Global Biomethane Market By Feedstock (Agricultural Waste, Energy Crops, and Other Feedstock), By Application (Power Generation, Automotive, and Other Applications), By Production, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Biomethane Market was valued at USD 3.4 Billion and is expected to reach around USD 6.1 Billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 6.1%.

Biomethane is a renewable Natural Gas (RNG) and a compressed form of biogas. Biomethane is a natural gas produced by a process like gasification and anaerobic respiration of agricultural waste, sewage waste, green waste, animal manure, organic matter, industrial waste, energy crops, and many other wastages. To produce the Biomethane, high-grade methane is extracted from the biogas.

Biogas has tremendous applications for power generation in the automotive sector. Biomethane helps to reduce the emission of biogas into the environment. Also, Biomethane helps to avoid the extra cost of production by using the same infrastructure as natural gas. These major factors have boosted the growth of the Biomethane market throughout the years.

The use of biomethane is increasing massively in developing countries. Some of these developing countries, like China and India, produce a large volume of waste. This wastage can be used in the production of biomethane to switch to renewable energy. This creates many opportunities in the biomethane market for investment in biomethane production.

Degrading the environment and reducing fossil fuel reserves force countries to switch to renewable energy sources like biomethane. Biomethane can be used in many applications across various sectors. This is expected to boost the growth of the biomethane market over the forecast period.

Key Takeaways

• Market Size and Growth: In 2022, the biomethane market was valued at USD 3.4 Billion; by 2032 this estimate could increase to around USD 6.1 billion at a compound annual growth rate of 6.1%.
• Definition of Biomethane: Biomethane is a renewable natural gas (RNG), formed through processes such as gasification or anaerobic respiration of organic waste materials.
• Driving Forces: Depletion of fossil fuel reserves and environmental concerns are major motivating forces behind biomethane technology’s adoption, while its production does not produce harmful greenhouse gas emissions.
• Challenges: Producing biomethane can be expensive, requiring significant investments in infrastructure. Furthermore, being highly flammable necessitates taking stringent safety precautions during production.
• Feedstock Analysis: Agricultural waste has long been used as the foundation of biomethane production, providing additional income for farmers. Energy crops like willow and miscanthus could become significant sources of feedstock as time progresses.
• Application Analysis: Power generation held the highest revenue share in 2022 due to the increasing use of electricity-operated appliances, while automotive sectors could see expansion due to biomethane as renewable natural gas fueling vehicles.
• Production Method Analysis: Anaerobic digestion remains the dominant biomethane production technique globally in 2022, particularly within the U.S. and China.
• Opportunities: Biomethane has significant opportunities thanks to increasing urbanization, industrialization and economic development worldwide. Biomethane used for power generation could present considerable prospects within Europe alone.
• Regional Analysis: Europe holds the largest share in the biomethane market at 58.56% due to growing consumer demand for renewable natural gas sources. North America has experienced impressive biomethane market expansion thanks to advancements in waste treatment methods.
• Major Players in the Biomethane Market: CNG Services Ltd and PlanET Biogas Global GmbH are two key companies within this sector, as they pursue strategies such as mergers and acquisitions to expand their presence on the biomethane market.

Drivers

Depleting Fossil Fuel Reserves and Rising Environmental Concerns Are Driving the Growth of the Biomethane Market.

Reducing greenhouse gas emissions is the primary driver of the biomethane market. The positive impact of biomethane on the environment and atmosphere significantly benefits the biomethane market. Conventional energy sources release harmful and toxic greenhouse gases on combustion and usage.

Whereas biomethane doesn’t release any toxic and harmful emissions that can harm the environment. Biomethane is a significant way of fulfilling the rising demand for renewable energy sources without harming the environment.

The depleting fossil fuel reserves force the automotive industry to switch to renewable energy sources for seamless operations. With rising demand for vehicles around the world, the demand for vehicle fuel is also increasing.

To fulfill these demands, the use of biomethane in the automotive industry is boosting the growth of the biomethane market. Many major companies across the world are investing in the production of biomethane. This is expected to fuel the growth of the biomethane market in the upcoming years.

Restraints

The High Cost and Highly Flammable Nature of Biomethane are Restricting the Growth of the Market.

The high cost of production for biomethane is restraining the growth of the biomethane market. To produce biomethane, the company has to assemble all the departments in the production facility, such as waste gathering, production unit, gas transmission, and transportation lines.

The amount of money required to establish all the departments for biomethane production is very high. Due to this, a very limited number of biomethane production plants are available worldwide. This is restricting the growth of the biomethane market.

Moreover, the highly combustible nature of biomethane is hindering the growth of the biomethane market. Biomethane is a very explosive and highly flammable gas. Due to this, it requires high precautions and attention during its production and transportation. Any leak in the biomethane plant can become a disaster in the plant. Therefore, its highly flammable nature is obstructing the growth of the biomethane market.

Feedstock Analysis

The use of Agriculture Waste for Biomethane Production Has Generated Additional Income for the Farmers.

Based on feedstock, the biomethane market is classified into agriculture waste, sewage waste, animal manure, organic household waste, industrial food processing waste, energy crops, and other feedstock. Agriculture waste dominates the biomethane market among these feedstocks by covering the major share.

