![Biogas Market Size Biogas Market - Market Summary](https://s3.mordorintelligence.com/biogas-market/biogas-market-size-image-1735459594428.webp)
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
CAGR | 4.51 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Europe |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Biogas Market Analysis
The Biogas Market is expected to register a CAGR of 4.51% during the forecast period.
The biogas market has witnessed significant infrastructure development and capacity expansion across major markets globally. According to the European Biogas Association (EBA), Europe alone had approximately 18,977 biogas plants and 1,023 biomethane plants installed as of 2021, demonstrating robust growth in installation capacity. This expansion is particularly evident in countries like Germany, which leads with over 9,692 biogas plants operational as of 2021, showcasing the mature state of the European biogas industry infrastructure.
Technological advancement and innovation in biogas production methods have revolutionized the biogas industry's operational efficiency. Recent developments include the construction of advanced facilities like Wärtsilä's bio-LNG facility in Germany, announced in April 2022, which is set to become the second-largest facility globally capable of liquefying biomethane and synthetic methane from renewable natural gas. The industry has also seen significant progress in waste-to-energy conversion, exemplified by Eva Energia's commencement of commercial operations of a 5 MW biogas plant in May 2022, demonstrating the sector's technological evolution.
Environmental sustainability remains a cornerstone of the biogas market's growth trajectory. According to the World Biogas Association, biogas technology has the potential to reduce global greenhouse gas emissions by 10-13% through the efficient processing of food waste, industrial production wastes, agricultural feedstocks, and sewage. This environmental benefit has catalyzed increased investment in the sector, with China announcing plans to invest CNY 1.2 trillion in the biomass and biogas sector from 2021 to 2025, highlighting the growing recognition of biogas's role in sustainable energy production.
The industry has witnessed significant progress in integrating biogas into existing energy infrastructure and expanding its applications. In April 2022, the BESIX sludge-to-biogas project in the UAE successfully passed performance and reliability tests, demonstrating the industry's advancement in converting sewage sludge into biogas for heat and electricity generation. This development, coupled with Brazil's expansion to over 500 biogas plants in operation as of 2021, reflects the growing global adoption of biogas technology across diverse applications and geographical regions.
Biogas Market Trends
Growing Electricity Demand and Clean Energy Transition
The escalating global electricity demand, driven by increasing population, industrialization, and urbanization, has positioned biogas as a crucial renewable energy source for power generation. The world has witnessed a substantial rise in electricity generation needs, reaching 2,752.52 terawatt-hours (TWh) in 2021, with the International Energy Agency projecting a consistent year-on-year growth rate of 9% in global energy demand over the next seven years. This growing demand, coupled with the pressing need for clean energy alternatives, has established biogas as an essential component in the power sector's transition toward sustainable energy sources.
The environmental benefits of biogas make it particularly attractive in the current climate-conscious landscape. According to the World Biogas Association (WBA), biogas technology has the potential to reduce global greenhouse gas emissions by 10-13% while simultaneously providing renewable energy from various waste sources, including food waste, industrial production wastes, agricultural feedstocks, and sewage. The implementation of Combined Heat and Power (CHP) engines for electricity generation, featuring heat recovery and utilization capabilities, has further enhanced the efficiency and appeal of biogas as a clean energy solution. This dual benefit of emission reduction and waste-to-energy conversion has positioned biogas as a cornerstone technology in the global clean energy transition.
Government Support and Infrastructure Development
Governments worldwide are implementing comprehensive support mechanisms and infrastructure development initiatives to accelerate biogas adoption. These initiatives range from direct financial support, such as India's National Bioenergy Programme with an outlay of INR 1,715 crores (USD 209 million) for 2021-2026, to innovative hybrid energy projects like Ghana's Hybrid-PV-Biogas-Pyrolysis-Plant. These government-backed programs are creating a robust foundation for the biogas industry while simultaneously addressing waste management challenges and energy security concerns.
The infrastructure development landscape has seen significant advancement with numerous large-scale projects being commissioned globally. Notable examples include the construction of major bio-LNG facilities capable of liquefying biomethane and synthetic methane from renewable energy sources, and the development of biomethane production plants integrated with carbon capture technology. These infrastructure developments are complemented by supportive policies such as the Renewable Heat Incentive (RHI) payments and feed-in tariffs, which create favorable conditions for continued investment in biogas projects. The combination of government support and infrastructure development is creating a sustainable ecosystem for biogas market analysis growth while ensuring long-term energy security and environmental protection.
