Anaerobic Digestion Market Benefits from Soaring Bioenergy Demand, Fairfield Market Research Forecasts over 17% Growth by 2026

Anaerobic digestion (AD) process has been garnering considerable interest as a viable route to bioenergy generation over the recent past. With mounting biogas demand, and improving commercial availability of AD systems, Fairfield Market Research projects a promising outlook for the growth of the anaerobic digestion market at more than 17% CAGR over 2021 - 2026. The market attractiveness of anaerobic digestion technology will continue to heighten as several governments are increasingly considering it an economically competitive, and viable energy solution for the future.

While the global market size surpassed revenues of US$7 Bn in 2020, soaring inclusion of the process in large-scale farm operations is expected to push market growth in the near future. However, high capital investment involved in AD plant establishment, coupled with expensive O&M costs, will remain a major impediment for rapid market expansion, says the report.

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Market to Benefit from Efforts in Increasing Profitability of AD with the Help of Co-digestion
Research has been afoot in exploring the potential applicability of food waste as the key feedstock at anaerobic digester plants. Increasing inclination toward adopting a co-digestion strategy that involves both food waste, and wastewater sludge is likely to work to the advantage of the anaerobic digestion market. Huge waste volumes generated by restaurants, hotels, grocery stores, food processing units, agricultural facilities, and municipalities can thus be potentially turned into a valuable asset for the energy domain. While research reveals that this strategy has the potential to double the biogas yield, it clearly reflects the profitability in the process. This is expected to play out as a booster to market growth through 2025.

Europe Maintains Lead on Account of Maximum Installed Base

Europe, the most attractive market for establishment of AD plants over the years, retains its key position in the global landscape, led by Germany. While European markets have been significantly developed for installation of anaerobic digester systems, the supportive policy framework, and favourable incentives have played a pivotal role in the establishment of different AD models throughout the region.

In the US however the real AD conversion potential still remains underutilised. Although the technology looks highly attractive here, a lot of diversity and massive volumes of the potentially suitable feedstock continues to be wasted as a result of underutilisation. This is currently challenging the US market build-up to a large extent. However, supportive incentives like California's Low Carbon Fuel Standard are expected to attract more investments in renewable natural gas segment, which is anticipated to be a major contributor to the US anaerobic digestion market.

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Small-scale Digesters Uphold Markets in Developing Regions

Asia, South America, and Africa represent high-potential markets banking on voluminous growth in small-scale digester systems such as those owned by family/household farms. In fast-developing economies like India, there has been an exploding energy demand, and an exceptionally growing interest around the renewable energy sector. With spiralling sustainability concerns related to agro-industrial waste management, and consistently improving regulatory structure, the anaerobic digestion market players will most likely leverage the green opportunity appearing here.

Recent Notable Developments in AD Space
HoSt Group, the world leader in biogas technology, recently signed an exclusive partnership agreement with the UK's top AD plant service provider Birch Solutions. The collaboration has an objective of pushing AD plant expansion projects across the UK, and the former has in fact accomplished around 350 bioenergy plants in North America, and Asia besides Europe so far. This development is expected to be a significant booster to the UK's anaerobic digestion market in the near future.

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