by The renewable natural gas (RNG) market is benefiting from growing decarbonization efforts across industries to transition to cleaner fuel sources by leveraging the existing natural gas infrastructure. RNG, also known as biomethane, is a substitute for fossil natural gas that is produced from organic waste streams including municipal solid waste, food waste, agricultural residues, and wastewater treatment plants through anaerobic digestion. RNG offers the advantages of natural gas including use in transportation, power generation, and heating applications while providing greenhouse gas reductions of at least 70% compared to conventional natural gas and helping divert waste from landfills.
The Global renewable natural gas (RNG) Market is estimated to be valued at US$ 14.03 Bn in 2024 and is expected to exhibit a CAGR of 12.1% over the forecast period from 2024 to 2031.
RNG provides an opportunity to replace diesel and gasoline with a low carbon fuel in the transportation sector, with most RNG being used for heavy-duty trucks and municipal fleets. As concerns around sustainability increase, more companies and governments are setting targets to reduce emissions and shift to renewable fuel sources, driving demand for RNG. In addition, utilities and pipeline operators are expanding infrastructure to support higher volumes of RNG being injected into the natural gas distribution systems.
Key Takeaways
Key players operating in the renewable natural gas (RNG) market are Clean Energy Fuels Corp., Biomethane Technologies, Fortistar, Waste Management, Inc., Renewable Energy Group, Inc., Duke Energy, EnviTec Biogas AG, Brightmark Energy, Aqua America, Inc., Gasrec, CNG Services Ltd., Calgren Renewable Fuels, Cypress Creek Renewables, RNG Energy Solutions, Greenlane Biogas, Sustainable Energy Solutions, Xebec Adsorption Inc., Agraferm Technologies AG, Ecovyst Inc., and Air Products and Chemicals, Inc.
The Renewable Natural Gas Market Demand for low carbon fuel alternatives in the transportation sector is a major factor supporting. Many countries and states have introducedpolicies and incentives promoting the use of RNG in trucks and buses to reduce emissions. Utility companies are also recognizing RNG as a way to decarbonize pipeline natural gas supplies.
RNG producers are expanding operations globally to capitalize on the wide adoption of natural gas vehicles internationally. Countries with implemented biofuel blending mandates and carbon pricing initiatives are attracting more investments into renewable natural gas facilities and fueling stations. The market is moving toward a more integrated global supply chain.
Market Key Trends
One of the key trends in the renewable natural gas market is the increasing investments towards expanding production facilities and fueling infrastructure. As the demand for RNG accelerates globally, producers are allocating large capital expenditures to develop new digesters, upgrade biogas to pipeline quality standards, and build out compressed natural gas and liquefied natural gas fueling stations along highway corridors. This will help scale up supplies and allow natural gas vehicles to replace diesel trucks over longer distances. At the same time, utilities are investing in biogas upgrading and pipeline integration projects to support higher volumes of RNG. These infrastructure developments are critical to fully realizing the Potential of renewable natural gas.
Porter’s Analysis
- Threat of new entrants: The Renewable Natural Gas market requires significant investments in facilities, production equipment and distribution networks making it difficult for new companies to enter the market.
- Bargaining power of buyers: Buyers have moderate bargaining power in the Renewable Natural Gas market due to the availability of alternative energy sources. However, demand for cleaner fuel sources is growing which increases buyers’ bargaining power.
- Bargaining power of suppliers: A few large companies dominate supply in the Renewable Natural Gas market giving them significant bargaining power over buyers.
- Threat of new substitutes: Alternatives like electricity from renewable sources pose a threat but Renewable Natural Gas still offers advantages as a transportation fuel.
- Competitive rivalry: Competition in the Renewable Natural Gas market is high as major companies continue expanding production and investing in infrastructure to capture more market share.
The Renewable Natural Gas Market Regional in North America is currently the largest, valued at over US$9 billion in 2024 due to supportive government policies and incentives for production and use of renewable fuels in the region. The Asia Pacific region is expected to be the fastest growing market for Renewable Natural Gas with a CAGR of over 15% during the forecast period due to rising demand for clean energy in countries like China, India and Japan paired with increasing adoption of natural gas vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
