The global biogas market size was valued at USD 62.72 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4.3% from 2023 to 2030. The global biogas industry is expected to witness growth on account of the rising product demand from various applications such as electricity, heat, vehicle fuel, upgraded biogas, and cooking gas. Shifting focus toward the use of renewable energy, particularly in the electric power sector, have significantly driven the demand for biogas in electricity application. In addition, the increasing need to reduce dependency on fossil fuels is creating lucrative opportunities for biogas in vehicle fuel applications.
The U.S. is one of the largest markets for biogas in North America in 2022 and is projected to grow at a significant growth rate in terms of value over the forecast period. The United States government has introduced several regulations to lessen its dependency on conventional fuels and meet the goal of zero carbon emissions. Significant factors that are influencing market growth such as favorable regulatory & political support, environmental support, and customer support, geopolitical support, agricultural and economic support.
The demand for biogas in North America is primarily driven by the U.S. The growing demand for the product in applications, such as cooking gas, electricity, vehicle fuel, heat, and others, is expected to have a positive impact on the industry growth over the forecast period. Major factors supporting the growth of the market in the region include high demand for green fuels, stringent environmental regulations, and increased investment for the development of refineries.
The abrupt onset of the COVID-19 pandemic caused an industrial lockdown that brought all manufacturing activity to a grinding halt in most industries around the world. Hence, it has also impacted product demand in heat generation applications. Sluggish industrial activities have reduced the demand for heat consumption, thereby negatively affecting the demand for biogas.
The municipal source segment led the market and accounted for 41.45% revenue share in 2022. The growing usage of these municipal solid waste (MSW) in the production of biogas to reduce landfills and greenhouse emissions is expected to support the market demand over the forecast period.
The industrial segment is expected to witness significant growth over the estimated period. The growing interest in finding effective means to obtain bio-products and biofuel from industrial food waste coupled with an increasing need for wastewater treatment in the industrial sector is expected to fuel the market demand over the forecast period.
The electricity application segment led the market and accounted for about 30% revenue share in 2022. The growing attention to the use of renewable energy, particularly in the electric power sector, has significantly increased the use of biogas for electricity generation.
In 2019, approximately 220 million kWh of electricity was generated using biogas (from 24 livestock and dairy operations) and from industrial and sewage wastewater treatment facility approx. 1 billion kWh of electricity was produced. Biogas in the country qualifies as a renewable energy fuel to generate electricity as per the state renewable electricity standards (RES).
Upgrade biogas application is expected to grow significantly over the forecast period owing to the rising demand for biofuel in various end-use industries including automotive, which is expected to fuel the market demand. Upgrade biogas is produced by converting biogas into biomethane by removing hydrogen sulfide, carbon dioxide, water, and contaminants from the biogas.
Europe was the dominant regional segment in 2021 and accounted for about 41% of the revenue share in 2022. The European biogas industry is growing owing to technological developments and increasing investments in the region's refinery industry. Companies across Europe are investing huge capital in research and development of biogas production from existing sources and planning to increase the share of feedstock over the next few years. This will fuel the market growth of biogas across the region.
In Italy, the market is driven by the efforts of the government to move toward decarbonization. For instance, in March 2021, Eni SpA (BIT: ENI) agreed to buy an Italian biogas company from FRI-EL Greenpower, a Gostner family holding, through its circular economy subsidiary, ‘Ecofuel’. The acquisition, however, is yet to be approved by the relevant antitrust authorities.
The global biogas industry is a highly competitive market due to the presence of major companies across the regions. Key biogas solutions & service providers operating in the global biogas industry include Air Liquide; PlanET Biogas; Wartsila; EnviTech Biogas AG; Robert Bosch GmbH; Asia Biogas; and Schmack Biogas GmbH. Air Liquide; PlanET Biogas; Wartsila; EnviTech Biogas AG are full-scale manufacturers and leaders in terms of investment in R&D.
Spanish companies are taking active steps to drive the adoption of biogas in the country. For instance, Repsol, a Spanish fuel company, in June 2020, announced the development of an industrial-scale biogas project. Some prominent players in the biogas market include:
Agrinz Technologies GmbH
Air Liquide
DMT International
Gasum Oy
HomeBiogas Inc
PlanET Biogas
Scandinavian Biogas Fuels International AB
Schmack Biogas Service
Total
Xebec Adsorption Inc
Report Attribute |
Details |
Market size value in 2023 |
USD 65.53 billion |
Revenue forecast in 2030 |
USD 87.85 billion |
Growth Rate |
CAGR of 4.3% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2020 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, trends |
Segments covered |
Source, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East and Africa |
Country scope |
U.S.; Canada; Russia; Italy; UK; Germany; Switzerland; Spain; France; China; India; Japan; South Korea; Australia; Brazil; Argentina; South Africa; UAE |
Key companies profiled |
Agrinz Technologies GmbH; Air Liquide; DMT International; Gasum Oy; HomeBiogas Inc; PlanET Biogas; Scandinavian Biogas Fuels International AB; Schmack Biogas Service; Total;Xebec Adsorption Inc |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global biogas market report based on source, application, and region:
Source Outlook (Revenue, USD Million, 2018 - 2030)
Municipal
Landfill
Wastewater
Industrial
Food Scrap
Wastewater
Agricultural
Dairy
Poultry
Swine Farm
Agricultural Residue
Application Outlook (Revenue, USD Million, 2018 - 2030)
Vehicle Fuel
Electricity
Heat
Upgraded Biogas
Cooking Gas
Regional Outlook (Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Europe
Germany
Italy
France
Russia
U.K.
Spain
Switzerland
Asia Pacific
China
Japan
India
South Korea
Australia
Central & South America
Brazil
Argentina
Middle East & Africa
UAE
South Africa
b. The global biogas market size was estimated at USD 62.72 billion in 2022 and is expected to reach USD 65.53 billion in 2023.
b. The global biogas market is expected to witness a compound annual growth rate of 4.3% from 2023 to 2030 to reach USD 87.85 billion by 2030.
b. Electricity accounted for the largest application segment in 2022 and is expected to grow at a CAGR of about 4.0% over the forecast period.
b. Scandinavian Biogas Fuels International AB, Schmack Biogas Service, Gasum Oy, TotalEnergies, Agrinz Technologies GmbH, Homebiogas Inc, Xebec Adsorption Inc., DMT International, Air Liquide, PlanET Biogas are some of the key companies operating in the biogas market.
b. The global biogas market is expected to be driven by the increasing demand from various applications such as electricity, heat, vehicle fuel, upgraded biogas, and cooking gas. The growing need to reduce emissions is expected to aid the overall market growth over the forecast period.
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