Global Biomass Fuel (PKS) Market Strategic Research Report

Scope of the Report

The global Biomass Fuel (PKS) market size is predicted to grow from US$ 1,810 million in 2025 to US$ 3,257 million in 2032; it is expected to grow at a CAGR of 8.9% from 2026 to 2032.

PKS is a byproduct of the palm oil industry and can be used as a fuel for biomass power plants. It has the characteristics of high calorific value, carbon neutrality, and easy storage. In recent years, it has attracted much attention as a biomass fuel.The utilization of palm kernel shells not only reduces the cost of waste treatment, but also creates new economic value by converting it into biomass fuel, promoting the development of related industries.

With the growing global demand for renewable energy, PKS as a waste material reuse is in line with the concept of sustainable development. It not only reduces waste emissions during palm oil production and reduces environmental pollution, but also provides a new resource source for the energy sector.

PKS is abundantly available; however, this report exclusively focuses on the commercially utilized portion of PKS. The unused or discarded portions, which do not hold commercial value, are not included in the statistical analysis.

Manufacturers in the industry make Biomass Fuel (PKS) through the purchase, screening, drying and processing of palm kernel shells. Biomass Fuel (PKS) can be exported to Japan, South Korea, Europe and other places.

Leading companies like Iwatani Corporation, Global Iwatani Corporation, NISSIN BIO ENERGY, and DSNG (PT Dharma Satya Nusantara Tbk) dominate the industry, with the top three players accounting for 12.42% of global revenue in 2023. However, the market remains highly fragmented due to abundant supply in production hubs like Indonesia and Malaysia, where a significant portion of PKS is consumed locally before surplus is exported. This fragmentation is further compounded by the presence of numerous distributors and exporters who collect PKS locally and ship it to demand-driven markets such as Japan, South Korea, Europe, and the Americas.

The role of distributors and exporters is pivotal in bridging supply and demand. Companies such as Gombella Integrated Services Limited, ARGYA ENERGY, Provident Biofuels, Arkan Group, and PT UNIVERSAL PALM INDONESIA (UNIPALM) are critical in facilitating global trade. Meanwhile, large-scale downstream users, particularly in Japan and Europe, have established procurement offices in Indonesia and Malaysia to ensure stable supply chains and consistent quality.

The market is increasingly shaped by the rising importance of Certified PKS, driven by governmental policies promoting sustainable practices. In 2023, Certified PKS constituted 33.59% of the market, but its share is expected to reach 45.75% by 2030. This rapid growth reflects stringent certification requirements in key importing countries to ensure sustainability and traceability, aligning with global environmental goals.

Japan leads as the largest importer of PKS, fueled by robust policies supporting renewable energy, the need for carbon-neutral solutions, and its geographical proximity to Southeast Asia. Japanese utilities are major consumers, leveraging PKS as a sustainable and cost-effective alternative for power generation. The compatibility of PKS with Japan’s energy policies and its efficient transportation routes from Southeast Asia make it a cornerstone of the country's renewable energy strategy.

The PKS market's trajectory is bolstered by several factors, including government incentives, rising demand for biomass-based power generation, its high calorific value, and environmental advantages. As more countries aim to decarbonize their energy sectors, PKS offers a renewable, efficient, and scalable solution.

This report presents a comprehensive overview of the global Biomass Fuel (PKS) market, covering market size and forecast, segmentation by product type and application, competitive landscape, leading players and regional and country-level outlook.

Segment by Type

• Non-Certified PKS
• Certified PKS

Segment by Application

• Residential
• Business
• Industry

Who Can Use This Report?

This report is written for decision-makers who need a clear, data-backed view of the global Biomass Fuel (PKS) market:

• Manufacturers, suppliers and solution providers benchmarking their position and planning product, capacity and go-to-market strategy
• Distributors, channel partners and end users in Residential, Business, Industry evaluating demand and sourcing options
• Investors, financial analysts and consultants assessing growth opportunities, competitive dynamics and M&A potential
• Government agencies, industry associations and research institutions tracking industry developments and policy impact