Soaring Demand Set to Propel Biomethane Market to $5.11 Billion by 2029

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What Is the Expected CAGR for the Biomethane Market Through 2025?
The biomethane industry has experienced robust growth in recent years, increasing from $3.79 billion in 2024 to an estimated $4.06 billion in 2025, yielding a compound annual growth rate (CAGR) of 7.2%. The progression in the historical period is a result of heightened renewable energy goals, enhanced waste management strategies, improved energy security, the rise of circular economy practices, intensified decarbonization efforts, progression in infrastructure development, and growing market demand and acceptance.

What's the Projected Size of the Global Biomethane Market by 2029?
The biomethane market is projected to experience substantial growth in the forthcoming years, swelling to a robust $5.11 billion in 2029 with an impressive compound annual growth rate (CAGR) of 5.9%. The anticipated growth during the forecast period can largely be credited to rising climate policy ambitions, expansive green gas mandates, the proliferation of circular bioeconomy strategies, improved urban air quality, biofuel market expansion, and increased sustainability certification and traceability. Key trends predicted to emerge during this period include an augmented interest in renewable fuel alternatives, a rise in biogas upgrading facilities, its acceptance as a clean transportation fuel, integration with organic waste management systems, the evolution of sustainable supply chains, the enlargement of biomethane injection, cooperation between governmental bodies and industry stakeholders, advancements in production technologies, and the embracement of certification schemes.

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(Organic household waste, Animal manure, Energy crops, Agricultural waste, Sewage sludge, Industrial food processing waste, Other Feedstocks), By Production Method (Anaerobic Digestion, Gasification, Fermentation, Other Production Methods), By End User (Automotive, Power Generation, Industrial, Other End Users) - Market Size, Trends, And Global Forecast 2025-2034

Top Growth Drivers in the Biomethane Industry: What's Accelerating the Market?
The growing inclination towards sustainable and eco-friendly fuels is anticipated to drive the biomethane market's expansion in the future. Correspondingly, eco-friendly and sustainable fuel signifies energy forms that are considerate of the environment and sustainable, emitting the least amount of pollutants or greenhouse gases during their manufacture and usage. The quest for sustainable and eco-friendly sources of energy is on the rise as they act as an ecologically sound and sustainable replacement for conventional fossil fuels. Biomethane, as a green energy alternative, offers numerous benefits in sync with environmental sustainability, economical advancement, and societal welfare. For instance, as per the data from the Energy Information Administration (EIA), a US-based government entity, in June 2023, nonfossil fuel energy resources made up 21% of U.S. energy use in 2022, indicating a 3% ascent from the previous year. This surge was stimulated by a noteworthy contribution from nonfossil fuel resources, including renewables and nuclear, which collectively made up 21% of the country's energy usage in 2022. Hence, the escalating preference for sustainable and eco-friendly fuel is fostering the growth of the biomethane market.

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What Trends Will Shape the Biomethane Market Through 2029 and Beyond?
In a bid to heighten their profitability within the biomethane market, a number of dominant companies are concentrating their efforts on bringing about new production amenities for biomethane. Such setups are devised specifically for the purpose of generating biomethane, an eco-friendly variety of natural gas sourced from organic substances, typically via the process of anaerobic digestion or similar biological techniques. To illustrate, CycleO Group Limited, a prominent player in the biomethane production arena from the UK, made headlines in September 2023 with the inauguration of Spain's pioneer biomethane factory with an ammonia stripping feature. With this development, the conversion of manure into eco-friendly ammonium nitrate and sulfate-a fertilizer-has been made possible. Boasting a whopping annual production capacity of 15,000 MWh, this forms not only CycleØ's second functioning establishment in Spain, but also its foremost fully-developed, owned, constructed and run facility in the country. This will significantly curb nitrate contamination and release in the surrounding farming zone.

What Are the Main Segments in the Biomethane Market?
The biomethane market covered in this report is segmented -

1) By Feedstock: Organic Household Waste, Animal Manure, Energy Crops, Agricultural Waste, Sewage Sludge, Industrial Food Processing Waste, Other Feedstocks
2) By Production Method: Anaerobic Digestion, Gasification, Fermentation, Other Production Methods
3) By End User: Automotive, Power Generation, Industrial, Other End Users

Subsegments:
1) By Organic Household Waste: Kitchen Waste, Garden Waste, Organic Household Refuse
2) By Animal Manure: Cattle Manure, Poultry Manure, Pig Manure, Other Livestock Manure
3) By Energy Crops: Maize Silage, Grass Silage, Sorghum, Other Energy Crops
4) By Agricultural Waste: Crop Residues (Straw, Husks), Fruit And Vegetable Waste, Agricultural Byproducts
5) By Sewage Sludge: Primary Sludge, Secondary Sludge, Tertiary Sludge
6) By Industrial Food Processing Waste: Food Processing Residues (Fruit And Vegetable Peels), Dairy Waste, Beverage Industry Waste, Other Food Processing Byproducts
7) By Other Feedstocks: Green Waste, Wood Waste, Algae, Other Organic Waste

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Which Top Companies are Driving Growth in the Biomethane Market?
Major companies operating in the biomethane market are E.ON SE, Air Liquide S.A, The Southern California Gas Company, VERBIO SE, Société Générale de Surveillance, Veolia Group, Envitec Biogas AG, Orbital Gas Systems, Future Biogas Ltd., Green Gas International, ETW Energietechnik GmbH, Biokraft International AB, Gasrec Ltd., PlanET Biogas Global GmbH, CNG Services Ltd., Biogas Products Ltd., Nature Energy, Landwärme GmbH, AB HOLDING SPA, ENVO Group, Cryon Purr, Schmack Carbotech GmbH

Which Regions Will Dominate the Biomethane Market Through 2029?
Europe was the largest region in the biomethane market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the biomethane market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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