Biogas Upgrading Market Size, Share [2034]

BIOGAS UPGRADING MARKET OVERVIEW

The global biogas upgrading market size was valued approximately 1.25 B USD in 2025 and will touch 3.12 B USD by 2034, growing at a compound annual growth rate (CAGR) of 10.7% from 2025 to 2034.

Biogas upgrading means cleaning up raw biogas, which is mostly methane (CH4) and carbon dioxide (CO2), to get rid of stuff like water, hydrogen sulfide (H2S), siloxanes, and tiny bits of other gases. The point is to boost the methane level so it can be used as renewable energy, like putting it into the gas grid or fueling vehicles. This step is key to making biogas a good replacement for fossil fuels. There are different ways to upgrade biogas, like pressure swing adsorption (PSA), membrane separation, amine scrubbing, and water scrubbing.

IMPACT OF KEY GLOBAL EVENTS

“Geopolitics and Biogas Upgrading Market”

Geopolitical tensions, especially those over energy, can change how the biogas upgrading market works. They can mess up energy supply chains and change what countries focus on for energy. For example, some countries that buy natural gas from other places might start using local, renewable energy like biogas. This could make more people want biogas upgrading technologies. But, trade rules and unstable politics can also cause problems. They can make it hard to get the important parts and skills needed for biogas upgrading. This can lead to trouble with supply chains and hold up projects in some areas.

“Artificial Intelligence and Biogas Upgrading Market”

The progress of artificial intelligence (AI) is set to change the way the biogas upgrading sector works. AI can help make processes better and fix problems before they happen. It watches over biogas production and upgrading all the time, sees when things might go wrong or aren't working right, and makes things run smoother. Plus, AI can help design cheaper and more energy-saving biogas upgrading tech. This makes it easier for firms to grow. But, using AI a lot might mean workers need new skills, which could change how jobs are in the biogas world.

LATEST TREND

” Increased Adoption of Membrane Separation Technology”

Membrane separation is gaining popularity for upgrading biogas because it's energy-saving and easy. It works by using special membranes to keep methane and carbon dioxide apart, cutting down costs and the impact of the upgrading. Better membrane materials, like newer polymers and ceramics, have made this method more efficient and lasting. Now, it's even better than old ways like amine scrubbing.

“Integration with Renewable Energy Systems”

Biogas upgrading is now a big part of bigger renewable energy setups, like combined heat and power (CHP) or renewable natural gas (RNG) plans. Turning biogas into super-clean methane lets it join the natural gas network or power cars. This joining helps move towards a greener, more spread-out energy way, especially in places with lots of wind or sun but not always steady power. Plus, it gives a handy way to save energy, since biogas can be upgraded and kept for later.

“Focus on Environmental Sustainability and Circular Economy”

Environmental care and the circular economy are pushing forward new ideas in biogas upgrading. Biogas, a renewable power, helps turn trash into energy, keeping waste out of landfills. This fits with world goals to cut greenhouse gases and aim for zero waste. Plus, biomethane, a clean fuel like fossil fuels but without carbon pollution, is in higher demand. This is because of stricter climate rules and the world's push for cleaner power.