Focus on Waste Management and Environmental Sustainability
The increasing global emphasis on effective waste management and environmental sustainability has positioned biogas as a vital solution for addressing multiple environmental challenges simultaneously. Modern biogas plants demonstrate remarkable capabilities in processing various types of waste, with facilities capable of handling substantial volumes of organic waste daily. For instance, contemporary plants can process up to 12 tons of waste per day, converting it into valuable bio-fertilizer and energy, showcasing the technology's efficiency in waste valorization while generating clean energy.
The versatility of biogas production in terms of feedstock utilization has emerged as a crucial factor in its growing adoption. Biogas plants can effectively process a wide range of waste materials, including municipal solid waste, agricultural residues, food waste, and industrial effluents, contributing to circular economy principles. This adaptability in feedstock utilization, combined with the technology's ability to address multiple environmental challenges—from waste management to renewable energy generation and greenhouse gas reduction—has established biogas as an integral component of sustainable development strategies. The environmental benefits extend beyond waste management and energy generation to include soil improvement through the production of organic fertilizers, creating a truly circular and sustainable system.
Segment Analysis: Application
Electricity Generation Segment in Biogas Market
The electricity generation segment holds a dominant position in the global biogas market, accounting for approximately 45% of the market share in 2024. This segment's leadership is driven by the increasing global electricity demand due to rising population levels, industrialization, and urbanization. According to industry data, global electricity generation from biogas has reached substantial levels as countries focus on renewable energy transition. The segment's strength is further reinforced by the widespread adoption of Combined Heat and Power (CHP) engines for electricity generation with heat recovery capabilities. Major economies worldwide are developing strategies to increase biogas's role in their electricity generation mix, with several new biogas-to-electricity projects being commissioned across regions. The segment benefits from well-established infrastructure and technological maturity in converting biogas to electricity, making it the preferred choice for many biogas plant operators.
![Market Analysis of Biogas Market: Chart for Application](https://s3.mordorintelligence.com/biogas-market/biogas-market-Biogas-Market-Market-Share-by-Application-Segment-2024-1736964188143.webp)
Biofuel Production Segment in Biogas Market
The biofuel production segment is experiencing the fastest growth trajectory in the biogas market for the period 2024-2029. This accelerated growth is primarily driven by the increasing focus on renewable natural gas (RNG) and biomethane as sustainable alternatives for the transportation sector. The segment is witnessing substantial investments in upgrading facilities to produce compressed biogas (CBG) and liquefied biogas (LBG) for vehicle fuel applications. Several countries have implemented supportive policies and incentives specifically targeting biogas-to-biofuel conversion, particularly in Europe and North America. The segment's growth is further catalyzed by the rising demand for clean transportation fuels and the expanding infrastructure for natural gas vehicles. Major energy companies are increasingly investing in biomethane production facilities, indicating strong market confidence in this segment's future potential.
Remaining Segments in Application Segmentation
The heat generation segment completes the biogas market application spectrum, playing a crucial role in providing thermal energy for various industrial and residential applications. This segment primarily serves district heating systems, industrial processes, and agricultural operations where thermal energy is essential. Heat generation from biogas offers a reliable solution for regions with significant heating requirements, particularly in colder climates. The segment benefits from the flexibility of biogas systems, which can be scaled to meet varying heat demands across different applications. Integration with existing heating infrastructure and the ability to provide consistent thermal output makes this segment particularly valuable in industrial and community heating applications.
Segment Analysis: Feedstock
Livestock Manure Segment in Biogas Market
Livestock manure has emerged as the dominant feedstock segment in the global biogas market, driven by its widespread availability and established infrastructure for collection and processing. The segment's prominence is particularly evident in major markets like Germany, which has over 9,000 biogas plants with a significant portion utilizing livestock manure, and the United States, where approximately 8,113 large dairy and hog operations have been identified as technically feasible for biogas production. The segment's leadership is further reinforced by its dual benefits of waste management and energy generation, with countries like China implementing dedicated programs for methane mitigation through manure management. Recent developments include multiple new biogas facilities specifically designed for livestock manure processing, such as the HoSt Group's projects in New York and Ohio, and Greenlane Renewables' dairy manure to renewable natural gas (RNG) projects.
Food Waste Segment in Biogas Market
The food waste segment is demonstrating remarkable growth potential in the biogas market, driven by increasing urbanization and the global focus on sustainable waste management solutions. According to World Bank projections, municipal solid waste, of which food waste is a major component, is expected to grow significantly from 2.59 billion metric tons in 2030 to approximately 3.4 billion metric tons by 2050. The segment's growth is particularly notable in Europe, where approximately 60% of bio-waste consists of food waste, amounting to roughly 88 million tons annually. The segment's expansion is further supported by the development of new food waste-to-biogas facilities and increasing government initiatives to reduce landfill disposal of organic waste.
