Biomethane and Biogas Market Size, Share, Growth, and Industry Analysis, By Type (Agriculture Type,Sewage & Wastewater Type,Landfill Type), By Application (Electricity Generation,Vehicle Fuel,Gas Grid), Regional Insights and Forecast to 2033

Biomethane and Biogas Market Overview

The Biomethane and Biogas Market size was valued at USD 92966.94 million in 2024 and is expected to reach USD 125614.66 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The global biomethane and biogas market is experiencing rapid growth driven by rising demand for renewable energy, increasing government support for decarbonization, and growing awareness of sustainable waste management practices. As of mid-2024, Europe leads the market with an installed biomethane production capacity of 6.4 billion cubic meters (bcm), spread across 1 548 operational plants—an increase of 374 plants from 2023, reflecting a 37% year-on-year growth in capacity. Europe’s total biogas production stands at approximately 22 bcm, covering 7% of the EU-27’s natural gas consumption. This capacity supports around 5 million European households and fuels approximately 145 000 bio-LNG vehicles annually. North America is another key region, with its biogas market valued at nearly 137 billion USD in 2024. The region added 615 new agricultural digesters in 2024 alone, generating an additional 21 000 standard cubic feet per minute (scfm) of biogas. Landfill gas (LFG) production in the U.S. reached 980 000 scfm in 2024, accounting for a major portion of the region’s biogas output. In North America, livestock manure contributed 39.8% of the total feedstock share, and food waste emerged as the fastest-growing source. Of these projects, 77% currently focus on electricity generation, though renewable natural gas (RNG) systems now outnumber electricity-only systems by a ratio of 3:2.

The Asia-Pacific region is emerging as a significant market, holding about 40% of global revenue in 2022 and continuing to expand with projections showing a waste-derived biogas segment worth 549.6 million USD by 2025. China and India lead regional developments with large-scale municipal waste and agricultural biogas projects. In the Middle East & Africa, the market remains nascent but is growing steadily, with early-stage deployments in sewage-to-energy and agricultural waste-to-energy segments, although the region’s total annual output remains below 1 bcm. Market segmentation by type reveals agricultural-based digesters dominate new installations, followed by sewage and wastewater treatment plants and landfill gas recovery systems. Application-wise, electricity generation remains prominent, but vehicle fuel applications and grid injection are gaining strong momentum due to supportive government policies and increasing industrial demand. With significant investments such as 27 billion EUR projected in Europe by 2030 and 1.37 billion USD in North American farm digesters in 2024, combined with emerging technologies and favorable regulatory frameworks, the global biomethane and biogas market is set to witness robust expansion in the coming years.

Key Findings

Driver: Surge in organic waste diversion initiatives generating high volumes of feedstock (e.g., 615 farm-based digesters added in North America, 2024).

Top Country/Region: Europe leads in installed capacity with 6.4 bcm of biomethane across 1 548 plants, accounting for 81 percent of total capacity.

Top Segment: Municipal waste‐based biogas dominated global share in 2022, representing over 50 percent of the market, producing 3 584 million USD in value.

Biomethane and Biogas Market Trends

The biomethane and biogas landscape is shaped by several major numerical trends. In Europe, installed capacity surged 37 percent year‑on‑year to reach 6.4 bcm, with plant numbers increasing from 1 174 to 1 548 in one year. That capacity supports roughly 5 million households and fuels 145 000 bio‑LNG vehicles annually. Production of biomethane rose to 4.9 bcm in 2023 from previous levels, contributing to a combined biogas output of 22 bcm. In North America, biogas market activity included 615 new agricultural digesters in 2024—4× higher than landfill projects—contributing 21 000 scfm of new feedstock capture. Capital committed to these projects reached approximately 1.37 billion USD, accounting for 47 percent of overall biogas investment. The U.S. landfill gas systems produced 980 000 scfm—an 18 percent increase from prior outputs. Globally, the biomethane segment was worth 7 995 million USD in 2024. Municipal waste feedstocks alone generated 3 584 million USD that year. In 2014, Danish biogas facilities generated 447 GWh of electricity, contributing 1.5 percent to national output of that year. Today Denmark supports over 120 biogas sites, 90 of which are 3 MW or smaller.

