Europe Anaerobic Digestion Market Size – By Feedstock, By Process, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Europe Anaerobic Digestion Market Size

The Europe anaerobic digestion market was valued at USD 58 billion in 2024 and is estimated to grow at a CAGR of 4.3% from 2025 to 2034, driven by increasing emphasis on renewable energy generation, waste management solutions, and sustainability targets. Businesses and policymakers are leveraging anaerobic digestion technologies to convert organic waste into biogas and nutrient-rich digestate, aligning with circular economy principles. The market is benefiting from rising energy prices and the growing demand for biogas as a renewable energy source to replace natural gas in electricity generation, heating, and transportation fuels.
 

Advancements in anaerobic digestion technologies, such as modular and scalable systems, have reduced operational costs and increased adoption across industrial, agricultural, and municipal sectors. Investment in research and development is fostering innovation, with businesses focusing on enhancing efficiency through co-digestion of mixed feedstocks and optimizing methane yields. The integration of anaerobic digestion with emerging technologies like power-to-gas and carbon capture is further expanding its role in achieving decarbonization goals.
 

Europe Anaerobic Digestion Market Trends

The rise of regulatory support, including subsidies and incentives for renewable energy projects is encouraging private and public sector investments. The demand for bio-based fertilizers produced as a by-product of anaerobic digestion is adding a new revenue stream for market players, driven by organic farming trends and stricter restrictions on chemical fertilizers. Sustainability-conscious industries are increasingly adopting anaerobic digestion to manage waste while reducing their carbon footprint, positioning the market as a cornerstone of the green energy transition. However, the market is navigating challenges such as high initial capital costs and complexities in feedstock management, which have led to a growing interest in collaborative projects and public-private partnerships to mitigate financial risks.
 

Europe Anaerobic Digestion Market Analysis

The energy crops market will exceed USD 30 billion by 2034. Energy crops are cultivated primarily for biofuel production to generate heat or electricity, offering high conversion efficiencies and maximizing dry matter yield per hectare. A common feedstock combination for decentralized agricultural biogas plants is maize mixed with manure, reflecting its widespread adoption. Biogas derived from energy crops has achieved notable market penetration due to its high energy density and rapid biogas production, which contribute to reduced investment costs.
 

Industrial application will grow at a CAGR of over 3.5% through 2034. The increasing emphasis on industrial sector expansion coupled with the rising demand for onsite power generation is set to drive the adoption of anaerobic digestion units. Biogas fuels are utilized in internal combustion gas engines within Combined Heat and Power (CHP) systems to generate both heat and electricity. The successful installation of these systems heavily relies on the establishment of efficient logistic networks for the collection and disposal of effluents. Moreover, the growing commitment to reducing carbon footprints across industries is expected to further propel the deployment of anaerobic digestion systems in the coming years.
 

Germany anaerobic digestion market is set to reach over USD 48 billion by 2034. The country’s anaerobic digestion market is driven by its strong renewable energy policies and emphasis on decarbonization. With extensive subsidies under the Renewable Energy Sources Act (EEG) and established biogas infrastructure, the country is a global leader in biogas production. The market benefits from advancements in co-digestion technologies, enabling the efficient utilization of diverse feedstocks such as agricultural residues, energy crops, and organic waste.
 

The UK anaerobic digestion market is expanding due to increasing waste management pressures and commitments to achieve net-zero emissions by 2050. The government’s Renewable Heat Incentive (RHI) and Green Gas Support Scheme (GGSS) are key drivers, fostering investment in biogas and biomethane production. The market focuses on food waste digestion and agricultural feedstocks, with a growing interest in integrating anaerobic digestion into circular economy frameworks.
 

Europe Anaerobic Digestion Market Share

The Europe anaerobic digestion industry is highly competitive, with key players holding significant market shares due to established expertise and strong regional presence. Companies like BTS Biogas, EnviTec Biogas, and Linde dominate the market, driven by their innovative technologies and turnkey project capabilities. Market share is influenced by factors such as technological advancements, government incentives, and feedstock optimization. Collaborations, acquisitions, and R&D investments are shaping competition, with companies striving to meet growing demand for sustainable energy and waste management solutions.
 

Europe Anaerobic Digestion Market Companies

Major players operating in the Europe anaerobic digestion industry are:

• Agrikomp
• Bioconstruct
• BTS Biogas
• Envirochemie
• Envitec Biogas
• FWE
• Host Bioenergy Systems
• Larsen Biogas
• Linde Engineering
• Planet Biogas
• Scandinavian Biogas Fuels
• Sebigas
• Thoni
• Valmet
• Weltec Biopower
• Xergi
   

Europe Anaerobic Digestion Industry News

• In September 2024, Abrdn’s global infrastructure projects division decided to invest in an anaerobic digestion plant in the UK, developed by The Circular Economy Development (TCED). The project, valued at over USD 76 million has begun construction in the third quarter of 2024, with commercial operations expected by late 2026. The initiative encompasses the design, construction, ownership, operation, maintenance, and financing of the facility, which will utilize proven anaerobic digestion technologies to convert food waste into biogas.
   
• In August 2024, Ecualia Capital, in collaboration with Aragorn Value, decided to invest over USD 100 million in Italy’s biomethane sector to establish a new platform focused on building and operating biomethane plants. The initiative will commence with the construction of four facilities across various locations in Italy, each with a production capacity of approximately 500 standard cubic meters per hour (scm/h). These plants aim to enhance waste management in their respective regions by processing around 50,000 tons of livestock and agricultural waste annually.
   

This Europe anaerobic digestion market research report includes in-depth coverage of the industry with estimates & forecast in terms of capacity (MW) and revenue (USD Billion) from 2021 to 2034, for the following segments:

Market, By Feedstock

• Organic Waste
• Sewage Sludge
• Energy Crops
• Others

Market, By Process

• Wet AD
• Dry AD

Market, By Application

• Residential
• Commercial
• Industrial

The above information has been provided for the following countries:

• Austria
• UK
• Germany
• France
• Italy
• Netherlands