The global biogas market size is predicted to reach USD 43,052.7 million in 2024. It is anticipated to grow at a CAGR of 8.1% during the assessment period to reach a value of USD 93,679.9 million by 2034. The industry is projected to showcase a Y-o-Y growth of 7.8% over the forecast period. this growth indicates a value growth of 2.2x from the current value over the assessment period.
The market for crop feedstock is growing at an exponential rate, as the crop residue yield the maximum amount of biogas, thereby contributing to the high use of crop residue as feedstock for biogas production. For instance, Maize stalks gave the greatest values of cumulative yield of biogas (65 L/2.5 L fermented material) and its methane component (39 L).
The use of crop residue as feedstock is favorable from energy point of view. In addition, the share of utilizing crop residue is foreseen to rise in the forecast period. There are several studies that demonstrates the high potential yield of biogas by using crop residue as feedstock.
Crop residue is rich in lignocellulose which are usually waste in the different processing steps. Thus, the crop residue is a viable source for production of biogas or any biofuel. Biomass (agricultural residue/crop residue) such as husks, bagasse, and other waste from agroforest-related activities are types of feedstock used for biogas production.
| Attributes | Description |
|---|---|
| Estimated Global Biogas Market Size (2024E) | USD 43,052.7 million |
| Projected Global Biogas Market Value (2034F) | USD 93,679.9 million |
| Value-based CAGR (2024 to 2034) | 8.1% |
Co-generation is estimated to remain dominant in the application segment as the co-generation application offers advantages such as reduced carbon emission, contribution towards sustainability goals, and enhanced operational efficiency that further minimizes the overaged cost compared to other applications of biogas.
The integration of co-generation systems in the biogas plants significantly curb the greenhouse effect, exploit waste materials and enable the production of renewable energy. It also ensures substantial savings on bills, linked to the rationalization of the use of the starting fuel and to the self-production of the remaining energy.
As the demand for energy continues to increase, the utilization of biogas for energy co-generation will be growing steadily. The energy demand is increasing swiftly thereby pushing the need for renewable energy share to meet the primary energy requirements. Biogas co-generation is the most viable and alternative source of renewable energy compared to other renewable energy sources.
Present society utilizes different energy sources. Energy generation is considered as an important factor that tends to determine the human development index along with economic and environmental factors.
The growing population has marked the electricity as a crucial factor to meet the rising demand of modern society. All these factors have further pushed the need for electricity generation predominantly from fossil fuels. However, there are several environmental factors associated with the use of fossil fuel based electricity generation.
The certainty of using biofuel for electricity generation has swiftly evolved and several countries are adopting renewable energy sources for meeting the primary energy demand. All these factors are rising the demand for biogas production and thereby pushing the demand for co-generation application.
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The below table exhibits the predicted CAGR for the global biogas market over semi-annual periods ranging between 2023 and 2024. The examination offers organizations with a better understanding of the growth over the year by revealing critical shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Numbers presented in the below table project the growth rate for each half from 2023 to 2024. The industry is predicted to grow at a CAGR of 6.6% in the first half (H1) of 2023. The second half of the same year is anticipated to experience a spike in the CAGR at 6.8%.
| Particular | Value CAGR |
|---|---|
| H1 | 4.3% (2023 to 2033) |
| H2 | 5.1% (2023 to 2033) |
| H1 | 4.4% (2024 to 2034) |
| H2 | 4.8% (2024 to 2034) |
Preceding in the subsequent period, from H1 2024 to H2 2034, the CAGR is estimated to surge to 7% in the first half (H1) and then further increase to 7.2% in the second half (H2). In the first half (H1) and the second half (H2), the market is anticipated to witness an increase of 20 BPS each.
Governmental Support in Terms of Subsidies and Policies Fosters Growth
Crop residue, waste water sludge, and animal waste are the primary feedstock used for production of biogas through anaerobic digestion, thus, the biogas is considered as renewable form of energy. The anaerobic digestion sector is distinctively positioned to accomplish the Global Methane Pledge made by 100+ countries since 2021.
Active government support across countries serve as a primary factor for the industry's growth. Government policies focusing on fixed tariffs and premiums, as well as auctions, are driving the renewables sector forward. The government across several countries are implementing new policies that supports growth.
For instance, Biogas Programme (Phase-I) for FY 2021-2022 to 2025-2026 implemented by the Indian government supports companies engaged in the biogas industry. Given India's livestock population of 535.78 million, which includes approximately 302 million bovines, there is great opportunity for the establishment of biogas facilities. The cattle sector currently contributes significantly to India's GDP and is estimated to continue to grow.
