Anaerobic Digestion Market - Global Industry Size, Share, Analysis, Trends and Forecast 2022 - 2030
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The Global Anaerobic Digestion Market Size is valued at USD 10,149 Million in 2021 and is estimated to achieve a market size of USD 21,853 Million by 2030; growing at a CAGR of 9.2%.
The growing burden of waste in the environment is the leading factor boosting the anaerobic digestion market revenue. Rising stringent regulations regarding these wastes is one of the top anaerobic digestion market trends fueling industry growth.
According to the American Biogas Council, anaerobic digestion (AD) is a series of the biological process by which organic matter such as food or animal waste is broken down to produce biogas and biofertilizer. This biological process is carried out in the absence of oxygen in a sealed tank known as anaerobic digester. Anaerobic digestion is an eco-friendly, cost-effective solution to deal with rapidly increasing waste. There are two main benefits of anaerobic digestion. It has a positive impact on the environment, and it can provide direct financial returns. Anaerobic digestion turns waste into renewable resources, removes harmful pathogens from biological waste, produces cleaner fuel, reduces carbon footprint, and benefits the local community, industry farmers, environment, and government.
Global Anaerobic Digestion Market DRO’s:
Market Drivers:
- Growing demand for renewable energy sources
- Strict government guidelines to reduce greenhouse gas emissions
- Growing volume of solid waste
Market Restraints:
- High initial investment
- The complexity of anaerobic digestion process
Market Opportunities:
- Increasing adoption of organic feedstock for biogas generation
- Growing demand from developing countries
Report Coverage
| Market | Anaerobic Digestion Market |
| Market Size 2021 | USD 10,149 Million |
| Market Forecast 2030 | USD 21,853 Million |
| CAGR During 2022 - 2030 | 9.2% |
| Analysis Period | 2018 - 2030 |
| Base Year | 2021 |
| Forecast Data | 2022 - 2030 |
| Segments Covered | By Source of Feedstock, By End User, And By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | AAT Abwasser-und Abfalltechnik GmbH, ADNAMS PLC, Bioenergy DevCo, EnviTec Biogas AG, Clarke Energy, SP Renewable Energy Sources Pvt. Ltd., Northern Biogas, and WELTEC BIOPOWER GMBH. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
| Customization Scope |
10 hrs of free customization and expert consultation |
Growing demand for renewable energy sources is the leading aspect driving the anaerobic digestion market value. Biogas is produced when organic materials are anaerobically digested. Biogas is a renewable energy source. Biogas can be used to fuel engines and generators that generate mechanical power, heat, and/or electricity, or a combination of these. It can also be compressed for vehicle fuel and used in similar applications as natural gas after treatment.
Increased government initiatives to reduce greenhouse gas emissions support the growth of the anaerobic digestion market. Anaerobic digestion also contributes to lower methane emissions. Capturing methane is important because methane is a powerful greenhouse gas that, if allowed to escape into the atmosphere, contributes to climate change. Promoting the use of technologies such as anaerobic digestion will aid in meeting the Biden Administration's methane emission targets (2030 Greenhouse Gas Pollution Reduction Targets).
However, the high initial investment required to carry out the procedure commercially is limiting the market's growth. In addition to that, anaerobic digestion is a complex biochemical reaction that needs to be carried out in stages, posing a barrier to market growth. Furthermore, anaerobic digestion procedure helps in reducing waste from the environment which is expected to create several growth opportunities for the market throughout the forecast timeframe from 2022 to 2030.
Anaerobic Digestion Market Segmentation
The worldwide anaerobic digestion market is split based on source of feedstock, end-use, and geography.
Market by Source of Feedstock
- Agriculture
- Industrial
- Municipal
- Others
According to our anaerobic digestion market forecast, the municipal source of feedstock gathered a significant amount of share in 2021. According to the World Bank’s What A Waste 2.0 report, the world generates 2.01 billion tonnes of municipal solid waste yearly. Among that, nearly 33% of the waste is not managed in an environmentally safe manner. The report also estimates that global waste is projected to grow to 3.4 billion tonnes by 2050. The East Asia-Pacific region generates over 23% of the world's waste, while South Asia, Sub-Saharan Africa, the Middle East & North African region are the world's fastest waste-producing regions.
The agriculture source of feedstock sub-segment is anticipated to witness substantial growth during the forecasted timeframe from 2022 to 2030. According to the United Nations Environment Programme, approximately 1.3 billion tonnes of food products intended for human consumption are wasted or lost globally each year, with domestic kitchen waste accounting for approximately one-third of biodegradable municipal solid waste. Every year, India generates approximately 350 million tonnes of agricultural waste. According to estimates from the Ministry of New and Renewable Energy, this waste can produce more than 18,000 MW of power per year, in addition to producing green fertilizer for agricultural use.
Market by End-Use
- Commercial
- Residential
- Industrial
According to our anaerobic digestion industry analysis, commercial buildings will gain a significant impetus in the coming years. The rising application of biogas for power generation or heating is expanding the usage of anaerobic digestion in commercial buildings such as hospitals, hotels & restaurants, schools, and corporate buildings. The market for the residential sector is also expanding at a noteworthy rate throughout the forecasted timeframe from 2022 to 2030. The growing awareness and adoption of biogas in residential areas for cooking and heating purposes are likely to fuel the residential sector over the projected years.
Anaerobic Digestion Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Latin America
- Mexico
- Brazil
- Rest of Latin America
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
The Middle East & Africa (MEA)
- Gulf Cooperation Council (GCC)
- South Africa
- Rest of the Middle East & Africa
The growing demand for producing renewable energy in North America fuels the regional anaerobic digestion market growth
In 2021, North America conquered a considerable market share and is likely to do so in the coming years. The surging need to produce renewable energy sources and the increasing adoption of bio-based chemicals are the primary factors fueling the growth of the North America anaerobic digestion market. Europe accounted for the second-largest share in the global market due to the growing household waste in countries such as the UK, Germany, France, etc. However, the Asia-Pacific region is anticipated to witness the fastest growth rate in the coming years owing to the growing awareness regarding waste, increasing government initiatives, and rapidly growing municipal solid waste in countries such as China and India.
Anaerobic Digestion Market Players
Some of the top anaerobic digestion companies offered in the professional report include AAT Abwasser-und Abfalltechnik GmbH, ADNAMS PLC, Bioenergy DevCo, EnviTec Biogas AG, Clarke Energy, SP Renewable Energy Sources Pvt. Ltd., Northern Biogas, and WELTEC BIOPOWER GMBH.