Global Biogas Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

Biogas production relies on a variety of organic feedstocks, including agricultural residues, municipal solid waste, sewage sludge, food waste, animal manure, and energy crops. Segmenting the market by feedstock type allows for an understanding of the availability, suitability, and utilization patterns of different feedstocks across regions and sectors. For example, agricultural regions may primarily utilize crop residues and manure for biogas production, while urban areas may focus on municipal solid waste and food waste.

Biogas finds applications across multiple sectors, including electricity generation, heat production, transportation fuel, and industrial processes. Segmenting the market by application provides insights into the demand drivers, market dynamics, and growth opportunities within each sector. For instance, the demand for biogas in electricity generation may be driven by renewable energy policies and grid integration opportunities, while the demand for biogas in the transportation sector may be influenced by fuel mandates and incentives.

Biogas production technologies vary based on factors such as feedstock composition, system scale, and end-use requirements. Common biogas production technologies include anaerobic digestion (AD), which encompasses different process configurations such as mesophilic, thermophilic, and high-rate digestion. Additionally, emerging technologies such as dry anaerobic digestion, two-stage digestion, and membrane-based gas upgrading offer alternatives for specific applications and feedstocks. Segmenting the market by technology type allows for an assessment of technology adoption rates, performance characteristics, and technological advancements driving market evolution.

Global Biogas Segment Analysis

In this report, the Global Biogas Market has been segmented by Application, Source, and Geography.

Global Biogas Market, Segmentation by Application

The Global Biogas Market has been segmented by Application into Electricity, Heat & Vehicle Fuel, and Others.

Electricity generation where biogas serves as a renewable energy source for power production. Biogas-fired power plants utilize combustion or cogeneration technologies to convert biogas into electricity which can be fed into the grid or used on-site to meet the energy needs of industrial facilities, farms, and communities. The electricity segment of the biogas market is driven by renewable energy policies, feed-in tariffs, and carbon pricing mechanisms that incentivize the deployment of biogas power generation projects as part of efforts to decarbonize the electricity sector and meet renewable energy targets.

Biogas-fired boilers, heaters, and combined heat and power (CHP) systems provide a renewable and low-carbon alternative to fossil fuels for space heating, hot water production, and industrial processes in sectors such as agriculture, food processing, and wastewater treatment. The heat segment of the biogas market is driven by energy efficiency initiatives, heat decarbonization goals, and the need to reduce reliance on fossil fuels for heating, particularly in regions with cold climates and high heating demand.

Natural gas (CNG) or liquefied natural gas (LNG) for powering natural gas vehicles (NGVs) and fueling transportation fleets. Biogas-derived biomethane offers a renewable and low-carbon alternative to conventional fossil fuels such as gasoline and diesel, reducing greenhouse gas emissions, air pollution, and dependence on imported oil. The vehicle fuel segment of the biogas market is driven by renewable fuel standards, carbon pricing mechanisms, and incentives for alternative fuels and vehicle electrification, aiming to decarbonize the transportation sector and achieve emissions reduction targets.

Global Biogas Market, Segmentation by Source

The Global Biogas Market has been segmented by Source into Agriculture, Municipality, Industrial, and Others.

Agricultural sources constitute a significant portion of biogas production, leveraging organic waste materials such as crop residues, animal manure, and agricultural by-products. Biogas plants integrated into farming operations utilize these organic feedstocks to produce biogas through anaerobic digestion, offering farmers a sustainable waste management solution while generating renewable energy for on-farm use or sale to the grid. Agricultural biogas projects contribute to resource efficiency, greenhouse gas mitigation, and rural development, aligning with sustainable agriculture practices and circular economy principles.

Municipal and industrial sources represent another key segment of the biogas market, encompassing organic waste streams from urban and industrial activities. Municipal solid waste (MSW), sewage sludge, food waste, and wastewater treatment residues are among the primary feedstocks utilized in biogas plants located in urban and industrial settings. Municipalities, wastewater treatment plants, and industrial facilities adopt anaerobic digestion technology to treat organic waste streams, reduce environmental pollution, and recover energy in the form of biogas and digestate. Biogas production from municipal and industrial sources contributes to waste diversion, odor control, and renewable energy generation, supporting sustainability goals and regulatory compliance.

Global Biogas Market, Segmentation by Geography

In this report, the Global Biogas Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Biogas Market Share (%), by Geographical Region, 2023

Quantifying the market share of the global biogas industry provides valuable insights into the competitive landscape and the relative importance of different players within the market. As of the current year, the global biogas market is characterized by a diverse array of stakeholders, including biogas plant operators, equipment suppliers, technology providers, and energy utilities, among others. While comprehensive data on market share may vary depending on regional dynamics, market segments, and data sources, certain trends and patterns can be observed.

Europe has historically been a leader in biogas production and utilization, accounting for a significant portion of global biogas capacity. Countries such as Germany, Denmark, Sweden, and the Netherlands have implemented supportive policies, incentives, and regulatory frameworks to promote biogas development, leading to a concentration of biogas plants and infrastructure in these regions. As a result, European countries have commanded a substantial share of the global biogas market, driven by robust renewable energy targets, feed-in tariffs, and waste management policies that incentivize biogas production and utilization.

