Renewable Natural Gas (RNG) Market Size Forecast to USD 29.7 Billion by 2035 with Rising Focus on Low-Carbon Energy - Analysis by Transparency Market Research

Renewable Natural Gas (RNG) Market Size Outlook 2035

The global renewable natural gas (RNG) market was valued at US$ 14.0 billion in 2024 and is projected to reach US$ 29.7 billion by 2035, growing at a CAGR of 7.0% from 2025 to 2035. Leading companies in the industry include Clean Energy Fuels, BP Plc, and Shell Biogas. In 2024, North America dominated the market with a 45% revenue share, while the compressed renewable natural gas segment emerged as the top product type, accounting for 58% of the market share.

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Market Overview

Renewable natural gas (RNG), also known as biomethane, is produced from organic waste sources such as agricultural residues, food waste, wastewater sludge, and landfills. RNG is gaining rapid global traction due to its ability to reduce greenhouse gas (GHG) emissions, support the circular economy, and serve as a drop-in replacement for conventional natural gas across industrial, transportation, residential, and utility sectors.

Growing investments in waste-to-energy (WTE) facilities, rising carbon credit markets, and the introduction of aggressive net-zero emission policies by governments are accelerating RNG adoption. The transportation sector-in particular heavy-duty trucking-is emerging as one of the most lucrative application segments, driven by the push toward low-emission fuels.

Key Market Growth Drivers

1. Global Decarbonization and Net-Zero Commitments
Governments and industries worldwide are adopting net-zero targets, boosting demand for renewable energy sources. RNG is a key enabler of decarbonization for hard-to-electrify sectors.

2. Government Incentives and Favorable Policies
Subsidies, tax credits, grants, and carbon offset programs in the U.S., Europe, and Asia-Pacific significantly lower production costs and attract strong investor interest.

3. Expansion of Waste-to-Energy Infrastructure
Increasing availability of feedstock-including agricultural biomass, dairy manure, and municipal solid waste-promotes large-scale RNG production.

4. Growing Adoption in the Transportation Sector
RNG serves as a near-zero-emission fuel for heavy-duty trucking and fleet operations. The rise of renewable compressed natural gas (R-CNG) and renewable liquefied natural gas (R-LNG) is driving strong market momentum.

5. Rising Corporate Sustainability Initiatives
Large industrial and utility companies are procuring RNG to minimize Scope 1 emissions and improve ESG performance.

Analysis of Key Players in the Renewable Natural Gas (RNG) Market

Clean Energy Fuels remains one of North America's leading dedicated suppliers and marketers of renewable natural gas (RNG), offering carbon-zero fuel solutions for public transit fleets, logistics operators, airports, and waste-collection services. With a network of over 570 RNG refueling stations and an expanding portfolio of dairy-farm partnerships and joint ventures, the company maintains a fully integrated model-from feedstock sourcing to distribution and dispensing-positioning itself as a central force in decarbonizing hard-to-electrify transportation segments.

Following its acquisition of Archaea Energy, BP plc has emerged as a major global RNG player, expanding its agricultural and landfill-gas project pipeline. RNG plays a central role in BP's broader low-carbon energy strategy, enabling utility, industrial, and fleet customers to achieve verified emissions reductions. The company continues to scale production through long-term project development, proprietary upgrading technologies, and strategic partnerships, reinforcing its goal of significantly boosting biogas output by 2030.

Other notable companies participating in the global RNG market include Ameresco, Montauk Renewables, Verbio SE, Opal Fuels, Waste Management, FortisBC, Vanguard Renewables, and Shell Biogas. Each of these players is analyzed in the market research report across parameters such as financial performance, company overview, business strategies, product portfolio, operational segments, and recent advancements.

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Key Developments in the Renewable Natural Gas (RNG) Market

• Waste Management (2025):
Waste Management accelerated its RNG expansion by completing multiple pipeline-injection projects and advancing a 20-facility buildout program. Through expanded landfill-gas capture and upgrading operations, WM is turning previously flared methane into pipeline-quality RNG and transportation fuel-boosting renewable fuel revenues and significantly reducing Scope 1 emissions.

