The India biogas market was valued at USD 1.85 Billion in 2025. The market is expected to grow at a CAGR of 9.60% during the forecast period of 2026-2035. Rising energy insecurity, rural electrification targets, and the need for sustainable management of agricultural waste are collectively fuelling a phenomenal growth in the market, pushing the industry to reach USD 4.63 Billion by 2035.
The India biogas industry is witnessing major developments as a result of large-scale municipal projects and strategic policy initiatives. In 2024, the Brihanmumbai Municipal Corporation (BMC) has begun jointly working with Mahanagar Gas Limited (MGL) to set up a compressed biogas (CBG) plant at Deonar that will treat 1,000 tonnes of wet waste on a daily basis in two phases of 500 tonnes each. This initiative looks to transform organic waste into green energy and organic fertilizer, with MGL shouldering all operational and capital expenditure, while BMC provides waste segregated from markets and hotels. Policy orientations are also changing to support the growth of the India biogas market.
Policy frameworks are also evolving to bolster the biogas industry. The Indian Biogas Association (IBA) has proposed integrating various government initiatives, such as SATAT, GOBARdhan, and CBG blending, into a unified national mission to streamline efforts and enhance efficiency. Moreover, the Ministry of New and Renewable Energy (MNRE) has sanctioned a scheme for financial support of INR 564.75 crore (~USD 67.7 million) for the purchase of biomass aggregation equipment from FY 2023-2024 to FY 2026-2027 to facilitate biomass collection and increase CBG production.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.6%
Value in USD Billion
2026-2035
*this image is indicative*
| India Biogas Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
1.85 |
|
Market Size 2035 |
USD Billion |
4.63 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
9.60% |
|
CAGR 2026-2035 - Market by Region |
South India |
10.6% |
|
CAGR 2026-2035 - Market by Region |
West India |
9.2% |
|
CAGR 2026-2035 - Market by Feedstock |
Organic Residue and Wastes |
10.9% |
|
CAGR 2026-2035 - Market by Application |
Electricity Generation |
10.8% |
|
2025 Market Share by Region |
East India |
17.2% |
The India biogas market is witnessing a shift toward decentralised Bio-CNG clusters integrated with municipal organic waste. In February 2024, Pune Municipal Corporation partnered with private firms under the SATAT scheme to convert 300 tonnes/day of market and kitchen waste into compressed biogas. These decentralised units not only reduce urban landfill burden but also create revenue streams through carbon credits and fuel sales. This approach aligns with India's GOBARdhan and Swachh Bharat initiatives, redefining urban waste management and energy generation convergence.
The government has introduced several supportive schemes such as the SATAT and New National Biogas and Organic Manure Program (NNBOMP) to boost the India biogas market development. The schemes promote decentralized energy production and offer a subsidy mechanism, and an assured offtake for compressed biogas (CBG). The regulatory mechanisms have been greatly simplified for the project developers due to these schemes. The Ministry of New and Renewable Energy (MNRE) has committed significant funding for the upgradation of small and medium-scale plants. These policy drivers have rendered biogas economically feasible, making it a commercially viable energy alternative.
Every year, over 500 million tons of agricultural waste are generated in India, most of which is poorly managed and is burned on-site. At the same time, urban cities generate approximately 150,000 tons of municipal solid waste every day. Biogas technology provides a sustainable and financially feasible means to convert organic waste into energy, which has further accelerated the demand in the India biogas market. Faced with waste management challenges in urban areas, and with rural areas desperately seeking clean energy, government initiatives increasingly encourage biogas consumption as an ideal solution. Smart digesters are being developed to treat mixed waste input streams, thereby converting waste to energy and alleviating landfill usage and carbon emissions.
CBG is slowly gaining acceptance as an alternative to CNG for transport and industrial purposes, reshaping the India biogas market dynamics. Under the SATAT program, oil marketing companies such as IOCL and HPCL have signed agreements with biogas producers. CBG sourcing from local plants is growing with companies like Think Gas and Torrent Gas. This emerging trend encourages investments from private players and energy startups, thereby making biogas bankable and scalable for larger applications such as city gas distribution and industrial heating.
