomass capacity. This supportive environment not only boosts investment in the sector but also encourages technological innovations and sustainable practices within the India Biomass Market Industry, propelling growth and making it an attractive area for investors and researchers.
As India continues to develop, the demand for energy is consistently on the rise, posing a challenge that the biomass sector can help address. According to the Central Electricity Authority, India's energy demand is projected to grow at a rate of around 6.2% per year until 2030. This surge in demand creates an opportunity for the biomass sector, as biomass energy is a sustainable and renewable alternative that can be harnessed locally. As cities expand and rural areas develop, the India Biomass Market Industry stands to benefit from this increasing energy requirement by providing a reliable and eco-friendly energy source.
With growing awareness of climate change and its implications, there is an increasing push for cleaner energy solutions in India. Reports from the Ministry of Environment, Forest and Climate Change highlight that air pollution from traditional fossil fuels leads to an estimated 1.2 million premature deaths annually in India. This alarming statistic is driving both consumers and government entities to seek cleaner alternatives, such as biomass energy, that can significantly reduce greenhouse gas emissions.
The India Biomass Market Industry is positioned to address this urgent need by providing ecological solutions for energy generation, thus attracting further investments and support.
The Feedstock segment of the India Biomass Market has emerged as a prominent contributor to the nation's renewable energy landscape. With a diverse range of resources, this segment comprises several categories, including Food Crops, Non-Food Crops, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae, and Others, all playing vital roles. In India, where agriculture is the backbone of the economy, Food Crop and Agricultural Residue stand out as significant contributors. The agricultural sector generates substantial residual biomass, which, when converted into bioenergy, presents an invaluable opportunity for waste reduction while promoting sustainable practices. Non-food crops, such as those specifically grown for energy production, also contribute to the Feedstock segment, offering a means to balance food security and energy demands, which is vital in a country like India that faces these dual challenges.
Wood biomass is another critical element, utilizing a variety of wood types and residues from forestry operations, which helps reduce deforestation pressure while providing a renewable energy source. The Municipal Solid Waste (MSW) component highlights the potential of urban waste management, wherein converting organic waste into energy not only serves environmental purposes by reducing landfill overload but also addresses energy needs in densely populated areas. Meanwhile, the inclusion of Microalgae indicates a forward-thinking approach to biomass, tapping into innovative resources for biofuel production that require significantly lower land use than traditional crops. Other resources also broaden the Feedstock segment's scope, enhancing market flexibility and resilience.
Factors driving growth in this segment include supportive government policies, increasing energy demands, and a growing awareness of environmental sustainability among consumers and industries. The Indian government has introduced various initiatives to promote biomass energy, reflecting the country's commitment to achieving renewable energy targets. However, challenges such as the inconsistency of feedstock supply and the need for advanced technology to effectively harness these resources remain crucial points for discussion. Overall, the segmentation within the Feedstock category illustrates a broader trend towards enhancing energy resilience in India while leveraging the nation’s agricultural strengths and addressing waste management challenges, ultimately contributing to India’s Biomass Market revenue and aligning with global targets for sustainability and renewable energy development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Technology segment of the India Biomass Market is experiencing substantial growth, driven by various innovative solutions aimed at enhancing energy efficiency and sustainability. Among the prominent technologies, Combined Heat and Power (CHP) stands out for its dual production of electricity and useful thermal energy, which significantly improves overall energy utilization. Anaerobic Digestion and Feedstockification are gaining traction as effective methods for generating biogas from organic waste, aligning with India's goals to manage waste sustainably while producing renewable energy.
Co-Firing technology, where biomass is used alongside fossil fuels, is becoming increasingly popular as it helps in reducing greenhouse gas emissions, while also providing a reliable source of energy. Furthermore, the use of Landfill Feedstock is pivotal in diverting waste from landfills and harnessing its energy potential. This diversification within the Technology aspect underscores the growing emphasis on efficient waste management and renewable energy solutions in India, reflecting broader trends in energy innovation and environmental consciousness across industries.
As the country seeks to enhance its energy portfolio, the advancements in these technologies will play a significant role in shaping the future energy landscape.
The India Biomass Market has witnessed significant growth, driven by a surge in demand for renewable energy sources. The Product segment plays an essential role in shaping the market landscape, with various categories such as Biodiesel, Biomethanol, BioFeedstock, and others contributing to its dynamics. Biodiesel, made from vegetable oils and animal fats, is seen as a vital alternative to traditional fossil fuels, supporting India's vision for sustainable development and energy independence. Bio-methanol is emerging as a versatile feedstock for the production of chemicals and fuels, attracting attention due to its potential to reduce greenhouse gas emissions.
BioFeedstock, sourced from agricultural residues and waste materials, bolsters the circular economy by promoting waste-to-energy solutions and enhancing energy security. The growth of these segments indicates a market trend towards the reduction of reliance on fossil fuels, while government initiatives further reinforce the commitment to renewable energy solutions. Overall, the India Biomass Market segmentation showcases a robust potential for growth as it aligns with environmental goals and energy demands in the region.
The India Biomass Market, particularly in the end-use segment, showcases a diversified approach to energy utilization, catering to various sectors such as Industrial, Commercial, and Residential. The Industrial sector plays a crucial role in the adoption of biomass energy, leveraging its potential to reduce carbon emissions while enhancing energy security. This sector heavily invests in sustainable practices, which in turn strengthens the market dynamics. In the Commercial space, businesses emphasize cost-effective energy solutions, thereby driving the demand for biomass energy sources that are both renewable and efficient.
