Biogas Market Research Report: By Application (Electricity Generation, Transportation Fuel, Heating Applications, Fertilizer Production), By Feedstock (Agricultural Waste, Municipal Solid Waste, Animal Manure, Industrial Waste), By Technology (Anaerobic Digestion, Landfill Gas Recovery, Gasification), By End Use (Residential, Commercial, Industrial) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Biogas Market Summary

As per MRFR Analysis, the Global Biogas Market was valued at 12.41 USD Billion in 2023 and is projected to grow to 30.4 USD Billion by 2035, with a CAGR of 7.75% from 2025 to 2035. The market is driven by increasing environmental regulations, rising organic waste generation, and advancements in anaerobic digestion technology, which enhance efficiency and cost-effectiveness in biogas production. The focus on renewable energy sources and waste management solutions further supports market growth.

Key Market Trends & Highlights

The Biogas Market is witnessing significant trends driven by sustainability and technological advancements.

• Electricity Generation application is expected to grow from 5.0 USD Billion in 2024 to 11.0 USD Billion by 2035.
• Transportation Fuel segment projected to increase from 3.5 USD Billion in 2024 to 8.0 USD Billion by 2035.
• Heating Applications are anticipated to rise from 3.0 USD Billion in 2024 to 6.5 USD Billion by 2035.
• Fertilizer Production is expected to grow from 1.87 USD Billion in 2024 to 4.9 USD Billion by 2035.

Market Size & Forecast

2023 Market Size: USD 12.41 Billion

2024 Market Size: USD 13.37 Billion

2035 Market Size: USD 30.4 Billion

CAGR (2025-2035): 7.75%

Largest Regional Market Share in 2024: Europe.

Major Players

Key players include Planet Biogás, DVO Inc., Envirowaste, WELTEC BIOPOWER, Greenlane Renewables, Waste Management, AB Energy, Clean Energy Fuels, Biogas Energy, Bioenergy DevCo, SUEZ, Veolia, Xergi, Gasrec, EcoSMRT.

Key Biogas Market Trends Highlighted

The Biogas Market is significantly influenced by the growing emphasis on renewable energy sources and sustainability. Key market drivers include increasing environmental concerns regarding waste management and greenhouse gas emissions. Governments across the globe are promoting energy transition policies that foster the generation of cleaner energy, which has led to heightened investments in biogas production facilities. Additionally, advancements in anaerobic digestion technologies have improved the efficiency and viability of biogas plants, making them a more attractive option for energy generation. Opportunities to be explored in the Biogas Market include the utilization of organic Waste to Energy from agricultural, industrial, and municipal sources.

As many countries increasingly recognize the economic benefits of waste recycling and energy recovery, this creates a fertile ground for biogas development. Furthermore, expanding policies aimed at reducing reliance on fossil fuels can open doors for partnerships between energy companies and agricultural sectors, enhancing the overall biogas ecosystem. In recent times, trends such as decentralization of energy production and the rising popularity of on-site biogas plants reflect a shift towards localized energy solutions. This trend is particularly evident in developing regions, where rural communities are exploring biogas for self-sufficiency.

The integration of biogas with other renewable energy technologies, such as solar and wind power, is also gaining traction, as it offers a complementary solution for energy generation. Overall, the Biogas Market is positioned to grow as these trends pave the way for more sustainable energy practices worldwide.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biogas Market Drivers

Increasing Demand for Renewable Energy Sources

The Biogas Market Industry is expanding due to rising demand for renewable energy sources and growing environmental concerns. To tackle climate change, countries throughout the world are setting aggressive renewable energy objectives, which are leading to an increase in biogas production. According to the International Renewable Energy Agency (IRENA), renewable energy sources are predicted to make a major contribution to the global energy mix, reaching 50% by 2050 if present trends continue.

Globally, investments in renewable energy projects surged by 30% in the recent year, owing to strong regulatory backing and public awareness initiatives. This move is consistent with the United Nations Sustainable Development Goals, namely Goal 7, which focuses on cheap and sustainable energy. This trend suggests that biogas has a significant commercial potential as countries try to reduce their reliance on fossil fuels and minimize greenhouse gas emissions.