The spread of biogas technology benefits Indian farmers directly and indirectly. Other policies that support the growth of biogas industry include, Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, National Biogas Programme (NBP), AP Renewable Energy Export Policy, Bihar Policy for Promotion of Bihar New & Renewable Energy Sources, Waste to Energy (Central Financial Assistance), and others.
Increasing Number of Biogas Plant Installation Across the Globe to Augment Expansion
Several countries are planning to install large number of biogas plants in the coming years. Low-carbon technologies and planned mitigation activities will be critical in each step toward achieving that objective.
Sistema.bio has been functioning in India since 2017. According to the firm's director, the company intends to deploy over 10,000 biogas plants around the country, with each system estimated to save 8 to 10 tonnes of CO2 annually by replacing LPG and firewood usage.
Biogas and upgraded biogas (biomethane) play a crucial role in the pathway of net zero carbon emission. The primary by-product of wet biomass anaerobic digestion (AD) is biogas. It can be refined to bio-methane to replace natural gas, or it can be utilized locally for heating or for power and heat production (CHP). In light of this, it is one way to lessen fossil fuel consumption and aid in the move toward a net zero energy system.
Growing Demand for Biogas Upgradation and Increasing Adoption of Upgraded Biogas as Transportation Fuel to Elevate Sales
The processed form of biogas, known as biomethane, has nearly 100% methane content and a quality comparable to that of natural gas. Moreover, gasification and power-to-methane systems can produce biomethane. Its numerous uses include producing sustainable fuel for the transportation sector and providing heat and electricity for our buildings and industries.
Hydrogen produced through biological, thermochemical, and bio-electrochemical processes, from biogenic sources is known as bio-hydrogen. Renewable gases like biomethane and biogas reduce emissions throughout the entire value chain. To reduce greenhouse gas emissions as swiftly in a number of sectors, including industry, transportation, buildings, and agriculture, their utilization is crucial.
Building new gas infrastructure doesn't necessitate spending money when biomethane is used to replace fossil fuels. The current gas infrastructure is prepared for biomethane. This is essential for accelerating decarbonisation and giving customers access to reasonably priced renewable energy.
Furthermore, biomethane is easily produced and stored at a steady rate, which helps balance the energy supply from renewable, intermittent energy sources like wind and solar. Additionally, it may be produced and traded inside Europe, guaranteeing supply security and reducing reliance on outside sources for the European Union.
Integrated Investment Plans for Biogas Industry from Several Countries
Three prominent factors driving the biogas industry across the globe are the need for greenhouse gas emission reduction, waste management and pollution reduction. The development of biogas industry in South Africa is at a nascent stage and support from governmental and private organizations in terms of subsidy and funding is likely to amplify growth during the forecast period.
For instance, The Global Environment Facility (GEF)-funded Project along with UNIDO and other key stake holders commenced the integrated investment plan for setup of large industrial-scale biogas projects within South Africa.
The project is highlighted to set a positive impact on the overall growth of biogas industry across Middle East and Latin America. The funding raised towards the setup of biogas industry were in terms of debt, equity, mezzanine finance, quasi-equity, de-risking products, concessional finance, guarantees, project finance and grant funding.
Technological Limitations coupled with Limited Applicability in Urban Settings Estimated to Hamper Growth
Human activities such as livestock farming and rice faming leads to accumulation of waste on large scale at disposal sites. This accumulation in turn leads to an increase in the atmospheric concentration of methane to 1.7 ppm.
However, this accumulation and methane generation do not directly impose any effect on the human health. Having said that, methane is considered as part of chemical processes in the atmosphere and greenhouse gas that is 22 times harmful than CO2.
Methane generation leads to greenhouse effect further intensifying global warming. According to recent study by, Environmental Protection Agency (EPA), the methane emission (a by-product of biogas production) has contributed to a 20% increase in the greenhouse effect. These factors are estimated to further propel the greenhouse effect. In addition, generation of methane in large quantities leads to ozone depletion.
Moreover, the biogas industry heavily relies on anaerobic digestion as there are few technological advancements in the biogas production technology. The current biogas production technology is not as efficient that further intensifies the production of methane. All these factors tend to increase the large problems associated with matching the current trend of using biogas for large number of population and energy demand.
