Biogas Market Size - Global Industry, Share, Analysis, Trends and Forecast 2024 - 2032

Biogas Market Highlights

• Global biogas market revenue is poised to garner USD 102.5 billion by 2032 with a CAGR of 6.5% from 2024 to 2032
• Europe biogas market value occupied around USD 23.9 billion in 2023
• Asia-Pacific biogas market growth will record a CAGR of more than 7.3% from 2024 to 2032
• Among source, the municipal sub-segment generated USD 24.5 billion revenue in 2023
• Based on application, the electricity sub-segment generated 31% biogas market share in 2023
• Increasing awareness about environmental sustainability encouraging investments in biogas projects is a popular biogas market trend that fuels the industry demand

Biogas is a biofuel naturally formed from the breakdown of organic waste. It is generally used for direct combustion or heating, generating electricity, combined heat and power (CHP) generation, and other applications such as, purification and exporting of natural gas and natural gas liquids. Biogas is majorly adopted because of its properties, including low-cost, high combustion and environment friendly. This clean renewable source of energy is created from waste matter of agricultural waste, landfills and other wastes, including waste from food production and water and wastewater treatment, among others.

Global Biogas Market Dynamics

Market Drivers

• Increasing demand for renewable energy sources to reduce carbon emissions
• Government policies and incentives promoting sustainable energy production
• Rising global demand for waste-to-energy solutions
• Technological advancements improving the efficiency of biogas production

Market Restraints

• High initial investment required for biogas plant construction
• Limited infrastructure for biogas distribution in certain regions
• Fluctuating feedstock availability affecting production consistency

Market Opportunities

• Expanding biogas applications in transportation fuel and electricity generation
• Integration of biogas production with agricultural and industrial waste management
• Growth in developing economies creating new markets for biogas technology

Biogas Market Report Coverage

Biogas Market Insights

Rise in production of waste is increasing the demand for waste treatment across the world. This is anticipated to benefit the demand for biogas, as, biogas is generated from decomposition of waste. According to World Bank more than 2 billion tonnes of solid waste was generated across the world, and waste generation is forecasted to increase rapidly by 70% by 2050. This would lead to a rapid increase in production of biogas across the world.

According to World Biogas Association, biogas is capable of reducing climate change emissions across the globe by approximately 20%. Biogas would also help in treating wastes that could produce toxic methane emissions, and transform them into green energy. Rising demand for a sustainable development by using green and renewable sources of energy, is estimated to benefit the demand for biogas across the world.

Biogas is carbon neutral; hence, no greenhouse emissions occur when it is deployed. Thus, biogas is projected to be deployed as a powerful and renewable alternative to traditional vehicle fuels, such as, petrol and diesel. Also, rise in agriculture across countries like India and Indonesia, is posing as a major factor for the growth of biogas market during the forecast year. According to Indian Brand Equity Foundation, agricultural production in India is estimated to increase by 11%. Thus, increase in agricultural production, would increase in production of agricultural waste, which, in turn, would fuel the growth of biogas.

Energy produced from biogas may not be sufficient enough to fulfill the energy requirements of industries, such as, electric utilities. Moreover, large scale production of biogas is not possible, though, government and companies across the globe are investing to bring up such technologies. These factors pose as a restraint, hampering the growth of the market.

Biogas Market Segmentation

The worldwide market for biogas is split based on source, application, and geography.

Biogas Market By Source

• Municipal
  • Wastewater
  • Landfill
• Industrial
  • Wastewater
  • Food Scrap
• Agricultural
  • Poultry
  • Swine Farm
  • Dairy
  • Agricultural Residue

According to biogas industry analysis, the municipal segment dominates the market due to the abundance of organic waste in metropolitan areas, such as food waste, sewage, and landfill materials. Municipal solid waste (MSW) provides a consistent and abundant feedstock for biogas production, resulting in a dependable and sustainable energy source. Local governments are increasingly investing in biogas facilities as part of waste management plans to reduce landfill dependence and improve waste-to-energy capabilities. These plants also provide an eco-friendly waste disposal solution while contributing to electricity generation, hence supporting environmental sustainability. Furthermore, municipal biogas plants frequently obtain favorable regulatory assistance and finance, which promotes their expansion and adoption in metropolitan areas.

Biogas Market By Application

• Electricity
• Vehicle Fuel
• Heat
• Cooking Gas
• Upgraded Biogas

Electricity segment held the most significant market share in 2023. The segment development is driven by various factors, such as, rising demand for energy across the world, due to urbanization. Additionally, need for cleaner fuels, is also impacting the growth of this segment. Biogas is used as an alternative renewable fuel for generating electricity and for heating processes, which leads to substantial reduction in dependency on fossil fuels.

During the forecast period, combined heat and power (CHP) segment is estimated to have the largest CAGR during the forecast period 2024 to 2032. For CHP, biogas helps in processing chemical energy present in the fuel, at a very low cost. With increasing government mandates on a specific proportion of energy to be produced using renewable sources across countries like US, UK and Poland, there will be a tremendous growth of biogas used in CHP, during the forecast period.

Biogas Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Biogas Market Regional Analysis

Europe biogas market is expanding at the largest rate, owing to major initiatives taken by European Biogas Association, to support in generation of biogas across all European countries, including, Switzerland, the Netherlands, France, Germany and Italy. Presence of high-tech biogas players, increasing R&D activities in the United States is key reason for growth of North America industry, during the biogas market forecast period.

Asia-Pacific is the fastest growing region of biogas industry in 2023. Rise in agricultural production in various APAC countries including India and Indonesia is one of the major factors driving this region during the forecast period. Furthermore, expansion of infrastructure and household in countries like China and Japan is leading to rise in demand for heating fuel used in household, which, in turn, is expected to boost the growth of biogas in the region. For instance according to the Green Finance & Development Center in 2023, around USD 44.6 billion came from investments, while USD 43.7 billion came from construction contracts, part of which were financed by Chinese loans. China's overall involvement in COVID-19 has continuously increased since the outbreak began in 2020.

The Latin America biogas market is primarily driven by increasing demand for combined heat and power and electricity generation across countries including Brazil and Chile. The region is emerging and hence, expanding its infrastructure, which is leading to high demand for biogas to be used as an environment friendly substitute for heating fuel. The Middle East & Africa biogas market is characterized by increasing focus of government to invest in biogas plants for reducing greenhouse gas emissions across the region.

Biogas Market Players

Some of the top biogas companies offered in our report include Anaergia, WELTEC BIOPOWER, Viessmann, BTS-biogas, Gasum Oy, MAKEEN Energy, PlanET Biogas Global GmbH, Xergi A/S, Agraferm Technologies AG, Agrinz Technologies GmbH, and EnviTec Biogas AG.