Biomethane Market Size, Share & Trends Analysis Report By Source (Energy Crops, Animal Manure, Municipal Waste, Waste Water Sludge), By End Use (Construction, Industrial), By Region, And Segment Forecasts, 2024 - 2030

Biomethane Market Size & Trends

“2030 biomethane market value to reach USD 17.03 billion.”

The global biomethane market size was estimated at USD 7.08 billion in 2023 and is estimated to grow at a CAGR of 13.4% from 2024 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.

Drivers, Opportunities & Restraints

Energy sustainability and the net-zero decarbonization goal set forth by global governments are the key drivers for the market. It reduces dependence on imported fossil fuels and promotes the development of a circular economy since waste material is recycled to produce efficient and clean energy. The global transition towards the adoption of sustainable energy is anticipated to drive the market over the forecast period.

A key opportunity for the market lies in the generation potential of sources of biomethane. Specific energy crops that are low-cost and low-maintenance crops that are grown solely for energy production have played a vital part in the increase of biogas production across the world. Moreover, using waste and by-products can be aligned with sustainability goals across the world and assist in the generation of biomethane for diverse applications.

The market faces inherent restraints, such as the high manufacturing cost due to technological advancements. Its production cost remains higher than the production of conventional energy. Hence, this factor has restrained the widespread adoption and utilization of biomethane across the world, and its applications are hence limited to developed countries of Europe, where both generation and technology and widely adopted.

End Use Insights

“Construction accounted for the highest revenue share of over 43.0% in 2023.”

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 to produce biomethane. At the same time, the demand for biomethane within the industrial sector is anticipated to be generated by its increasing role in reducing greenhouse gas emissions and the focus on sustainable production methods.

Source Insights

“Municipal waste accounted for the highest revenue share of about 38.0% in 2023.”

Organic municipal waste such as food and green waste, paper, wood and cardboard that is not utilized for composting or recycling accounted for the highest revenue share in 2023. This waste also includes waste from the food processing industry. It is also the most widely available source of biomethane available across the market today.

Biogas, produced through the process of anaerobic digestion mainly consists of methane. Upon further processing and purification, it is converted into biomethane. Significant growth in biogas industry is expected to prove fruitful for the market growth. For instance, in June 2024, Maruti Suzuki India Ltd., installed a pilot plant for biogas generation & purification. This establishment took place at Manesar Plant in Haryana, India.

Animal manure is another lucrative segment of the market. Biogas production through manure, which is derived from livestock farming has a positive impact on the economy and environment. According to the European Biogas Association’s database, in 2023, the agricultural sector (including manure, sequential crops, and other residues) contributed 64% of European biomethane production.

Regional Insights

“Germany held over 42.0% revenue share of the overall Europe biomethane market.”

Europe dominated the global market and accounted for over 45.0% revenue share of the global market in 2023. This growth is anticipated to continue from 2024 to 2030 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 North America biomethane market is anticipated to witness a CAGR of 13.5% from 2024 to 2030. 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. dominated 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. 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

Some key players operating in the market include Air Liquide and Total Energies

• France-based Air Liquide was founded in 1902 and is a provider of various gases including biomethane, along with associated technologies and services and caters to various industries.

• France-based Total Energies was founded in 1924 and is an integrated company that produces oils and biofuels, natural gas and green gases, renewables, and electricity.

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 global, country, and regional 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 based on the source, end use and region.

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

  • Energy Crops

  • Animal Manure

  • Municipal Waste

  • Waste Water Sludge

  • Others

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Construction

  • Industrial

  • Power Generation

  • Transport

  • Others

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

  • North America

    • U.S.

  • Europe

    • Germany

    • France

    • Italy

    • Denmark

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

  • Middle East & Africa