Biogas and Biomethane Industry on Track to Reach a Valuation of $106.3 Billion by 2034
The Global Biogas and Biomethane Market is on an upward trajectory, with projections showing a growth from approximately USD 88.9 billion in 2024 to USD 106.3 billion by 2034, representing a compound annual growth rate (CAGR) of about 1.8% during the 2025–2034 period [1].
This growth is driven by several key factors. The global push towards renewable energy and carbon emission reductions, government incentives and regulations on clean fuel adoption, rising energy security concerns, and increased organic waste generation are all contributing to the expansion of the market [1].
The circular economy benefits and revenue opportunities for rural and municipal sectors also play a significant role in market growth [1]. Other drivers include stringent environmental regulations, technological advancements in biogas production and upgrading, increasing integration of biogas into energy grids, and expanding applications in sectors such as electricity generation, heating, and clean transportation fuel [2][3].
Europe is currently a leader in renewable gas development, with a market share of 45.8% and a value of USD 40.7 billion in 2024 [1]. Countries like Brazil, Germany, India, and China are expected to be major growth markets [1][2].
Anaerobic digestion is the dominant method of production, driving 93.3% of production, while its efficiency, scalability, and compatibility with existing waste infrastructure are key reasons for its dominance [1]. Biogas, with its versatility and lower technological complexity compared to biomethane production, holds the largest market share at 87.3% [1].
Biogas is used in various settings, providing heat for residential, commercial, and industrial uses, such as space heating and cooking. It is also used for electricity generation, a reliable renewable energy source, especially in rural areas with limited grid access [1]. Biomethane, refined from biogas, can feed power plants, supporting energy security and reducing fossil fuel reliance [1]. Biomethane can also serve as a renewable fuel for vehicles, like bio-CNG or bio-LNG, supporting cleaner transportation and reducing reliance on oil imports [1].
The Asia Pacific region is a growing market in the biogas and biomethane sector, particularly in agricultural economies with abundant organic waste [1]. The Middle East & Africa and Latin America are also emerging markets, with increasing adoption driven by sustainable energy needs [1].
Notable companies like TotalEnergies are investing in biomethane, acquiring Ductor's biogas technology to enhance the yield from organic waste [1]. Other companies like Agrinz Technologies, PlanET Biogas, Ivys Adsorption, and BIOKRAFT are making strides in biogas upgrading efficiency, real-time optimization, feedstock flexibility, and liquefied biogas production to meet the rising demand [1].
In conclusion, the global biogas and biomethane market is poised for growth, driven by renewable energy policies, emission reduction efforts, government incentives, waste-to-energy conversion, energy security, technological improvements, circular economy adoption, and regional policy support. Europe leads the market, with Asia Pacific, the Middle East & Africa, and Latin America showing promising growth. Key players are investing in technology and infrastructure to meet the rising demand for clean, renewable energy solutions.
[1] Market Study Report LLC, "Global Biogas and Biomethane Market - Analysis and Forecast, 2024–2034" [2] International Renewable Energy Agency (IRENA), "Renewable Energy Prospects: The Middle East" [3] European Biogas Association (EBA), "European Biogas Market Outlook 2024"
Financing in the renewable energy industry, particularly for the biogas and biomethane sector, is anticipated to increase due to the predicted growth of the market and the potential return on investment from the circular economy benefits and revenue opportunities for rural and municipal sectors.
Investment in the biogas and biomethane industry, such as TotalEnergies' acquisition of Ductor's biogas technology, demonstrates the growing interest in renewable gas development from major players in the finance sector.
