Biogas and Biomethane Market Size, Share

Biogas and Biomethane Market Overview

Global biogas and biomethane market size is projected at USD 89717.06 million in 2024 and is expected to hit USD 103450.67 million by 2033 with a CAGR of 1.5%.

The biogas and biomethane market has witnessed a significant rise in production volumes due to increasing global emphasis on renewable energy and sustainable waste management. In 2024, global biogas production reached over 76 billion cubic meters, with Europe alone accounting for 45% of this volume. Biomethane production has grown significantly, with more than 1,300 plants operating worldwide. In France, the number of biomethane injection sites rose from 214 in 2021 to 548 in 2023, injecting over 8.6 TWh of renewable gas into the grid. The rise in agricultural waste utilization is critical to the market's progress, with more than 60% of biogas plants now sourcing feedstock from livestock manure and crop residues. Over 30 countries have implemented national biogas or biomethane strategies, leading to over 2,000 new biogas-related infrastructure projects planned between 2023 and 2026. With the transportation sector consuming over 4 billion cubic meters of biomethane in 2023, the market is increasingly aligning with decarbonization goals.

Key Findings

Top Driver reason: Rising demand for clean energy and organic waste management.

Top Country/Region: Germany leads with over 11,000 biogas plants and 12 billion cubic meters of annual output.

Top Segment: Electricity generation dominates, consuming over 56% of total biogas output in 2024.

Biogas and Biomethane Market Trends

Sustainability initiatives are pushing governments and industries to adopt biogas and biomethane. By 2024, more than 110 countries included biogas or biomethane in their Nationally Determined Contributions (NDCs), with over 60 targeting net-zero emissions by 2050. In India, the number of biogas plants exceeded 5 million, with rural areas accounting for 92% of installations. The adoption of compressed biomethane in commercial vehicle fleets surged by 47% between 2022 and 2024 in Italy, where more than 2,000 CNG buses now run on biomethane. Sweden’s biomethane use for transport rose from 1.5 TWh in 2021 to 2.7 TWh in 2023, supported by over 280 public fueling stations.

In the waste-to-energy sector, over 72% of municipal solid waste treatment facilities in Denmark utilize anaerobic digestion, producing over 4.3 TWh of biogas annually. Agricultural trends also reflect this shift, as more than 23 million tons of animal manure were processed in Germany alone for energy recovery in 2023. Japan increased subsidies by 40% for small-scale biomethane digesters, encouraging decentralized energy generation. The construction of biogas upgrading facilities rose by 28% globally between 2021 and 2024, with membrane separation being used in 55% of new facilities. Smart gas grid integration of biomethane increased in the Netherlands, with over 3.2 TWh fed into the national grid in 2023.

Biogas and Biomethane Market Dynamics

DRIVER

Rising demand for clean fuel alternatives and circular economy initiatives.

Global fossil fuel dependence is being rapidly challenged by the urgent need to decarbonize. In 2024, over 25 countries introduced mandates for renewable gas blending, requiring at least 10% renewable content in gas networks. Urban municipalities in Brazil have converted over 180 landfills into biogas extraction units, producing more than 1.1 billion cubic meters of gas annually. In the U.S., state-level incentives in California resulted in over 185 new biogas projects in 2023 alone. The circular economy's growth is evident with over 40 million tons of organic waste diverted from landfills in Europe and used in anaerobic digesters.

RESTRAINT

High capital expenditure and operational costs.

Initial investment costs for medium-sized biogas plants range from $3 million to $8 million, with operation and maintenance expenses rising by 12% year-over-year due to inflationary pressures and rising raw material prices. Equipment such as gas compressors, digesters, and purifiers have seen price hikes of up to 18% since 2022. Furthermore, the average payback period for a biogas plant ranges from 7 to 10 years, making it unattractive to small-scale farmers and cooperatives without subsidies. In Asia-Pacific, more than 65% of stalled projects cited lack of financing and high loan interest rates as primary barriers.

