Press release
Global Anaerobic Digestion Market Projected to Surpass $18.3 Billion by 2029 with 9.4% Annual Growth
Anaerobic Digestion
The rise in demand for renewable natural gas (RNG) is anticipated to spur the expansion of the anaerobic digestion market in the future. RNG is methane derived from organic substances like agricultural waste, food leftovers, or waste water via anaerobic digestion or gasification techniques. The popularity of RNG can be attributed to its ability to cut down greenhouse gas emissions and the backing it gets from government incentives that encourage sustainable energy sources. The process of anaerobic digestion is critical for RNG as it converts organic waste into methane, which is then purified and upgraded to form a clean, renewable energy source. As an example, data from the U.S. Energy Information Administration, a government agency in the United States, in August 2024 suggested that in 2024, the country's natural gas consumption would see an approximate 1% rise from the previous year, averaging 90 billion cubic feet of natural gas each day. Hence, the increasing demand for RNG is fuelling the growth of the anaerobic digestion market.
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What is the future CAGR of the anaerobic digestion market, and how will it impact industry expansion?
There has been robust growth in the anaerobic digestion market size in the past few years. The anticipated growth is from $11.65 billion in 2024 to $12.79 billion in 2025, showing a compound annual growth rate (CAGR) of 9.7%. This increase during the historical period was influenced by energy demand, diversification, regulations around waste management, environmental issues, government benefits and subsidies, along with better access to feedstock.
Over the coming years, the anaerobic digestion market is projected to experience substantial growth. It is anticipated to reach a value of $18.32 billion by 2029, with a compound annual growth rate (CAGR) of 9.4%. This predicted growth during the forecast period can be traced back to a variety of factors including circular economy strategies, increasing consumer demands for sustainable solutions, a rising need for renewable natural gas, greater energy security and diversity, and heightened awareness regarding the reduction of methane emissions. Among the key trends during this forecast period are the merging with other renewable technologies, advancements in process optimization, improved diversity in feedstock, a lean towards decentralized and community-oriented systems, and the incorporation of cutting-edge pretreatment techniques.
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What are the most significant trends transforming the anaerobic digestion market today?
Leading firms in the anaerobic digestion sector are channeling their resources into innovative advancements such as anaerobic digester resources to increase the efficiency of waste-to-energy transformation and boost methane generation. These resources are advanced systems which dismantle organic waste in the absence of oxygen, resulting in the production of energy-efficient biogas and nutritious digestate for fertilizers. As an example, Evergreen Environmental Inc., an industrial hygiene and safety management consultancy based in the US, initiated an advanced anaerobic digester facility in Oshawa, Ontario, in July 2022. This facility is engineered to transform organic waste into renewable natural gas and reusable fertilizers via the procedure of anaerobic digestion. The facility is equipped to manage as much as 200,000 metric tons of organic waste each year, providing a solution for the region's waste management problems by rerouting waste from landfills and minimizing the environmental fallout associated with the decomposition of organic waste. The digester will make use of state-of-the-art technology already validated in various municipalities throughout Ontario and is projected to be fully operational by 2025. It is expected to yield renewable natural gas and nutrient-dense fertilizers to benefit local agricultural, commercial, and resident sectors.
Which key market segments comprise the anaerobic digestion market and drive its revenue growth?
The anaerobic digestionmarket covered in this report is segmented -
1) By Feedstock Type: Organic Waste, Agricultural Residues, Wastewater Sludge, Energy Crops
2) By Digestion System: Mesophilic Anaerobic Digestion, Thermophilic Anaerobic Digestion, Multi-Stage Anaerobic Digestion
3) By Application: Residential, Commercial, Industrial
4) By End-Use: Power Generation, Transportation Fuel, Fertilizer Production, Other End-Uses
Subsegments:
1) By Organic Waste: Food Waste, Yard Waste, Municipal Solid Waste, Agricultural Residues
2) By Agricultural Residues: Crop Residues, Livestock Manure, Other Agricultural By-products
3) By Wastewater Sludge: Primary Sludge, Secondary Sludge
4) By Energy Crops: Dedicated Energy Crops, Intercropped Energy Crops, Cover Crops
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What regions are at the forefront of anaerobic digestion market expansion?
North America was the largest region in the anaerobic digestion market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the anaerobic digestion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the leading players fueling growth in the anaerobic digestion market?
Major companies operating in the anaerobic digestion market are ENGIE Group, Viessmann Climate Solutions SE, Gasum Oy, Ameresco Inc., EnviTec Biogas AG, Bioenergy Devco, AB HOLDING SPA, Adnams plc, Capstone Green Energy Corporation, WELTEC BIOPOWER GMBH, BDI-BioEnergy International GmbH, Scandinavian Biogas Fuels International AB, Clarke Energy., PlanET Biogastechnik GmbH, Xergi A/S, Schmack Biogas GmbH, Agrinz Technologies GmbH., Northern Biogas, Bright Biomethane, Agraferm GmbH, AAT Abwasser- und Abfalltechnik GmbH, Biogest AG
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What Is Covered In The Anaerobic Digestion Global Market Report?
•Market Size Forecast: Examine the anaerobic digestion market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the anaerobic digestion market for a structured understanding.
•Key Players Overview: Analyze major players in the anaerobic digestion market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the anaerobic digestion market.
•Segment Contributions: Evaluate how different segments drive overall growth in the anaerobic digestion market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the anaerobic digestion market.
•Industry Challenges: Identify potential risks and obstacles affecting the anaerobic digestion market.
•Competitive Landscape: Review strategic developments in the anaerobic digestion market, including expansions, agreements, and new product launches.
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