Waste‑derived biogas market forecasts suggest the standalone waste‑derived segment reached 549.6 million USD in 2025. Segmentation data also shows energy-crop‑derived plants (< 500 kW size) are on the rise, and facilities with pre‑hydrolysis processing accounted for a substantial share during 2022–28. Europe currently feeds 22 bcm of renewable gas into its markets via biogas systems. In 2023, 29 million tonnes of CO₂ were avoided across Europe through biomethane use, and 830 000 tonnes of organic biofertilizer produced. European countries such as France and Italy have doubled or tripled capacities, while Germany remains top producer in plant count and capacity. Technological trends include increasing adoption of grid injections, with over 80 percent of European plants connected to gas networks (49 percent to distribution, 14 percent to transport). Voluntary market prices for Guarantees of Origin (GOs) fell back to pre‑2022 levels (circa 2021), though compliance demand remains solid. French auctions in 2024 cleared at roughly 10 EUR/MWh.

Biomethane and Biogas Market Dynamics

DRIVER

Surge in organic waste streams and feedstock volumes.

Over 615 new agricultural digesters were launched in North America in 2024—up from 522 in 2023—and produced an additional 21 000 scfm of biogas capture. The ratio of agricultural to landfill projects climbed to nearly 3:2 in the same period. The abundance of feedstock from livestock, municipal waste and industrial sources has lifted capacity sharply. Europe’s 1 548 biomethane plants, up by 374 units year‑on‑year, match a 32 percent rise in plant count. These systems collectively offer 6.4 bcm of annual production, directly converting feedstock into energy that supports 5 million households and fuels 145 000 bio‑LNG vehicles. This robust feedstock pipeline accelerates project rollout, enhances economies of scale and stimulates both municipal and national biogas developments worldwide.

RESTRAINT

High capital commitments and upfront costs.

Investing in biogas and biomethane infrastructure demands substantial capital—new projects in North America involved 1.37 billion USD for farm-based digesters in 2024 alone. Landfill capture systems require infrastructure, desulfurization, compression equipment; digesters need preprocessing systems and grid injection interfaces. These costs restrict adoption across smaller municipalities and developing regions where access to finance is limited. Overcoming capital barriers requires long-term financing mechanisms, public‑private partnerships and risk mitigation schemes.

OPPORTUNITY

Satisfying industrial decarbonization demands.

Biomethane supplies ensure high‑energy sectors such as heavy transport and chemical industries receive renewable gas. European production in 2023 avoided 29 million tonnes of CO₂ and generated 830 000 tonnes of fertilizer. North American RNG systems expanded feedstock capture by 21 000 scfm in 2024. Use of Guarantees of Origin auctions—French auctions at ~10 EUR/MWh—demonstrate emerging markets for compliance‐grade biomethane. Growing corporate sustainability targets and fuel mandates create demand for biomethane, enabling growth in infrastructure and providing operators opportunity to decarbonize industrial energy input.

CHALLENGE

Regulatory fragmentation and permitting delays.

Despite Europe’s growth, regulatory patchwork slows pace. Examples include Dutch rules requiring domestic feedstock only; implementation delayed to January 2026, citing trade concerns. Across EU+UK, faster permitting and policy consistency are needed; 25 countries produce biomethane but each seeks own regulation—permitting procedures remain a bottleneck. Developers report projects stalled by 6–18 months awaiting grid connection approval. Harmonized policies and streamlined permitting are essential to maintain momentum in plant rollouts.

Biomethane and Biogas Market Segmentation

Global biomethane & biogas production is segmented by type (agriculture, sewage & wastewater, landfill) and application (electricity generation, vehicle fuel, gas grid). Each type and application segment shows distinct capacity and feedstock use patterns backed by numerical data.

By Type

• Agriculture Type: Livestock‑manure systems dominate North America, comprising 39.8 percent of feedstock share in 2024 and generating new capacity via 615 farm digesters with 21 000 scfm added. In Europe, digesters also process energy crops, contributing to a portion of the 6.4 bcm.
• Sewage & Wastewater Type: sludge treatment reduces solids by nearly 50 percent and produces biogas used directly on-site. Wastewater treatment facilities in Europe and North America supply part of the combined 22 bcm biogas portfolio.
• Landfill Type: US landfill gas systems produced 980 000 scfm in 2024, contributing to waste feedstock recovery. Globally, landfill gas constitutes a key stream of raw biogas—40–60 percent methane—requiring cleaning for grid injection.

By Application

• Electricity Generation: Denmark’s 120 biogas sites yielded 447 GWh of electricity in 2014—1.5 percent national output; current EU plants supply power alongside gas. LFG units in North America continue to generate electricity on-site (77 percent of systems).
• Vehicle Fuel: Bio‑LNG vehicles in Europe (~145 000 units) are supported by biomethane capacity of 6.4 bcm. North American digester systems in 2024 were 95 percent built for RNG production.
• Gas Grid: Over 80 percent of European plants are grid‑connected (49 percent distribution, 14 percent transport). Upgraded biomethane meets grid quality and earns GO prices (~10 EUR/MWh in France).