OPPORTUNITY

Government subsidies and carbon credit trading.

Carbon trading is presenting a new income stream for biogas producers. In 2023, more than 8 million carbon credits were issued for biogas and biomethane projects globally. In Kenya, 21 community-based biodigesters collectively earned over $3 million through voluntary carbon markets. The European Union's Renewable Energy Directive II includes biomethane in renewable targets, granting up to €0.08/kWh in feed-in tariffs. Japan’s “Green Transformation” strategy allocated over ¥200 billion in 2024 to promote biomethane technology adoption. With 19 countries implementing tax incentives for renewable gas infrastructure, companies are seeing internal return rates exceed 18% on certified projects.

CHALLENGE

Inconsistent feedstock supply and logistical constraints.

Seasonal variation in agricultural waste impacts plant efficiency. For instance, in Poland, feedstock shortages led to 14% lower output across 260 biogas facilities during the winter of 2023. Transporting manure and organic residues from rural to processing sites increases logistics costs by up to 25%, especially when haulage exceeds 60 kilometers. The U.S. has over 1,200 dairy farms suited for biodigesters, yet less than 15% are within 30 km of a processing plant. Moreover, over 40% of urban biowaste in Latin America remains unsegregated, reducing its anaerobic digestion suitability.

Biogas and Biomethane Market Segmentation

The biogas and biomethane market is segmented by type and application, with distinct trends in each category. In 2024, agriculture-based digesters accounted for over 60% of new installations, while grid injection grew 35% year-over-year, especially in Europe. Applications range from power generation to transportation and heating, depending on regional energy policies and infrastructure readiness.

By Type

Agriculture Type: This segment accounted for over 52% of global biogas production in 2024. In Germany, over 8,000 agricultural biogas plants processed nearly 29 million tons of animal waste and crop residue. The U.S. had over 300 operational dairy-based biogas systems in 2023, with California alone contributing 110 projects. In India, more than 70% of rural digesters use cow dung, with production exceeding 5 billion cubic meters annually.
Sewage and Wastewater Type:: Wastewater treatment plants worldwide are using anaerobic digestion to reduce sludge and generate gas. In China, over 500 WWTPs integrated biogas systems by 2024, generating 2.6 billion cubic meters of energy. The U.K. treats 70% of its wastewater in plants equipped with biogas recovery, producing over 3.5 TWh in 2023. In South Africa, wastewater-based biogas accounts for 11% of total biogas output.
Landfill Type: Landfill biogas is a growing segment with over 2,300 landfill gas projects globally. The U.S. leads with more than 540 operating sites, extracting over 16 billion cubic feet of methane annually. In Argentina, landfill gas projects expanded by 35% between 2022 and 2024, with over 1.2 billion cubic meters captured. These systems help reduce methane emissions from unmanaged waste.
Others: This category includes food waste and industrial by-products. In France, food waste-based digesters produced 1.6 TWh in 2023. Over 200 food processing units in Japan converted their by-products into biomethane, generating over 800 GWh. Brewery and sugar industries in Brazil contributed more than 500 GWh in 2024 from waste fermentation.

By Application

Electricity Generation: Over 56% of biogas was used for electricity production in 2024. In Italy, over 1,600 MW of power came from biogas facilities. The Netherlands produced over 4.2 TWh from biogas in 2023, supplying power to over 1.2 million households. Thailand generated over 2.7 TWh, with industrial estates accounting for 63% of usage.
Vehicle Fuel: The use of biomethane in transport increased by 43% between 2021 and 2024. Sweden used 2.7 TWh of biomethane for vehicles in 2023. Over 200,000 vehicles in Germany run on renewable gas, consuming 5.1 TWh annually. In India, over 2,100 buses in 2024 ran on compressed biogas.
Gas Grid: Grid injection grew rapidly, with 3.2 TWh injected in France in 2023. Denmark achieved 30% biomethane penetration in its national gas grid. In Spain, the number of biomethane grid projects doubled from 28 in 2022 to 56 in 2024.

