The greenhouse gas emissions from various energy-intensive industries, including transportation, buildings, energy, agriculture, etc. have been increasing over the past decade, leading to a change in the climate pattern. These factors also result in a rise in global temperatures and disrupt human and environmental activities. Various initiatives to offset these emissions include a shift to alternate energy sources and to increase energy efficiency. Various steps to be taken to achieve emissions reduction include carbon sequestration, technology transfer from developed to developing countries, and the use of alternate fuels. According to the International Renewable Energy Agency (IRENA), switching to biogas as a vehicle fuel can reduce greenhouse gas emissions by 60% to 80% against the usage of fossil fuels. Due to climate change and increasing environmental concerns, most governments have set targets to cut down their emissions. As a result, there have been huge investments in renewable energy and alternate fuels, and this trend is expected to continue in the coming years.
India, a developing country, is tapping the huge potential of biogas with the help of schemes such as Sustainable Alternative Towards Affordable Transportation (SATAT). Thus, the aforementioned initiatives to reduce emissions and increase the production of biogas are anticipated to significantly drive the growth of the biogas market in the coming years.
The biogas market is expected to grow owing to the increasing application scope of biogas in various application sectors. Factors such as reduced household air pollution and associated diseases, low annual cost, and locally available feedstock such as agricultural residues or from animal or human waste are fueling the demand for biogas in cooking gas applications. In addition, benefits such as reduced cooking time, improved indoor air quality as compared to the use of traditional cooking stoves, and reduced waste volume & associated disposal challenges are propelling its demand in cooking gas applications. Biogas is also gaining popularity in electricity generation. Electricity generated by biogas is used for barns or houses and can further be sold to the electric grid. This helps to reduce the dependency on utilities.
The increasing use of biogas in applications such as heat, electricity, and vehicle fuel is further expected to boost the market growth over the forecast period. Increasing public awareness about renewable energy sources is inclining consumers towards alternate energy sources from fossil fuels. Government initiatives such as incentives for renewable energy production or usage are anticipated to motivate power producers to adopt clean energy sources, thereby driving the growth of the market. The aforementioned factors are expected to trigger the demand for biogas over the forecast period.
High initial investment to establish a biogas plant is expected to restrain the market growth. The cost of biogas plant construction comprises land, materials, equipment, and labor. Financial assistance is required for the development and expansion of biogas plants. The process of procuring and storing raw materials is costly and time-consuming. Regulation and financial assistance are required for sorting, collecting, processing, supplying, and distributing the feedstock; construction & operation of the plant; and sale & distribution of biogas. The output of the plant needs to be sufficient and consistent to cover the installation and operating costs. In addition, like other renewable energy sources i.e., wind and solar, biogas production is also affected by the weather. The optimal temperature required by bacteria to digest the waste is around 37°C. In a cold climate, say below 20°C, biodigesters require heat energy to maintain a constant biogas supply, which may further increase the cost. Thus, the aforementioned factors are expected to restrain the growth of the biogas market in the coming years.
This section will provide insights into the contents included in this biogas market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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