Global Biogas and Biomethane Market Trends and Forecast to 2030

The Biogas and Biomethane Market is experiencing robust expansion, with market size projected to increase from (14.25 Billion) 2024 to (25.02 Billion) 2030, demonstrating a consistent year-over-year growth rate of 7,5%. Biogas and Biomethane Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Power Generation, Automotive, Others), by Applications (Anaerobic Digestion, Gasification) And Regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2030

The biogas and biomethane markets are all about gases generated from the anaerobic digestion of organic materials and are used in endless applications birthed by men. Biogas is the complex gas mixture itself, mainly comprising methane and carbon dioxide formed through the degradation of organic materials, in particular agricultural waste, sewage, and food scraps. Alternatively, biomethane is basically what you call upgraded biogas containing high methane concentration and practically equivalent to natural gas. Such upgraded technologies offer ease of integration into existing natural gas pipelines and applications, making them a hybrid form of renewable energy. Growth in the biogas and biomethane markets is estimated to arise from the global campaign toward sustainable energy and less greenhouse gas production. Favourable infrastructure creates a potential highway for the biomethane to be put to work in switching fuel for transportation and generation of electricity, as well as heating. A lot of investments are flowing into the biogas and biomethane market sectors and throughout various regions at the moment.

Biogas and Biomethane Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2024
Growth Rate	CAGR of 7,5%
Forecast Value (2030)	USD 25.02 Billion
By Product Type	Power Generation, Automotive, Others
Key Market Players	WELTEC BIOPOWER GMBH (Germany) Ameresco (U.S.) PlanET Biogas Global GmbH (Germany) Scandinavian Biogas (Sweden) RENERGON International AG (Switzerland) Future Biogas Limited (U.K.) AB Holding SpA (Italy) EnviTec Biogas AG (Germany) StormFisher (Canada) Quantum Green (India) KEY INDUSTRY DEVELOPMENTS:
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Biogas and Biomethane Market Trends

The biomethane adoption as a replacement for fossil fuels is rising quickly, especially in the transport sector. This rise is being supported by government policies and incentives aimed at curbing greenhouse gas emissions. Advancements in anaerobic digestion technology are improving the efficiency and cost-effectiveness of biomethane production, thus helping to fuel market expansion. Another trend is an increasing incorporation of biomethane into existing natural gas infrastructure. This facilitates its distribution and utilization in applications such as heating, power generation, and industrial processes. An increase in waste-to-energy projects along with higher investments in the production of biomethane are indicative of a strongly positive market forward. Europe and North America are at the forefront of this growth, as significant investments and existing infrastructure in these regions enable the blending of biomethane in their energy matrices.

Biogas and Biomethane Market Leading Players

The key players profiled in the report are AB Holding SpA (Italy), Future Biogas Limited (U.K.), Ameresco (U.S.), RENERGON International AG (Switzerland), EnviTec Biogas AG (Germany), StormFisher (Canada), PlanET Biogas Global GmbH (Germany), WELTEC BIOPOWER GMBH (Germany), Scandinavian Biogas (Sweden), Quantum Green (India), KEY INDUSTRY DEVELOPMENTS:

Growth Accelerators

The biogas and biomethane market are fast gaining momentum due to environmental concerns and the imposition of stringent government regulations to check greenhouse gas emissions. The acceptance of solutions toward sustainable energy at the global level has only increased the adoption of biomethane as a plausible alternative to fossil fuel. Various governments in the world support policies for biogas and biomethane incentives for their production and use and thus encourage market growth through subsidies, tax benefits, and renewable energy integration mandates. Besides, the emergence of waste-to-energy as a throbbing topic is providing another incentive to this market. Organic waste from agricultural, industrial, and municipal sources transformed into useful energy causes the unwanted waste to be distinctly reduced while a renewable fuel is being produced. This certainly caters to the circular economy and helps solve waste management issues while supporting energy security.

Biogas and Biomethane Market Segmentation analysis

The Global Biogas and Biomethane is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Power Generation, Automotive, Others . The Application segment categorizes the market based on its usage such as Anaerobic Digestion, Gasification. Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The market for biogas and biomethane is currently characterized by competition among established energy companies, specialized technology providers, and new entrants focused on sustainable solutions. Competitive dimensions are defined, such as technological appliances applied in anaerobic digestion and gas upgrading, efficient management of feedstock, and the capability of coping with a regulated framework. Gradually, established energy players are integrating biomethane within their asset portfolios, while technology providers offer important solutions to optimize biogas production and purification. Regional parameters also come into play. Europe, for example, is the leading continent when it comes to biomethane production and consumption, thanks to great policy support and existing infrastructure. Thus, competition is within the optimization of existing infrastructure and expanding overall production capacity. Hence, these forces have made the market more and more competitive as players vie for market share by utilizing technological advancements, partnerships, and inexpensive production methods.