Biogas and Biomethane Market Regional Outlook

Biogas and biomethane market growth varies by region depending on energy policies, infrastructure, and feedstock availability.

North America

The U.S. had over 2,300 biogas systems in 2024, with 70% linked to agriculture or landfills. California led with over 185 new projects. Canada had 75 operational biomethane injection sites, contributing over 0.9 TWh to gas grids.

Europe

Europe had over 21,000 biogas plants in 2023, with Germany alone hosting 11,000. France injected over 8.6 TWh of biomethane in 2024. Italy added over 1,200 biomethane buses. Denmark sources 30% of gas from biomethane.

Asia-Pacific

India had over 5 million rural digesters by 2024. China integrated over 500 WWTPs with biogas units. Japan produced over 1.2 TWh from industrial food waste in 2023. Thailand had over 2,500 small-scale digesters generating 2.7 TWh.

Middle East & Africa

South Africa used biogas in over 12% of wastewater treatment plants. Kenya generated 430 GWh from 21 rural community digesters. Egypt launched 15 large-scale projects in 2024 with a combined capacity of over 400 GWh.

List of Top Biogas and Biomethane Market Companies

Gasrec
Future Biogas
VERBIO
Thorso Biogas
Staples Vegetables
Nature Energy
Asia Biogas
Deqingyuan
Mengniu
Shandong Minhe
J V Energen
AltEnergo

Top Two Companies by Share

VERBIO: Operates over 10 biomethane production units across Germany, generating over 1.2 billion cubic meters annually.

Nature Energy: Injected more than 5.4 TWh into the Danish grid in 2023, holding the highest market share in Northern Europe.

Investment Analysis and Opportunities

The biogas and biomethane market is increasingly drawing global investments across infrastructure, technology, and feedstock sourcing. In 2023, more than 50 public-private partnerships were established to fund new anaerobic digestion plants across Europe and North America. In Germany, investment in biomethane injection infrastructure reached €1.2 billion by mid-2024, enabling 700 additional connection points to national grids. The United States Department of Agriculture allocated over $500 million in 2024 for renewable gas infrastructure, facilitating 270 new digesters in dairy farms.

Private equity firms are also investing aggressively, with over 40 M&A deals completed in the sector in 2023, valued above $3.6 billion collectively. In India, investment in compressed biogas (CBG) plants under the SATAT scheme supported the commissioning of 516 new projects by June 2024. Japanese conglomerates have earmarked over ¥50 billion for domestic and Southeast Asian biogas ventures. Africa saw increased financing from development banks, with the African Development Bank committing $120 million to support biogas projects in Kenya, Nigeria, and Ethiopia.

Industrial users are integrating biogas into their supply chains, with 18 global food and beverage companies committing to 100% renewable gas for their processing units by 2030. This has spurred direct investments in on-site digesters. For instance, a French dairy cooperative invested €75 million to produce over 210 GWh of biomethane from processing waste. The market is also witnessing strong interest from the carbon trading sector. Over 25% of voluntary carbon market transactions in 2024 were linked to biomethane generation projects.

Technology providers are receiving increased funding to develop modular and mobile digesters. Over 35 startups received venture capital funding exceeding $320 million globally between 2022 and 2024. The segment is also exploring digitalization for smart gas metering and AI-based feedstock optimization, receiving more than 600 new patent filings related to biogas process improvement between 2023 and 2024. With over 18,000 new jobs forecasted to be created in the sector globally by 2026, employment-related economic multipliers are also drawing government incentives, especially in rural regions.

