Biomethane Market by Feedstock (Energy Crops, Agriculture Residues & Animal Manure, Municipal Waste), Production Process (Anaerobic Digestion, Thermal Gasification), End-use (Transportation, Power Generation, Industrial) Region - Global Forecast to 2030
[230 Pages Report] The biomethane market is anticipated to witness substantial growth, projected to increase from an estimated USD 10.3 billion in 2023 to reach USD 60.2 billion by 2030, reflecting a compound annual growth rate (CAGR) of 28.7% throughout the forecast period. Governments around the world are implementing stricter environmental regulations and climate change mitigation strategies to reduce greenhouse gas emissions. Biomethane is a clean and renewable energy source that can help countries meet their emissions reduction targets. There is a growing global demand for renewable energy sources to transition away from fossil fuels and reduce reliance on imported energy. Biomethane is a versatile renewable energy source that can be used for various applications, including power generation, transportation, and industrial applications.
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Biomethane Market Dynamics
Driver: Driving sustainable energy and economic growth through renewable gas
The biomethane market, also known as renewable natural gas (RNG) or green gas, is experiencing rapid growth within the renewable energy and sustainable fuels industry. Biomethane is a sustainable energy source produced by refining biogas, typically derived from organic waste materials like agricultural residues, sewage sludge, and food waste. This clean and environmentally friendly alternative to fossil fuels holds great promise in addressing climate change, as it reduces greenhouse gas emissions by harnessing methane, a potent greenhouse gas, from organic waste and converting it into a clean energy source. Various factors are driving the expansion of the market. Many countries and regions have established renewable energy targets and mandates that encourage the inclusion of biomethane in their energy portfolios. Governments provide incentives and subsidies to foster biomethane production, aiding in the achievement of these targets. Additionally, the diversification of the energy mix through biomethane contributes to energy security, especially in areas concerned about potential energy supply disruptions. Biomethane production plays a vital role in sustainable waste management, diverting organic waste from landfills and transforming it into a valuable energy resource. This aligns with the principles of the circular economy, where waste is repurposed into useful products.
Restraints: Biomethane production costs and infrastructure limitations
Biomethane production costs have been chhanding due to technological advancements, increased feedstock availability, and growing market demand. However, the cost remains higher than that of conventional natural gas. Infrastructure limitations can hinder the wider adoption and utilization of biomethane. Addressing these infrastructure limitations will be crucial for expanding biomethane utilization and realizing its full potential as a sustainable energy source.
Opportunities: Exploring the versatile biomethane market for growth and environmental impact.
The biomethane market offers a multitude of enticing prospects, primarily grounded in its environmentally sustainable nature. One prominent avenue is the production and upgrading of biomethane, achieved by harnessing organic waste materials like agricultural residues, food waste, and sewage sludge. This not only mitigates the environmental impact of waste disposal but also opens an additional revenue stream for various stakeholders, from farmers to waste management companies. The versatility of biomethane production, drawing from a wide range of waste sources, adds to its appeal as an attractive and scalable option. A significant advantage lies in biomethane's seamless integration with existing natural gas infrastructure, significantly lowering the barriers to entry for businesses keen on entering this market. This adaptability enables the efficient distribution of biomethane to a diverse array of end-users, spanning industrial facilities, residential areas, and vehicle refueling stations, making it a versatile and accessible energy source.
Challenges: Strategies for Overcoming Biomethane Market and Ensuring Sustainable Growth
The biomethane faces a multitude of complex challenges that necessitate strategic solutions for its sustained growth and success. Key obstacles include the need for a consistent and dependable supply of organic waste materials like agricultural waste, food waste, and sewage sludge, which are indispensable for biomethane production. This supply often fluctuates due to seasonal variations and external factors, posing difficulties in maintaining a reliable and cost-effective production process. To overcome this, efficient waste collection and management systems must be implemented. Navigating the intricate regulatory landscape is another formidable challenge. Acquiring the requisite permits, licenses, and compliance with environmental regulations can be both time-consuming and costly. The regulatory framework can vary significantly from one region to another, further complicating the expansion or operation of businesses in multiple locations. Simplifying and standardizing regulatory frameworks is essential for mitigating these impediments. The substantial initial capital investment required for constructing biomethane production facilities and enhancing infrastructure poses a significant hurdle, particularly for new entrants and smaller businesses seeking to expand production. Innovative financing models and government incentives are needed to facilitate investment and help the industry scale effectively.
Biomethane Market Ecosystem
The market for biomethane is marked by the participation of leading companies that are firmly established, financially robust, and possess substantial expertise in the production of biomethane. These companies hold a significant market presence and provide a wide array of product offerings. They harness advanced technologies and maintain extensive global sales and marketing networks. Among the notable players in this market are Nature Energy Biogas A/S (Denmark), Gasum (Finland), Air Liquide (France), Archaea Energy (US) , Opal Fuels Inc. (US), Kinder Morgan Inc. (US), Total Energy (France), Engie SA (France), and others.
