Biogas Upgrading Units Market Size, Share & Growth By 2033

Biogas Upgrading Units Market Overview

The Biogas Upgrading Units Market size was valued at USD 213.08 million in 2024 and is expected to reach USD 289.32 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The global biogas upgrading units market has witnessed significant growth, with its valuation reaching approximately USD 1.2 billion in 2024. This expansion is attributed to the increasing demand for renewable energy sources and the adoption of sustainable waste management practices. Biogas upgrading units play a crucial role in purifying raw biogas to produce biomethane, which can be utilized as a clean energy source. The market's growth is further propelled by supportive government policies and incentives promoting the use of renewable energy.

Key Findings

Top Driver Reason: The primary driver of the biogas upgrading units market is the escalating demand for renewable energy sources, leading to increased adoption of biogas upgrading technologies.

Top Country/Region: Europe stands out as the leading region in the biogas upgrading units market, owing to its stringent environmental regulations and substantial investments in renewable energy infrastructure.

Top Segment: The municipal segment dominates the market, driven by the need to manage urban waste effectively and generate sustainable energy.

Biogas Upgrading Units Market Trends

The biogas upgrading units market is experiencing several notable trends. Innovations in upgrading technologies, such as membrane separation and pressure swing adsorption (PSA), have enhanced the efficiency and cost-effectiveness of biogas purification processes. There's a growing trend of integrating biogas upgrading units with waste management systems, enabling the conversion of organic waste into valuable energy resources. Developing countries are increasingly investing in biogas upgrading infrastructure to address energy shortages and promote sustainable development. Governments worldwide are implementing favorable policies and subsidies to encourage the adoption of biogas upgrading technologies, further stimulating market growth.

Biogas Upgrading Units Market Dynamics

DRIVER

Rising Demand for Renewable Energy

The global shift towards sustainable energy sources has significantly increased the demand for biogas upgrading units. As countries aim to reduce their carbon footprint and dependence on fossil fuels, biogas emerges as a viable alternative. Upgraded biogas, or biomethane, serves as a clean energy source for various applications, including electricity generation, heating, and transportation. This transition is supported by international agreements and national policies promoting renewable energy adoption.

RESTRAINT

High Initial Investment Costs

Despite the long-term benefits, the high initial costs associated with setting up biogas upgrading units pose a significant barrier. Expenses related to equipment, installation, and maintenance can deter potential investors, especially in developing regions. Additionally, the lack of standardized regulations and technical expertise further complicates the deployment of these systems.

OPPORTUNITY

Advancements in Upgrading Technologies

Continuous research and development have led to the emergence of advanced biogas upgrading technologies that are more efficient and cost-effective. Innovations such as chemical scrubbing, water scrubbing, and cryogenic separation have improved the quality of biomethane produced. These advancements open new avenues for market expansion, particularly in regions with abundant organic waste resources.

CHALLENGE

Regulatory and Policy Hurdles

The biogas upgrading units market faces challenges related to inconsistent regulations and policies across different regions. The absence of unified standards for biomethane quality and grid injection complicates the integration of upgraded biogas into existing energy systems. Moreover, bureaucratic hurdles and lengthy approval processes can delay project implementation, affecting market growth.

Biogas Upgrading Units Market Segmentation

By Type

Municipal: Municipal biogas upgrading units are primarily utilized in urban areas to process organic waste from households and public facilities. These units contribute significantly to waste management and energy production, with numerous installations across Europe and North America.
Agricultural: Agricultural biogas upgrading units process waste from farming activities, including animal manure and crop residues. They play a vital role in rural energy supply and sustainable farming practices, with a notable presence in countries like Germany and the Netherlands.
Other: This category encompasses industrial and commercial biogas upgrading units that handle organic waste from various sectors. These units are gaining traction in regions with significant industrial activities, contributing to energy diversification and waste reduction.

