The India Biomass Pellets Market Size was estimated at 552.0 (USD Million) in 2023. The India Biomass Pellets Industry is expected to grow from 600.0(USD Million) in 2024 to 1,200.0 (USD Million) by 2035. The India Biomass Pellets Market CAGR (growth rate) is expected to be around 6.504% during the forecast period (2025 - 2035).
An increasing emphasis on sustainability initiatives and renewable energy sources is driving significant trends in the India Biomass Pellets Market. The Indian government's dedication to enhancing the proportion of biomass energy in the overall energy balance is one of the primary market drivers. The National Bioenergy Mission and other initiatives are designed to foster the utilization of biomass resources by establishing a favorable policy environment that promotes the production and use of biomass pellets in the country. Furthermore, industries are being encouraged to pursue cleaner and more sustainable fuel alternatives as a result of the increasing awareness of environmental issues and climate change.
This trend is further supported by the agricultural sector's potential to provide raw materials for biomass pellets, such as crop residues, which aligns with the government’s objectives of waste management and farmers' income enhancement. Opportunities to be explored in the Indian Biomass Pellets Market include advancements in technology that improve pellet production processes, which can lead to higher efficiency and lower costs. The increasing demand for energy among rural populations presents another significant opportunity, as biomass energy can provide reliable and affordable fuel sources. Furthermore, the growing focus on exports, particularly to countries aiming to reduce their carbon footprint, is an area worth pursuing. Trends in recent times indicate a rise in collaborations between private enterprises and governmental bodies to facilitate biomass pellet production and utilization. Such partnerships aim to enhance infrastructure, establish supply chains, and promote research and development in this sector. With a strong promise for future growth, the Indian Biomass Pellets Market is on a transformative path that aligns with both national energy policies and global sustainability goals.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Indian government has taken significant strides to boost the renewable energy sector, particularly focusing on biomass energy. Initiatives under the National Biofuel Policy aim to increase the use of biofuels, including biomass pellets, for energy generation. The government has set a target to achieve 175 GW of renewable energy capacity by 2022, with a substantial part expected to come from biomass sources. With organizations like the Ministry of New and Renewable Energy (MNRE) actively promoting investments in renewable sectors and providing subsidies, the India Biomass Pellets Market Industry is positioned to grow as these supportive policies lay down a robust infrastructure for biomass pellet utilization, thus stimulating demand.This monumental push towards renewable energy is expected to contribute significantly to the biomass sector, where an increase of 4.5% of total energy consumption from biomass has been noted in recent years.
With increasing awareness of environmental issues and climate change, there is a growing demand for sustainable energy solutions in India. The recent push for the Paris Agreement's commitments by India, aimed at reducing carbon emissions, is leading industries to adopt greener technologies and renewable energy sources. Biomass pellets are recognized as an essential part of this transition. According to the Ministry of Environment, Forest and Climate Change, there has been a noted increase in demand for cleaner technologies, with biomass contributing to an estimated 2.5% reduction in overall fossil fuel use when substituted.This trend, coupled with the larger global pivot towards sustainability, presents a compelling case for the India Biomass Pellets Market Industry to penetrate further into energy markets traditionally dominated by fossil fuels.
India generates a plethora of agricultural residues due to its vast agrarian economy, providing abundant raw materials for the biomass pellets industry. Estimates suggest that India produces approximately 500 million tons of agricultural residues annually. This availability directly supports the production capabilities for biomass pellets and is a critical driver for market growth. Established organizations, including the Indian Council of Agricultural Research (ICAR), have been advocating for the use of agricultural waste in bioenergy production, further driving the sector’s growth.By converting these residues into biomass pellets, not only is there an effective waste management solution, but it also ensures a consistent supply chain for the India Biomass Pellets Market Industry, giving it a competitive edge in sustainable energy production.
