April 18, 2024
Biogas Market

Biogas Market is Poised for Substantial Growth Due to Increasing Demand for Renewable Energy Sources

The biogas market has emerged as a viable alternative to conventional energy sources owing to several environmental and economic advantages associated with biogas. Biogas is produced through anaerobic digestion of organic waste from various sectors such as agriculture, industrial waste, municipal solid waste, and food waste. It has a high methane content and can be used as fuel for generating heat and electricity as well as compressed for use in vehicles. The biogas production process helps reduce greenhouse gas emissions and provides sustainable waste management solutions while generating renewable energy.

The Global biogas market is estimated to be valued at US$ 75.46 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2030.

Key Takeaways

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, and Wind Energy Solutions B.V., and XZERES Wind Europe Ltd.

The key opportunities in the biogas market include rising focus on renewable sources of energy due to concerns around fossil fuel depletion and climate change. Governments across regions are providing incentives and financing for biogas projects, thereby promoting market growth.

The global biogas market is witnessing strong growth in Europe and Asia Pacific due to supportive government policies and schemes. Countries like Germany, France, China, and India have emerged as top markets. Rapid urbanization and growing population have increased organic waste generation, further driving the demand.

Market drivers

The primary driver for the Biogas Market Size is the growing demand for renewable sources of energy due to rising energy consumption worldwide and environmental concerns linked to fossil fuel usage. Biogas helps address the dual challenge of sustainable waste management and clean energy production. Government push for decarbonization through policies promoting biogas projects and landfill gas recovery is further accelerating market revenue. The ability of biogas plants to provide decentralized off-grid power solutions makes them an attractive investment.

PEST Analysis

Political: Government policies and regulations supporting renewable energy sources and in some countries incentives are provided in the form of subsidies and tax credits to setup biogas plants. Restrictions on landfills and dumping of organic waste encourage adoption of biogas technology.

Economic: Rising energy costs and volatile oil & gas prices make biogas generation more feasible and cost-effective. Biogas can offset reliance on expensive fossil fuels and help farmers earn additional income from waste utilization and sale of excess energy.

Social: Growing awareness about climate change and sustainability is boosting biogas adoption. Communities view it positively due to environmental benefits and odor control from waste treatment. Some regions face public resistance to setting up large manure-based biogas projects though.

Technological: Advancements in anaerobic digestion systems improved process efficiency. Small modular plants help decentralize production and expand accessibility. Digestate as an effective organic fertilizer promotes waste recycling. Utilization of captured methane in combined heat and power applications boosts returns.

Concentration in European region

The European region accounts for the major share in terms of value. Countries like Germany, Sweden, Denmark, Italy and UK have favorable policies supporting renewable energy and have established large number of biogas plants over years, mainly utilizing manure and agricultural waste. Germany alone accounts for around half of the global biogas generating capacity owing to feed-in tariff incentives.

Fastest growing region in Asia Pacific

The Asia Pacific region is poised to witness the fastest growth during the forecast period led by China, Japan and some Southeast Asian nations like Thailand and Indonesia. Policy push for renewable energy coupled with abundance of organic waste makes biogas projects commercially viable. Growing energy needs, reducing costs of setting up biogas plants and demonstration effect of success stories in Europe will drive its adoption across the region over the next decade.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it