Biomethane and Biogas Market Regional Outlook

Global performance varies by region, reflecting differences in feedstocks, investment, infrastructure and policy.

• North America

biogas market valued at 137 billion USD in 2024, deploying 615 new farm digesters and expanding landfill capture by 21 000 scfm. Livestock manure provided 39.8 percent of total feedstock share, while food waste represented fastest feedstock growth. The addition of 1.37 billion USD in farm-level projects—47 percent of total investment—points to strong momentum. LFG systems produced nearly 980 000 scfm in 2024. Electricity remains primary off-take (77 percent of systems), but RNG systems now outnumber electricity-only systems 3:2. Policies driving organic waste diversion—EPA data shows food waste accounts for 24 percent of U.S. landfill content—reinforces demand for biogas systems.

• Europe

hosts 1 548 biomethane plants with total capacity of 6.4 bcm, up 37 percent year‑on‑year; 81 percent located in EU‑27 (5.2 bcm). In 2023, production of 4.9 bcm contributed to total biogas output of 22 bcm—7 percent of EU‑27 gas consumption. Over 29 million tonnes of CO₂ emissions avoided; 830 000 tonnes of bio‑fertilizer generated. Grid connection is widespread—49 percent distribution, 14 percent transport grid. Country‑specific growth: France doubled capacity; Italy quadrupled plant count and tripled capacity. The EU target of 35 bcm by 2030 requires capacity to grow three‑fold from current levels.

• Asia-Pacific

held 40 percent revenue share (~59 billion USD global market) . China and India are expanding infrastructure rapidly. Waste‑derived biogas forecasts show 549.6 million USD in 2025 alone. Energy crop and municipal waste feedstocks drive growth in rural electrification and industrial heat.

• Middle East & Africa

While Europe and North America account for majority of installed capacity, emerging Middle East & Africa markets are beginning to pilot wastewater‑to‑energy systems. Plant counts remain under 100, but several projects targeting sewage and industrial wastewater are underway. Regional output still amounts to less than 1 bcm per annum—new growth potential tied to urbanization and agricultural intensification.

List of Top Biomethane and Biogas Companies

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

Gasrec: Holds leading market share in European vehicle‑fuel biomethane conversions, supporting over 10 000 heavy‑duty fleet vehicles.

Nature Energy: Operates over 50 large‑scale upgraded biogas facilities across Europe, each exceeding 50 GWh annual injection capacity.

Investment Analysis and Opportunities

Investment flows into biomethane and biogas infrastructure are accelerating. In 2024, private investors committed an estimated 27 billion EUR into Europe’s biomethane sector. Separately, farm‑based digesters in North America attracted 1.37 billion USD in capital, representing 47 percent of all regional biogas investment. LFG capture systems generated 980 000 scfm, supporting sustained investor interest in landfill retrofit and electricity generation assets. Investors are tapping multiple streams: farm‑based digesters, municipal waste plants, landfill retrofits and grid‑injection projects. In Europe, 1 548 upgraded plants now feed 6.4 bcm into networks, creating a stable revenue base tied to GO sales (~10 EUR/MWh in France). RNG projects focused on heavy‑duty fleets—145 000 bio‑LNG vehicles—offer long‑term fuel off‑take agreements. Investment risks include policy shifts: Dutch restrictions on imported biomethane delayed to 2026 due to EU objections. Harmonization of subsidies, permitting, GO frameworks and trade rules will unlock cross‑border investment. Europe's target of 35 bcm by 2030 (up from 6.4 bcm in 2024) implies a 5–6× capacity explosion—offering developers and investors major opportunity.

In North America, food waste diversion policies—24 percent of landfill content—support system deployment. Expanding municipal electricity output and RNG production, supported by state and federal grants, eases return‑on‑investment timelines. LFG systems in 77 percent of sites remain electricity‑centric, though RNG is rapidly gaining share (now outnumbering electricity‑only systems 3:2). Greenfield investments via PPPs are emerging in Asia‑Pacific and MEA regions, leveraging waste‑to‑energy grants. Pre‑hydrolysis and anaerobic digestion technologies now enable higher plant efficiencies; energy‑crop plants (< 500 kW) are proving residentially scalable. Carbon‑credit markets and CO₂ avoidance—Europe’s 29 million tonnes of annual CO₂ saving—boost investor interest in offset‑linked financing. Additionally, production of 830 000 tonnes of organic biofertilizer offers ancillary revenue streams. Investment corridors now span farm digesters, municipal‑scale plants, landfill upgrades and RNG infrastructure. As targets rise and standards improve, the market readies for tens of billions in yearly capital deployment, offering strong potential for both project developers and institutional investors.

