Global Biogas Market to Reach US$92.4 Billion by 2030

The global market for Biogas estimated at US$70.2 Billion in the year 2023, is expected to reach US$92.4 Billion by 2030, growing at a CAGR of 4.0% over the analysis period 2023-2030. Municipal, one of the segments analyzed in the report, is expected to record a 4.0% CAGR and reach US$40.9 Billion by the end of the analysis period. Growth in the Industrial segment is estimated at 4.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$18.8 Billion While China is Forecast to Grow at 3.7% CAGR

The Biogas market in the U.S. is estimated at US$18.8 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$14.6 Billion by the year 2030 trailing a CAGR of 3.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.9% and 3.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.0% CAGR.

Global Biogas Market - Key Trends & Drivers Summarized

What Is Driving the Biogas Market Towards Rapid Expansion?

The global biogas market is expanding rapidly, driven by increasing energy demand and the push for sustainable and renewable energy solutions. Biogas, produced through the anaerobic digestion of organic matter, is gaining traction as a renewable alternative to fossil fuels. The agricultural sector, in particular, is a significant source of feedstock for biogas production, utilizing crop residues, animal manure, and organic waste. Governments worldwide are promoting biogas production through favorable policies and subsidies, further accelerating the market’s growth trajectory.

How Are Technological Innovations Transforming Biogas Production?

Technological innovations are playing a transformative role in the biogas market, particularly in enhancing the efficiency and scalability of production processes. Advanced biogas upgrading technologies, such as pressure swing adsorption (PSA) and membrane separation, are being adopted to purify biogas into biomethane, which can be injected into natural gas grids. Innovations in feedstock pre-treatment, such as thermochemical conversion and enzymatic hydrolysis, are also improving biogas yields and reducing process times. These advancements are making biogas production more economically viable and environmentally sustainable.

What Is the Role of Regional Dynamics in the Biogas Market?

Regional dynamics significantly influence the biogas market, with Europe leading due to its strong regulatory support, established infrastructure, and commitment to renewable energy. The European Union’s Renewable Energy Directive (RED II) mandates the use of biogas and biomethane, driving significant investment in this sector. Meanwhile, North America and Asia-Pacific are emerging as key markets, driven by increasing environmental awareness, supportive government policies, and a growing focus on waste management and circular economy models. Countries like China and India are investing heavily in biogas projects to reduce their carbon footprint and manage agricultural waste.

What Factors Are Driving the Growth in the Biogas Market?

The growth in the biogas market is driven by several factors, including the global shift towards renewable energy, technological advancements in biogas upgrading, and increasing governmental support through favorable policies and incentives. The rising need for sustainable waste management solutions and the focus on reducing greenhouse gas emissions are also crucial drivers. The development of biogas infrastructure, such as biogas plants and grid injection facilities, particularly in Europe and Asia-Pacific, is boosting the market. The growing demand for renewable natural gas (RNG) as a substitute for conventional natural gas is further propelling market growth.