By Application

Membrane Separation: Membrane separation technology is widely adopted due to its high efficiency and lower operational costs. It is particularly prevalent in Europe, where it accounts for a substantial share of biogas upgrading installations.
Pressure Swing Adsorption (PSA): PSA technology is favored for its ability to produce high-purity biomethane. It is extensively used in North America, with numerous facilities employing this method for biogas upgrading.
Other: Other technologies, including water scrubbing and chemical scrubbing, are also employed in biogas upgrading processes. These methods are selected based on specific project requirements and resource availability.

Biogas Upgrading Units Market Regional Outlook

North America

North America has witnessed substantial growth in the biogas upgrading units market, driven by supportive policies and increasing investments in renewable energy. The United States and Canada have implemented various programs to promote biogas utilization, leading to the establishment of numerous upgrading facilities across the region.

Europe

Europe leads the global biogas upgrading units market, with countries like Germany, France, and the UK at the forefront. Stringent environmental regulations and ambitious renewable energy targets have spurred the adoption of biogas upgrading technologies. The region boasts a well-established infrastructure and a high number of operational units.

Asia-Pacific

The Asia-Pacific region is emerging as a significant market for biogas upgrading units, fueled by rapid industrialization and urbanization. Countries such as China, India, and Japan are increasingly investing in biogas infrastructure to address growing energy demands and reduce environmental pollution. In 2023, China reported over 200 operational biogas plants incorporating upgrading units, indicating robust market expansion across the region. Furthermore, government incentives and public-private partnerships have encouraged broader adoption of these technologies.

Middle East & Africa

The Middle East & Africa region is gradually recognizing the potential of biogas upgrading units, especially in areas with high organic waste generation. Countries like South Africa and the UAE have initiated pilot projects aimed at converting municipal and agricultural waste into biomethane. Although the adoption rate remains lower compared to other regions, increasing awareness about sustainable energy solutions is expected to drive future growth. For example, in 2023, South Africa launched five new biogas plants, contributing over 80 million cubic meters of biomethane annually.

List of Top Biogas Upgrading Units Market Companies

Greenlane Renewables
Xebec Adsorption Inc
Malmberg Water
DMT
Carbotech Gas
Guild Associates
NeoZeo AB
ETW Energietechnik
Mahler AGS
Sysadvance
Inova BioMethan
Pentair Haffmans
Air Liquide
Greenmac
EnviTec Biogas
Beijing Sanyl
Bright Biomethane

Top Two Companies with Highest Market Shares

Greenlane Renewables: Greenlane Renewables holds a prominent position in the biogas upgrading units market with installations in over 19 countries. In 2024, the company commissioned more than 30 upgrading projects globally, accounting for a considerable market share due to their versatile and cost-efficient water wash and pressure swing adsorption technologies.
Xebec Adsorption Inc.: Xebec has emerged as a global leader in PSA-based biogas upgrading systems. In 2023, the company expanded its manufacturing capabilities and entered into contracts worth over 180 million USD in biogas projects across Europe and North America, solidifying its leadership in the market.

Investment Analysis and Opportunities

The biogas upgrading units market is experiencing a strong surge in investment activities across both established and emerging economies. In 2023 alone, global investments in biogas infrastructure exceeded USD 5.4 billion, with a significant portion directed toward upgrading units. These investments are largely driven by governmental support, rising environmental consciousness, and a transition toward decentralized energy generation systems. Investors are particularly attracted to projects that integrate biogas upgrading units with existing waste treatment facilities. For instance, in France, the government awarded subsidies to over 150 new biogas plants in 2024, prioritizing installations with upgrading capabilities to maximize energy output and reduce emissions. In North America, financial institutions and energy conglomerates have partnered to co-finance projects involving the installation of PSA and membrane-based systems. Notably, California’s Low Carbon Fuel Standard (LCFS) has attracted significant venture capital interest, with over 300 million USD allocated to biomethane production initiatives. Emerging economies are also tapping into international funding. India’s Ministry of New and Renewable Energy (MNRE) has allocated over INR 600 crore toward biogas development programs, aiming to establish more than 500 new biogas plants by 2026, many of which will include upgrading facilities. As the circular economy gains traction, there is an increasing trend of biogas being upgraded and fed into local gas grids or used as vehicle fuel. This diversification in application opens up further avenues for public-private partnerships and technological innovation. Furthermore, advancements in digital monitoring and automation offer additional investment potential by improving plant performance and reducing operational costs.

