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The biogas upgrading equipment market is estimated to grow by USD 7.43 billion at a CAGR of 18.52% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for cleaner fuel alternatives and stringent regulations to reduce greenhouse gas emissions. Technological advancements in membrane technology, pressure swing adsorption, and cryogenic distillation are key trends shaping the market, enabling the production of high-purity biomethane. However, the high cost of production remains a major challenge, which is being addressed through government incentives and partnerships between industry players and research institutions to optimize production processes and reduce costs. Overall, the market is expected to continue expanding as the shift toward renewable energy sources gains momentum.
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The market share growth of the water scrubber segment will be significant during the forecast period. Water scrubbing is the traditional process in which carbon dioxide is removed from biogas to form high-quality biomethane. This process uses water as a solvent to remove carbon dioxide. Since the solubility of carbon dioxide in water is much higher than that of methane, the methane content of the gas leaving the scrubber increased. The biomethane produced in this way is approximately 98% pure. The process also removes all traces of hydrogen sulfide.
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The water scrubber segment was valued at 1.33 billion in 2018. Water scrubbing is the oldest and most used process because it is simple. It is commercially available in different capacities ranging from 0.2 kWh/Nm3 to 0. 6 kWh/Nm3. The less than 2% decarbonization process requires lower operating costs and is consistent at any flow rate. Water washing technology is constantly being developed and is one of the best technologies for use in various rooms. Therefore, there is a high demand for this technology compared to other technologies, which is expected to lead to the growth of the water purifier segment in the global biogas refining equipment market during the forecast period.
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Europe is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Bioenergy from renewable energy sources plays a key role in achieving the ambitious target set by the EU - 20 percent of final energy consumption. Most of the European population is still not aware of the benefits of biomethane in vehicles. However, this is changing due to favorable support conditions given by various governments. Germany is highly dependent on oil and gas imports because its reserves are small. The country imports 97% of its oil and more than 85% of its natural gas consumption. Therefore, to improve energy security, the government fully supports the use of renewable energy sources in all sectors, which has accelerated the growth of renewable energy sources such as biofuels, biogas, and refined biogas.
The adoption of Compressed Natural Gas (CNG) is pivotal in sectors like the marine, oil and gas, and power generation industry, where its use aligns with carbon reduction procedures. CNG's integration into the natural gas distribution system supports cleaner energy solutions, enhancing sustainability efforts. Meanwhile, crude oil remains a significant component in global energy markets, complemented by advanced filter products for environmental compliance. Innovations such as water washing techniques aid in managing household waste and promoting renewable energy sources. The marine industry benefits from CNG's efficiency, reducing emissions and operational costs. In the oil and gas industry, CNG applications contribute to operational efficiency and environmental stewardship. Power plants increasingly rely on CNG for its lower carbon footprint, aligning with global efforts to transition to more sustainable energy sources. Overall, CNG plays a crucial role in diversifying energy portfolios and promoting environmental sustainability across various sectors.
Market growth is driven notably by the increasing demand for cleaner fuel, fueled by concerns over rising greenhouse gas emissions. Unlike conventional oil and natural gas, biogas stands out as a renewable alternative. Derived from biodegradable matter and waste, it undergoes recycling and refining processes to serve as a versatile fuel across various applications. The imperative to mitigate greenhouse gas emissions and diversify energy sources propels global interest in efficient and cleaner alternatives like biogas, biodiesel, and ethanol.
Moreover, biogas, particularly, offers stability against price fluctuations seen in natural gas markets, thereby bolstering economic resilience. Consequently, the surge in demand for refined biogas necessitates expanded production capacities and equipment upgrades to meet market needs. This escalating demand for upgraded equipment drives growth in the global market, ensuring sustained momentum throughout the forecast period.
Key market trends include technological advancements in biogas upgrading techniques and equipment. Government support and rising interest in biogas foster investments in processing technologies. Innovations like cryogenic refining and on-site methane enrichment enhance existing methods.
Moreover, the improved biogas energy intensity reduces greenhouse gas emissions, with advanced techniques yielding up to 99% efficiency. For instance, Goteborg Energi in Sweden converts forest residues into biomethane using a 20 MW plant. These advancements propel the global biogas refining equipment market forward.
A significant challenge hindering market growth is the elevated production costs. Converting raw biogas into refined form proves costly. Biogas typically comprises 30%-40% carbon dioxide, necessitating refinement to enhance methane content and lower carbon dioxide levels to match natural air composition.
However, this refining process incurs high expenses, demanding optimization through innovative approaches. Achieving high methane yield while minimizing energy consumption is imperative. Consequently, the substantial investment required to scale production and meet escalating demand poses a formidable obstacle to the market's growth forecast.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AAT Abwasser und Abfalltechnik GmbH - The company offers biogas upgrading equipment such as agitators and flares as its key offerings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Biogas Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, Canada, China, India, Germany - Size and Forecast
Bioenergy Market by Application, Product Type, and Geography - Forecast and Analysis
Gas Separation Membrane Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
In the realm of power generation and the transportation industry, the focus is increasingly on renewable energies and clean energy generation to mitigate greenhouse gases and enhance sustainability. Technologies like methane enhancement, Renewable energy source, and biogas upgrading play crucial roles in converting municipal and domestic sewage, industrial wastewater, and landfill gas into viable energy sources. The water washing technique and carbon reduction procedures further support environmental goals by reducing emissions from these sources.
Moreover, CNG cars and cryogenic refinement techniques are pivotal in the transition towards cleaner vehicle fuels, while innovations such as the Schmack pretreatment process facilitate efficient biogas production. Electricity generation from CHP engines utilizing agricultural wastes, cellulosic biomass, and organic substrates underscores the agricultural sector's role in sustainable energy production. Anaerobic digestion of manure, sewage sludge, and organic fractions contributes significantly to renewable energy sources, reducing dependency on conventional fuel sources and mitigating methane emissions. As these technologies develop from a nascent stage, they promise substantial environmental benefits and support global efforts toward sustainable development and ecosystem preservation.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.52% |
Market growth 2024-2028 |
USD 7.43 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.18 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 39% |
Key countries |
US, Germany, China, UK, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
2G Energy AG, AAT Abwasser und Abfalltechnik GmbH, Air Liquide SA, Atlas Copco AB, Bright Renewables B.V., Carbotech Gas Systems GmbH, Condorchem Envitech SL, DMT International, DP CleanTech Co. Ltd., DVO Inc., Greenlane Renewables Inc., HAASE Umwelttechnik GmbH, Jog Waste to Energy Pvt. Ltd., MalmbergGruppen AB, Nacelle Logistics LLC, NeoZeo AB, Pentair Plc, Veolia Environnement SA, and Xebec Adsorption Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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