Supportive Government Policies and Regulations

Government initiatives play a pivotal role in shaping the Biogas Market Industry. Many countries are implementing policies that promote biogas production and usage as part of their efforts to enhance energy security and reduce greenhouse gas emissions. For instance, in 2021, the European Union introduced a revised Renewable Energy Directive that aims to increase the share of renewable energy, including biogas, to 32% by 2030. This directive encourages investment in biogas technology and infrastructure, providing financial incentives for both producers and consumers.

Additionally, the United States has seen an increase in federal grants and subsidies for biogas projects, reflecting the government's commitment to supporting renewable energy sources. These policies are expected to enhance the adoption and expansion of biogas installations, thereby fostering market growth.

Technological Advancements in Biogas Production

Innovations in technology are driving efficiency and cost-effectiveness in biogas production within the Biogas Market Industry. The development of advanced anaerobic digestion systems and gas purification techniques has improved biogas yield and quality, making it a more attractive option for energy generation. Research conducted by various universities and technology firms has led to a reported increase in biogas production efficiency by up to 40% in some regions due to modernized processes.

Organizations such as the Biogas Renewable Natural Gas Coalition have actively promoted new technologies that streamline biogas production and distribution. As these technological advancements are adopted more widely, they are expected to significantly lower the operational costs associated with biogas plants, further catalyzing market growth.

Increasing Waste Management Initiatives

The Biogas Market Industry is also propelled by an upward trend in waste management initiatives, as municipalities and corporations seek sustainable solutions for organic waste disposal. With approximately 1.3 billion tons of food waste generated globally each year, according to the Food and Agriculture Organization of the United Nations, converting organic Waste to Energy into biogas presents a viable alternative to traditional waste management methods.

Many cities are now implementing programs that support the use of biogas facilities for processing organic waste, thereby not only reducing waste in landfills but also generating renewable energy. In addition, the United Nations has highlighted the importance of creating a circular economy, which involves reusing waste materials. This focus on sustainability can drive demand for biogas projects that convert waste into a valuable energy resource, fuelling future market growth.

Biogas Market Segment Insights:

Biogas Market Application Insights  

The Biogas Market is projected to showcase significant growth within the Application segment, emphasizing its diverse applications across various industries. By 2024, the market is expected to reach a valuation of 13.37 USD Billion, with the Electricity Generation application alone holding a substantial portion of 6.5 USD Billion, indicating its prominence in the energy sector. This segment is anticipated to expand further, reaching an estimated 14.5 USD Billion by 2035, which reflects its essential role in renewable energy efforts worldwide, particularly as countries strive to reduce greenhouse gas emissions and reliance on fossil fuels.

The Transportation Fuel application, valued at 3.2 USD Billion in 2024 and projected to grow to 8.5 USD Billion by 2035, illustrates the increasing focus on sustainable fuel alternatives to mitigate air pollution and enhance energy security. This shift towards biogas as a clean and renewable transportation option signifies a crucial opportunity in a market that seeks to transition away from conventional fuels. Heating Applications, valued at 2.5 USD Billion in 2024, are also expected to increase to 5.8 USD Billion by 2035, highlighting the demand for biogas in residential and industrial heating solutions, where it offers an efficient and cost-effective energy source.

The Fertilizer Production application, while comparatively smaller in market size, valued at 1.17 USD Billion in 2024 and expected to rise to 1.57 USD Billion by 2035, still plays an important role in creating value-added products from biogas, especially in the context of sustainable agricultural practices and the circular economy. Overall, the combination of these applications contributes to the Biogas Market revenue, affirming the growing trend towards renewable energy sources and sustainable practices in various sectors. The market growth is driven by favorable government policies, technological advancements, and increasing awareness regarding environmental sustainability, which present significant opportunities for stakeholders involved in biogas production and utilization.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biogas Market Feedstock Insights  

The Biogas Market, particularly within the Feedstock segment, is experiencing notable growth due to the diverse sources of organic materials utilized for biogas production. By 2024, the overall market is expected to achieve a valuation of 13.37 USD Billion, showcasing the increasing reliance on renewable energy sources. This segment encompasses various categories: Agricultural Waste, Municipal Solid Waste, Animal Manure, and Industrial Waste, each contributing uniquely to biogas generation. Agricultural Waste is crucial as it provides a plentiful supply of organic materials, making it a significant player in the overall feedstock dynamics.