The India Biomass Pellets Market is experiencing notable growth driven by a variety of sources, collectively contributing to the overall landscape of sustainable energy production. Source Outlook showcases a diverse array of materials utilized in biomass pellet production, each playing a crucial role in meeting energy demands while leveraging the country's abundant resources. The category of Industrial Waste Co-product stands out as it extensively uses by-products from industries, offering a dual benefit of waste reduction and energy production.Agriculture Residue also significantly impacts the market, as India, being largely agrarian, generates vast amounts of crop waste that can be converted into valuable energy resources, thereby enhancing farm profitability and reducing environmental burden. Food Waste contributes similarly, wherein organic refuse from households and commercial establishments can be transformed into biomass, aligning with the country's zero-waste goals. Energy Crops are increasingly recognized for their potential, comprising fast-growing plants specifically cultivated for energy purposes, thus promoting sustainable farming practices and land usage efficiency.Furthermore, Virgin Lumber remains a source of interest as it includes clean wood resources, ensuring high energy content in the pellets produced, which adds to the efficiency of biomass as a renewable energy resource. Additionally, the inclusion of others as a source enables the use of various biomass materials, including municipal waste and other organic materials, fostering innovation and flexibility in biomass pellet production. Collectively, these segments are integral to the India Biomass Pellets Market, reflecting the country's commitment to renewable energy initiatives, energy security, and sustainable development.The market is supported by favorable government policies aimed at encouraging the use of biomass, addressing both environmental and energy efficiency concerns. As such, stakeholders are increasingly focused on optimizing these sources to tap into their full potential, supporting a clean energy transition and driving innovation within the industry. Various drivers such as rising energy demands and a push for reducing carbon footprints further illustrate the importance of these sources, showcasing the market's direction towards a more sustainable future.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Revie
The India Biomass Pellets Market is segmented by type into Wood Pellets, Agri Pellets, Torrefied Pellets, and Others, each catering to specific energy needs and applications. Wood Pellets are typically derived from sawmill residues and have gained popularity for their high energy density and efficiency, making them a preferred choice for residential and industrial heating. Agri Pellets, produced from agricultural residues, play a significant role in waste management and provide an eco-friendly alternative to fossil fuels, thereby supporting India's agricultural sector.Torrefied Pellets, which undergo a thermal process to improve combustion properties, are notable for their enhanced energy output and lower emissions, attracting interest in both power generation and heating sectors. The "Others" category includes various biomass materials that also contribute to the renewable energy landscape, highlighting the diverse applications and growing acceptance of biomass as a sustainable energy source in India. As the country strides towards energy self-sufficiency, these segments reflect the increasing investment in renewable resources, flexible combustion technologies, and environmental consciousness among consumers, driving the overall development of the biomass industry.The growing emphasis on clean energy solutions and government initiatives to promote biomass utilization reinforce the significance of each type within the India Biomass Pellets Market landscape.
The India Biomass Pellets Market is experiencing substantial growth, primarily driven by the increasing demand for renewable energy sources in various applications. The Application Outlook segment encompasses key areas such as Power Generation, Industrial Heating, Residential Heating, and Others. Power Generation is pivotal in supporting India's renewable energy targets, as biomass pellets provide a sustainable alternative to fossil fuels, enhancing energy security while reducing emissions. Industrial Heating is equally important, catering to manufacturing sectors keen on improving efficiency and lower operational costs through cleaner energy options.Residential Heating, on the other hand, is witnessing significant interest from households looking for eco-friendly heating solutions, especially in rural regions where biomass is readily available. The Others category includes diverse applications that highlight the versatility of biomass pellets in various industries. Overall, the application of biomass pellets aligns with India's sustainable development goals, promoting cleaner energy and reducing dependence on conventional heating methods, thus addressing both environmental and economic challenges in the region.