Remaining Segments in Feedstock Market
The biogas feedstock market also encompasses sewage, crop residues, and energy crops, each playing distinct roles in the industry's development. Sewage-based biogas production is particularly prominent in wastewater treatment facilities, with many municipal plants incorporating anaerobic digesters as part of their waste treatment process. Crop residues represent a significant opportunity, especially in agricultural regions, offering a sustainable solution for agricultural waste management while producing renewable energy. Energy crops, while currently playing a smaller role, continue to contribute to the market, particularly in regions with dedicated bioenergy cultivation programs, though their growth is moderated by competition with food production and land use considerations.
Biogas Market Geography Segment Analysis
Biogas Market in North America
North America represents approximately 12% of the global biogas market capacity in 2024, establishing itself as a significant player in the biogas market landscape. The region's market is primarily driven by comprehensive renewable energy policies and strong infrastructure for biogas production. The United States leads the regional market with an extensive network of anaerobic digesters on farms, water resource recovery facilities, and landfill gas projects. The market benefits from the Renewable Fuel Standard (RFS) program and various state-level renewable portfolio standards that recognize biogas as a renewable fuel source. Canada complements the regional growth with its focus on agricultural and industrial anaerobic digestion systems, while Mexico's market remains in early development stages. The region demonstrates particular strength in converting livestock manure, municipal solid waste, and industrial organic waste into biogas, supported by advanced technology adoption and strong regulatory frameworks. Private sector investments and government incentives continue to drive innovation and expansion in biogas infrastructure across the region.
![Market Analysis of Biogas Market: Forecasted Growth Rate by Region](https://s3.mordorintelligence.com/biogas-market/biogas-market-Biogas-Market-Forecasted-Five-Year-Growth-Rate-By-Region-1736519837045.webp)
Biogas Market in Europe
Europe has demonstrated remarkable growth in the biogas market, achieving approximately 29% growth from 2019 to 2024, positioning itself as the global leader in biogas technology and implementation. The region's success is built on a strong foundation of environmental policies, technological innovation, and widespread adoption across multiple sectors. Germany continues to lead the European biogas market with the largest number of biogas plants, followed by significant contributions from Italy, France, and the United Kingdom. The market benefits from the European Union's comprehensive renewable energy directives and circular economy initiatives. The region excels in diverse biogas applications, including electricity generation, biomethane market production, and heat generation. European countries have developed sophisticated value chains for biogas production, from feedstock collection to end-use applications. The market demonstrates particular strength in agricultural waste utilization, municipal solid waste processing, and industrial organic waste management, supported by advanced technology providers and experienced operators.
Biogas Market in Asia-Pacific
The Asia-Pacific biogas market is poised for exceptional growth, with projections indicating approximately 67% growth from 2024 to 2029, marking it as one of the fastest-growing regions globally. China leads the regional market with ambitious renewable energy targets and substantial investments in biogas infrastructure. India follows with its comprehensive bioenergy programs and growing focus on waste-to-energy projects. The region's growth is driven by increasing urbanization, rising energy demand, and growing environmental consciousness. Japan and South Korea contribute to market advancement through technological innovation and strict waste management regulations. The market demonstrates particular strength in agricultural waste management, especially in rural areas where biogas provides both energy and organic fertilizer. Southeast Asian countries are increasingly adopting biogas technology, particularly in the palm oil industry and livestock farming sectors. The region's diverse feedstock availability, including agricultural residues, livestock waste, and municipal solid waste, provides substantial opportunities for market expansion.
Biogas Market in South America
South America's biogas market is experiencing steady development, driven primarily by Brazil's leadership in bioenergy initiatives and growing environmental awareness across the region. The market benefits from the region's strong agricultural sector, providing abundant feedstock for biogas production. Brazil's comprehensive renewable energy policies and investment in biogas infrastructure set the pace for regional development. Other countries, including Argentina and Colombia, are gradually developing their biogas sectors, focusing on agricultural waste and municipal solid waste management. The region's market is characterized by increasing private sector participation and growing government support for renewable energy projects. The sugar and ethanol industry plays a crucial role in biogas production, utilizing agricultural residues and processing waste. The market shows particular potential in livestock farming sectors, municipal waste management, and industrial organic waste processing, supported by improving technology adoption and growing environmental regulations.
