Biogas Market by Application (Electricity Generation, Biofuel Generation, Combine Heat & Power, and Others), Technology (With Pre-Hydrolysis & Without Pre-Hydrolysis), and Source (Municipal Waste, Animal Waste, Agricultural Waste, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2030

Market Perspective

The global Biogas Market size was worth around USD 58.23 billion in 2022 and is predicted to grow to around USD 86.71 billion by 2030 with a compound annual growth rate of roughly 5.16% between 2020 and 2030.

One of the key drivers of the growth of the biogas market is the increased emphasis on renewable energy, particularly in the electric power industry. The demand for biogas in electricity applications has been greatly fueled by this trend, as more and more power companies look for sustainable ways to generate electricity. Additionally, the use of biogas as a cooking gas has been on the rise, particularly in developing countries where access to traditional fuels like wood and charcoal is limited.

Another significant driver of the biogas market share is the growing desire to minimize reliance on fossil fuels. As the world becomes more conscious of the environmental impact of burning fossil fuels, the demand for alternative sources of energy has increased. This trend has created a profitable potential for biogas in automobile fuel applications, as biogas can be used as a substitute for gasoline or diesel. In fact, biogas is becoming an increasingly popular fuel for vehicles in Europe, where several countries have implemented policies to encourage the adoption of biogas as a transportation fuel.

Key Insights

• Based on application, the electricity generation segment held the largest market share
• Based on technology, the pre-hydrolysis segment dominated the market
• Based on source, the municipal waste segment generated the highest revenue
• On the basis of region, Europe accounted largest market share

Growing Demand for More Refined Biogas is Propelling the Market Growth

The global biogas market is experiencing significant growth due to the increased demand for more refined biogas. This gas is produced through the breakdown of organic matter in the absence of oxygen and typically contains about 50-70% methane, making it a valuable source of energy. However, the raw biogas produced by anaerobic digestion is not always suitable for direct use and requires further refinement to remove impurities such as carbon dioxide, water vapor, and hydrogen sulfide. The resulting purified biogas, also known as biomethane, can be used for a variety of applications, including heating, electricity generation, and as transportation fuel.

One of the biggest worldwide issues is the lack of traditional fossil fuels combined with environmental damage. These issues are anticipated to be resolved with the introduction of renewable energy. This gas is essential for creating a civilization that is sustainable and reducing reliance on oil. The amount of methane in this gas is significant; it is further upgraded into biomethane. Natural gas vehicles can run on biomethane, a renewable fuel that has similar qualities to natural gas. In comparison to fossil-based fuels, this gas can reduce greenhouse gas emissions by roughly 60% to 80%, according to the International Renewable Energy Agency (IRENA). Currently, about 150 gas stations in Germany offer 100% biomethane. Thus, the surging production of automobiles is projected to drive the demand for biomethane.

Major Players in Biogas Industry Are Focusing on Increasing Productivity is a New Trend in the Market

The biogas industry is highly fragmented, with numerous regional and international companies vying for market share. To stay competitive, major players in the industry are focusing on increasing productivity through organic and inorganic developments. Companies are investing in research and development to improve their technologies, making the production process more efficient, and reducing production costs. Additionally, most businesses are concentrating on increasing their capacity for production through the addition of new factories or the expansion of existing ones.

For instance, Weltec Biopower constructed a facility in Veria, Greece, in May 2020. The largest cow and pig slaughterhouses in Greece are the project's primary investors. The plant uses waste from these slaughterhouses to produce biogas that can be used to generate electricity or heat. Similarly, the company Brightmark Energy announced in February 2020 that it would be expanding its dairy biogas project in Western New York. To create renewable natural gas and other useful byproducts, methane would be extracted from 265,000 gallons of dairy manure every day as part of the Yellowjacket project. This expansion is part of the company's broader strategy to increase its capacity for the production of renewable natural gas.

Recent Development

In March 2021: Through its subsidiary for the circular economy, Ecofuel, Eni SpA agreed to acquire an Italian biogas company from FRI-EL Greenpower, a company owned by the Gostner family. Before the transaction can be finalized, it must have the appropriate antitrust authorities' approval.

