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The biogas market size is forecast to increase by USD 19.51 billion, at a CAGR of 6.01% between 2023 and 2028. The report includes historic market data from 2018 - 2022. The market is witnessing a growing demand for the increased use of biogas as piped gas, the integrated waste management system, and the decline in coal-based power generation.
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A key factor shaping the market growth is the increased use of biogas as piped gas. Biogas can be extensively used to manufacture power and/or heat or can be refined and upgraded to power natural gas vehicles. In addition, the process is called bio-methanation, and this application of biogas is widely adopted across the world.
For example, the Dane County Landfill system in Wisconsin has been operating at a capacity of 250 gallons of compressed natural gas (CNG) per day for the past decade. In addition, this project aims to promote the use of renewable fuels like biogas instead of conventional fossil fuels to power its fleet of garbage trucks, thus reducing the dependence on domestic as well as imported oil. Furthermore, this will result in a reduction in carbon monoxide, non-methane organic gas, nitrogen oxides, and CO2. Hence, such factors are driving the market growth during the forecast period.
The co-generation segment is estimated to witness significant growth during the forecast period. Co-generation segment utilizes biogas as a fuel to generate both electricity and heat, which can be used for various applications, such as industrial processes, space heating, and cooling. In addition, co-generation offers high energy efficiency by utilizing both the electricity and heat generated from the biogas, and co-generation systems can achieve overall efficiencies of up to 90% when compared to 30%-40% for conventional electricity generation.
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The co-generation segment was the largest segment and was valued at USD 17.98 billion in 2018. Moreover, this high efficiency can result in significant cost savings and environmental benefits. In addition, co-generation using biogas reduces greenhouse gas emissions by utilizing organic waste as a fuel source. Furthermore, the process not only produces electricity but also captures the heat generated during the production, thereby reducing the overall carbon footprint. Moreover, co-generation systems can be scaled up or down depending on the energy demands of the end-user's site, making them suitable for both large and small-scale applications. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 32% 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. The US will be the leading contributor to the growth of the market, whereas countries including Mexico and Canada will account for significant growth in new biogas installations. In addition, market growth in this region has been moderate over the past few years due to the increased adoption of alternative renewable energy sources, including wind and solar, and the declining prices of natural gas. Moreover, the presence of favorable government policies and organizations, such as the American Biogas Council, which focuses on the development of biogas, will be one of the major drivers for the growth of the market in the US. In addition, the increase in municipal solid waste (MSW) generation also plays a significant role in the growth of the market in the country. Hence, such factors are driving the market growth in North America during the forecast period.
One of the key factors driving the market growth is the increasing government support to develop biogas as fuel. Several governments across the globe have been encouraging biogas-based energy production by implementing favorable policies and giving different subsidies and tax incentives for the development of biogas fuel. In addition, as fossil fuels are depleting gradually, the growing need for renewable energy sources has driven governments to encourage biogas production.
Moreover, organizations like the European Biogas Association (EBA) also run several campaigns, such as 'Biogas for You,' to increase the awareness and adoption of biogas. In addition, 'Biogas for You' was developed as EBA's first communications campaign and aimed to improve the perception of biogas among people in Europe. Furthermore, the objective of the campaign is to increase the production and use of biomethane from sustainable biomass, animal waste, and other waste materials for grid injection and for use as a transportation fuel. Hence, such factors are driving the market growth during the forecast period.
Threat from alternative sources of energy is one of the key challenges hindering the market growth. Biogas faces competition from different alternative sources of energy in the power generation sector. In addition, many countries prefer using fossil fuels rather than biomass and other renewable energy sources because of the abundant availability of fossil fuels to power their needs and generate electricity.
Moreover, biomass has several limitations, such as low energy yield and production value, and the power output from biomass is not on par with that from fossil fuels. In addition, technology is also not economically viable as well, and thus, the preference for non-renewable energy sources is still high across the world. Hence, such factors are negatively impacting the market which in turn hinders the market growth during the forecast period.
The market research 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.
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.
AEV Energy GmbH: The company offers portable blenders such as Bella pro portable blender, 12 Piece Rocket blender, and Immersion blender with whisk attachment.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth analysis by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Biogas Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.01% |
Market Growth 2024-2028 |
USD 19.51 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.34 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Holding Spa, AEV Energy GmbH, Agrinz Technologies GmbH, Air Liquide SA, Ameresco Inc., BDI BioEnergy International GmbH, EnviTec Biogas AG, Future Biogas Ltd., Hitachi Zosen Corp., PlanET Biogastechnik GmbH, Renergon International AG, Stormfisher Ltd., TotalEnergies SE, Wartsila Corp., and WELTEC BIOPOWER GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our 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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