Biogas and Biomethane Market To Achieve USD 106.3 Bn by 2034

Overview

New York, NY – July 31, 2025 – The Global Biogas and Biomethane Market is projected to grow from USD 88.9 billion in 2024 to USD 106.3 billion by 2034, with a CAGR of 1.8% from 2025 to 2034. Europe leads the market, holding a valuation of USD 40.7 billion, driven by its strong focus on renewable gas development.

Biogas, a renewable fuel, is produced through anaerobic digestion of organic materials like agricultural waste, food scraps, manure, and sewage. This process, occurring without oxygen, yields a gas mixture primarily of methane (CH₄) and carbon dioxide (CO₂), used for electricity, heating, and vehicle fuel.

Biomethane, a refined version of biogas, is purified by removing CO₂, water vapor, and trace gases, creating a high-purity methane fuel suitable for natural gas grids or vehicles. Chemically similar to natural gas but sourced from organic matter, biomethane is a carbon-neutral, eco-friendly alternative.

Market growth is fueled by global efforts to cut carbon emissions and embrace renewable energy. Governments are enforcing strict emission regulations and providing incentives, boosting demand. For instance, GPS Renewables secured $50 million in debt financing to expand biogas facilities in India.

Increasing energy security needs and organic waste production create significant opportunities. Rural areas, farms, and municipalities benefit from converting waste into energy, supporting decentralized power and circular economy goals while generating additional income. Sistema.bio, a biogas technology startup, recently raised $15 million to support its global expansion.

Key Takeaways

• The Global Biogas and Biomethane Market is expected to be worth around USD 106.3 billion by 2034, up from USD 88.9 billion in 2024, and grow at a CAGR of 1.8% from 2025 to 2034.
• Biogas holds the largest market share at 87.3%, highlighting its dominance in renewable energy production globally.
• Municipal waste accounts for 53.6% of feedstocks, showcasing strong urban contributions to biogas and biomethane generation.
• Anaerobic digestion drives 93.3% of production, underscoring its efficiency and reliability in biogas and biomethane processing.
• Power generation leads end-use applications at 54.3%, indicating high demand for clean energy alternatives across the electricity sectors.
• The strong European  45.8% market presence reflects widespread biogas adoption and supportive energy policies.

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Key Market Segments

By Product Type Analysis

Biogas leads the biogas and biomethane market, capturing an 87.3% share in 2024. Its dominance stems from widespread use in agricultural, municipal, and industrial settings, driven by the ability to produce biogas directly from local organic waste. Biogas’s versatility in electricity generation, heating, and combined heat and power (CHP) systems makes it a practical, scalable renewable energy source, particularly in biomass-rich regions. Support for waste-to-energy initiatives and sustainable waste management, along with lower technological complexity and costs compared to biomethane production, bolsters biogas’s market position. Regulatory backing for decentralized renewable energy further cements its appeal.

By Feedstocks Analysis

Municipal waste dominates the feedstock segment, contributing 53.6% of the market in 2024. Urbanization and population growth drive the availability of organic waste, making municipal solid waste and wastewater sludge reliable, cost-effective feedstocks for biogas and biomethane production.

Municipalities are increasingly adopting anaerobic digestion to divert waste from landfills, reduce methane emissions, and generate renewable energy. Centralized waste treatment infrastructure in urban areas facilitates efficient processing, reinforcing municipal waste’s leading role in sustainable waste-to-energy systems.

By Production Process Analysis

Anaerobic digestion commands a 93.3% share of the production process segment in 2024, owing to its proven efficiency and adaptability across feedstocks like municipal waste, agricultural residues, and sewage sludge. Its scalability, from small rural digesters to large industrial plants, and compatibility with existing waste infrastructure make it the preferred method for biogas and biomethane production. Anaerobic digestion’s ability to manage waste while producing energy and reducing emissions aligns with regulatory goals for renewable energy and circular economy models, ensuring its market dominance.

By End-Use Analysis

Power generation holds a 54.3% share of the end-use segment in 2024, driven by demand for renewable, decentralized energy solutions. Biogas and biomethane are key fuels for electricity production in CHP systems, offering environmental and economic benefits. Consistent feedstock availability supports reliable power output, enhancing energy security and reducing fossil fuel reliance. Municipalities and utilities leverage biogas for low-carbon energy to meet sustainability goals while managing organic waste. Supportive government policies further solidify power generation as the primary application for biogas and biomethane.