The growth of the agriculture waste segment is due to the increasing use of this waste for the production of biomethane in developing countries like India and Indonesia. The presence of major farmer sections in these countries supports the growth of the biomethane market at the country level. By using agricultural waste in biomethane production, farmers have developed additional sources of income.

Governments of many countries are taking various initiatives to promote the use of agricultural waste in the production of biomethane. All these major factors are boosting the growth of the agriculture waste segment in the biomethane market.

Energy crops are expected to grow at a significant CAGR during the forecast period of 2023 to 2032. Energy crops are cheap crops that cannot be used as food but are only cultivated for the sole purpose of energy generation. Some of the energy crops are willow, miscanthus, giganthus, and herbaceous crops. The rising demand for renewable energy has boosted the demand for energy crops. This is helping the biomethane market to grow significantly during the forecast period.

Application Analysis

Increasing Power Operated Appliances Has Boosted the Use of Biomethane in the Power Generation.

The Biomethane market is divided into power generation, automotive, and other applications. From these applications, the power generation segment accounted for the largest revenue share for the biomethane market in 2022. The growth of this segment is attributed to the rising need for power generation for electric grids in residential and commercial sectors.

The increasing use of power operating appliances in both the commercial and residential sectors is boosting the demand for more power generation. And to tackle this problem, biomethane is used as a power generation alternative in many sectors. This is propelling the growth of the power generation sector in the biomethane market.

After power generation, the automotive segment is expected to grow significantly during the forecast period due to rising demand for biomethane as a renewable natural gas for bio-based fuel in vehicles. The use of renewable natural gas in vehicles reduces the toxic emission from vehicles and also reduces the carbon dioxide from the environment. With all these factors, the automotive sector is growing significantly in the biomethane market.

Production Method Analysis

Biomethane is produced by methods like anaerobic digestion and gasification. Out of these methods, anaerobic digestion will dominate the biomethane market in 2022.

Anaerobic digestion covers the major revenue share in the biomethane market. The domination of anaerobic digestion in the production of biomethane is due to the advancing and developing anaerobic digestion plants for biomethane in countries like China and the United States.

The United States has the most anaerobic digestion plants, which process agriculture waste, sewage waste, animal manure, organic household waste, and other wastes to generate biomethane. This is boosting the growth of anaerobic digestion in the biomethane market.

Key Market Segments

Feedstock

• Agricultural Waste
• Organic Household Waste
• Sewage Sludge
• Animal Manure
• Energy Crops
• Industrial Food Processing Waste
• Other Feedstock

Application

• Power Generation
• Automotive
• Other Application

Production Method

• Anaerobic Digestion
• Gasification

Opportunity

Increasing Demand for Renewable Energy Across the World is Creating Many Opportunities in the Biomethane Market.

Increasing urbanization, rapid industrialization, and economic developments worldwide are creating many opportunities in the biomethane market. The rising usage of biomethane across various industries like automotive and power generation is driving the growth of biomethane by creating new opportunities for new market players.

The increasing use of biomethane for power generation in Europe is creating many opportunities for companies in the region. With growing industrial developments and increasing technological advancements, Europe is expected to create major opportunities in the biomethane market.

Trends

Farmers are Using Mixed Farming for Biogas Production.

Farmers in the Asia Pacific region use various farming techniques like mixed farming for an additional income source. In mixed farming, farmers use the land for agricultural purposes and to raise livestock. Livestock is different according to the geographical region of the land.

Farmers use the manure of different animals like pigs, cows, and hens to produce biogas. This trend is growing around the world and boosting the biomethane market in the process.

Regional Analysis

Europe Dominated the Global Biomethane Market by Accounting for Major Revenue Share.

Europe dominates the global biomethane market by accounting for a major revenue share of 58.6%. The growth of the Europe region is due to the increasing demand for renewable natural gas, growing environmental awareness, and technological innovation. These key factors are driving the growth of the Europe region in the global biomethane market.

Moreover, Europe has the most plants for the generation of biomethane. It is also boosting the development of the region in the biomethane market. The government supports the growing technological advancements for biogas production in Europe by investing in and funding production plants. This is anticipated to boost the growth of the biomethane market during the forecast period.

After Europe, North America has the second-largest number of biogas plants. The North American region has grown significantly in the biomethane market over the past few years. This market’s growth is attributed to technological developments in waste treatment. North America has several wastewater biogas plants across the region. These factors are boosting the growth of the North American region in the global biomethane market.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Player Analysis

The Biomethane market is fragmented into many competitors. Key companies in the market are adopting strategies like mergers and acquisitions to expand their business and strengthen their position in the market.

Some of the major key players in the biomethane market are CNG Services Ltd, PlanET Biogas Global GmbH, Biogas Products Ltd., VERBIO Gasrec, Future Biogas Ltd., Gazasia Ltd., Envitec Biogas AG, Schmack Carbotech GmbH, SoCalGas, ETW Energietechnik GmbH., Gasrec AB and other key players.

Market Key Players

• ETW Energietechnik GmbH.
• SoCalGas
• Gasrec AB
• Biogas Products Ltd.
• Future Biogas Ltd.
• Gazasia Ltd.
• Schmack Carbotech GmbH
• Envitec Biogas AG
• PlanET Biogas Global GmbH
• CNG Services Ltd.
• VERBIO Gasrec
• Other Key Players

Report Scope