BIOGAS UPGRADING MARKET SEGMENTATION

By Type

Absorption Absorption uses a special liquid to soak up unwanted gases like carbon dioxide and hydrogen sulfide from biogas. The biogas flows through this liquid, and the unwanted gases mix in, leaving pure methane behind. This way works well for getting rid of CO2, but it needs a lot of power and upkeep to keep the liquid ready for more use. The absorption field is steady and important for big biogas upgrades. Yet, it uses a lot of energy, so it's not growing as fast as methods like membrane separation that use less.
Vacuum Pressure Swing Adsorption (VPSA) Vacuum Pressure Swing Adsorption, or VPSA, is a technique where biogas flows through a special adsorbent, like activated carbon, under changing pressures. This traps the impurities while letting methane go free. VPSA is famous for making very clean methane and using less energy than old absorption methods. The VPSA market is steadily rising, especially in bigger setups, because it finds a nice middle ground between being effective and not too expensive. However, setting it up and running it can be tricky, so it might not be the first choice for smaller jobs.
Membrane Separation Membrane separation works by using special filters that let methane pass but keep CO2 and other unwanted stuff out. This tech is becoming popular because it uses energy wisely, can be adjusted for different sizes, and costs less to run. It's a great fit for smaller, local biogas upgrades. The market for membrane separation is growing fast, thanks to better filters and tech. With energy efficiency top of mind in biogas upgrades, membrane separation looks like a top pick for the future, especially for filling up vehicles and making renewable natural gas.
Others Besides the main biogas upgrade methods, there are others like amine scrubbing, water scrubbing, and cryogenic separation. These aren't used as much, but they shine in special situations, like when there's lots of impurities or harsh conditions. Their market is small but could grow in unique jobs. As scientists keep studying, mixing and matching these methods might become more common to suit the different needs of upgrading biogas.

By Application

Thermal Application Using upgraded biogas, also known as biomethane, for heat in factories, homes, or kitchens is called thermal application. This is common because biomethane works like natural gas, giving a clean and useful heating option. As countries switch to renewable energy, especially in farming areas where biogas is made a lot, the market for thermal applications is growing. But, it can be tough to expand because of the need for special pipes and systems to get the biogas around, and because other renewable energy sources like solar and geothermal are also strong competitors.
Power Generation To make electricity, upgraded biogas, or biomethane, gets used in combined heat and power plants or runs turbines and engines. Since biomethane can create power, it's a great option instead of fossil fuels for local energy systems. The market for electricity from biogas is expanding, thanks to people wanting more renewable energy and governments giving money for clean tech. But, some places might not use it much because setting up power plants costs a lot and other renewable sources like wind and solar are also popular.
Biomethane Bottling Bottling biomethane means putting compressed, cleaned biogas into tanks so it can be sent out, often for cars or places far from the natural gas network. This is catching on in transportation, especially for vehicles that use compressed natural gas. The market for biomethane bottling is growing because it helps cut carbon pollution from cars. But, it's not growing super fast because setting up bottling and sending it out takes special gear, and electric cars and hydrogen fuel cells are also popular choices.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

” Increasing Demand for Renewable Energy”

The world is moving towards renewable energy, which is pushing the market for upgrading biogas. Governments and businesses want cleaner ways to make energy instead of using fossil fuels, to cut carbon and fight climate change. Biogas, which can be turned into biomethane, is a good way to get energy and help the environment. More money is being spent on turning waste into energy, and there are good rules in place. All this is making the biogas upgrading market grow fast, especially in places that want to make their own energy and be sustainable.

Restraining Factor

” High Capital and Operational Costs”

A big problem for the biogas upgrading market is the high cost of starting up and running the technology. Stuff like absorbers, VPSA, and membrane systems that clean biogas can be pricey to put in and keep working. Plus, some upgrading methods use a lot of energy, which costs more money. These financial hurdles can make smaller projects less likely and slow down market growth, especially in places where the government doesn't give much help or money for renewable energy.

Opportunity

” Technological Advancements in Biogas Upgrading”

Big changes in biogas upgrading tech are boosting the market. Better membrane separation, VPSA, and other new methods are making things more efficient, using less energy, and costing less. Scientists are coming up with new materials and ways to make these systems stronger and more flexible, which is great for smaller, spread-out projects. As these techs keep getting better, they're opening up new markets for biogas upgrading, like far-off places without big power grids. They also give the world a better shot at switching to renewable energy on a huge scale.

Challenge

” Infrastructure Limitations and Market Fragmentation”

A tough problem for the biogas upgrading market is getting the upgraded gas where it needs to go and using it. Even though people want more biomethane, many places don't have good storage, transport, or distribution systems. Plus, the market is all over the place, with different methods and tech used in different areas. This makes it hard to use the same solutions everywhere and grow the industry fast. To fix these issues, it's important to build more infrastructure and make market practices simpler and more uniform.