The India biogas market observes an increasing trend toward smart biogas systems being equipped with state-of-the-art monitoring and automation technology using IoT systems. These units utilize feedstock optimally while attaining maximum gas yield efficiency. Modular systems are widely popular in decentralized setups like rural clusters and institutional types. Companies like GPS Renewables and Primove Engineering are leaders in making these solutions, which have plug-and-play systems to ensure rapid deployment and scaling. The trend is reshaping how small communities and MSMEs access clean energy.
The EMR’s report titled “India Biogas Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Feedstock
Key Insight: In India, organic residue and waste dominate as primary feedstock due to ample availability. For example, the Ministry of New and Renewable Energy (MNRE) mentioned in 2024 that more than 700 million tonnes of crop waste and animal waste are created every year, possessing enormous biogas potential. At the same time, energy crops such as Napier grass and maize silage are increasingly being used in Punjab and Haryana where pilot co-digestion schemes are undertaken to diversify biogas production.
Market Breakup by Application
Key Insight: Electricity production is the primary use, spurred by state government promotion under initiatives such as SATAT. Maharashtra and Uttar Pradesh are in the lead with more than 200 commissioning biogas-to-electricity plants, thus driving the India biogas market growth. In transport, bio-CNG uptake is on the increase—IOCL commissioned a 5-tonne per day plant in Varanasi in 2024. For heat generation, Karnataka poultry sector employs more than 20 decentralised digesters for process heat, lowering LPG dependency and reducing operational expenses, according to KREDL.
Market Breakup by Region
Key Insight: South India leads in biogas implementation, particularly Tamil Nadu and Karnataka, due to active municipal integration and private sector investment. Six city-scale plants treating 600+ tonnes of waste/day were sanctioned by Tamil Nadu in 2024. West India, particularly Maharashtra and Gujarat, enjoys agro-industrial integration. North India is seeing expansion through big-ticket SATAT-tied projects, and East India, dominated by West Bengal, is concentrating on rural electrification through small digesters, with government-sponsored schemes such as the National Bio Energy Programme backing them.
|
CAGR 2026-2035 - Market by |
Region |
| South India |
10.6% |
| West India |
9.2% |
| East India |
XX% |
| North India |
XX% |
By Feedstock, Organic Residues and Wastes Emerge as the Most Prominent Segment
India generates a large amount of organic wastes ranging from household wastes to agricultural and food industry wastes. The organic residues and wastes segment indicates a clear dominance over feedstock on account of its availability and inexpensive cost. Increasing applications of municipal solid wastes, cow dung, and food-processing residues are being considered in rural and urban digesters alike. Energy players are currently partnering with urban local bodies and companies of the waste management sector for tapping this resource, allowing cities like Indore and Pune to run bioenergy plants from segregated waste.
Occupying a minor stake in the India biogas market revenue share, energy crops like Napier grass and sugarcane press mud are gradually being favored as biogas feedstocks. Their high yield of biogas per hectare makes them quite suitable for large-scale and industrial biogas programs. States like Maharashtra and Uttar Pradesh are investing in energy-crop cultivation for consistent biomass supply. The economics of dedicated bioenergy crops in India is being further enhanced through innovations in crop rotation and water-efficient farming practices.
By Application, Electricity Generation Secures the Dominant Share of the Market
Electricity generation continues to remain the primary application that has propelled the India biogas market development, mostly in rural electrification and captive power plants. In areas still lacking connection to the grid, biogas microgrids are revolutionizing energy access. In the states of Bihar and Jharkhand, rural electrification powered solely by cattle dung or agricultural residue has been observed. Other users of biogas plants include functioning dairies and educational campuses that are increasingly seeking reliable options of off-grid electricity.
The transportation industry is quickly adopting CBG as renewable vehicle fuel, propelling further scope for the India biogas market expansion. With over 100 CBG filling stations operational, under SATAT, public transport and private fleets are gradually being shifted to biogas-powered alternatives. Cities like Nagpur and Ahmedabad have even put CBG buses into practice as a testament of their real-world viability. Rising fuel prices and carbon mandates are pushing logistics companies and cab aggregators to integrate biogas into their fuel mix, providing momentum to this segment’s growth.
