India Biogas Market to Reach USD 4.98 Billion by 2032, Growing at a CAGR of 21.87% During 2026–2032

The India biogas market size was valued at approximately USD 1.32 billion in 2025 and USD 1.52 billion in 2026, it is projected to reach USD 4.98 billion by 2032, expanding at a compound annual growth rate (CAGR) of 21.87% during the forecast period from 2026 to 2032. Demand for renewable gas is expanding rapidly across domestic households, commercial facilities, industrial units, dairy farms, and municipal centers, driven by shifting reliance toward organized commercial projects and integrated waste-to-energy systems.

Additionally, rising demand for clean fuel alternatives and energy-security initiatives are encouraging the substitution of fossil-based natural gas with domestically produced biogas and Compressed Biogas (CBG). This market momentum is significantly reinforced by government policies, such as the USD 2.5 billion program to scale up CBG infrastructure and mandatory CBG blending obligations that require a 3% consumption share in FY2026–27, scaling up to 5% by FY2028–29.

Furthermore, industrial adoption and substantial feedstock availability are acting as major catalysts for market expansion. With India generating nearly 600 million tonnes of agricultural crop residue annually alongside extensive livestock waste, commercial deployment is accelerating rapidly. Significant corporate investments, such as Maruti Suzuki's USD 15.8 million commitment to biogas projects and REnergy Dynamics' high-output multi-feedstock plant, showcase the transition toward industrial-scale energy generation.

In parallel, rapid growth in commercial-scale Biogas production is reshaping market dynamics, evidenced by 1,929 registered CBG/Bio-CNG plants nationally as of August 2026. Consequently, pipeline connectivity gaps involving over 400 plants without network access are opening major opportunities for virtual-pipeline operators, gas-injection infrastructure, and storage technology providers, setting a strong operational foundation through 2032, as stated in the recent report “India Biogas Market Analysis, 2026”.

India Biogas Market Highlights

The India Biogas Market stood at an estimated valuation of USD 1.32 billion in 2025 and is projected to scale up to USD 4.98 billion by 2032.
The market is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.87% over the forecast period spanning 2026 to 2032.
Among organic raw materials, Cattle Dung and Livestock Waste led the market with a 28% share in 2026, driven by continuous feedstock availability across India's extensive dairy network.
Electricity Generation (Energy Generation) represented the largest application segment, commanding 33% of the total market share in 2026
The market structure remains highly fragmented, with the top five market participants (GAIL, Wärtsilä, Clarke Energy, PlanET-Biogas, and Green Elephant Engineering) holding a combined market share of approximately 26%.