New Product Development

New product development in the biomethane and biogas market is advancing rapidly, focusing on higher efficiency, improved gas quality, and integration with energy and transportation sectors. Advanced anaerobic digesters with pre-hydrolysis systems are now delivering up to 30% higher methane yields compared to conventional digesters. Modular biogas upgrading units, capable of achieving gas grid quality standards with methane concentrations above 97%, are being widely adopted—49% of European plants are now connected to local distribution grids, and 14% are connected to transport grids. Modular bio-LNG production units are enabling local conversion of biomethane into liquefied natural gas, fueling over 145 000 bio-LNG trucks across Europe. In North America, new agricultural digesters—615 units added in 2024—are designed primarily for renewable natural gas (RNG) production, with 95% of these projects targeting RNG markets. Digitalization is also a key innovation area, with AI-driven control systems optimizing methane yields by 10–15% and reducing operational costs. Additionally, bio-CO₂ capture technologies are being integrated into new plants, recovering a portion of Europe’s 29 million tonnes of biogenic CO₂ emissions for use in e-fuels and industrial applications. Co-digestion technologies, allowing for multiple organic waste streams, are now increasing methane output by 20–30% while improving digester stability. These innovations are enhancing both the economic and environmental performance of biomethane and biogas projects worldwide.

Five Recent Developments

• Europe expanded to 1 548 biomethane plants by June 2024, an increase of 374 units from 2023 (from 1 174), boosting capacity by 6.4 bcm annually.
• North America added 615 agricultural digesters in 2024, surpassing landfill-driven systems for the first time (+93 hog‑farm projects), generating 21 000 scfm of biogas.
• LFG systems in the US produced 980 000 scfm, marking an 18 percent increase and steering 77 percent of sites toward electricity generation.
• French Guarantee‑of‑Origin auctions in 2024 cleared at ~10 EUR/MWh, reflecting rising monetization of grid‑injection biomethane.
• Europe avoided 29 million tonnes of CO₂ in 2023, produced 830 000 tonnes of fertilizer and supplied gas to 5 million households.

Report Coverage of Biomethane and Biogas Market

This report on the biomethane and biogas market offers a comprehensive analysis of production capacities, plant counts, feedstock sources, application trends, regional dynamics, competitive landscape, investment flows, technological innovations, regulatory frameworks, and environmental impacts. It covers detailed segmentation by type—including agricultural digesters, sewage and wastewater treatment plants, and landfill gas recovery systems. For example, North America added 615 new agricultural digesters in 2024, contributing 21 000 scfm of new output, while U.S. landfill gas systems reached 980 000 scfm. Europe remains the global leader, with 1 548 biomethane plants generating 6.4 bcm of capacity—representing 81% of the EU-27’s contribution. European production of 22 bcm biogas annually offsets around 29 million tonnes of CO₂ and supports 5 million households and 145 000 bio-LNG vehicles. Applications covered include electricity generation—where Danish biogas sites contributed 447 GWh in 2014—along with growing uses in vehicle fuel and grid injection. Currently, 49% of European plants are connected to local distribution grids, and 14% to national transport grids. The report tracks market activity in key regions: Europe, North America, Asia-Pacific, and the Middle East & Africa.

North America’s market is valued at 137 billion USD, with a fast-growing segment of RNG systems now outnumbering electricity-only systems 3:2. Asia-Pacific, holding about 40% of global revenue in 2022, is led by expanding Chinese and Indian projects. The Middle East & Africa, though in early development, is adding sewage-to-energy and agriculture-based biogas systems. The report also analyzes investment patterns, such as the projected 27 billion EUR in Europe by 2030 and 1.37 billion USD in U.S. farm digesters in 2024. Technology coverage includes next-generation anaerobic digesters with 30% higher methane yields, modular bio-LNG units, AI-optimized process controls, and bio-CO₂ capture technologies. The report examines policy impacts such as EU biomethane targets (35 bcm by 2030), Guarantees of Origin auction prices (~10 EUR/MWh in France), and evolving regulatory challenges, including Dutch restrictions on biomethane imports. Environmental benefits—including 29 million tonnes of CO₂ avoided annually and 830 000 tonnes of organic biofertilizer produced—are also quantified. Overall, the report delivers data-driven insights across all market segments and regions, enabling stakeholders to assess opportunities, plan investments, and align strategies with current market trends.

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