Regional Analysis

Europe leads the biogas and biomethane market in 2024, with a 45.8% share and a market value of USD 40.7 billion. Strong regulations, advanced waste management infrastructure, and widespread integration of renewable gas into energy systems drive Europe’s dominance. North America shows steady growth, fueled by efforts to convert organic waste into clean energy and reduce landfill emissions.

Asia Pacific is a growing market, particularly in agricultural economies with abundant organic waste. The Middle East & Africa and Latin America are emerging markets, with increasing adoption driven by sustainable energy needs. Europe’s lead is clear, but global interest in renewable gas solutions is rising, fostering broader investment and adoption.

Top Use Cases

• Electricity Generation: Biogas is burned in engines or turbines to produce electricity, powering homes and businesses. It’s a reliable renewable energy source, especially in rural areas with limited grid access. Biomethane, refined from biogas, can also feed power plants, supporting energy security and reducing fossil fuel reliance.
• Heating Applications: Biogas provides heat for residential, commercial, and industrial uses, such as space heating and cooking. Biomethane, with its high purity, can be injected into gas grids for widespread heating. This reduces carbon emissions and offers a sustainable alternative to natural gas for urban and rural communities.
• Vehicle Fuel: Biomethane, purified to remove impurities, serves as a renewable fuel for vehicles, like bio-CNG or bio-LNG. It powers cars, buses, and trucks, cutting greenhouse gas emissions by up to compared to fossil fuels. This supports cleaner transportation and reduces reliance on oil imports.
• Cooking Fuel: Biogas is used in rural households for clean cooking, replacing traditional fuels like wood or coal. Small-scale digesters convert organic waste into biogas, improving indoor air quality and reducing deforestation. This is especially impactful in developing regions, promoting health and sustainability.
• Industrial Applications: Industries like food processing and chemicals use biogas and biomethane for heat and power. Organic waste from these sectors is converted into energy, reducing disposal costs and emissions. Biomethane can also serve as a feedstock for chemical production, supporting sustainable industrial processes.

Recent Developments

1. Agrinz Technologies GmbH

• Agrinz Technologies, an Austrian firm, specializes in biogas plant optimization and biomethane upgrading. Recently, they launched a new CO₂ liquefaction system to enhance biogas upgrading efficiency, reducing energy consumption. Their focus on carbon capture and utilization (CCU) aligns with EU decarbonization goals. They’ve also expanded into Eastern Europe with new biogas projects.

2. PlanET Biogas

• PlanET Biogas, a German biogas expert, recently completed a biomethane plant in the Netherlands, supplying green gas to the grid. They introduced AI-driven biogas monitoring for real-time optimization. Their new “FlexFerment” technology improves feedstock flexibility, allowing agricultural and industrial waste utilization. 

3. BIOKRAFT

• BIOKRAFT, a Swedish biogas producer, expanded its liquefied biogas (LBG) production to meet rising demand in transport. They secured an investment to build new plants in Scandinavia. Their partnership with Scania aims to supply renewable truck fuel, reducing CO₂ emissions compared to diesel. BIOKRAFT also introduced small-scale biogas solutions for rural areas.

4. TotalEnergies

• TotalEnergies is investing in biomethane, targeting annual production. They acquired Ductor’s biogas technology to enhance the yield from organic waste. A new 20 MW biomethane plant in France will supply households. They also partnered with Veolia to produce biomethane from wastewater sludge.

5. Ivys Adsorption Inc

• Ivys Adsorption, a US-based firm, developed a low-cost biogas upgrading system using pressure swing adsorption (PSA). Their new “GreenGas 2.0” technology reduces methane slip. They secured contracts in Latin America and Asia for small-scale biomethane projects. Their systems are now used in landfill gas-to-energy projects.

Conclusion

The Biogas and Biomethane Market is growing steadily, driven by the demand for renewable energy and sustainable waste management. With applications in electricity, heating, transportation, and agriculture, these gases offer versatile, low-carbon solutions. Supportive policies, technological advancements, and rising environmental awareness are fueling market expansion, positioning biogas and biomethane as key players in the global energy transition.

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