Municipal waste segment, by feedstock, to emerge as largest segment of biomethane market.
Municipal waste is expected to be the largest market from 2023 to 2030, based on feedstock. Municipal waste is a significant contributor to the biomethane market, accounting for a substantial portion of global biomethane production. Municipal waste comprises a diverse range of organic materials, including food scraps, yard waste, paper, and wood, which serve as valuable feedstocks for biomethane production.
Anaerobic digestion & fermentation segment, by production process, to emerge as largest segment of biomethane market.
During the forecast period, the anaerobic digestion & fermentation segment has the largest market share based on production process. Anaerobic digestion and fermentation offer several advantages for biomethane production, it can utilize a wide range of feedstocks, anaerobic digestion and fermentation is relatively simple and cost-effective processes and it produce a renewable and sustainable energy source in the form of biomethane, which can contribute to reducing greenhouse gas emissions and mitigating climate change.
Industrial segment, by end-use application, to grow at a CAGR of from 2023 to 2030.
Industrial segment is expected to be the fastest-growing market from 2023 to 2030, based on end-use application. As the demand for biomethane in the industrial sector grows, it is expected to play an increasingly important role in reducing greenhouse gas emissions and promoting sustainable industrial practices.
Europe to account for largest market size during forecast period.
The biomethane market is projected to be dominated by the European region throughout the forecast period. Europe is the world's largest producer and consumer of biomethane. Biomethane is an important part of the EU's renewable energy strategy, and it is expected to play an even greater role in the future as the EU strives to reduce its greenhouse gas emissions and reliance on fossil fuels. Biomethane production is a positive development for Europe. It is a clean, renewable energy source that can help to reduce greenhouse gas emissions, create jobs, improve air quality, and promote energy security.
Key Market Players
Nature Energy Biogas A/S (Denmark), Gasum (Finland), Air Liquide (France), Archaea Energy (US) , Opal Fuels Inc. (US), Kinder Morgan Inc. (US), Total Energy (France), Engie SA (France), Teréga Solutions (France), Waga Energy (France).
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Report Metric |
Details |
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Market Size available for years |
2018–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast units |
Value (USD Billion) |
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Segments covered |
By Production Process, By Feedstock, By End-Use Application, By Distribution Type, and By End User Type |
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Geographies covered |
Asia Pacific, North America, Europe, and Rest of the World |
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Companies covered |
Air Liquide (France), Engie (France), Nature Energy Biogass A/S (Denmark) , Gasum (Finland), Terega Solutions (France), Waga Energy (France), Total Energy (France), Chevron (US), Kinder Morgan (US), Archea Energy (Texas), Envitec Biogas AG (Germany), Future Biogas Ltd. (US), E.ON SE (Germany), Verbio Vereinigte Bioenergie AG (Germany), South Hills RNG (Pennsylvania). |
The market is classified in this research report based on feedstock, production process end-use application, distribution mode, end user type, and region.
Based on Distribution mode, the biomethane market has been segmented as follows:
- Pipeline Injection
- Compressed Natural Gas
- Liquified Natural Gas
Based on feedstock, the market has been segmented as follows:
- Energy Crops
- Agriculture Residues & Animal Manure
- Municipal Waste
- Others
Based on production process, the market has been segmented as follows:
- Anaerobic Digetion & Fermentation
- Thermal Gasification
- Others
Based on end-use application, the biomethane market has been segmented as follows:
- Transportation
- Power Generation
- Industrial & Others
Based on end user type, the biomethane market has been segmented as follows:
- Industrial
- Commericial
- Residential
Based on regions, the biomethane market has been segmented as follows:
- North America
- Asia Pacific
- Europe
- Rest of the World
Recent Developments
- In February 2023, ENGIE acquired Vol-V Biomasse, with this acquisition, ENGIE now has a portfolio of nearly 80 projects, thus supporting its aim of producing 5 TWh/year of biomethane by 2030.
- In Mrach 2023, TotalEnergies has acquired stake in Ductor, which is a Finland-based start-up that has developed an innovative technology to process high-nitrogen organic waste, such as poultry manure, which is usually difficult to use for biomethane production.
Frequently Asked Questions (FAQ):
What is the current size of the global biomethane market?
The global biomethane market is estimated to be USD 60.2 billion in 2030.
What are the major drivers for biomethane market?
Government mandates and renewable energy targets drive the adoption of biomethane as a renewable and sustainable energy source, contributing to the reduction of greenhouse gas emissions. Increasingly strict environmental regulations, aimed at curbing carbon emissions and mitigating climate change, encourage the use of cleaner energy sources such as biomethane.
Which End-user has the largest market share in the biomethane market?
Currently power genereation end-ise application hold the largest market share in the biomethane market. The use of biomethane for power generation is expected to grow in the coming years, driven by a number of factors, including, increasing demand for renewable energy: Biomethane is a renewable energy source that can help to reduce greenhouse gas emissions from the power sector. The availability of biomethane feedstocks, such as biogas and agricultural waste, is increasing. Governments around the world are providing financial incentives and other support for the development of the biomethane industry.