Principal Consultant
The global biogas industry was valued at USD 15,230.5 million in 2023. The biogas market has experienced significant growth over the past few decades, driven by increasing demand for renewable energy and the urgent need to address environmental concerns. Advancements in technology and rising awareness of climate change have expanded biogas applications to urban settings and large-scale operations.
Governmental policies and incentives in various countries promoted renewable energy sources, further catalyzing growth. The integration of biogas into energy grids and its use as a vehicle fuel have broadened its appeal. Additionally, the rising emphasis on waste management and circular economy principles has led to increased investment in anaerobic digestion facilities.
The industry is predicted to reach USD 43,052.7 million by 2024 and is further anticipated to grow at a CAGR of 8.1% during the assessment period. It is projected to reach USD 93,679.9 million by 2034.
The biogas market is poised for substantial growth during the forecast period, driven by increasing global energy demands and a shift towards renewable energy sources. As governments and organizations intensify efforts to meet carbon reduction targets, biogas is emerging as a viable solution for sustainable energy production.
Innovations in anaerobic digestion technology and improved biogas upgrading methods are estimated to enhance efficiency and expand applications across various sectors, including agriculture, waste management, and transportation. The growing focus on circular economy principles, coupled with rising waste generation, will likely lead to investments in biogas facilities and infrastructure.
Tier 1 companies comprise of players with a revenue of above USD 1,000 million. These companies capture a significant share ranging between 25% to 30% in the global market. These players are characterized by high production capacity and a wide product portfolio.
These leaders are distinguished by their extensive expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base. Prominent companies within Tier 1 include BP p.l.c., Shell, Veolia, TotalEnergies, Eni S.p.A., VNG AG, and other players.
Tier 2 companies include mid-size players with revenue of below USD 1,000 million. These businesses have a presence in specific regions and highly influence the local industry. Businesses in this segment are characterized by a strong presence overseas and a robust industry knowledge.
These players have access to good technology and ensure regulatory compliance but may not have advanced technology and a wide global reach. Well-known enterprises in tier 2 include Engie, GRTgaz, GAIL Gas Limited, Scandinavian Biogas, and other players.
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The section provides companies with an overview of the industry. It comprises a detailed ananlysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics of the industry is predicted to help companies in understanding the complex nature of the industry.
The examination comprises of key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the industry within each country. This section aims to assist companies in making informed decisions and developing strategies tailored to individual countries.
Brazil is projected to dominate the country-wise growth in the industry during the forecast period with an estimated CAGR of 12.2%. Germany, India, and China are predicted to follow behind Brazil to become the key countries in the industry with forecasted CAGRs of 11.6%, 9.3%, and 8.9% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Brazil | 12.2% |
| Germany | 11.6% |
| India | 9.3% |
| China | 8.9% |
| Spain | 8.1% |
The sale of biogas in China is projected to reach USD 7,981.6 million and is predicted to grow at a CAGR of 8.9% by 2034. The government’s commitment towards renewable energy and waste management is a prime factor driving the growth of biogas industry in China. Globally, China is the largest agricultural waste producer, thus, the demand for production of biogas from agricultural waste is evolving rapidly in the country.
The energy access in the China has been promoted by using biogas in order to reduce the dependency on coal and other fossil fuel sources. The large number of population further contributes towards accumulation of municipal solid waste. This in turn provides an opportunity for production of biogas using municipal solid waste.
The United States biogas market is estimated to reach USD 10,619.7 million by 2034 and is further predicted to grow at a CAGR of 8.1%. In North America, the United States has the largest number of operational biogas plants accounting for nearly 2,300 plants.
The agricultural sector in USA has further contributed towards the growth of the industry as several farms in the United States have set-up anaerobic digestion plants contributing towards high biogas production. There are several federal and state policies such as Renewable Fuel Standard (RFS) that provide incentives for the biogas production plants.
The sale of biogas industry in Germany is projected to reach USD 9,343.6 million and grow at a CAGR of 6.9% by 2034. Supportive governmental policies and subsidies coupled with advanced production technologies and renewable energy goals are prominent factors driving the demand of biogas industry in Germany. The Germany biogas production has been increasing rapidly owing to the set-up of Renewable Energy Sources Act (EEG) in 2000.
The EEG act has provided feed-in tariffs for biogas production, thereby, contributing to the growth of biogas industry in the country. As of 2022, Germany had 20,000 biogas plants showcasing the presence of the robust biogas industry presence in the country. The country is also steadily increasing the contribution of biogas in meeting the energy demand. For instance, around 7% of Germany’s energy demand was fulfilled by its biogas industry in 2022.
