Global Biogas Market - Market Size & Forecast To 2032

GLOBAL BIOGAS MARKET - MARKET SIZE & FORECAST TO 2032

The global biogas market is estimated to be worth of USD 64.57 Billion in 2023 and is growing at a CAGR of 4.5% during the forecast period from 2023 to 2032. The biogas market is the growing awareness of the environmental impact of traditional energy sources, such as fossil fuels. Biogas is considered a more sustainable and eco-friendly alternative to these conventional sources of energy. Biogas production uses organic waste materials that would otherwise decompose and release methane into the atmosphere, a potent greenhouse gas that contributes to climate change. Biogas production, on the other hand, captures this methane and converts it into a renewable energy source, reducing greenhouse gas emissions. Government policies and incentives is another important driver of the biogas market is government policies and incentives that promote the development and use of renewable energy sources. Many countries have set renewable energy targets and implemented policies to support the growth of the biogas sector. For example, some governments offer financial incentives, such as tax credits and subsidies, to promote the installation and operation of biogas plants. Additionally, regulations and mandates may require utilities to use a certain amount of renewable energy, which can increase demand for biogas. Such policies and incentives create a favorable environment for the growth of the biogas market.

Biogas is a renewable energy source that is produced from the anaerobic digestion of organic matter, such as agricultural waste, food waste, and sewage. The process involves breaking down the organic matter in the absence of oxygen, which produces a mixture of gases, primarily methane and carbon dioxide. The resulting biogas can be used for heating, electricity generation, and as a transportation fuel. The production of biogas has several benefits. Firstly, it provides a sustainable source of energy that can replace non-renewable fossil fuels. This reduces greenhouse gas emissions and mitigates climate change. Secondly, it reduces the volume of organic waste that would otherwise be sent to landfills, where it would decompose and produce methane, a potent greenhouse gas. Biogas production captures this methane and converts it into energy, reducing overall greenhouse gas emissions.

Biogas can be used in a variety of applications, such as heating homes, generating electricity, and fueling vehicles. It is a versatile energy source that can be used in both urban and rural areas, making it a valuable asset in the transition towards a low-carbon future. The increasing popularity of biogas production has led to the development of advanced technologies and efficient processes that make it a viable and competitive energy source

Biogas market is segmented into source, process, form, technology, size, mode of transportation and end use.

Based on source, the market is segmented into municipal, industrial, agricultural and others. The agricultural and industrial segments will experience the most growth in the forecasting years. The agricultural sector has a significant role in the biogas market, with the use of agricultural waste as a feedstock for biogas production. As governments and industry leaders increasingly focus on reducing greenhouse gas emissions, there is growing interest in biogas production as a way to address the issue of agricultural waste. The growing demand for organic food and farming practices has led to an increase in the generation of organic waste, making biogas production a viable option for farmers and agricultural businesses. Similarly, the industrial sector has great potential for growth in the biogas market, as more companies are looking to adopt sustainable practices and reduce their carbon footprint. Industrial waste, such as food processing waste, can be used as a feedstock for biogas production, providing a sustainable and cost-effective source of energy.

Based on process, the market is segmented into landfill, sewage sludge, anaerobic digestion, pyrolysis and gasification. Anaerobic Digestion is expected to be the segment that will grow the most in the biogas market. Anaerobic digestion is a biological process in which microorganisms break down organic materials in the absence of oxygen, producing biogas as a byproduct. This process is commonly used to treat organic waste from sources such as agricultural waste, food waste, and wastewater, and is a well-established technology for the production of biogas

Based on form, the market is segmented into liquid and gas. Gas is expected to be the dominant segment that will grow in the biogas market. Biogas is primarily composed of methane, which is a gas, and is commonly used as a fuel for heating, electricity generation, and transportation. While biogas can be compressed and turned into a liquid fuel, it is more commonly used in its gaseous form. The demand for biogas is expected to increase in the coming years due to its renewable and sustainable nature, as well as the rising need for clean energy sources

Sources - QMI Research Practice, Primary & Secondary Insights

Based on technology, the market is segmented into with pre-hydrolysis and without pre-hydrolysis. The pre-hydrolysis technology segment is expected to grow in the biogas market due to its ability to increase the efficiency of biogas production by breaking down complex organic compounds into simpler ones before anaerobic digestion. This can result in higher biogas yields, shorter retention times, and lower operational costs. The pre-hydrolysis process can also help to treat a wider range of feedstock types and improve the quality of the digestate for use as fertilizer.

Based on size, the market is segmented into<500 kW, 500 kW - 3 MW and >3 MW. The<500 kW is expected to grow in the biogas market due to more adoption in rural areas and smaller communities, while the larger scale projects, such as >3 MW, may be more suitable for industrial or utility-scale applications. >3 MW segment is expected to witness moderate growth due to the high cost of large-scale biogas plants and their limited applications

Based on mode of transportation, the market is segmented into pipelines and container vehicle. Pipelines is expected to grow in the biogas market due to increase in the demand for clean and renewable energy sources, more pipelines are being installed to transport biogas from the production site to the end-users. Pipelines are considered to be the most efficient and cost-effective mode of transportation for biogas. On the other hand, container vehicles are used for the transportation of biogas in smaller quantities, typically for local distribution. While container vehicles will continue to play a role in the biogas market, the pipeline segment is expected to grow at a faster rate due to its higher capacity and lower operational costs.

On the basis of end-use, the global Biogas market is segmented into power generation, heat generation and biofuel production. The power generation segment is expected to experience the most growth due to government policies and incentives that support the development of renewable energy sources and the adoption of biogas-based power generation and increasing demand for electricity in developing countries and a need to transition to more sustainable energy sources. Advancements in biogas technologies, such as the use of gas engines and turbines that have improved the efficiency and reliability of biogas-based power generation.

Based on region, the biogas market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific market is expected to have the highest growth on account of current technology innovations and the fact that costs are declining. Another factor is the implementation of supportive schemes by the governments. Moreover, developing countries are rigorously trying to decrease their carbon emissions which are boosting the market of biogas in this region.