New Product Development

Innovation is at the heart of growth in the biogas upgrading units market, with manufacturers focusing on developing systems that are more efficient, compact, and cost-effective. One of the most significant trends is the development of hybrid upgrading units that combine two or more purification methods to optimize output. In 2023, Greenlane Renewables launched a new dual-process upgrading system that integrates water scrubbing and PSA, resulting in methane recovery rates exceeding 99.5%. This unit has already been deployed in over 10 locations globally and has shown improved ROI metrics due to reduced energy consumption. Xebec introduced its compact PSA Biostream units designed specifically for small to mid-scale biogas producers. These containerized systems are pre-engineered for rapid deployment and can process up to 800 Nm³/h of raw biogas. The units have gained popularity in decentralized waste treatment projects and rural energy initiatives. Bright Biomethane developed a plug-and-play membrane upgrading system targeting municipalities and food processing industries. This new line, introduced in early 2024, boasts low operational pressure and high selectivity membranes that extend system life and minimize maintenance intervals. Malmberg Water unveiled its modular CApure system that allows operators to scale up processing capacity as feedstock volumes increase. The design has been especially well-received in Scandinavia, where waste treatment volumes fluctuate seasonally. Digital integration has also seen a leap forward. EnviTec Biogas has embedded AI-driven analytics in its upgrading systems, enabling real-time monitoring of gas composition, maintenance schedules, and system performance. These smart systems significantly reduce downtime and maintenance costs, with early installations reporting a 25% increase in operational efficiency.

Five Recent Developments

Greenlane Renewables commissioned 11 new biogas upgrading systems across Europe and Asia in 2023, expanding its global footprint to 21 countries.
Xebec Adsorption signed a contract in 2023 to provide PSA systems for a 1.2 million Nm³/year biogas upgrading facility in Alberta, Canada, one of the largest in North America.
Bright Biomethane launched a fully automated membrane upgrading unit in 2024 capable of treating over 1,000 Nm³/h of biogas, suitable for both urban and industrial applications.
Malmberg Water expanded its manufacturing plant in Sweden in 2023 to increase production capacity by 35%, aiming to meet rising demand in the EU.
EnviTec Biogas began operations in a new facility in Hungary in 2024, capable of producing 120 million kWh of biomethane annually using hybrid scrubbing technologies.

Report Coverage of Biogas Upgrading Units Market

This report provides a comprehensive analysis of the global biogas upgrading units market, covering all key aspects of the industry including market dynamics, segmentation, regional trends, investment outlook, product innovations, and competitive landscape. The report evaluates the performance of biogas upgrading technologies across different applications such as municipal, agricultural, and industrial waste treatment. It assesses the adoption of technologies such as membrane separation, pressure swing adsorption, and water scrubbing across diverse geographies. Special attention is given to regional developments in North America, Europe, Asia-Pacific, and the Middle East & Africa, providing a comparative analysis of market maturity and growth potential. In addition, the report presents a detailed profile of leading companies operating in this space, highlighting their market share, product portfolio, strategic initiatives, and recent innovations. It also delves into the challenges and opportunities facing the industry, including high capital costs, policy hurdles, and the increasing integration of AI and digital tools for monitoring and control. Furthermore, the report explores emerging trends such as decentralized biogas production, integration with smart grids, and the use of biomethane as vehicle fuel. With over 250 data points, this market research offers a thorough, data-backed evaluation to help stakeholders make informed decisions and identify growth opportunities within the biogas upgrading ecosystem.