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Biogas Market Size
Biogas Market was valued at USD 89 billion in 2023 and is projected to grow at a CAGR of over 4.2% between 2024 and 2032. Biogas is a renewable energy source produced through the anaerobic digestion of organic matter, such as agricultural residues, municipal waste, or wastewater. The process involves the breakdown of organic materials by microorganisms in the absence of oxygen, leading to the production of biogas, which primarily consists of methane (CH2) and carbon dioxide (CO2).
Increasing emphasis on sustainable and renewable energy sources along with shifting focus toward cleaner alternatives to traditional fossil fuels will contribute to the overall expansion of the biogas market. Implementation of supportive policies by the government, large scale investments by various enterprises worldwide along with commitments to reduce greenhouse gas emissions will drive the business scenario.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 89.3 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 4.2% |
| 2032 Value Projection: | USD 128.6 Billion |
| Historical Data for: | 2019 to 2022 |
| No. of Pages: | 880 |
| Tables, Charts & Figures: | 1,392 |
| Segments covered: | Substrate, Size, Technology, Process, Application and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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COVID- 19 Impact
The COVID- 19 pandemic caused uncertainty across the biogas industry owing to disruption in global supply chains. Delays in the delivery of equipment and components further affected the construction and maintenance of biogas facilities. Lockdowns, social distancing measures, and economic uncertainties resulted in delays and, in some cases, postponements of the new biogas projects. However, growing importance of decentralized energy systems coupled with need for effective waste management solutions gained prominence during the pandemic, thereby accelerating the product demand.
Biogas Market Trends
Environmental awareness among consumers and businesses has been rising, leading to a growing interest in environmentally friendly energy solutions. Biogas, produced from organic waste, is considered a sustainable option that can help reduce dependence on non-renewable resources. Advances in the biogas technology, including more efficient digestion processes and improved gas purification methods, will augment the overall efficiency and viability of the biogas projects. Growing emphasis on the circular economy principles, which promote the efficient use of resources and waste reduction in line with biogas offering a reliable and renewable alternative, especially in rural areas where organic waste is abundant will boost the industry dynamics.
Biogas Market Analysis
The organic waste biogas industry will attain gains at nearly 6% up to 2032. Ongoing innovations including the development of high-efficiency digesters and introduction of gas upgrading technologies along with increasing adoption for energy generation & waste management and soil improvement will drive the business trends. Furthermore, increasing volume of organic waste generated globally necessitating effective waste management solutions coupled with growing awareness of environmental issues and climate change will influence the product adoption.
The > 3 MW biogas market will reach USD 2 billion by 2032, owing to efficient digestion processes, greater economies of scale and improved overall energy production. Enhanced capacity to process a diverse range of feedstocks, including agricultural residues, organic waste from industries, and municipal solid waste increases the reliability and flexibility of the production systems. Integration of combined heat and power (CHP) systems with megawatt scale biogas projects to maximize the energy utilization combined with shifting focus on upgrading biogas to biomethane for injection into the natural gas grid will further drive the market trends.
The pre-hydrolysis biogas market is projected to showcase 4.5% CAGR through 2032. Pre-hydrolysis is a step in the anaerobic digestion process where complex organic materials are broken down into simpler compounds before entering the main digestion phase. Ongoing research and development in the technologies coupled with integration with other technologies, comprising thermal treatments and mechanical pretreatments, to enhance the breakdown of organic materials and facilitate better digestion in subsequent stages will proliferate the product demand. Moreover, emphasis on waste valorization and circular economy principles coupled with research initiatives focused on optimizing this type of system will foster the business landscape.
The anaerobic digestion market is anticipated to grow in the coming years on the account of its capability to offer localized waste treatment solutions coupled with introduction of tax incentives by the government to promote the development of anaerobic digestion biogas projects. Increasing adoption of co-digestion strategies, combining various organic feedstocks to optimize nutrient balance will enhance biogas production.
The residential biogas market size is likely to cross USD 11 billion by 2032. Development and adoption of compact biogas digesters which are easy to install and caters to the energy needs of households in line with homeowners utilizing kitchen waste, food scraps, and organic materials to feed these digesters will enhance the business scenario. Additionally, these applications providing viable solution for rural and off grid areas where access to traditional energy infrastructure is limited will further contribute to rural electrification and energy access initiatives.
Asia Pacific biogas market is poised to observe over 6% CAGR from 2024 to 2032. Growing desire for energy independence and security drives along with governments providing energy efficiency initiatives to reduce carbon impact will propel to business potential. In addition, rising investments by government and businesses coupled with focus on increasing natural gas contribution in energy mix will stimulate the industry potential.
Biogas Market Share
Collaborations between homeowners and energy service providers facilitate the installation and maintenance of residential biogas systems. Financial support helps overcome the high upfront costs associated with the development and implementation of biogas infrastructure. Therefore, these strategic actions contribute to the expansion of infrastructure, technological innovation, and the overall maturation of the biogas industry.
Biogas Market Companies
Major players operating in the biogas industry are:
- EnviTec Biogas AG
- MAKEEN Energy
- Anaergia
- Scandinavian Biogas Fuels International
- Viessmann
- Agrinz Technologies GmbH
- WELTEC BIOPOWER
- BTS-biogas
- Agraferm Technologies AG
- BDI - Bioenergy International GmbH
- Gasum Oy
- PlanET Biogas Global GmbH
- Xergi A/S
- AB Holding SpA
- ENGIE
- IES Biogas
- CH4 Biogas
- Krieg & Fischer Ingenieure GmbH
- Zorg Biogas AG
- BIO-EN Power Inc.
- OKOBIT GmbH
- Agrivert Ltd.
Biogas Industry News
- In April 2023, Anaergia secured a supply order to provide its technologies, engineering, and process design for PepsiCo's new facility 'Simba Chips' in South Africa. The company will supply its high solids anaerobic digestion technologies, to convert food processing waste into renewable energy to provide electricity of 800kW annually. The aim is to reduce Scope 1 emissions, manage waste sustainably and produce carbon free energy. Therefore, the company will be supporting to achieve net zero emission goals of PepsiCo and also showcasing its expertise in the market.
- In June 2023, MAKEEN Energy entered into an agreement with BB Bioenergi to build a biogas liquefaction plant in North Denmark. The plant is an addition to the existing biogas plant of BB Bioenergi. MAKEEN Energy's will utilize its liquefaction technology for the conversion of biogas to liquid form which will be further utilized by the industrial and transport sectors. The companies have been significantly contributing and supporting to the sustainability goals of the industry through this partnership and will enhance its position across the region.
This market research report on biogas includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW & USD Billion’ from 2024 to 2032 for the following segments:
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Market, By Substrate
- Organic Waste
- Sewage Sludge
- Energy Crops
- Others
Market, By Size
- < 500 kW
- 500 kW - 3 MW
- > 3 MW
Market, By Technology
- With pre-hydrolysis
- Without pre-hydrolysis
Market, By Process
- Landfill
- Sewage Sludge
- Anaerobic digestion
- Pyrolysis & Gasification
Market, By Application
- Residential
- Commercial & Industrial
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Austria
- UK
- Germany
- France
- Italy
- Czech Republic
- Sweden
- Finland
- Spain
- Netherlands
- Poland
- Ireland
- Belgium
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Malaysia
- Thailand
- Philippines
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Kenya
- Latin America
- Brazil
- Mexico
- Argentina
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