The India Biomass Pellets Market is witnessing significant growth due to an increasing awareness of sustainable energy sources and rising energy demands. The competitive landscape of this market presents a dynamic environment, where various players are striving to enhance their market share by focusing on innovation, production efficiency, and supply chain development. Key factors, including government policies favoring renewable energy, technological advancements in pellet production, and a growing emphasis on reducing carbon emissions, contribute to the evolving competitive insights of this sector. The market comprises various local and international companies, each trying to establish its foothold through strategic partnerships and customer engagement initiatives. Understanding the strategies and strengths of these companies is pivotal for gaining insights into market trends, consumer preferences, and future growth prospects.Biomass India has carved a niche for itself within the India Biomass Pellets Market by emphasizing high-quality products and sustainable sourcing practices. The company focuses on producing biomass pellets from agricultural waste and by-products, thereby aligning with the increasing demand for eco-friendly energy solutions. Its strength lies in its robust supply chain network, extensive distribution channels, and strong relationships with local farmers and suppliers. This not only ensures a steady raw material supply but also contributes to the company’s credibility in the market. Biomass India's commitment to research and development enables its continual improvement in pellet production technology, further solidifying its competitive edge in this industry. Additionally, the company promotes awareness and education about biomass energy, enhancing its market presence and reinforcing its leadership position.Asahi India Glass is also an influential player in the India Biomass Pellets Market, primarily recognized for its focus on sustainable energy solutions. The company has tailored its offerings to include biomass pellets as a part of its commitment to environmental sustainability. With a diverse portfolio that often extends into renewable energy technology and glass manufacturing, Asahi India Glass brings unique synergies to the market. Its strengths include advanced technology capabilities and a strong emphasis on quality assurance, which ensures that its products meet high international standards. The company is actively engaged in collaborations and partnerships aimed at expanding its market presence in the biomass sector. Mergers and acquisitions related to renewable energy initiatives have allowed Asahi India Glass to diversify and enhance its product offerings, thereby providing a comprehensive solution in the biomass pellets arena, catering specifically to the Indian energy market's evolving needs.
India Biomass Pellets Market Industry Developments
The India Biomass Pellets Market has witnessed significant developments recently, notably in response to the nation's growing emphasis on renewable energy sources. The government has introduced various initiatives to promote biomass energy, enhancing the sector's growth. Companies such as Biomass India and Dalmia Bharat Group are increasingly involved in creating sustainable practices within their operations, contributing to market expansion. In terms of investments, Asahi India Glass has shown interest in expanding its operations in biomass utilization, while Praj Industries has been active in developing advanced technologies for biomass processing. The month of October 2023 saw Karnataka Power Corporation exploring potential partnerships to boost biomass generation, amid rising demand. Moreover, the increasing valuation of companies like Jindal Saw and Oizom reflects a robust growth trajectory in the market. No recent mergers or acquisitions have been reported involving the companies mentioned, although collaborations aimed at enhancing production efficiency are becoming common. Historical measurements indicate that in January 2022, the market's valuation rose significantly due to government incentives aimed at boosting renewable energy infrastructure, indicating a positive outlook for the future of biomass pellets in India.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 552.0(USD Million) |
| MARKET SIZE 2024 | 600.0(USD Million) |
| MARKET SIZE 2035 | 1200.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.504% (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 Million |
| KEY COMPANIES PROFILED | Biomass India, Asahi India Glass, Rayalaseema Thermal Power Station, Dalmia Bharat Group, Karnataka Power Corporation, Praj Industries, Jindal Saw, Krishna Group, Oizom, Heritage Foods, Greener Power, Ashok Leyland, Gujarat Ambuja Exports, Sukhjit Starch and Chemicals, ABC India |
| SEGMENTS COVERED | Source Outlook, Type Outlook, Application Outlook |
| KEY MARKET OPPORTUNITIES | Rising demand for renewable energy, Government incentives for biomass production, Increasing agricultural waste utilization, Growth in industrial applications, Expansion of export markets for pellets |
| KEY MARKET DYNAMICS | rising energy demand, government incentives, environmental regulations, technological advancements, agricultural waste utilization |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Biomass Pellets Market is expected to be valued at 600.0 million USD in 2024.
By 2035, the India Biomass Pellets Market is projected to reach a value of 1200.0 million USD.
The expected CAGR for the India Biomass Pellets Market from 2025 to 2035 is 6.504%.
The Agriculture Residue sector holds a significant market share, valued at 150.0 million USD in 2024.
Major players in the India Biomass Pellets Market include Biomass India, Asahi India Glass, Rayalaseema Thermal Power Station, and Dalmia Bharat Group.
The market value of Industrial Waste & Co-product in the India Biomass Pellets Market is projected at 100.0 million USD in 2024.
By 2035, the revenue from Energy Crops in the India Biomass Pellets Market is expected to be 340.0 million USD.
The Food Waste segment in the India Biomass Pellets Market is valued at 80.0 million USD in 2024.
The India Biomass Pellets Market presents growth opportunities particularly as the demand for renewable energy sources increases in various regions.
The expected market value of Virgin Lumber in the India Biomass Pellets Market is projected to be 200.0 million USD by 2035.
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