Market share within the biogas industry may vary by application segment, with electricity generation, heat production, and vehicle fuel representing key market sectors. In some regions, biogas is primarily utilized for electricity generation, where biogas-fired power plants contribute to the renewable energy mix and grid stability. In other regions, biogas is predominantly used for heat production, serving as a renewable and low-carbon alternative to fossil fuels for heating and industrial processes. Furthermore, the vehicle fuel segment of the biogas market has seen growing interest and investment, particularly in countries with renewable fuel mandates and incentives for alternative fuels.

This report provides an in depth analysis of various factors that impact the dynamics of Global Biogas Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Environmental Regulations
• Waste Management Solutions
• Energy Security
• Carbon Emission Reduction

• Agricultural Sector Growth - The agricultural sector plays a pivotal role in driving economic growth, food security, and rural development, making it a critical component of national economies worldwide. Agricultural sector growth encompasses various aspects, including increasing productivity, expanding market access, promoting sustainability, and enhancing resilience to climate change and environmental challenges.

  One of the primary drivers of agricultural sector growth is the adoption of advanced technologies and practices aimed at improving productivity and efficiency. Technological innovations such as precision agriculture, mechanization, biotechnology, and digital farming tools enable farmers to optimize resource use, minimize input costs, and maximize yields. By leveraging data-driven insights, remote sensing technologies, and precision equipment, farmers can make informed decisions regarding crop selection, irrigation, fertilization, pest management, and harvest timing, leading to higher agricultural productivity and profitability.

  Agricultural sector growth is fueled by expanding market opportunities and global demand for food, feed, fiber, and bioenergy products. Population growth, rising incomes, urbanization, and changing dietary preferences drive increasing demand for agricultural commodities, creating opportunities for farmers to expand production and access new markets. Moreover, the growing demand for biofuels, bioplastics, and biomaterials derived from agricultural feedstocks contributes to the diversification of revenue streams and value-added opportunities for agricultural producers, stimulating investment and innovation in the sector.

Restraints

• High Initial Investment Costs
• Lack of Infrastructure
• Technological Challenges
• Feedstock Availability and Quality

• Permitting and Regulatory Hurdles - Permitting and regulatory hurdles present significant challenges to the development and operation of biogas projects worldwide. Biogas projects, which involve the anaerobic digestion of organic materials to produce renewable energy, must navigate a complex regulatory landscape that varies by jurisdiction and often involves multiple layers of government oversight. Permitting processes typically require developers to obtain a range of approvals, permits, and licenses from environmental, energy, and land use authorities, which can be time-consuming, costly, and subject to public scrutiny.

  Primary regulatory hurdles facing biogas projects is obtaining environmental permits and approvals to ensure compliance with air quality, water quality, and waste management regulations. Biogas facilities may emit odors, air pollutants, and greenhouse gases during feedstock processing, digestion, and biogas combustion, posing potential environmental and public health risks. Consequently, developers must conduct environmental impact assessments, air emissions modeling, and risk assessments to demonstrate compliance with regulatory standards and mitigate adverse impacts on air and water quality, soil health, and ecosystems.

  Permitting and regulatory hurdles often involve navigating complex land use and zoning regulations governing the location, design, and operation of biogas facilities. Biogas projects may face opposition from local communities, landowners, and environmental advocacy groups concerned about potential nuisance, health, and safety risks associated with biogas production, storage, and transportation. Developers must engage in extensive stakeholder consultation, public hearings, and community outreach efforts to address concerns, build trust, and secure local support for biogas projects, which can prolong the permitting process and increase project costs.

Opportunities

• Integration with Waste Management Systems
• Potential for Rural Development
• Collaboration and Partnerships
• Emerging Markets and Untapped Potential

• Carbon Market Opportunities - Carbon market opportunities have emerged as a key avenue for incentivizing emissions reduction and promoting the transition to a low-carbon economy. Carbon markets operate on the principle of putting a price on carbon emissions, creating economic incentives for businesses, industries, and governments to reduce greenhouse gas emissions and invest in cleaner, more sustainable practices.

  Carbon market opportunities is the growing recognition of climate change as a pressing global challenge that requires collective action. Governments, businesses, and investors increasingly acknowledge the urgency of reducing greenhouse gas emissions to mitigate the impacts of climate change and limit global temperature rise. Carbon pricing mechanisms, such as cap-and-trade systems and carbon taxes, provide a market-based approach to incentivize emissions reductions, drive innovation, and transition to a low-carbon energy system.

  Carbon market opportunities offer financial benefits and investment incentives for businesses and industries that adopt emissions reduction measures and invest in low-carbon technologies. Companies can generate revenue by selling emissions allowances or credits in carbon markets, providing a financial incentive to invest in energy efficiency upgrades, renewable energy projects, and emission reduction initiatives. Carbon pricing mechanisms create a level playing field for businesses to compete based on their carbon footprint, rewarding those that reduce emissions and penalizing those that exceed emissions limits, thereby fostering a more sustainable and competitive business environment.

Key players in Global Biogas Market include

• Air Liquide
• Wartsila
• EnviTech Biogas
• Asia Biogas
• Schmack Biogas GmbH
• Swedish Biogas International

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis