Global Biogas and Biomethane Market Size, Share, And Business Benefits By Product Type (Biogas, Biomethane), By Feedstocks (Municipal (Landfill, Wastewater, Others), Industrial (Food Scrap, Wastewater, Others), Agricultural (Dairy, Poultry, Swine Farm, Crop Residues, Others), Other Feedstocks), By Production Process (Anaerobic Digestion, Pyrolysis, Gasification), By End-use (Power Generation, Transportation Fuel, Heat, Cooking Gas, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Biogas and Biomethane Market is expected to be worth around USD 106.3 billion by 2034, up from USD 88.9 billion in 2024, and grow at a CAGR of 1.8% from 2025 to 2034. Europe’s USD 40.7 billion valuation highlights its leadership in renewable gas development.

Biogas is a renewable fuel produced from the anaerobic digestion of organic materials such as agricultural waste, food scraps, manure, and sewage. This process breaks down the biomass in the absence of oxygen, generating a mixture primarily composed of methane (CH₄) and carbon dioxide (CO₂). Biogas is widely used for electricity generation, heating, and as a fuel for vehicles.

Biomethane is an upgraded form of biogas where impurities like CO₂, water vapor, and other trace gases are removed, resulting in a high-purity methane fuel that can be injected into the natural gas grid or used as a vehicle fuel. It is chemically almost identical to natural gas but derived from organic sources, making it a carbon-neutral and cleaner option.

The growth of the biogas and biomethane market is driven by the global push toward reducing carbon emissions and adopting renewable energy solutions. Governments across regions are implementing strict emission norms and offering incentives for clean fuel adoption, accelerating demand. According to an industry report, GPS Renewables has secured $50 million in debt financing to support the development of biogas facilities throughout India.

Rising energy security concerns and growing organic waste generation present significant opportunities. Rural regions, farming communities, and municipalities are finding value in converting waste into energy, thus creating decentralized power solutions. This not only supports circular economy goals but also offers additional revenue streams. According to an industry report, Sistema.bio, a biogas technology startup, has raised $15 million in funding to accelerate its international expansion efforts.

Key Takeaways

• Global Biogas and Biomethane Market is expected to be worth around USD 106.3 billion by 2034, up from USD 88.9 billion in 2024, and grow at a CAGR of 1.8% from 2025 to 2034.
• Biogas holds the largest market share at 87.3%, highlighting its dominance in renewable energy production globally.
• Municipal waste accounts for 53.6% of feedstocks, showcasing strong urban contributions to biogas and biomethane generation.
• Anaerobic digestion drives 93.3% of production, underscoring its efficiency and reliability in biogas and biomethane processing.
• Power generation leads end-use applications at 54.3%, indicating high demand for clean energy alternatives across the electricity sectors.
• The strong European  45.8% market presence reflects widespread biogas adoption and supportive energy policies.

By Product Type Analysis

The biogas and biomethane market is dominated by biogas, accounting for 87.3% share.

In 2024, Biogas held a dominant market position in the By Product Type segment of the Biogas and Biomethane Market, accounting for a significant 87.3% share. This strong market presence can be attributed to the widespread adoption of biogas systems across agricultural, municipal, and industrial applications.

The ability of biogas to be generated directly from locally available organic waste materials has positioned it as a practical and scalable renewable energy source, especially in regions with high biomass availability. Its versatility in usage—for electricity generation, heat production, and combined heat and power (CHP) systems—has further enhanced its appeal across rural and semi-urban energy infrastructures.

The dominance of biogas in this segment is also supported by increasing emphasis on waste-to-energy solutions and sustainable waste management practices. Many local governments and communities are turning to biogas technology to manage food waste, livestock manure, and sewage sludge while simultaneously generating clean energy.

Moreover, the relatively lower technological complexity and cost compared to upgrading systems for biomethane production have made biogas projects more accessible to a wider range of stakeholders. This accessibility, combined with regulatory support in some regions for decentralized renewable energy systems, has reinforced biogas’s leading role in the product type segment.

By Feedstocks Analysis

Municipal waste is the primary feedstock, contributing 53.6% of total market input.

In 2024, Municipal held a dominant market position in the By Feedstocks segment of the Biogas and Biomethane Market, with a substantial 53.6% share. This leading position reflects the growing adoption of municipal solid waste and wastewater sludge as reliable feedstocks for biogas and biomethane production.

Urbanization, population growth, and the associated increase in organic waste generation have contributed significantly to the expansion of municipal-based biogas systems. Municipal waste streams offer consistent and large volumes of biodegradable material, making them a cost-effective and scalable resource for continuous biogas generation.

The strong market share also highlights the role of municipalities in promoting sustainable waste management practices through the integration of anaerobic digestion technologies. Many local authorities have introduced organic waste collection programs, aiming to divert waste from landfills and reduce methane emissions.

These efforts not only support climate targets but also enable cities to harness renewable energy from their waste. Furthermore, the presence of centralized waste treatment infrastructure in urban regions facilitates easier implementation of biogas systems, allowing for more efficient processing and energy recovery.

By Production Process Analysis

Anaerobic digestion remains the leading production method with a 93.3% market dominance.

In 2024, Anaerobic Digestion held a dominant market position in the By Production Process segment of the Biogas and Biomethane Market, with a commanding 93.3% share. This overwhelming dominance can be attributed to the process’s proven efficiency, adaptability, and widespread applicability across various feedstock types such as municipal waste, agricultural residues, and sewage sludge.

Anaerobic digestion has become the most established and commercially viable method for converting organic waste into biogas, owing to its ability to produce energy while simultaneously managing waste and reducing greenhouse gas emissions.

The technology’s scalability—from small-scale rural digesters to large municipal and industrial plants—has further strengthened its position in the market. Moreover, its relatively straightforward operational requirements and compatibility with existing waste treatment infrastructure make it a preferred choice for both public and private stakeholders.

The high adoption rate is also linked to growing awareness about sustainable energy practices and the need to meet regulatory targets related to renewable energy and waste diversion. As a result, anaerobic digestion has remained the backbone of biogas and biomethane production processes, reinforcing its critical role in circular economy models and energy transition strategies across regions.

By End-use Analysis

Power generation is the largest end-use sector, holding a 54.3% market share.

In 2024, Power Generation held a dominant market position in the end-use segment of the Biogas and Biomethane Market, with a 54.3% share. This leading position reflects the strong demand for renewable and decentralized energy solutions, particularly in areas with limited grid access or high dependency on fossil fuels. Biogas and biomethane are increasingly being used as alternative fuels for generating electricity in combined heat and power (CHP) systems, offering both environmental and economic benefits.

The consistent supply of feedstocks such as municipal waste and agricultural residues has enabled reliable and continuous power production, contributing to energy security and emissions reduction goals. The use of biogas in power generation is especially attractive to municipalities and utilities seeking low-carbon options to meet sustainability targets while managing organic waste efficiently. Additionally, power generation through biogas systems supports local energy independence, reduces reliance on imported fuels, and enables productive use of waste materials.

The dominant share of this segment also indicates a clear alignment with governmental policies promoting clean energy and circular waste management practices. As a result, power generation remains the primary application for biogas and biomethane, reinforcing its importance in the transition to greener energy systems.

Key Market Segments

By Product Type

• Biogas
• Biomethane

By Feedstocks

• Municipal
  • Landfill
  • Wastewater
  • Others
• Industrial
  • Food Scrap
  • Wastewater
  • Others
• Agricultural
  • Dairy
  • Poultry
  • Swine Farm
  • Crop Residues
  • Others
• Other Feedstocks

By Production Process

• Anaerobic Digestion
• Pyrolysis
• Gasification

By End-use

• Power Generation
• Transportation Fuel
• Heat
• Cooking Gas
• Others

Driving Factors

Growing Focus on Waste-to-Energy Conversion Solutions

One of the top driving factors for the biogas and biomethane market is the rising focus on converting organic waste into energy. Governments and local authorities are increasingly turning to waste-to-energy methods to reduce landfill use and manage growing volumes of municipal and agricultural waste. Biogas and biomethane production offer a sustainable way to treat this waste while also generating clean fuel.

This dual benefit of energy generation and waste management makes the technology especially attractive. As urban populations grow and environmental regulations become stricter, the need to handle waste in eco-friendly ways is expanding. This has positioned biogas and biomethane as key solutions in supporting both clean energy goals and circular economy practices.

Restraining Factors

High Initial Investment and Infrastructure Cost Challenges

A key restraining factor in the biogas and biomethane market is the high initial cost required for setting up production facilities and related infrastructure. Building a biogas plant involves significant spending on equipment, technology, feedstock handling systems, and gas upgrading units, especially in the case of biomethane. For small farmers, rural communities, or developing regions, these costs can be too high without strong financial support.

Additionally, the lack of established pipelines and distribution networks for biomethane further increases the investment burden. While operational costs can be managed over time, the upfront capital requirement often slows down new project development. This financial barrier limits adoption, especially in areas where policy incentives or funding programs are not yet in place.

Growth Opportunity

Rising Demand for Clean Transport Fuel Alternatives

A major growth opportunity for the biogas and biomethane market lies in the increasing demand for cleaner transport fuels. As governments and industries work to reduce carbon emissions from vehicles, there is growing interest in using biomethane as a renewable fuel alternative, especially in public transport, trucks, and heavy-duty vehicles.

Biomethane can be used in compressed or liquefied form and works well in existing natural gas vehicles with little or no modification. It helps reduce greenhouse gas emissions and air pollution compared to diesel or petrol. With more countries promoting green mobility and offering incentives for low-emission transport, the use of biomethane in the transport sector is expected to expand, creating long-term opportunities for market growth.

Latest Trends

Integration of Biogas into Natural Gas Grids

One of the latest trends in the biogas and biomethane market is the increasing integration of biomethane into existing natural gas grids. As biomethane is nearly identical to natural gas in its chemical makeup, it can be upgraded and injected into pipelines already in use. This trend allows for easier distribution and use of renewable gas without the need to build entirely new infrastructure.

Countries focusing on energy transition are supporting this move to decarbonize the gas supply. It also enables industries and households to access cleaner fuel without changing their existing systems. This approach supports both energy efficiency and sustainability goals, making grid integration a smart and growing practice in the renewable energy sector.

Regional Analysis

In 2024, Europe dominated the market with a 45.8% share, totaling USD 40.7 billion.

In 2024, Europe emerged as the dominating region in the biogas and biomethane market, holding a substantial 45.8% share and reaching a market value of USD 40.7 billion. This dominance is supported by the region’s strong regulatory framework, well-established waste management infrastructure, and widespread integration of renewable gas into national energy systems. European countries have actively promoted the use of biogas and biomethane as part of their long-term decarbonization strategies, enabling a large-scale shift from conventional to renewable energy sources.

North America continues to show steady market progress, supported by efforts to utilize organic waste for clean energy production and reduce methane emissions from landfills. Asia Pacific presents a developing market with growing potential, especially in agricultural economies where organic waste is abundant and energy access remains a priority.

Meanwhile, the Middle East & Africa and Latin America represent emerging markets, where biogas and biomethane adoption is gradually expanding due to rising awareness and the need for sustainable energy alternatives. Although Europe leads in both value and market share, all regions are witnessing increased interest in renewable gas solutions, laying the foundation for broader adoption and investment across diverse geographic and economic conditions.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

PlanET Biogas has consolidated its position through a strong portfolio of mid‑ to large‑scale biogas plants, leveraging modular design to provide scalable solutions. The company has demonstrated efficiency in reducing construction lead times and operational complexity, which has enhanced its appeal to agricultural and municipal clients. PlanET’s strategy to integrate feedstock flexibility allows plants to process a wide range of organic waste, including agricultural residues and energy crops.

BIOKRAFT has differentiated itself by focusing on innovative gas upgrading technology, particularly pressure‑swing adsorption (PSA) systems. Its solutions deliver high methane purity with lower energy consumption, making them attractive for applications requiring biomethane injection into the natural gas grid. BIOKRAFT’s commitment to R&D has enabled gas upgrading plants that meet evolving regulatory standards.

TotalEnergies has pursued integration across the value chain by combining feedstock sourcing, biogas production, and downstream marketing of biomethane under its brand. By leveraging its established distribution network and energy market presence, the company is able to scale biomethane projects more effectively and enhance visibility of renewables in its portfolio. This integrated model supports TotalEnergies’ dual focus on energy transition and circular economy principles, while allowing for cross‑sector synergies in project development.

Ivy’s Adsorption Inc. has entered the biomethane space with its advanced adsorption technology for trace contaminant removal. Their process enhances final gas quality by reducing impurities such as moisture and siloxanes. Although still scaling, Ivy’s has positioned itself as a specialist in ensuring biomethane meets the highest industrial and vehicular standards. Its niche focus on polishing technologies makes it a preferred partner for projects that demand ultra‑clean biomethane.

Top Key Players in the Market

• Agrinz Technologies GmbH
• PlanET Biogas
• BIOKRAFT
• TotalEnergies
• Ivys Adsorption Inc
• Air Liquide
• DMT International
• Gasum Ltd
• Home Biogas
• Wärtsilä
• Future Biogas Limited |
• WELTEC BIOPOWER GMBH
• EnviTec Biogas AG
• Ameresco
• AB HOLDING SPA

Recent Developments

• In July 2024, PlanET Biogas USA Inc. completed 12 new anaerobic digestion plants across the United States, with 10 of these incorporating the STATERON RNG upgrading technology. These installations highlight PlanET’s expertise in converting agricultural and food-processing waste into renewable natural gas, reinforcing its presence in the North American biogas market.
• In June 2024, BIOKRAFT (then Biokraft International) joined forces with Q Power and Cortus to launch a pilot project in Sweden. The initiative aims to produce biomethane by refining synthesis gas created from gasified wood residues. Through the “Synferm” project, the goal is to lower electricity use during biomethane production and explore ways to produce biomethane from forest waste .

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