In April 2020: In the Polish district of Zachodniopomorskie, Ductor began construction on three facilities that mix biofertilizer and biogas. The installed capacity of the first two of these three plants is 0.5 MW, and the third is 1 MW.

Segmentation Analysis

On the basis of application, the market is categorized into electricity generation, biofuel generation, combined heat & power, and others. The electricity generation segment dominates the market, as the use of biogas for electricity generation has greatly expanded due to increased focus on renewable energy, particularly in the electric power industry. Additionally, the implementation of stringent environmental rules and the growing use of renewable energy technologies for power generation will further drive the adoption of biogas. The growing demand for biofuels across various industries, particularly the automotive sector, is anticipated to drive market growth. Upgrade biogas is made by turning biogas into biomethane by filtering out pollutants such as water, carbon dioxide, hydrogen sulfide, and other gases.

By technology, the market is categorized into with pre-hydrolysis & without pre-hydrolysis. The pre-hydrolysis segment dominates the market share due to extrusion, which accounted for the largest revenue share in 2021. Pre-hydrolysis technology is increasingly being used in biogas plants due to its low cost, energy recovery, and less creation of biosolids. The hydrolysis of substrates is considered the most significant step in biogas production during anaerobic digestion. Pretreating the substrates before biogas generation can improve biogas production by making it easier for enzymes to reach lignin, cellulose, and hemicellulose, leading to the destruction of the substrates. Therefore, the use of pretreatment for the catalysis of lignocellulose substrates is advantageous for creating an economically and environmentally benign process.

Based on source, the market is categorized into municipal waste, animal waste, agricultural waste, and others. The municipal waste segment is expected to witness substantial growth during the forecast period, as demand for biogas from the generation of biogas from municipal solid waste (MSW) is expected to increase to reduce landfills and greenhouse gas (GHG) emissions.

Additionally, the industrial segment is expected to experience significant expansion during the forecast period. The growing interest in discovering efficient ways to produce bio-products and biofuel from industrial food waste, as well as the growing requirement for wastewater treatment in the industrial sector, is expected to drive the demand for biogas.

Europe is Dominating the Market Due to Rise in Refining Industry and Technological Advancements

Europe maintained its dominance in the biogas market during the projected period, with the regional demand being driven by technological advancements and increased investments in the refining industry. The region's large-scale investments in research and development for biogas production from existing sources, as well as plans to increase the feedstock share, are expected to fuel the demand for biogas in the region.

Recently, Total SE, a French oil and gas company, acquired Fonroche Biogaz, a company that designs, builds, and manages anaerobic digestion plants in France. This acquisition has strengthened Total SE's position in the market, establishing them as a major player in renewable gas production in France and Europe.

Asia Pacific is the Fastest Growing Market Due to the Implementation of Stronger Law

The Asia Pacific market is expected to witness the fastest growth during the projected period. This growth is being fueled by the implementation of stronger environmental regulations in developing nations such as India and China, aimed at reducing their carbon footprint. For instance, under India's flagship program, Swachh Bharat Mission, the government aims to eradicate open defecation and achieve 100% scientific solid waste management, as only 53% of the country's waste is currently processed. The Indian Ministry estimates that 1.45 lakh metric tons of trash are generated daily in the country. These initiatives are expected to drive the demand for biogas in the region.

Competitive Landscape

• PlanET Biogas
• Engie SA
• AEV Energy GmbH
• EnviTec Biogas AG
• Agrinz Technologies GmbH
• Gasum Ltd
• WELTEC BIOPOWER GMBH
• Scandinavian Biogas Fuels International AB
• Hitachi Zosen Inova AG

The global biogas market is segmented as follows:

Application

• Electricity Generation
• Biofuel Generation
• Combine Heat & Power
• Others

By Technology

• With Pre-Hydrolysis
• Without Pre-Hydrolysis

By Source

• Municipal Waste
• Animal Waste
• Agricultural Waste
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America