Municipal Solid Waste also holds a considerable position, as urban areas seek sustainable solutions for waste management and energy production. Furthermore, Animal Manure serves as an important resource due to its high biogas yield and the need for effective waste management in the livestock sector. Industrial Waste presents unique opportunities as industries look to minimize their environmental impact while exploring energy recovery options. The interplay of these diverse feedstock sources is driving market growth, enhancing sustainability, and promoting circular economy practices within the Biogas Market industry.

Biogas Market Technology Insights  

The Biogas Market is experiencing robust growth, particularly in the Technology segment, which encompasses essential processes like Anaerobic Digestion, Landfill Gas Recovery, and Gasification. By 2024, the overall market is expected to achieve a valuation of 13.37 USD Billion, reflecting a strong demand for sustainable energy solutions. Anaerobic Digestion is a key contributor, known for effectively converting organic waste into biogas, thus supporting waste management and renewable energy goals. Meanwhile, Landfill Gas Recovery highlights the importance of capturing methane emissions from landfills, which can mitigate climate change while generating valuable energy.

Gasification, on the other hand, plays a significant role in transforming various feedstocks into clean syngas, further diversifying the energy portfolio. The Biogas Market data indicates ongoing trends such as increased government support for renewable energy projects and innovations in biogas technology, which are driving market growth. However, challenges such as infrastructure investment and competition from other renewable sources persist. Overall, the segmentation within the Technology realm showcases the paramount role of biogas in advancing global energy sustainability and addressing environmental concerns.

Biogas Market End Use Insights  

The Biogas Market has shown significant potential in various End Use applications, with a strong valuation of 13.37 USD Billion expected by 2024. This segment plays a crucial role in the overall market dynamics, driven by increasing demand for renewable energy sources across different sectors. The Residential segment particularly highlights the shift toward sustainable energy solutions, as households seek efficient energy alternatives. Meanwhile, the Commercial sector demonstrates robust growth, benefiting from biogas applications in diverse industries such as food processing and hospitality.

The Industrial segment further complements the market, utilizing biogas for energy generation and waste management practices. This diversification in End Use not only emphasizes the adaptability of biogas technology but also reflects its importance in reducing carbon footprints. Factors such as government policies supporting renewable energy, along with rising awareness about sustainability, are expected to bolster the Biogas Market revenue. Overall, the segmentation illustrates a clear trend towards greener energy solutions and presents numerous growth opportunities in various applications worldwide.

Biogas Market Regional Insights  

The Biogas Market is expected to experience significant growth in the regional segment, with considerable valuations projected across various areas. In 2024, North America is set to hold a substantial position, valued at 3.0 USD Billion, and it is projected to reach 7.0 USD Billion by 2035, demonstrating its major role in the biogas sector. Europe is anticipated to dominate, valued at 5.0 USD Billion in 2024 and reaching 12.0 USD Billion by 2035, driven by strong governmental support and focus on renewable energy initiatives. South America represents a growing market, with valuations moving from 1.5 USD Billion in 2024 to 3.5 USD Billion in 2035, reflecting an increasing shift towards sustainable energy solutions.

The Asia Pacific region mirrors this trend, expecting to grow from a value of 3.0 USD Billion in 2024 to 6.0 USD Billion in 2035 as countries prioritize waste-to-energy technologies. Lastly, the Middle East and Africa are also making strides, moving from 1.87 USD Billion in 2024 to 2.9 USD Billion in 2035, as awareness of renewable energy solutions becomes more prevalent. Each of these regions presents unique opportunities and challenges, contributing significantly to the overall growth of the Biogas Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biogas Market Key Players and Competitive Insights:

The Biogas Market is rapidly evolving, driven by an increasing demand for renewable energy sources and sustainable waste management solutions. As governments and organizations worldwide strive to reduce carbon emissions and enhance energy security, the competitive landscape within the biogas sector has become increasingly dynamic. Companies are harnessing technological advancements to optimize biogas production processes, improve efficiency, and diversify their offerings. The market features a variety of players ranging from large corporations to startups, each seeking to carve out their niche in the quest for a cleaner, more sustainable energy future. The competitive insights reveal that collaboration and innovation are at the forefront, with players often engaging in strategic partnerships or technological joint ventures to enhance their market positioning while faced with challenges such as regulatory hurdles and fluctuating waste feedstock availability.

