Biogas Market

Global Biogas Market Size (2024-2032):

The size of the global biogas market was worth USD 67.55 billion in 2023. The global market is anticipated to grow at a CAGR of 6.47% from 2024 to 2032 and be worth USD 118.76 billion by 2032 from USD 71.92 billion in 2024. 

Current Scenario of the Global Biogas Market

The production of biogas as a fuel is expected to eliminate various environmental problems associated with waste, as all organic matter is incorporated and has the ability to be used as a form of biomass for further production. Specific government initiatives, for example, the biomass power generation and cogeneration program mentioned by India's Ministry of New and Renewable Energy, are likely to attract significant investment in this market. The industry incorporates substantial prospects for future development, as the market is set to emerge as a substitute for conventional fuels, which include diesel and gasoline. Besides a renewable energy source, the presence of carbon is lower in biofuel. It emits fewer greenhouse gases, which should stimulate demand for biogas to replace conventional fuels.

Increasing demand for biogas among farmers and various municipalities and industries, a process to meet the growing demand to use biogas as fuel, which is expected to strengthen the need for biogas plants in the coming years. However, the growth of the biogas market is attributed to the mitigation of greenhouse gases. In addition, a decline in crude oil reserves coupled with crude oil price shocks is expected to stimulate business growth. In addition, the growing vigilance of the increasing population towards the environment is expected to encourage the growth of the market.

MARKET DRIVERS

The global biogas market is driven by the increase in greenhouse gas emissions and their destructive impact on the environment.

Various government agencies around the world are investing heavily in the production of renewable energy sources to reduce carbon emissions and ensure a stable and secure energy supply. Increased awareness of the precarious effect of greenhouse gas (GHG) emissions on the environment is believed to encourage the growing establishment of biomass production plants around the world. The production of biofuels helps to eliminate the problem of landfills and landfills, which is expected to have an optimistic impact on the demand for biogas.

MARKET RESTRAINTS

The initial investment for the establishment of factories is high. Some countries provide financial assistance for the construction of these factories. However, financial assistance is also needed for the development and expansion of the plant. The process of sourcing and storing raw materials is long and expensive. Financial assistance and regulations are needed for the collection, classification, treatment, supply, and distribution of raw materials, the construction and operation of factories, and the sale and distribution of this gas. The output of the installation must be sufficient and consistent to cover the costs of installation and operation.

IMPACT OF COVID-19 ON THE GLOBAL BIOGAS MARKET

The coronavirus pandemic has led to limitations on travel, work, and markets, which are anticipated to cut billions of barrels of oil and trillions of cubic meters of gas from the global energy system by 2020. Due to this pandemic, Bioenergy projects around the world face significant challenges. The lack of availability of raw materials, components, and technical support had a significant impact on the development of the project, resulting in delays. In March 2020, the construction of the Tees Renewable Power Plant (Tees REP), a 299 MW biomass power plant in the UK, was kept to a halt because of the COVID-19 pandemic.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Biogas Market Analysis By Source

One of the important factors driving the growth of the market is the increasing demand from the agricultural, industrial, and municipal sectors for waste treatment techniques. The implementation of biogas as a renewable energy source in several developing and developed countries is another factor that is expected to support growth.

Global Biogas Market Analysis By Application

The power generation segment is estimated to lead the total global share during the estimated period as several countries turn to gas-fired power plants from coal-fired power plants due to an escalation in the emission of carbon dioxide. Therefore, the demand for gas-fired power plants is expected to drive the market.

Global Biogas Market Analysis By Size

The market below 500 kW will experience growth due to increased investment in the development of commercial and residential biogas plants. Changing trends toward decentralization of power generation systems and increasing investment in deploying energy-efficient technologies will drive business growth. In addition, the shift in consumer preference for energy independence will further improve the outlook for the industry.

Global Biogas Market Analysis By Technology

The global biogas industry with hydrolysis technology in 2020 is valued at over USD 60 billion and is expected to grow by over 8% by 2026. Low costs, energy recovery, and minimal production of bio-solids are prominent factors that promote the adoption of hydrolysis technology in biogas plants. In addition, the growing demand for sludge stabilization will further stimulate business growth over the forecast period.

Global Biogas Market Analysis By Process

The anaerobic digestion market will experience growth due to ongoing initiatives to improve economic growth in rural areas as well as increasing demand for the conservation of agricultural land. Improving soil health, energy independence, and diversification of income streams are some of the important features that will lead to the installation of biogas plants.

REGIONAL ANALYSIS

Europe is expected to emerge as a predominant region during the estimated period. Several countries, such as Austria, Denmark, and Germany, have a strong legal framework for renewable energy sources. The economic efficiency of the biomass plant is vital for the long-term growth of the industry.

Asia-Pacific is expected to experience significant growth over the next seven years, due to the high rate of agricultural production in developing economies, which include India, Indonesia, and Thailand. The regions, like North America, is expected to experience substantial growth over the estimated period due to the increasing adoption of renewable and alternative energy source.

KEY PLAYERS IN THE GLOBAL BIOGAS MARKET

Companies playing a prominent role in the global biogas market include Future Biogas Limited (U.K), Air Liquide (France), PlanET Biogas Global GmbH (Germany), Agrinz, Weltec Biopower GmbH (Germany), Viesmann, Scandinavian Biogas Fuels International AB (Sweden), EnviTec Biogas AG (Germany), Ameresco (U.S.), Quantum Green (India), Agraferm and Others.

RECENT HAPPENINGS IN THE GLOBAL BIOGAS MARKET

• In May 2020, Weltec Biopower will construct a biogas plant in Veria, Greece. The main investor in the project is one of the largest pig and cow slaughterhouses in Greece.
• In April 2020, Ductor, a renowned Finnish-Swiss biotechnology company, confirmed the building of three combined bio-fertilizer and biogas plants in Poland. The new facilities will be built in the Polish region of Zachodniopomorskie
• In June 2020, Nordic energy company Gasum announced that it would open a liquefied natural gas (LNG) and liquefied LBG filling station near Arlanda Airport in Stockholm by the end of the year.

DETAILED SEGMENTATION OF THE GLOBAL BIOGAS MARKET INCLUDED IN THIS REPORT

This global biogas market research report has been segmented and sub-segmented based on source, application, size, technology, process, and region.

By Source

• Agricultural
• Municipal
• Industrial

By Application

• Vehicle Fuel
• Heat Generation
• Power Generation

By Size

• <500 kW
• 500 kW-3 MW
• >3 MW

By Technology

• With Pre-Hydrolysis
• Without Pre-Hydrolysis

By Process

• Landfill
• Sewage Sludge
• Anaerobic Digestion
• Pyrolysis & Gasification

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa