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Biogas Market Projected to Surpass USD 93,679.9 million by 2034

07-23-2025 08:46 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Future Market Insights

Biogas Market

Biogas Market

The global biogas market is poised for significant expansion, with its valuation anticipated to grow from an estimated USD 43,052.7 million in 2024 to a remarkable USD 93,679.9 million by 2034, exhibiting a robust Compound Annual Growth Rate (CAGR) of 8.1%. This impressive growth is fundamentally driven by the increasing global demand for renewable energy, stringent environmental regulations, and the urgent need for effective waste management solutions.

Biogas, a renewable form of energy produced through the anaerobic digestion of organic waste (such as crop residue, wastewater sludge, and animal waste), is gaining immense traction. The anaerobic digestion sector is uniquely positioned to help achieve the Global Methane Pledge made by over 100 countries since 2021. Crop residue, rich in lignocellulose and often considered waste, is emerging as a highly favorable and abundant feedstock for biogas production due to its high biogas and methane yield potential.

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Key Drivers and Market Dynamics:

- Governmental Support and Policies: Active government support through subsidies, fixed tariffs, premiums, and auctions is a primary factor driving the industry's growth. Initiatives like India's Biogas Programme and the Sustainable Alternative Towards Affordable Transportation (SATAT) are fostering a favorable environment for biogas production.
- Increasing Biogas Plant Installations: Several countries are planning to install a large number of biogas plants in the coming years as part of their low-carbon technology and net-zero carbon emission strategies. Companies like Sistema.bio aim to deploy thousands of biogas plants, significantly reducing CO2 emissions.
- Growing Demand for Biogas Upgradation: The increasing adoption of upgraded biogas (biomethane) as a transportation fuel and for heat/electricity generation is elevating sales. Biomethane, with its nearly 100% methane content, offers a quality comparable to natural gas and can directly replace fossil fuels in existing infrastructure, accelerating decarbonization.
- Co-generation Dominance: The co-generation (combined heat and power - CHP) segment is estimated to remain dominant in the application segment, holding a 35.2% value share in 2024. Co-generation offers advantages such as reduced carbon emissions, contribution to sustainability goals, and enhanced operational efficiency, making it a viable and attractive renewable energy source.
- Crop Residue as Leading Feedstock: Crop residue is estimated to emerge as a leading feedstock type with a 37.8% value share in 2024. Its abundant global availability, coupled with government pushes for green practices and minimization of greenhouse gas emissions from untreated waste, makes it a highly attractive and sustainable source for biogas production.

Challenges and Opportunities:

The biogas market faces challenges primarily related to technological limitations in biogas production efficiency and the environmental impact of methane emissions (a potent greenhouse gas). The current anaerobic digestion technology is not always efficient enough to prevent methane leakage, contributing to global warming.

However, significant opportunities abound. The global push for greenhouse gas emission reduction, waste management, and pollution reduction are strong drivers. Integrated investment plans from various countries, supported by international organizations, are facilitating the setup of large industrial-scale biogas projects. Innovations in anaerobic digestion technology and improved biogas upgrading methods are expected to enhance efficiency and expand applications across various sectors.

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Market Performance and Regional Trends:

The global biogas industry has experienced significant growth over the past few decades, driven by increasing demand for renewable energy and climate change awareness. From 2020 to 2024, the market saw consistent growth, with governments promoting renewable energy sources and integrating biogas into energy grids.

Regionally, Brazil is projected to dominate country-wise growth with an estimated CAGR of 12.2%, followed by Germany (11.6% CAGR), India (9.3% CAGR), and China (8.9% CAGR).

China is driven by its government's commitment to renewable energy and waste management, coupled with its status as the largest agricultural waste producer.
The United States (8.1% CAGR) benefits from advanced waste collection and segregation technologies, with a large number of operational biogas plants and federal/state incentives.
Germany (6.9% CAGR) is fueled by supportive governmental policies, subsidies, and advanced production technologies, with a robust presence of over 20,000 biogas plants.

Competitive Landscape and Strategic Outlook:

The global biogas market is slightly consolidated, with key players like BP p.l.c., Shell, Engie, Veolia, and TotalEnergies holding significant market shares. These companies prioritize technological advancements, sustainable practices, and expanding their global footprints. They are actively fostering collaborations to stay at the forefront of innovation, ensuring their biogas solutions align with evolving consumer demands for quality and adaptability.

Recent industry updates highlight these strategic moves:

- In June 2023, Sistema.bio opened the world's largest contemporary biodigester production plant in Pune, India.
- In October 2024, Lantmännen, a Swedish agricultural cooperative, announced the establishment of Lantmännen Biogas.

The biogas market is poised for a transformative decade, driven by its critical role in the global energy transition, waste management, and climate change mitigation efforts. Companies that prioritize innovation, strategic partnerships, and sustainable production will be well-positioned for long-term success in this vital sector.

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Controlled and Slow Release Fertilizers Market: https://www.futuremarketinsights.com/reports/controlled-and-slow-release-fertilizer-market

Furfuryl Alcohol Market: https://www.futuremarketinsights.com/reports/furfuryl-alcohol-market

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About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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