New Product Development

Recent innovations in the biogas and biomethane market are focused on improving yield, efficiency, and integration with smart grids. In 2023, over 120 new technologies were launched globally to improve the biogas upgrading process, with membrane separation, chemical scrubbing, and cryogenic techniques being dominant. Membrane separation technology now accounts for 55% of all upgrading installations, up from 38% in 2021. This has increased gas purity to over 99% methane in new plants across Sweden and Denmark.

India introduced over 25 compact biodigester models between 2022 and 2024, targeting semi-urban households with daily outputs of 0.6 to 1.2 cubic meters of gas. These systems occupy less than 6 square meters and cost below ₹40,000, promoting decentralized adoption. Germany unveiled a next-generation anaerobic digester in 2023 that can co-digest up to 9 different feedstock types simultaneously, increasing energy conversion efficiency to 83%.

In vehicle fuel applications, a UK-based engineering firm developed a dual-fuel injector capable of blending biomethane with hydrogen, resulting in 15% higher combustion efficiency. Over 500 retrofits were completed in the EU by late 2024. Sensor-based monitoring systems for gas composition, temperature, and feedstock loading have also become standard. In 2023 alone, over 12,000 biogas plants globally installed real-time monitoring systems.

Japan’s industrial sector introduced digesters capable of converting food waste and fats simultaneously, with output yields of 240 cubic meters per ton—an increase of 28% over traditional systems. In France, companies have started producing fertilizer pellets from digester slurry, with over 400,000 tons processed into agri-grade fertilizers in 2023. Additionally, modular skid-mounted upgrading systems were introduced in Southeast Asia, enabling rapid deployment in under 90 days, compared to traditional setups requiring over 180 days.

Five Recent Developments

Nature Energy (2024): Commissioned Europe’s largest biomethane facility in Denmark with an annual output capacity of 1.3 TWh and integration into the national grid through 12 km of new pipelines.
VERBIO (2023): Launched a new hybrid digester in Germany with integrated lignocellulosic feedstock capability, enhancing output by 32% and enabling use of straw waste.
Gasrec (2024): Expanded refueling station network across the UK with 11 new biomethane stations, collectively capable of dispensing 30 million kg of gas annually.
Asia Biogas (2023): Opened Thailand’s largest food waste-to-energy plant, with capacity of 450 GWh and feedstock intake of 300,000 tons per year.
Deqingyuan (2023): Developed a poultry litter biogas system with output of 20 million cubic meters per year and co-generation of 35 MW of electricity in Beijing.

Report Coverage of Biogas and Biomethane Market

This comprehensive report offers detailed insights into the global biogas and biomethane market across production technologies, application sectors, feedstock sources, and regional dynamics. Covering over 60 countries with active biogas programs, the report includes in-depth data on more than 2,500 operational plants and 1,200 planned projects scheduled for completion by 2026. It spans across 4 primary feedstock types, 3 major application sectors, and examines over 100 key manufacturers and technology vendors.

In terms of policy frameworks, the report analyzes regulations from more than 30 governments implementing biomethane blending mandates, grid injection tariffs, and waste management subsidies. More than 75 national strategies were reviewed for their renewable gas targets and investment goals. Furthermore, the report includes over 200 tables and charts providing quantitative assessments of plant capacity, output volume, energy utilization, and carbon reduction metrics.

Technical coverage includes process flow diagrams and yield assessments for anaerobic digestion, biogas upgrading, and grid injection. Data from 2023 and 2024 reveal significant advancements in plant efficiency, with conversion rates improving by up to 18% over the past three years. The report also outlines global benchmarking of capital costs, with country-specific ranges between $2.5 million to $10 million per MW of installed capacity.

Additionally, the report evaluates economic indicators such as internal rate of return (IRR), operational efficiency, and cost per unit of energy. Over 350 case studies were reviewed to support strategic planning and competitive benchmarking. Emphasis is also placed on socio-economic impacts, with rural employment, waste valorization, and decentralized energy access all evaluated. This multi-dimensional coverage ensures a complete understanding of the biogas and biomethane sector and its long-term prospects.