Biogas Market in Middle East & Africa
The Middle East and Africa region represents an emerging market in the biogas market landscape, with significant untapped potential for growth. The market is primarily driven by increasing awareness of renewable energy benefits and growing waste management challenges in urban areas. South Africa leads the regional market with progressive renewable energy policies and growing implementation of biogas projects. Countries in the Middle East are gradually recognizing biogas as a viable solution for waste management and renewable energy generation. The region benefits from abundant organic waste resources, including municipal solid waste, agricultural residues, and industrial organic waste. Ethiopia and Kenya are emerging as significant markets in East Africa, supported by international cooperation and growing environmental consciousness. The market shows particular promise in municipal waste management, agricultural waste processing, and industrial applications. Growing urbanization and increasing focus on sustainable development continue to drive market expansion across the region.
Biogas Industry Overview
Top Companies in Biogas Market
The biogas industry features prominent players like Engie SA, DMT International, IES Biogas, EnviTec Biogas AG, Hitachi Zosen Inova AG, and AEV Energy GmbH, leading the industry through continuous innovation and strategic expansion. These largest biogas companies are increasingly focusing on technological advancements in biogas plant construction, upgrading facilities, and operational optimization through digitalization and automation. The industry witnesses a strong trend toward vertical integration, with companies expanding across the value chain from plant construction to operations and maintenance services. Market leaders are actively pursuing partnerships and collaborations to enhance their technological capabilities and geographical presence, particularly in emerging markets. Companies are also emphasizing sustainable practices and circular economy principles in their operations while simultaneously developing innovative solutions for biogas upgrading and biomethane production to meet growing clean energy demands.
Dynamic Market with Regional Industry Leaders
The biogas market exhibits a moderately consolidated structure with a mix of global conglomerates and specialized regional players dominating different geographical segments. European companies, particularly from Germany and France, maintain a strong presence in the global market due to their advanced technological capabilities and extensive experience in biogas plant construction and operations. The industry is characterized by a combination of large-scale integrated energy companies that view biogas as part of their renewable energy portfolio and specialized biogas technology providers focusing on specific segments of the value chain.
The market has witnessed significant merger and acquisition activity, particularly in developed markets, as companies seek to expand their technological capabilities and geographical footprint. Strategic partnerships between technology providers and local operators have become increasingly common, especially in emerging markets where regulatory frameworks are evolving. The industry also sees collaboration between biogas plant operators and waste management companies, creating integrated solutions for organic waste processing and energy generation. This trend toward consolidation is driven by the need for economies of scale and the increasing complexity of biogas projects requiring diverse technological expertise.
Innovation and Adaptability Drive Future Success
Success in the biogas market increasingly depends on companies' ability to innovate in plant efficiency, feedstock flexibility, and biogas upgrading technologies. Market players must focus on developing cost-effective solutions for smaller-scale applications while maintaining capabilities for large industrial installations. The ability to offer comprehensive solutions, from project development through operation and maintenance, is becoming crucial for maintaining market position. Companies need to strengthen their digital capabilities for remote plant monitoring and optimization while developing expertise in handling diverse feedstock sources.
Future market success will require companies to navigate complex regulatory environments while maintaining strong relationships with feedstock suppliers and end-users. Players must focus on developing standardized solutions that can be quickly deployed while maintaining flexibility to adapt to local conditions and requirements. The increasing emphasis on renewable natural gas companies and biomethane industry production creates opportunities for companies with advanced upgrading technologies. Success will also depend on companies' ability to integrate their biogas solutions with existing infrastructure and develop innovative business models that address both waste management and energy generation needs. Risk management capabilities, particularly in feedstock supply and output pricing, will become increasingly important for maintaining competitive advantage.
Biogas Market Leaders
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Engie SA
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Bekon GmbH
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DMT International
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EnviTec Biogas AG
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AEV Energy GmbH
- *Disclaimer: Major Players sorted in no particular order
![Engie SA, DMT International, IES Biogas, EnviTec Biogas AG, Weltec Biopower GmbH, Schmach Biogas GmbH, and AEV Energy GmbH](https://s3.mordorintelligence.com/biogas-market/biogas-market_Capture.webp)
Biogas Market News
- January 2022: BioConstruct announced it had signed a power purchase agreement (PPA) with Cologne-based electricity trading company, Next Kraftwerke in Germany. The company also revealed that, under the agreement, Next Kraftwerke would market 40,000 MWh of biogas electricity in the first quarter of 2022. BioConstruct delivers electricity from its biogas plants and its customers' facilities. A total of 86 biogas CHPs are involved in the fixed-price PPA.
