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Biogas Market to Witness Robust Expansion Through 2032

06-11-2025 06:41 AM CET | Energy & Environment

Press release from: Allied Analytics LLP

According to a new report published by Allied Market Research, the biogas market size was valued at $59.0 billion in 2022, and is estimated to reach $88.6 billion by 2032, growing at a CAGR of 4.2% from 2023 to 2032.

Biogas: A Renewable Energy Source

Biogas is a renewable energy source produced through the anaerobic digestion of organic materials, such as agricultural residues, animal manure, food waste, and sewage. This process generates a mixture of gases, primarily methane (CH4) and carbon dioxide (CO2), which can be used for various energy applications.

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Asia-Pacific region held the highest market share in terms of revenue in 2022, accounting for around two-fifths of the global biogas market revenue, and is likely to dominate the market during the forecast period, growing at a CAGR of 4.5% from 2023 to 2032.

The major players operating in the global biogas industry report are Wärtsilä, EnviTec Biogas AG, Air Liquide USA, Hindustan Petroleum Corporation Limited, India, PlanET Biogas Group, BoxLNG Pvt. Ltd., Bharat Biogas Energy Ltd., Primove Engineering Pvt. Ltd., GAIL Gas Limited, and GPS Renewables Pvt. Ltd. Other players include Green Elephant, IOT, Praj Industries, and SLPP RE.

Industrial and commercial applications play a pivotal role in driving the growth of the biogas market. As industries and businesses seek to reduce their carbon footprint and transition towards sustainable energy sources, biogas emerges as a viable solution.

Biogas can be utilized in various industrial processes, such as heating, cooling, and steam generation, providing a renewable and environmentally friendly alternative to fossil fuels.

Biogas can be upgraded to biomethane, a high-purity methane gas, and injected into the natural gas grid for industrial use, further expanding its applicability.

Advancements in biogas utilization technologies, such as fuel cells and microturbines, offer alternative pathways for generating electricity from biogas, improving overall system efficiency and performance.

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The integration of digitalization, automation, and smart monitoring systems in biogas plants enhances operational control, reduces downtime, and optimizes resource utilization, further driving biogas market growth.

Innovations also extend to the development of novel feedstocks for biogas production, such as algae and organic waste streams from industrial processes, unlocking new opportunities for biogas deployment in diverse sectors.

In the commercial sector, businesses are increasingly adopting biogas for heating, cooling, and electricity generation to meet their energy needs.

Restaurants, hotels, supermarkets, and other commercial establishments can utilize biogas produced from food waste and organic residues as a sustainable energy source while simultaneously reducing waste disposal costs and environmental impact.

Biogas can be utilized in cogeneration or combined heat and power (CHP) systems, where both electricity and heat are generated simultaneously, maximizing energy efficiency and cost savings.

Competition from conventional energy sources poses a significant challenge to the growth of the biogas market. Conventional energy sources, such as fossil fuels like coal, oil, and natural gas, have historically dominated the energy landscape due to their abundance, affordability, and established infrastructure.

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Biogas faces stiff competition in the marketplace, particularly in regions where fossil fuels remain heavily subsidized and entrenched in existing energy systems.

Innovation and technological advancements present lucrative opportunities for the biogas market.

As research and development in biogas technology continue to evolve, new and improved processes are being developed to enhance efficiency, reliability, and cost-effectiveness.

Advancements in anaerobic digestion techniques, such as high-rate digestion and co-digestion, allow for the more efficient breakdown of organic materials and higher biogas yields.

Innovations in biogas purification and upgrading technologies enable the production of high purity biomethane, suitable for injection into natural gas pipelines or use as a transportation fuel, thereby expanding the market potential for biogas beyond traditional applications.

By source, the market is divided into municipal waste, animal waste, agricultural waste, and others. The municipal waste segment accounted for the largest share in 2022 and is projected to grow at a CAGR of 3.9% from 2023 to 2032.

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By end-use industry, it is categorized into electricity generation, cogeneration, and others. The power generation segment accounted for the largest share in 2022, contributing to more than one-third of the global biogas market revenue, and is projected to maintain its lead position during the biogas market forecast period.

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David Correa1209 Orange Street,Corporation Trust Center,Wilmington, New Castle,Delaware 19801 USA.Int'l: +1-503-894-6022Toll Free: +1-800-792-5285Fax: +1-800-792-5285help@alliedmarketresearch.com

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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