BIOGAS UPGRADING MARKET REGIONAL INSIGHTS

North America

The North American biogas upgrading market is growing strong, thanks to more money going into renewable energy and turning waste into power. The US and Canada are leading the way, working on big and small biogas systems. Policies like giving credits and money for renewable energy are helping spread the use of tech like membrane separation and VPSA. People are also more into using biomethane for cars, with some states pushing for compressed natural gas (CNG) vehicles. But, there are still big problems like high start-up costs and not enough gas distribution systems, making it tough to expand biogas upgrading in the area.

Europe

Europe tops the list in the biogas upgrading market, pushed by tough environment rules, strong policies, and a big renewable energy scene. Nations like Germany, Sweden, and the Netherlands lead the way in using biogas, making lots of biomethane for power grids and transport. The EU’s Green Deal and other climate plans have sped up the use of biogas upgrading tech as part of the goal to be carbon-free by 2050. In Europe, membrane separation and amine scrubbing tech are big players, aiming to save energy and cut costs. But, there are still hurdles like not enough infrastructure in some places and competition from other renewable energy types, which affect how fast the market grows.

Asia

Asia's biogas upgrading market is booming, especially in China, India, and Japan, where people want cleaner energy and ways to turn waste into power. China, the top biogas producer here, is spending big on upgrading projects, mainly to make biomethane for the gas grid and transport. India, with its big farming scene, is looking at biogas to cut waste and give rural areas a new energy source. Japan is also investing in upgrades to mix up its energy after the Fukushima accident. While Asia's market has big growth potential, some countries face hurdles like new tech, no clear rules, and not enough infrastructure. But, cities growing fast and more focus on renewable energy are great chances for biogas upgrading tech in the region.

KEY INDUSTRY PLAYERS

” Competition in the Biogas Upgrading Industry”

The biogas upgrading world is a tough battleground, with lots of players like tech firms, equipment makers, and project builders fighting for a slice of the pie. They're all trying to meet the growing need for renewable energy by offering cheaper, smarter, and more flexible tech. As the market swells, standing out with new ideas matters more, so firms are focusing on fresh methods like membrane separation and VPSA to stay ahead. Plus, they're looking at smaller, off-the-beaten-path markets like remote areas to reach underserved spots. But, the market is all over the place and starting up costs are sky-high, making it hard for newer, smaller players to go toe-to-toe with the big guns.

List of Top Biogas Upgrading Market Companies

Air Liquide
DMT Environmental Technology, Inc.
Atmos Power Pvt Ltd.
Bright Renewables B.V.
Evonik Industries
Pentair Plc
Malmberg Bioerdgastech GmbH

KEY INDUSTRY DEVELOPMENTS

Aemetis Biogas acquires a grant worth USD 4.1 million from California Energy Commission (CEC) to construct a biogas upgrading facility. The facility will convert dairy biogas to renewable natural gas (RNG) as a final processing step after biogas is delivered through a pipeline from anaerobic digesters.

REPORT COVERAGE

This study does a deep dive into the biogas upgrading market with a SWOT analysis, peeping into its future. It looks at what's boosting the market, checking out loads of categories and potential uses that could shape its future. It considers both current trends and past big moments, giving a full picture of the market and spotting places for growth.

Right now, the biogas upgrading market is growing steadily thanks to the hunt for renewable energy and ways to turn waste into power. New tech in methods like membrane separation and VPSA is making biogas better, cheaper, and a great option instead of natural gas. In Europe and North America, helpful rules and rewards are speeding up the use of biogas upgrading, especially for making biomethane for the grid and transport. But, there are still hurdles like high start-up costs, not enough infrastructure, and markets being all over the place.

Looking to the future, the biogas upgrading market should keep growing, pushed by global goals for a cleaner planet and the need for zero-carbon energy. With more money going into renewable energy and a focus on recycling, biogas is set to be a big player in cutting greenhouse gases and helping with energy changes. As tech improves and infrastructure gets better, the market will likely see cheaper, bigger solutions, especially in new markets in Asia and developing areas. For the market to keep growing, it needs to overcome money and tech problems, and get people working together to make systems better and more joined up.