• Ameresco (2025):
Ameresco secured a major EPC contract to design, build, own, and operate a new landfill-to-RNG facility in Utah. The project reflects the growing trend of municipal-private RNG collaborations and strengthens Ameresco's long-term recurring revenue from utility-grade RNG assets.

• Vanguard Renewables (2024):
Vanguard opened a large-scale anaerobic digestion (AD) and depackaging facility capable of converting high-volume food and agricultural waste streams into hundreds of thousands of MMBtu of RNG each year. The project highlights Vanguard's vertically integrated development model-spanning farm partnerships, project construction, and offtake agreements-and demonstrates how commercial AD hubs can supply both pipeline RNG and corporate RNG (C-RNG) markets.

• BP (2024):
BP's enhanced RNG platform, strengthened by Archaea Energy, launched a modular landfill-to-RNG facility in Kansas. The plant can generate enough RNG to meet the equivalent heating demand of tens of thousands of households and showcases a scalable, modular design that BP plans to replicate across other landfill sites. This initiative is central to BP's strategy to grow its RNG production to industrial scale and expand revenues from low-carbon gas across utility, industrial, and transportation sectors.

Market Challenges & Opportunities

Challenges
1. High Initial Capital Investment
RNG plant construction and gas upgrading equipment require substantial upfront investment.
2. Feedstock Supply Variability
Seasonal feedstock fluctuations can limit capacity utilization.
3. Regulatory and Permitting Delays
Complex environmental regulations often delay project development timelines.
4. Competition from Other Biofuels
Biodiesel, renewable diesel, and green hydrogen pose competitive threats in industrial and transportation applications.

Opportunities
1. Expanding RNG Use in Transportation
The adoption of RNG in trucking, buses, and heavy-duty vehicles offers massive growth potential.
2. Utility Sector Decarbonization
Utilities are increasingly blending RNG into natural gas pipelines to meet emission reduction goals.
3. Integration with Carbon Capture Systems
Carbon-negative RNG production presents a significant long-term opportunity.
4. Growth in Asia-Pacific and Latin America
Rising municipal waste production and energy demand in these regions create favorable conditions for new RNG facilities.
5. Circular Economy Adoption
Turning organic waste into energy promotes sustainability, attracting public and private investment.

Investment Landscape and ROI Outlook

The RNG market offers high-potential investment opportunities driven by expanding demand, strong subsidies, and carbon credit benefits.

Investment Strengths
• Stable long-term demand from utilities and transportation
• High revenue potential through carbon credits
• Strong government backing in North America and Europe
• Long operational life of RNG facilities

ROI Outlook

With a CAGR of 7.0% through 2035, investments in RNG facilities-especially those integrated with carbon capture-are expected to yield attractive medium-to-high returns.
Early investors in emerging markets stand to benefit significantly from first-mover advantages.

Market Segmentations

By Source
• Agricultural Waste
• Food Waste
• Landfills
• Wastewater Treatment Plants
• Manure & Dairy Waste
• Others

By Application
• Transportation Fuel (R-CNG/R-LNG)
• Power Generation
• Industrial Heating
• Residential & Commercial Use
• Utility Pipeline Injection

By Technology
• Anaerobic Digestion
• Gasification
• Biogas Upgrading Technologies
o PSA
o Water Scrubbing
o Membrane Separation
o Cryogenic Separation

By Region
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

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Why Buy This Report?

✔ Comprehensive 2035 market forecast with growth trajectory
✔ Insights into key drivers, challenges, and emerging opportunities
✔ Competitive landscape and strategic initiatives of major RNG companies
✔ Detailed segmentation by feedstock, application, technology, and region
✔ Strategic guidance for investors, utilities, and fuel distributors
✔ Covers carbon market developments, waste-to-energy trends, and regulatory frameworks

FAQs

1. What will be the size of the RNG market by 2035?
The market is expected to reach US$ 29.7 Billion by 2035.

2. What is the projected CAGR from 2025-2035?
The market is expected to expand at a CAGR of 7.0%.

3. Which sector uses the most RNG?
The transportation and utility pipeline sectors are the fastest-growing application areas.

4. What regions offer promising growth?
North America and Europe currently lead, while Asia-Pacific is emerging as a high-growth region.

5. Which factors are driving market growth?
Decarbonization mandates, government incentives, waste-to-energy initiatives, and carbon credit programs.

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