India Compressed Biogas (CBG) Market to Reach USD 2.41 Billion by 2032, Growing at a CAGR of 33.56% During 2026–2032

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The India Compressed Biogas (CBG) Market was valued at approximately USD 0.319 billion in 2025 and is projected to reach USD 0.426 billion in 2026, further expanding to USD 2.419 billion by 2032, registering a CAGR of 33.56% during 2026–2032. Market growth is being supported by the SATAT initiative, phased CBG Blending Obligation, expansion of the City Gas Distribution network, and India's large agricultural and livestock feedstock base. The CBG Blending Obligation is scheduled to increase from 1% in FY2025–26 to 5% from FY2028–29 onward, creating greater offtake visibility for CBG producers. PNGRB reported 111.48 million standard cubic meters of CBG sales in FY2025–26, equivalent to 0.92% blending, while CBO-linked demand is projected to increase from approximately 1.03 MMSCMD in FY2026–27 to 2.07 MMSCMD by FY2028–29.

In terms of segmentation, Animal Manure is estimated to remain the leading feedstock segment, accounting for approximately 34% share in 2026, supported by India's livestock base of 535.78 million animals, including approximately 302 million bovines. Agricultural residues, municipal organic waste, sewage sludge, and energy crops provide additional feedstock sources for CBG production. By application, Vehicle Fuel is projected to dominate with approximately 62% share in 2026, supported by CBG's integration with the CNG ecosystem, SATAT, the CBG Blending Obligation, and expanding retail availability. IndianOil reported 125 CBG retail outlets and 8.9 thousand tonnes of CBG sales during FY2024–25, strengthening the transportation-fuel pathway for CBG. The market is moderately fragmented, with the top five companies estimated to account for approximately 45% of market share in 2026. Key participants include Reliance Bio Energy, IndianOil, BPCL, Adani TotalEnergies Biomass, HPCL, EverEnviro, GPS Renewables, GAIL, Praj Industries, and Verbio India, as stated in the recent report “India Compressed Biogas Market Analysis, 2026”.

India Compressed Biogas (CBG) Market Highlights

• The India Compressed Biogas (CBG) Market was valued at approximately USD 319 million in 2025 and is projected to reach USD 426 million in 2026, further expanding to USD 2419 million by 2032.
• The market is expected to register a CAGR of 33.56% during 2026–2032, supported by CBG blending mandates, City Gas Distribution expansion, feedstock availability, and increasing CBG infrastructure.
• Animal Manure is projected to remain the leading feedstock segment, accounting for approximately 34% market share in 2026.
• Vehicle Fuel is estimated to remain the largest application segment, accounting for approximately 62% market share in 2026.
• The India CBG market is moderately fragmented, with the top five companies estimated to collectively account for approximately 45% market share in 2026.

India Compressed Biogas (CBG) Market Segmentation

By Feedstock

• Agricultural Residues
• Animal Manure
• Municipal Solid Waste (MSW)
• Industrial Organic Waste
•  Food Processing Waste
•  Brewery Waste
•  Other Industrial Organic Waste
• Sewage Sludge
• Energy Crops
• Other Feedstocks

By Technology

• Water Scrubbing

• Membrane Separation

• Pressure Swing Adsorption (PSA)

• Chemical Absorption

• Other

By Distribution Channel

• Direct Supply

• CNG/CGD Network

• Industrial & Commercial Supply

• Other

By Application

• Vehicle Fuel

• Industrial Energy

• Power & Heat Generation

• Commercial & Institutional Energy

• Residential Cooking

• Other

By End User

• Transportation Operators

• Industrial & Manufacturing Facilities

• Power & Utility Companies

• Commercial & Institutional Users

• Agricultural & Rural Users

• Residential Users

• Other

By Region

• North India

• South India

• West India

• East India

• Central India

Key Players in the India Compressed Biogas (CBG) Market

• Reliance Bio Energy Limited

• Indian Oil Corporation Limited (IndianOil)

• Bharat Petroleum Corporation Limited (BPCL)

• Adani TotalEnergies Biomass Limited (ATBL)

• Hindustan Petroleum Corporation Limited (HPCL)

• EverEnviro Resource Management Private Limited

• GPS Renewables Private Limited

• GAIL (India) Limited

• Praj Industries Limited

• Verbio India Private Limited

• Others