Biogas refers to a mixture of different gases produced by the breakdown of organic matter in the absence of oxygen. It primarily consists of methane and carbon dioxide. Biogas can be produced from raw materials such as agricultural waste, food waste from households, green waste, and industrial livestock manure. This gas finds application as a biofuel and can be used for various purposes such as generating electricity and heat, fuel for vehicles, cooking, and organic fertilizer production. The global biogas market has been growing in recent years due to increasing environmental awareness and focus on developing sustainable energy sources.
The global biogas market is estimated to be valued at US$ 65.5 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. The market growth can be attributed to the growing demand for renewable energy sources across utility and transportation sectors. Biogas offers a clean and environment-friendly alternative to fossil fuels and helps reduce dependence on imports. Furthermore, increased livestock waste owing to rising meat consumption presents a huge untapped potential for biogas production.
Market Dynamics
The booming agriculture and livestock industries are expected to drive biogas market growth over the forecast period. Large-scale farms produce massive amounts of animal manure and crop residues which can be used to produce biogas through anaerobic digestion. This offers an opportunity for renewable energy generation from agricultural waste streams. Additionally, growing environmental regulations regarding proper disposal and management of livestock waste will further promote adoption of biogas plants at farms. Stringent emission norms and supportive government policies encouraging use of biofuels for transportation are also fueling demand for biogas as an automotive fuel. Major countries in Europe have set voluntary targets to increase the share of renewable sources in their energy mix by 2030, which is anticipated to boost biogas production.
Segment Analysis
The global biogas market is dominated by the agricultural segment. The agricultural segment accounts for over 70% of the total biogas production worldwide. Wastes generated from farms including animal manure and crop residues form the major feedstock for biogas plants located in agricultural areas. The decomposing of agricultural wastes in absence of oxygen produces biogas which is then utilized for various purposes.
PEST Analysis
Political: Governments across countries are framing supportive policies and providing subsidies to encourage biogas production. Setting binding renewable energy targets and carbon reduction goals are inducing the usage of biogas.
Economic: Volatile prices of fossil fuels and incentives for renewable energy based power generation are making biogas projects economically viable. Growth in agriculture and waste management industries will augment the market.
Social: Rising environmental awareness and sustainable development priorities are favoring biogas production. It helps in scientific treatment and disposal of organic wastes.
Technological: Advancements in anaerobic digestion process and biogas plant designs have enhanced the efficiency of biogas generation. New flaring and compressing systems enable utilization of biogas in transport and other applications.
Key Takeaways
The Global Biogas Market Growth is expected to witness high in the forecast period supported by conducive regulatory environment and technological progressions. The market size for biogas in 2024 is estimated to reach US$ 65.5 Mn growing at a CAGR of 6.6% between 2023 and 2030.
Regional analysis: Europe dominates the global biogas market and holds over 40% market share. Countries like Germany, Italy and France are leading biogas producers in Europe due to favorable feedstock availability and supportive incentive structures for renewable projects. Asia Pacific is emerging as the fastest growing regional market for biogas led by China, India and other Southeast Asian nations.
Key players operating in the biogas market are Aeolos Wind Energy Ltd, BORNAY, Braun Windturbinen GmbH, Britwind, EasyWind GmbH, Endurance Wind Power, ENESSERE S.r.l., Fortis Wind BV, iQron GmbH, PSW-Energiesysteme GmbH, Ryse Energy, SD Wind Energy Limited, TUGE Energia, Wind Energy Solutions B.V., and XZERES Wind Europe Ltd. Major companies are engaged in expanding biogas production capacities through new projects and strategic collaborations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Priya Pandey
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