Which is the largest region during the forecast period in the biomethane market?
During the forecast period, Europe is expected to have the largest market size. The European Union has a number of policies in place to support the development of the biomethane industry, including the Renewable Energy Directive, which sets a target for 14% of the EU's transport energy to come from renewable sources by 2030. Europe has a large supply of biomethane feedstocks, such as agricultural waste and biogas from landfills and wastewater treatment plants. The use of biomethane in Europe is expected to continue to grow in the coming years, driven by the factors mentioned above. In addition, the use of biomethane is expected to be expanded.
Which is the fastest-growing segment in the biomethane market during the forecast period?
The rapid growth of the industrial segment is primarily propelled by increasing demand of biomethane for industrial heating applications, such as in boilers and furnaces. It can also be used to produce steam for industrial processes. Biomethane is also increasingly used as a feedstock for the production of chemicals. The industrial applications of biomethane are growing as the world transitions to a more sustainable economy. Biomethane is a versatile and sustainable fuel that can help to reduce greenhouse gas emissions and improve air quality.
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The research encompassed significant efforts to determine the present scale of the biomethane market. Thorough secondary research was conducted to gather data on both peer and parent markets. Subsequently, these findings, assumptions, and sizing were validated through primary research involving industry experts throughout the value chain. A comprehensive approach, combining top-down and bottom-up methodologies, was applied to ascertain the overall market size. Following this, market breakdown and data triangulation techniques were employed to calculate the market size of individual segments and subsegments, ensuring a comprehensive and reliable assessment.
Secondary Research
This research on the biomethane market utilized a comprehensive range of secondary sources, including directories and databases such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy. These sources were instrumental in identifying and gathering information essential for conducting a technical, market-oriented, and commercial study of the market. Other secondary sources encompassed annual reports, press releases, and investor presentations from companies, as well as white papers, certified publications, articles by reputable authors, manufacturer associations, trade directories, and databases.
Primary Research
The biomethane market encompasses various stakeholders, including manufacturers of biomass power generation, providers of manufacturing technology, and technical support providers throughout the supply chain. On the demand side, there is a noticeable increase in the demand for biomass power generation across applications such as generation, transmission, and distribution. On the supply side, there is a growing demand for contracts from the industrial sector, and significant activity in terms of mergers and acquisitions among major players. To gather qualitative and quantitative information, interviews were conducted with numerous primary sources from both the supply and demand sides of the market.
The breakdown of primary respondents is as follows:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the biomethane market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources
Global Biomethane Market Size: Bottom-Up Approach
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Global Biomethane Market Size: Top-Down Approach
Data Triangulation
The previously mentioned approaches were used to calculate the total market size before the market was divided into numerous segments and subsegments. Methods of data triangulation and market segmentation were used as needed to complete the thorough market analysis and acquire accurate statistics for each market segment and subsegment. Through an analysis of numerous variables and patterns from the supply and demand sides of the biomethane market ecosystem, data triangulation was achieved.
Market Definition
The biomethane market refers to the industry involved in the production, distribution, and utilization of biomethane, a renewable and sustainable natural gas derived from the anaerobic digestion or fermentation of organic materials such as agricultural residues, municipal solid waste, wastewater, and organic by-products. Biomethane, also known as renewable natural gas (RNG), is a clean energy source that can be seamlessly integrated into existing natural gas infrastructure, used for power generation, heating, and as a transportation fuel. The market encompasses various stakeholders, including biomethane producers, technology providers, and entities involved in the entire supply chain. Key drivers for the market include the global emphasis on reducing greenhouse gas emissions, government initiatives promoting renewable energy, advancements in biomethane production technologies, and a growing awareness of sustainable waste management practices. The market is characterized by a dynamic landscape with increasing investments, partnerships, and technological innovations to further enhance the efficiency and sustainability of biomethane production and utilization.
Key Stakeholders
- Analytics Vendors
- Communication Vendors
- Consulting Companies In The Energy And Power Sector
- Electric Utilities
- Energy & Power Sector Consulting Companies
- Energy Regulators
- Government & Research Organizations
- Government Utility Providers
- Independent Power Producers
Objectives of the Study
- To describe, segment, and forecast the biomethane market based on feedstock, distribution mode, production process, end-use application, end user type and region, in terms of value
- To describe and forecast the market for five key regions: North America, Europe, Asia Pacific, Rest of the World, along with their country-level market sizes, in terms of value
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide the supply chain analysis, trends/disruptions impacting the customer’s business, market map, pricing analysis, and regulatory analysis of the market
- To analyze opportunities for stakeholders and draw a competitive landscape of the market
- To strategically analyze the micromarkets with respect to individual growth trends, upcoming expansions, and their contribution to the overall market
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, Porter’s five forces, and case studies pertaining to the market under study
- To benchmark market players using the company evaluation quadrant, which analyzes market players on broad categories of business and product strategies adopted by them.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Biomethane Market