Challenges In Biogas and Biomethane Market

Despite mounting opportunities for sustainable energy production, the biogas and biomethane market presents several difficulties: Initial investment in infrastructure development is one major issue: biogas plants, upgrading plants, and distribution networks. Also on the list is the availability of feedstock; indeed, there is a concern that feedstock could vary due to seasonal and regional considerations, given that organic waste, agricultural residues, and energy crops are all essential for biogas production. Another main challenge is the competition with other renewables, where this segment has declined in cost and garnered further adoption. The lack of public awareness and acceptance is another market-related problem, as biogas and biomethane are lesser-known energy options compared to other greener alternatives. Furthermore, limited infrastructure, such as the absence of a vast gas grid to transport biomethane, prevents its widespread uptake, especially in developing regions. Addressing these challenges is a collective responsibility of the government, industry, and research institutions. Recent Merger and Acquisition

Risks & Prospects in Biogas and Biomethane Market

Some of the key factors supporting the furthering of this market will be favourable government policies, carbon reduction targets, and technological advancements in anaerobic digestion, which add to efficiency and cost-effectiveness. Increasing application in the areas of power generation, heating, and transportation fuel would further contribute to the growth of the market. Biogas and biomethane have also started to garner recognition within industries as clean energy solutions, thanks to the transition toward a circular economy and growing awareness about environmental benefits. On a regional scale, Europe is the leader due to solid infrastructure, government incentives, and acceptance amongst industries in electricity generation and biomethane. The Asia-Pacific region is the fastest-growing market due to urbanization, energy demand, and ambitious renewable energy targets adopted by countries like China and India. North America also plays an important role with respect to technology adoption and regulatory frameworks for biogas production. It can thus be said that the regional dynamics of the market indicate various growth prospects across the globe.

Key Target Audience

Strategic target markets for biogas and biomethane include industries, governments, and consumers interested in sustainable energy options. Some of the largest consuming sectors in this regard are agriculture, food processing, and wastewater treatment plants, using biogas for energy production and waste management. Transport and power generation sectors are increasingly turning toward biomethane as a clean alternative to fossil fuels., Another important segment of the audience comprises investors and providers of technology that aim to develop advanced biogas upgrading technologies and infrastructure. For organizations working for the preservation of the environment, consumers worried about sustainability represent another key segment catalysing demand for renewable energy sources. Further, the increasing focus on carbon neutrality and the circular economy enhances the appeal of these markets for residential, commercial, and industrial sectors.

Merger and acquisition

It is believed that high merger and acquisition activities in biogas and biomethane sectors are indicators of the rapidly changing and growing development of the industry. The Italian energy giant Eni, in October 2024, had agreed to sell its biofuel subsidiary Enilive with 25% to KKR for some €2.94 billion, getting thereby a valuation of nearly €12 billion for Enilive. The deal fits Eni's plan to bring in co-investors to help support the energy transition initiatives. The operations of Enilive cover electric vehicle charging stations, biomethane, and hydrogen refuelling points across several European countries and the US. Likewise, in November 2024, Gasum (Finland) bought Haerup Biogas, a Danish biogas facility mainly burning manure to produce some 40 GWh of biogas per year. This acquisition fits within Gasum's ambitions to develop its biogas production while focusing mainly on countries with a strong agricultural basis like Denmark. Meanwhile, Hitachi Zosen Inova (HZI) operates in the market, acquiring Schmack Biogas Srl, an Italian biomethane EPC company, in March 2024. Such strategic undertakings illustrate the increasing focus on renewable energy resources and consolidation trends in the biogas and biomethane space. >

Analyst Comment

Global biogas and biomethane markets are growing quickly, owing to the world turning towards renewable energy and reducing waste generation. Some of the main drivers for the market are stricter environmental regulations, government incentives for green energy, and new technology advancements related to anaerobic digestion. The biogas market is expanding in many different applications - production of electricity, fuel for vehicles, and injection into the gas grid - and signals a huge potential for continuous growth. Europe has a relatively high share of the market at present; Asia-Pacific is emerging as the fastest-growing region-not due to increasing industrialization and waste generation.