- May 2022: Enertech Fuel Solutions announced plans to invest INR 600 crore for its foray into the compressed biogas (CBG) business. The investment is expected next year for a pan-India in the CBG business. The project is expected to be developed in different phases. In the first phase, establish four CBG plants in Gujarat, Uttar Pradesh, Punjab, and Haryana. In the second phase, invest one more plant in each of these states, while adding two more plants in Madhya Pradesh.
Biogas Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Biogas Production Installed Capacity and Forecast in GW, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Supportive Government Policies And Regulations
- 4.5.1.2 Efforts To Reduce Greenhouse Gas Emissions
- 4.5.2 Restraints
- 4.5.2.1 Increasing Competition From Alternate Renewable Energy Sources
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Application
- 5.1.1 Electricity Generation
- 5.1.2 Biofuel Production
- 5.1.3 Heat Generation
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5.2 Feedstock
- 5.2.1 Livestock Manure
- 5.2.2 Sewage
- 5.2.3 Food Waste
- 5.2.4 Crop Residues
- 5.2.5 Energy Crops
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 Japan
- 5.3.3.4 South Korea
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 United Arab Emirates
- 5.3.5.2 Qatar
- 5.3.5.3 Kenya
- 5.3.5.4 Tanzania
- 5.3.5.5 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Engie SA
- 6.3.2 DMT International
- 6.3.3 IES Biogas
- 6.3.4 EnviTec Biogas AG
- 6.3.5 Weltec Biopower GmbH
- 6.3.6 Hitachi Zosen Inova AG
- 6.3.7 AEV Energy GmbH
- 6.3.8 AAT Abwasser- und Abfalltechnik GmbH
- 6.3.9 BEKON GmbH
- 6.3.10 Nijhuis Saur Industries
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technological Advancements And Innovations In Biogas Industry
Biogas Industry Segmentation
Biogas is a mixture made from methane (CH4) and carbon dioxide (CO2), along with water and traces of gases. These gases are produced by the breakdown of organic matter in the absence of oxygen.
The biogas market is segmented by application, feedstock, and geography. By application, the market is segmented into electricity generation, biofuel, and heat generation. By feedstock, the market is segmented into livestock manure, sewage, food waste, crop residues, and energy crops. The report also covers the market size and forecasts for the biogas market across major regions such as North America, Europe, Asia-Pacific, South America and Middle-East & Africa. For each segment except feedstock, the market sizing and forecasts have been done based on installed capacity (GW).
Application | Electricity Generation | ||
Biofuel Production | |||
Heat Generation | |||
Feedstock | Livestock Manure | ||
Sewage | |||
Food Waste | |||
Crop Residues | |||
Energy Crops | |||
Geography | North America | United States | |
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
Japan | |||
South Korea | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle-East and Africa | United Arab Emirates | ||
Qatar | |||
Kenya | |||
Tanzania | |||
Rest of Middle-East and Africa |
Biogas Market Research FAQs
What is the current Biogas Market size?
The Biogas Market is projected to register a CAGR of 4.51% during the forecast period (2025-2030)
Who are the key players in Biogas Market?
Engie SA, Bekon GmbH, DMT International, EnviTec Biogas AG and AEV Energy GmbH are the major companies operating in the Biogas Market.
Which is the fastest growing region in Biogas Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Biogas Market?
In 2025, the Europe accounts for the largest market share in Biogas Market.
What years does this Biogas Market cover?
The report covers the Biogas Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Biogas Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Biogas Market Research
Mordor Intelligence offers comprehensive insights into the biogas industry through detailed biogas market analysis and consulting services. Our extensive research covers the entire spectrum of renewable natural gas (RNG) and compressed biogas (CBG) sectors. This includes developments in the biomethane industry and a thorough biogas production analysis. The report is available in an easy-to-read report PDF format for download. It provides in-depth coverage of biogas plant market dynamics, biomethane plants market evolution, and trends in the biogas compression market.
Our analysis benefits stakeholders across the value chain, from bio gas companies to investors. We offer detailed biogas market size projections and regional insights covering the Europe biogas market, global biomethane market, and emerging economies like the biogas market size in india. The report examines the largest biogas companies and renewable natural gas companies. It also provides a comprehensive analysis of developments in the biogas liquefaction market and opportunities in the organic biogas market. Our research addresses the needs of biomethane customers, innovations in the biogas solution market, and advancements in the biogas energy solution market, offering valuable insights for strategic decision-making.