Biogas Plant Market Expansion: Expected USD 10.04 Billion by 2033, CAGR 9.15%

Biogas Plant Market Outlook:

Biogas is a renewable and environmentally friendly source of energy. Biogas is the byproduct of biological digestion. Bio digestion produces non-polluting gas; in fact, it reduces greenhouse gas emissions. There is no combustion in the process, so there is no emission of greenhouse gases; therefore, using waste gas as an energy source is an excellent way to combat global warming. Biogas is predominantly composed of methane and carbon dioxide, with traces of water and other gases. Biogas is produced by the decomposition of organic matter in the absence of oxygen. Biogas is produced using techniques such as anaerobic digestion and landfilling, the majority of which consists of methane and carbon dioxide.

Biogas offers several advantages that are not shared by other fossil fuels in various applications, including residential stoves, combined heat and power (CHP), transportation, and commercial uses such as greenhouses. Due to its low carbon footprint, biogas aids in slowing the rate at which the average global temperature rises. The market for biogas plants is expected to grow due to the increasing demand for products used in various applications, such as electricity, heat, vehicle fuel, upgraded biogas, and cooking gas. The shift in emphasis toward using renewable energy, particularly in the electric power sector, has resulted in a substantial increase in the use of biogas in electricity applications. Moreover, the growing need to reduce reliance on fossil fuels creates growth opportunities for biogas in vehicle fuel applications.

According to Straits Research, the global biogas plant market size was valued at USD 4.56 billion in 2024 and is projected to grow from USD 4.98 billion in 2025 to USD 10.04 billion by 2033, exhibiting a CAGR of 9.15% during the forecast period (2025-2033).

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Market Dynamics

Increased Biogas and Biomethane Blend Share and Supportive Government Policies to Drive the Market

In addition to developing their agricultural sectors, several nations are adopting policies that mandate the use of biofuels and will soon set production targets for biofuels. It is important to note that mandates and incentives for blending biogas and biomethane with fossil fuels significantly contribute to the continued expansion of this fuel's production and use. For example, in 2019, the European Green Deal policy went into effect. The policy's objective was to reduce the proportion of greenhouse gas emissions that biofuels could produce. The target of a 55% reduction by 2030 was established to modify existing directives throughout European member states as they adjusted mandates to achieve these objectives. In the transportation industry, various biofuels are used, such as biodiesel, ethanol, biogas, and biomethane.

Since biomethane is becoming significantly more reliable and cost-effective in various regions, it may one day be able to completely replace natural gas. This possibility arises as the proportion of biomethane in fossil fuels continues to rise. In addition, the government's supportive policies have been a significant factor in the industry's expansion. Several national governments have implemented initiatives at the policy level to advance the biogas industry. Under the Clean Air Act, certain municipal solid waste landfills in the United States must install and maintain a system for collecting and controlling landfill gas emissions. In 2019, approximately 257 billion cubic feet of landfill gas were collected at 336 landfills in the United States and burned to produce approximately 10.5 billion kilowatt-hours (kWh) of electricity, which is equivalent to approximately 0.3% of the total amount of utility-scale electricity generation in the United States in 2019.

China has also increased its support for the technology by offering incentives covering 25% to 45% of the total cost of biogas projects, allocating more funding to China's central and western regions, and placing a greater emphasis on developing innovative projects. Feed-in tariff-like policies have been implemented to encourage power generation from plants. In addition, local service systems were installed to enhance the efficiency of biogas production and use.

Biogas Plant Market Segmentation

By Application
Vehicle fuel
Electricity
Heat
Upgraded biogas
Cooking gas

By Source
Municipal
Landfills
Wastewater
Industrial
Food Scrape
Wastewater
Agricultural
Dairy
Poultry
Swine Farm
Agricultural Residue

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Key Highlights

Based on the source, the municipal segment is expected to grow at a CAGR of 5% and reach USD 56,122 million during the forecast period.

Based on application, the segment of Vehicle fuel will have the largest share with USD 33,937 million, and at a CAGR of 5% in 2033.

Based on regional analysis, the Asia-Pacific region is expected to hold a share of USD 58,671 million at a CAGR of 6% during the forecast period.

Competitive Players

Engie SA
Air Liquide SA
Scandinavian Biogas
Gasum Oy
Ameresco
A2A SpA
AB Holding SpA (Gruppo AB)
EnviTec Biogas AG
BTS Biogas SRL/GmbH

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Regional Insights

The Asia-Pacific region is expected to hold a share of USD 58,671 million at a CAGR of 6% during the forecast period. An increase in market demand for biogas and an increase in public and private sector investments in the research and development of biogas technologies are the primary contributors to the region's rapid expansion in the Asia-Pacific. Each year, the world produces more than two billion tons of solid waste, with Asia-Pacific and Southeast Asian nations producing approximately 40% of the world's total solid waste. As a result, the region can produce biogas and address issues of management and climate change.

The growth of the biogas plant market in the Asia-Pacific region is also aided by factors such as the high demand for energy and stringent environmental regulations. China's public and private sectors are investing more in biogas production, which drives the market's expansion. Principal contributors to the biogas plant market's rapid expansion are the expanding biotechnology industries and the expanding government initiatives about energy security and energy independence.

The European region will command a share of USD 41,525 million at a CAGR of 3%. In the European region, the expansion results from technological advancements and rising investments in the refinery industry. To meet the rising demand for biogas in Europe, several companies throughout the continent intend to increase their share of feedstock over the coming years. These developments will increase biogas demand in the region. In Italy, for instance, the market is driven by the government's efforts to decarbonize the economy. Additionally, in March 2021, Eni SpA reached an agreement to acquire an Italian biogas company from FRI-EL Greenpower, a Gostner family-owned holding. Eco Fuel, a subsidiary of Eni's circular economy division, was tasked with executing the transaction.

North America will also have a significant share in the market during the forecast period, advancing at a prominent growth rate. The United States will significantly contribute to the growth of the region. The United States government has proposed several regulations to reduce the nation's reliance on traditional fuels and advance toward the goal of producing no carbon emissions. The region's biogas plant market growth is favorable regulatory and political, environmental, customer, geopolitical, and agricultural and economic support.

The U.S is the primary impetus behind the growth of the biogas market in North America. It is anticipated that the expanding demand for the product in various applications, including cooking gas, electricity, vehicle fuel, heat, and others, will positively impact the industry's growth throughout the forecast period. The primary factors driving the biogas plant market's expansion are the high demand for environmentally friendly fuels, strict environmental norms, and increased investment in the development of refineries.

Recent Developments

In 2022, BTS Biogas and Versalis jointly developed an innovative biogas and biomethane production technology from lignocellulose biomasses.

In 2022, BTS Biogas and the University of Padua entered into a partnership for the development of the Più-Biogas App

In 2022, Air Liquide SA, Toyota, and Caetano Bus joined forces to accelerate the growth of hydrogen mobility in Europe.

In 2022, Air Liquide SA and Lhoist joined forces to launch a first-of-its-kind decarbonization project of lime production in France.

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