Biogas Industry Overview
The global biogas market size is expected to reach USD 87.85 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.3% from 2022 to 2030. Electricity was the dominant application segment in 2021 with a revenue share of 29.85%. Shifting focus toward the use of renewable sources of energy, mainly in the electricity sector, has considerably boosted the demand for biogas in electricity applications. In addition, the growing need to reduce dependency on fossil fuels is forming lucrative prospects for biogas in applications such as vehicle fuel.
The COVID-19 pandemic is also impacting the demand for biogas in heat generation applications. Sluggish industrial activities have reduced the demand for heat consumption, thereby negatively affecting the demand for biogas. The shifting priorities of consumers to focus on essentials such as food and medicines is further affecting the product demand in the cooking gas application segment owing to the high initial investment associated with setting up digesters.
The growing trend of the circular economy, particularly in European countries, is shifting the focus of food and beverage industries towards proper management of food waste to attain a zero-waste economy. Therefore, companies such as Nestlé S.A., PepsiCo, Inc., and Unilever plc have started directing some food waste to biogas production to generate power for manufacturing units.
Biogas Market Segmentation
Grand View Research has segmented the global biogas market based on source, application, and region:
Based on the Source Insights, the market is segmented into Municipal, Industrial, and Agricultural.
- The municipal source segment led the market and accounted for 41.55% revenue share in 2021. The growing usage of Municipal Solid Waste (MSW) in the production of biogas to reduce landfills and the Greenhouse Gas (GHG) emissions is expected to support the demand in the market over the forecast period.
- The industrial segment is expected to witness significant growth over the estimated period. The growing interest in finding effective means to obtain bio-products and biofuel from industrial food waste coupled with an increasing need for wastewater treatment in the industrial sector is expected to fuel the demand for biogas over the forecast period.
Based on the Application Insights, the market is segmented into Vehicle Fuel, Electricity, Heat, Upgraded Biogas, and Cooking Gas.
- The electricity application segment led the market and accounted for about 30% revenue share in 2020. The growing attention to the use of renewable energy, particularly in the electric power sector, has significantly increased the use of biogas for electricity generation.
- In 2019, approximately 220 million kWh of electricity was generated using biogas (from 24 livestock and dairy operations) and from industrial and sewage wastewater treatment facility approx. 1 billion kWh of electricity was produced. Biogas in the country qualifies as renewable energy fuel to generate electricity as per the state renewable electricity standards (RES).
- Upgrade biogas application is expected to grow significantly over the forecast period owing to the rising demand for biofuel in various end-use industries including automotive is expected to fuel the market demand. Upgrade biogas is produced by converting biogas into biomethane by removing hydrogen sulfide, carbon dioxide, water, and contaminants from the biogas.
Biogas Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
The global market is highly competitive due to the presence of major companies across the regions.
Some prominent players in the global biogas market include:
- Agrinz Technologies GmbH
- Air Liquide
- DMT International
- Gasum Oy
- HomeBiogas Inc.
- PlanET Biogas
- Scandinavian Biogas Fuels International AB
- Schmack Biogas Service
- Xebec Adsorption Inc.
Order a free sample PDF of the Biogas Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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