Market Insights
The biochar market was estimated at US$ 172 million in 2021 and is expected to grow at a CAGR of 13% during 2022-2028 to reach US$ 480 million in 2028.
Global biochar market refers to the market of a fine-grained charcoal which is obtained from biomass (plant material and agricultural waste). Biochar may be produced from various thermochemical technologies that include pyrolysis, gasification and others which involves slow burning of organic matter in a limited or no-oxygen environment. The biochar is used as an additive to soils to improve carbon storage and nutrient retention.
Further, biochar may help in increasing soil fertility of acidic soils, agricultural productivity and may even provide protection against soil-borne and some foliar diseases. Biochar also finds application in waste water treatment and even has the potential to help in mitigating climate change owing to its carbon sequestering nature. The total biochar market revenue is calculated on the basis of total consumption of biochar globally.
Key Players
The following are the major players in the biochar market:
- Airex Energy Inc.
- ArSta Eco Pvt Ltd.
- Biochar Supreme
- Coaltec Energy USA
- Farm2Energy Pvt. Ltd
- Frontline BioEnergy LLC
- KARR Group Co. (KGC)
- Pacific Biochar Corporation
- Phoenix Energy
- ProActive Agriculture.
There is stiff competition in the Biochar market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their Biochar based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:
- In January 2023, In order to expand its biochar and wood-based activated carbon operations in North and South America, CN Energy Group, Inc. has announced that it had opened its American headquarters in Washington, D.C.
Market Dynamics
Increasing environmental concern regarding emission of greenhouse gases led to increased adoption of biochar. In December 2015 Paris climate accord or Paris climate agreement was signed by 175 countries aimed at reducing the global CO2 emission by 28% 2025. The governments across the globe are proactively involved in reducing the carbon footprint in their respective countries aiding growth in the global biochar market.
According to International Biochar Initiative, soil is considered as the major source of nitrous oxide (N2O) and acts as sink and source of methane (CH4). N2O is 23 times and CH4 is 298 times more harmful than carbon dioxide (CO2) as greenhouse gases in the atmosphere. Hence, biochar is extensively used in agricultural fields due to its property to reduce N2O emissions up-to 90%. Biochar when added to soil increases the soil aeration that reduces the denitrification and increases sink capacity for methane (CH4).
Furthermore, biochar adds electron acceptors in the soil thereby increasing soils’ redox potential to reduce N2O source capacity of soil. According to Center for International Forestry Research (Indonesia), biochar can be used in agricultural land management to limit the emission of greenhouse gas per unit of product footprint.
These applications of biochar include pyrolysis of manures as hygienic alternative, biochar as composting additive and feed additive for treatment of manure etc. It can also be utilized as a renewable energy source in mechanical applications including both power and heat, for instance warming business nurseries or delivering mechanical steam.
Biochar has the capacity to retain atmospheric carbon dioxide for long duration typically for 100 to 1000 years thereby helping in reducing green-house gases. Therefore, extensive adoption of biochar for reducing greenhouse gas emission and producing clean, renewable energy is expected to positively influence the global biochar market growth.
Market Restraints:
The key factor restraining the growth of global biochar market is the health and safety issues related to biochar. The sorption of soil nutrients and water by biochar reduces the nutrition level of the soil thereby reducing the efficacy of soil. Some biochar also act as source of contaminants such as Polycyclic Aromatic Hydrocarbons, Volatile Organic Compounds, Dissolved Organic Carbon, heavy metals etc. which may lead to serious health issues such as respiratory diseases.
Moreover, the fine ash obtained from biochar produces dust increases the risk of respiratory diseases. Also, biochar charcoal emits harmful gases which can lead to human health issues such as respiratory disorders (Chronic Obstructive Pulmonary Disease (COPD), asthma etc.). Some types of biochar may be at risk of accidental ignition and therefore safety while storage and transportation is required.
Segment Analysis
By Technology Type
Pyrolysis, gasification and others are the technology. Pyrolysis market hold the largest share in 2021. The larget share is mainly due to rising concerns towards greenhouse gas emissions that cause global warming across the world cause is majorly driving the biochar market by pyrolysis.
According to the United States environment protection Agency report there is an increase in the atmospheric concentrations of greenhouse gases that produces a positive climate warming effect. The warming effect associated with carbon dioxide alone raised by 30%. As per the EPA, the agriculture, forestry and other land use contributes around 24% of total greenhouse gas emissions globally.
The production of biochar by pyrolysis process helps in reducing CO2 emission which majorly contributes towards global warming. This benefit leads to high adoption of pyrolysis technology to produce biochar is positively impacting the pyrolysis market during forecast period.
By Application Type
Agriculture, water and waste water treatment and other applications comprise the application. Agriculture holds the largest market share in the application segment in 2021. biochar is used in agriculture to enhance the soil quality as it converts agricultural waste into a powerful soil enhancer which can hold carbon and makes the soil more fertile, which can boost food security, preserve cropland diversity etc.
Biochar systems can also reverse soil degradation. Rising agricultural production for sustainable crop production is expected to fuel growth in the global agriculture market during the forecast period.
Regional Analysis
In terms of regions, North America is likely to maintain its largest share in the Biochar market throughout the forecast period. North America biochar is witnessing notable growth driven by the increasing demand for improvement in crop yield and soil fertility along with the increasing demand for agricultural products.
North America is reported to have been continuously using the chemical fertilizers coupled with deforestation and mining practices that degrades the soil texture and quality. Such soil quality degradation activities are expected to boost the demand for biochar that results in an impressive growth across North America biochar market.
The primary reason that biochar is in significant demand is the potential of biochar to minimize nitrogen leaching into ground water and ability to moderate solid acidity. Further, the effective farming guidelines for enhancement of the soil quality being implemented by both the non-government and government organizations in North America is expected to further drive solid growth across North America biochar market.
Research Methodology
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
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