Biomethane Market (2025 - 2030) Size, Share & Trends Analysis Report By Source (Energy Crops, Animal Manure, Municipal Waste, Waste Water Sludge), By End-use (Construction, Industrial, Power Generation, Transport), By Region, And Segment Forecasts

Biomethane Market Summary

The global biomethane market size was estimated at USD 7,994.9 million in 2024 and is projected to reach USD 17,031.9 million by 2030, growing at a CAGR of 13.5% from 2025 to 2030. Biomethane is a renewable source that is used for diverse applications such as construction, power generation, transportation, and industrial applications.

The growing demand for efficient power transmission is anticipated to boost the market over the forecast period. Biomethane is a type of gas derived from the biological breakdown of organic matter, such as agricultural waste, food waste, sewage, and other organic materials. It is a renewable energy source and is considered a sustainable alternative to fossil fuels. Biomethane is produced through a renewable process called anaerobic digestion, where microorganisms break down organic matter in the absence of oxygen, resulting in the production of biogas.

Market Dynamics

Source Insights

Municipal waste accounted for the highest revenue share of about 39.0% in 2024.The municipal waste segment is expected to register the fastest CAGR of 14.7% during the forecast period. Municipal waste is a key source segment in the biomethane market, driven by increasing urbanization and the need for sustainable waste management solutions. Organic fractions of municipal solid waste (OFMSW), such as food scraps, garden waste, and biodegradable packaging, are processed through anaerobic digestion to produce biogas, which is then upgraded to biomethane. This approach not only reduces landfill dependency and methane emissions but also supports circular economy goals by converting waste into renewable energy.

Many municipalities across Europe and Asia are investing in biogas plants to meet renewable energy targets and comply with waste reduction mandates. As a result, municipal waste is emerging as a scalable and policy-supported feedstock for biomethane production.

End-use Insights

Construction accounted for the highest revenue share of over 43.0% in 2024. According to the IEA, bioenergy accounted for around 10% of the world’s primary energy demand in 2023. Most of the bioenergy is used in the form of biogas, i.e., biomethane. In the construction industry, biomethane is used for cooking and heating applications, and a vast portion is also used as an additive in the gas network as a transport fuel.

The industrial sectors, such as food, drink, and chemicals, produce byproducts with a high organic content that can be used for the production of biomethane. At the same time, the demand for biomethane within the industrial sector is anticipated to be generated by its increasing role in the reduction of greenhouse gas emissions and the focus on sustainable production methods.

Regional Insights

Europe biomethane market dominated the global industry and accounted for over 45.6% revenue share in 2024. This growth is anticipated to continue over the forecast period owing to the increasing sources of biomethane and the emphasis on alternate and renewable energy sources. To cut down on the cost of technology, European universities and research institutes are investing in conducting cutting-edge research for which they are provided grants and funding for R&D by the European Commission.

North America Biomethane Market Trends

The biomethane market in North America is anticipated to witness a CAGR of 13.6% over the forecast period. It is expected to be driven by the renewable energy transition and green material usage in industries that are the current trend in the U.S.

U.S. Biomethane Market Trends

The biomethane market in the U.S is growing, as according to the American Biogas Council, about USD 1.8 billion in capital investment worth biogas projects came online in 2023. This includes methane capture system projects for the production of biomethane. The U.S. biomethane market is being driven by the increased usage of recyclable construction infrastructure and the requirement to reduce carbon emissions.

Asia Pacific Biomethane Market Trends

According to the World Biogas Association, the Asia Pacific region has immense potential to increase the generation of biogas and subsequently improve biomethane demand. This can be aligned with its waste management policies and help combat climate change.

Key Biomethane Company Insights

Key players operating in the biomethane market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.

Competitive Benchmarking

Recent Developments

• In April 2024, France-based AirLiquide announced the expansion of its production capacity of biomethane in the U.S. with the construction of two new plants in Pennsylvania and Michigan. These plants will cater to the industrial and transport sectors in the region.

• In January 2023, France-based Arkema signed a long-term agreement with France-based ENGIE for the supply of 300 GWh/year of biomethane. This deal is considered to be one of the largest agreements in Europe in the biomethane market and is aimed at enabling the former to reduce its carbon footprint in the chemical industry.

Biomethane Market Report Scope

Global Biomethane Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global biomethane market report on the basis of source, end use, and region.

• Source Outlook (Revenue, USD Billion, 2018 - 2030)

  • Energy Crops

  • Animal Manure

  • Municipal Waste

  • Waste Water Sludge

  • Other Source

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Construction

  • Industrial

  • Power Generation

  • Transport

  • Other End Uses

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Denmark

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

Delivered Customizations

This report has been delivered with the following In-depth customizations