Biogas Market Size, Share & Trends Analysis Report By Source (Municipal, Agricultural, Industrial), By Application (Vehicle Fuel, Electricity, Heat, Upgraded Biogas, Cooking Gas), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

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.

Source Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Biogas Market Report Scope

Global Biogas Market Report Segmentation

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