Furthermore, the Residential segment reflects a growing trend of consumers seeking alternative energy solutions for heating and cooking, significantly contributing to the market's growth. The overall contribution of these segments demonstrates a shifting mindset towards cleaner energy options, supported by government initiatives promoting renewable energy. As India continues to focus on achieving energy sustainability, the biomass market's segmentation reveals its pivotal role in meeting the country's energy needs while addressing environmental concerns, thus creating numerous opportunities for innovation and development in this sector.
The India Biomass Market is characterized by a rapidly evolving competitive landscape driven by the increasing focus on sustainable energy sources and the government's support for renewable energy initiatives. The biomass sector in India comprises a diverse range of players, including large corporations, SMEs, and startups, all vying for a share of the market. With the country's vast agricultural landscape and abundant availability of biomass resources, various companies are innovating and offering a mix of products and services that cater to both domestic and commercial needs. The competitive dynamics of the market are shaped by factors such as technological advancements, regulatory incentives, supply chain efficiencies, and partnerships that enhance market reach and customer engagement.
Bestec has established a strong foothold in the India Biomass Market by leveraging its advanced technologies and innovative solutions tailored for biomass conversion and energy generation. The company’s strength lies in its ability to efficiently convert agricultural waste into value-added products such as biofuels and biogas. Bestec's commitment to research and development has enabled it to stay ahead of the competition by consistently improving its processes and service offerings. With a focus on sustainable practices, Bestec actively collaborates with local farmers and industries to promote the utilization of biomass resources, thereby enhancing the overall ecosystem of biomass energy in India. The strategic positioning of Bestec within the biomass sector not only contributes to its growth but also aids in the wider adoption of renewable energy solutions across various regions in India.
Indian Oil Corporation is a prominent player in the India Biomass Market, strategically positioning itself as a pioneer in integrating biomass energy solutions within its broader energy portfolio. The company has made significant investments in developing biomass-based fuels and technologies, including the production of biofuels from non-food feedstocks. Indian Oil Corporation's well-established distribution network across the country enables effective market penetration, making its products readily accessible to a wide customer base. The company's strengths are further augmented by its robust research capabilities and innovations that focus on enhancing the efficiency of biomass conversion. Indian Oil Corporation has also engaged in strategic partnerships and acquisitions to expand its biomass-related initiatives, contributing to its competitive edge in the market. These efforts underscore the company's ambition further to bolster its presence in the renewable energy sector while supporting India's transition towards cleaner energy alternatives.
The India Biomass Market has seen significant developments recently, with various companies making strides in sustainable energy initiatives. In October 2023, Indian Oil Corporation announced plans to increase its biomass utilization in response to the government's push for cleaner energy sources. Bharat Heavy Electricals Limited has also been focusing on biomass-based power generation technologies to enhance efficiency. Notable activities include Renew Power collaborating with Adani Green Energy to develop biomass power plants expanding their renewable energy portfolio. In terms of mergers and acquisitions, KPI Global Infrastructure and Orient Green Power Company announced a strategic partnership in September 2023 to enhance their biomass production capabilities, which has been well received within the market. The growth in revenue and market valuation for companies like Tata Power and Biomass Power Association reflects an increasing demand for biomass energy, aided by government incentives and policies supporting renewable energy adoption. In the past few years, particularly in May 2022, Sugenja Biomass Energy launched new projects aimed at leveraging agricultural waste for electricity production, indicating the ongoing evolution and potential of the biomass sector in India.
| Report Attribute/Metric | Details |
| Market Size 2023 | 4.71(USD Billion) |
| Market Size 2024 | 4.83(USD Billion) |
| Market Size 2035 | 10.97(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 7.743% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Bestec, Indian Oil Corporation, Bharat Heavy Electricals Limited, Wartsila India, Accenture, Renew Power, Oudh Sugar Mills, KPI Global Infrastructure, Godrej and Boyce, Biomass Power Association, Adani Green Energy, Sugenja Biomass Energy, Orient Green Power Company, Entic Energy, Tata Power |
| Segments Covered | Feedstock, Technology, Product, End Use |
| Key Market Opportunities | Rising energy demand, Government incentives and policies, Agricultural waste utilization, Technological advancements in processing, Export potential of biomass products |
| Key Market Dynamics | government policies support, increasing energy demand, waste management initiatives, technological advancements, renewable energy incentives |
| Countries Covered | India |
Frequently Asked Questions (FAQ) :
The India Biomass Market is expected to be valued at 4.83 billion USD in 2024.
By 2035, the India Biomass Market is projected to reach a valuation of 10.97 billion USD.
The expected CAGR for the India Biomass Market during the period from 2025 to 2035 is 7.743%.
Major players in the India Biomass Market include companies like Bestec, Indian Oil Corporation, and Adani Green Energy.
The market size for Food Crop feedstock is projected to be 2.69 billion USD by 2035.
The expected market value for Agricultural Residue feedstock in 2024 is 0.95 billion USD.
The Municipal Solid Waste (MSW) segment is projected to grow to 1.07 billion USD by 2035.
Key growth drivers for the India Biomass Market include increasing demand for renewable energy and government policies supporting sustainable practices.
Challenges for the India Biomass Market include technological limitations and competition from other energy sources.
The projected market value for Wood feedstock is estimated to be 2.92 billion USD in 2035.
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