Biogas Market to Surpass 28 GW by 2031 Amid Strong Policy Incentives and Growing Decarbonization Targets, Reports Mordor Intelligence

HYDERABAD, India, March 4, 2026 /PRNewswire/ -- According to the latest insights from Mordor Intelligence, the global biogas market rising from 21.65 GW in 2025 to 22.64 GW in 2026, and projected to reach 28.34 GW by 2031, reflecting a 4.59% CAGR. Biogas industry momentum is increasingly driven by supportive policy frameworks, growing investments in renewable natural gas (RNG) upgrading, and stronger corporate decarbonization targets. Governments are promoting biogas as a low-carbon transport fuel, particularly using agricultural and food-waste feedstocks, while utilities deploy biogas assets to balance intermittent renewable energy generation.  

Europe maintains technological leadership due to established incentives and biomethane networks, whereas emerging regions in South America are accelerating growth with nearly 10% annual expansion through 2030.  

Capacity additions remain centered on 0.5–2 MW plants, although smaller community-scale facilities below 0.5 MW are gaining traction under distributed energy programs. Competitive activity remains strong as established developers expand owned assets and newer players introduce modular upgrading and carbon-capture solutions to enhance project profitability. 

Biogas Market Trends and Insights

Policy Support and Renewable Energy Expansion: Government programs are shifting toward performance-based incentives that provide developers with stronger long-term revenue certainty. New policy structures increasingly encourage upgrading biogas into renewable gas rather than relying solely on electricity generation. National initiatives across regions such as North America, Europe, and Asia are accelerating distributed biogas deployment, supporting rural economies, improving waste utilization, and strengthening grid reliability through decentralized energy systems. 

Corporate Climate Commitments and Utility Demand: Energy providers are recognizing biogas as a reliable balancing resource that complements variable renewable power generation. At the same time, corporations are adopting renewable gas procurement strategies to reduce supply-chain emissions and meet sustainability targets. Verified carbon accounting and certification mechanisms are further driving demand for projects capable of demonstrating transparent methane capture and environmental performance. 

"The biogas market is advancing as governments and industries prioritize waste-to-energy solutions and energy diversification, with investment patterns reflecting steady, policy-supported adoption. This assessment draws on verified company disclosures, regulatory frameworks, and consistent cross-market validation, providing decision-makers with a balanced, transparent view grounded in defensible research standards.", says, Himanshu Vasisht, Senior Research Manager, Mordor Intelligence. 

Biogas Industry Segmentation Insights

By Feedstock 

• Agricultural Residues 
• Livestock Manure 
• Sewage Sludge 
• Food and Beverage Waste 
• Energy Crops 

By Process Technology 

• Wet Anaerobic Digestion 
• Dry Anaerobic Digestion 
• Landfill Gas Recovery 

By Plant Capacity 

• Below 0.5 MW 
• 0.5 to 2 MW 
• Above 2 MW 

By Application 

• Electricity Generation 
• Heat Generation 
• Vehicle Fuel / Renewable Natural Gas (RNG) 
• Combined Heat and Power (CHP) 

By Geography 

• North America 
• Europe 
• Asia Pacific 
• South America 
• Middle East and Africa 

For a full breakdown of market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/biogas-market?utm_source=prnewswire  

Regional Market Dynamics

Europe continues to lead global biogas deployment due to long-standing policy stability, mature biomethane infrastructure, and clear gas-injection standards that reduce investment risk. Countries across the region are expanding beyond power generation, increasingly supplying renewable gas for transport and maritime applications while strengthening circular waste management systems. 

North America is transitioning toward stronger agricultural and renewable gas development as supportive fuel regulations encourage low-carbon energy adoption. Meanwhile, Asia-Pacific markets are advancing biogas through rural energy initiatives, government-backed offtake programs, and decentralized systems that combine waste treatment with local power and clean fuel production. 

Biogas Companies

• Engie SA 
• DMT International 
• IES Biogas 
• EnviTec Biogas AG 
• Weltec Biopower GmbH 
• Hitachi Zosen Inova AG 
• AEV Energy GmbH 
• AAT Abwasser- und Abfalltechnik GmbH 
• BEKON GmbH 
• Nijhuis Saur Industries 
• Xebec Adsorption Inc. 
• Bright Renewables BV 
• Scandinavian Biogas Fuels International AB 
• Naskeo Environnement 
• PlanET Biogas Group 
• BTS Biogas SRL 
• BioConstruct GmbH 
• Wärtsilä Corporation 
• Greenlane Renewables Inc. 
• Clarke Energy 

Check out related reports published by Mordor Intelligence

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Biogas Plant Market Report: Report is segmented by application (electricity generation, biofuel, and heat generation), plant type (small-scale and medium- to large-scale digesters), and geography North America, Europe, Asia-Pacific, South America & the Middle East & Africa. 

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SOURCE Mordor Intelligence Private Limited