The section provides companies with insightful data and analysis of the two leading segments. Segmentation of these categories is likely to assist organizations in understanding the dynamics of the industry and investing in beneficial zones.
Examination of the growth is anticipated to help companies in gaining a thorough understanding of the trends, opportunities, and challenges. This analysis is predicted to help companies in navigating the complex environment of the business world and making informed decisions.
Crop residue is estimated to emerge as a leading feedstock type with a value share of 37.8% in 2024. By application, co-generation is anticipated to dominate with a value share of 35.2% in the same year.
| Segment | Crop Residue (Feedstock Type) |
|---|---|
| Value Share (2024) | 37.8% |
Crop residue are abundantly available globally as compared over other feedstock, thus, the feedstock can be supplied on regular basis further driving the biogas production. The adoption of crop residue as feedstock for biogas production in gaining traction as the government push towards the adoption of green practices and aim to minimize the greenhouse gas emissions.
The accumulated crop residue is usually un-treated or burn further leading to GHG emission. For instance, around 1.3 billion tons of crop residue are produced manually as per the report by Food and Agriculture Organization (FAO). Huge availability of crop residue can be effectively used to produce biogas and contribute towards sustainable climate.
| Segment | Co-generation (Application) |
|---|---|
| Value Share (2024) | 35.2% |
Co-generation also known as combined heat and power (CHP) utilizes biogas for electricity and heat generation that can be further used in industrial production activities or for meeting the primary energy demand. The increasing demand for sustainability and carbon neutrality has increased the demand for meeting energy demand from renewable sources, thus driving the application of biogas in co-generation.
Several countries have implemented policies for utilizing and meeting the energy demand from renewable sources. For instance, the total energy demand in the United States is met by biogas industry, showcasing the strong growth of co-generation application in the biogas industry.
Several studies showcase that the co-generation facilities tend to reduce the greenhouse gas emission by 60% compared to fossil fuel sources. All these factors offer economic and environmental advantages further marking the strong foothold of co-generation application in the biogas industry.
Key players in the industry include BP p.l.c., Shell, Engie, Veolia, and TotalEnergies. The biogas market is slightly consolidated with key plays in the market having about 25% to 30% share prioritizing technological advancements, integrating sustainable practices, and expanding their footprints across the globe.
Customer satisfaction remains paramount, with a keen focus on producing biogas to meet diverse energy demands. Businesses are actively fostering collaborations to stay at the forefront of innovation, ensuring their biogas aligns with the evolving consumer demands while maintaining the highest standards of quality and adaptability.
Industry Updates
Feedstock type is segmented into crops, food waste, wastewater sludge/industrial waste, and livestock waste.
Power generation, co-generation, heat in building, upgraded to biome thane, and others (vehicle fuel, generation of co2, cooking gas) are the applications.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.
The market is projected to reach USD 43,052.7 million in 2024.
The industry is anticipated to reach a size of USD 93,679.9 million by 2034.
BP p.l.c., Shell, Engie, Veolia, TotalEnergies, and Scandinavian Biogas.
It is produced by decomposing the organic matter.
It is estimated to experience a CAGR of 8.1% during the forecast period.
Brazil is predicted to dominate with a CAGR of 12.2% during the assessment period.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Feedstock Type 6.2. Application 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Feedstock Type 7.1. Crops 7.2. Food Waste 7.3. Wastewater Sludge/Industrial Waste 7.4. Livestock Waste 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 8.1. Power Generation 8.2. Co-generation 8.3. Heat in Building 8.4. Upgraded to Biomethane 8.5. Others (vehicle fuel, generation of CO2, cooking gas) 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. South Asia 9.5. East Asia 9.6. Eastern Europe 9.7. Middle East & Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Feedstock Type and Application for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. BP p.l.c. 19.2. Shell 19.3. Engie 19.4. Veolia 19.5. TotalEnergies 19.6. Scandinavian Biogas 19.7. Green Elephant 19.8. LMS Energy 19.9. Future Ltd. 19.10. Bharat Energy Limited (BBEL) 19.11. Morrow Renewables 19.12. Eni S.p.A. 19.13. GRTgaz 19.14. Asia (Thailand) Co. Ltd. 19.15. GENeco 19.16. VNG AG 19.17. PlantET Group 19.18. Biocore Environmental Limited 19.19. Bio Capital 19.20. GAIL Gas Limited
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Biogas Market