Kraftanlagen has established itself as a notable player in the Biogas Market, leveraging its engineering expertise and comprehensive solutions for biogas plant construction. The company has a robust presence, known for its strong technical capabilities and ability to manage large-scale projects effectively. Kraftanlagen's strengths lie in its experience with innovative biogas technologies and its commitment to customizing solutions that cater to varied client needs, from agricultural applications to industrial environments. The firm’s engineering pedigree enables it to provide reliable and optimized biogas systems, thus enhancing its competitive advantage. By focusing on operational efficiency and sustainability, Kraftanlagen continues to enhance its market share and reputation within the biogas industry, positioning itself as a preferred partner for clients seeking advanced biogas solutions on a global scale.

SUEZ is another prominent player in the Biogas Market, recognized for its environmental services and commitment to resource recovery. The company offers a wide range of key products and services, including waste management solutions, biogas upgrading technologies, and energy production from organic waste. SUEZ’s extensive footprint across various geographic regions enables it to capitalize on local opportunities while maintaining a keen awareness of global market trends. The company’s strengths are further augmented by its innovative approaches to biogas production and processing, which enhance energy yield and reduce emissions. Additionally, SUEZ has engaged in strategic mergers and acquisitions to expand its capabilities and enhance its service offerings in the biogas domain. This positions the company effectively to meet the increasing demand for renewable energy and sustainable waste management across different markets globally, reinforcing its position as a leader in the biogas sector.

Key Companies in the Biogas Market Include:

• Kraftanlagen


• SUEZ


• BIOFerm


• Gazasia


• EnviTec Biogas


• Biogas Nord


• Schmack Biogas


• BioEngergy


• Renewable Energy Group


• Xergi


• WELTEC BIOPOWER


• EcoEnergy


• TotalEnergies


• Veolia


• DVO

Biogas Market Industry Developments

The Biogas Market has witnessed notable developments recently, driven by increasing demand for renewable energy solutions. A significant growth projection is observed, with the market expected to expand due to rising investment in energy diversification and sustainable waste management practices. Companies like Kraftanlagen, SUEZ, and EnviTec Biogas are key players actively involved in enhancing biogas production technologies. In terms of mergers and acquisitions, Gazasia made headlines in September 2023 by acquiring a smaller biogas operator to enhance its operational capability and market share.

Additionally, TotalEnergies has been strategically collaborating with various municipalities to scale up biogas projects, showcasing a push towards decentralized energy systems. Major happenings over the past two to three years include a surge in policy support for biogas initiatives, particularly in Europe and North America, where environmental regulations have incentivized the use of waste-to-energy technologies. The Biogas Market is increasingly recognized for its potential in lowering greenhouse gas emissions, contributing significantly to overall environmental sustainability efforts and energy transition strategies across nations.

Biogas Market Segmentation Insights

Biogas Market Application Outlook

• Electricity Generation


• Transportation Fuel


• Heating Applications


• Fertilizer Production

Biogas Market Feedstock Outlook

• Agricultural Waste


• Municipal Solid Waste


• Animal Manure


• Industrial Waste

Biogas Market Technology Outlook

• Anaerobic Digestion


• Landfill Gas Recovery


• Gasification

Biogas Market End Use Outlook

• Residential


• Commercial


• Industrial

Biogas Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	12.41(USD Billion)
Market Size 2024	13.37(USD Billion)
Market Size 2035	30.4(USD Billion)
Compound Annual Growth Rate (CAGR)	7.75% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Kraftanlagen, SUEZ, BIOFerm, Gazasia, EnviTec Biogas, Biogas Nord, Schmack Biogas, BioEngergy, Renewable Energy Group, Xergi, WELTEC BIOPOWER, EcoEnergy, TotalEnergies, Veolia, DVO
Segments Covered	Application, Feedstock, Technology, End Use, Regional
Key Market Opportunities	Increased demand for renewable energy, Government incentives for biogas production, Technological advancements in digestion processes, Growing agricultural waste utilization, and Rising awareness of environmental benefits
Key Market Dynamics	increased renewable energy demand, government incentives and subsidies, waste management sustainability, technological advancements in digestion, and rising environmental awareness
Countries Covered	North America, Europe, APAC, South America, MEA