By Region, South India Leads the Fast-Evolving Market Landscape
South India commands the leading position in the India biogas industry with advanced infrastructure, policy clarity, and active municipalities. Tamil Nadu, Karnataka, and Kerala were among the early adopters of biogas for both energy and waste management. Cities like Bengaluru and Coimbatore have scalable municipal biogas plants linked to the food market and slaughterhouse. The region also boasts of a strong ecosystem of start-ups and research institutions contributing to technological innovations and best practices. As of 2024, Southern India, specifically Tamil Nadu, Karnataka, and Kerala, remain at the forefront of biogas use for energy and waste management. Six bio-CNG plants have been approved in cities such as Coimbatore and Madurai by Tamil Nadu with a total capacity of over 600 tonnes of waste per day. In Bengaluru, a 300-tonne capacity facility is being developed in Mandur to treat segregated organic waste to produce bio-CNG and organic manure. Kerala's government has sanctioned a ₹150 crore compressed biogas plant in Kochi, which will treat 150 tonnes of urban waste per day, and which is set for completion in 15 months. These projects reflect the region's dedication to renewable energy and sustainable waste management.
The explosive growth in Punjab, Haryana, and Uttar Pradesh due to crop residue burning problems and strong agricultural output have led to the overall North India biogas market development. Government programs that offer financial and policy support have promoted biogas adoption for large-scale biogas projects, mainly with paddy straw and cattle waste. The dense population of the region and unmet energy requirements offer ample opportunities for both industrial and domestic biogas uses.
The India biogas market players are looking at integrating digital technologies in order to monitor and enhance efficiency in production. The possibility of real-time monitoring of feedstock quality, gas yield, and digestate utilization has become quite trendy. Moreover, the India biogas companies are focused on strengthening partnerships with urban local bodies and agricultural processing industries. They can co-develop waste-to-energy projects and utilize carbon credits along with green finance to enhance project viability. India biogas market players are increasingly focusing on coconut shell-based biogas technology to boost revenues. This innovation leverages abundant agricultural waste, offering a sustainable and cost-effective feedstock alternative. The technology enhances gas yield and improves fuel quality, making it suitable for both rural and industrial applications. Additionally, advanced biogas regeneration technologies are being adopted to increase efficiency and reduce emissions, aligning with India’s renewable energy goals and driving market growth through improved product performance and environmental compliance.
Founded in 1834 and headquartered in Helsinki, Finland, Wärtsilä is a supplier of biogas upgrading and power generation systems. The company works with Indian infrastructure players to provide turnkey biogas solutions, integrating gas engines with waste management infrastructure.
Founded in 2008 and located in Pune, Primove concentrates on developing modular plug-and-play biogas plants. The company gives emphasis to rural and institutional markets by utilizing low-maintenance, IoT-enabled systems. Their established strategy includes the provision of customized solutions for schools, farms, and small municipalities.
Founded in Bengaluru in 2012, GPS Renewables has become a leader in urban biogas infrastructure. The company is involved in major public-private projects across turnkey installations, experiencing rapid growth through SATAT-linked CBG ventures and technology licensing.
Based in Knowsley, United Kingdom, and operational since 1989, Clarke Energy provides biogas engines and CHP solutions in India. The company works alongside large-scale biogas plants to generate electricity for industrial applications and agricultural residue-powered installations.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the India biogas market include Green Elephant Group, Bharat Biogas Energy Limited, and Spectrum Renewable Energy Limited, among others.
Download your free sample of the India Biogas Market Report 2026-2035 to uncover sustainable innovations, emerging trends, and growth opportunities. Stay ahead with detailed forecasts, precise segmentation, and strategic company profiles—only from Expert Market Research.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the India biogas market reached an approximate value of USD 1.85 Billion.
The market is projected to grow at a CAGR of 9.60% between 2026 and 2035.
The key players in the market include Wärtsilä Corporation, Primove Engineering Pvt. Ltd., GPS Renewables Pvt. Ltd, Clarke Energy, Green Elephant Group, Bharat Biogas Energy Limited, and Spectrum Renewable Energy Limited, among others.
Key strategies driving the market include creating integrated biogas value chains, introducing smart monitoring, and establishing public-private partnerships for urban waste-to-energy projects.
The major applications considered in the market report are electricity generation, heating, and transportation.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Feedstock |
|
| Breakup by Application |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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