Biogas Market to Grow by 6.8% CAGR through 2031 as Focus on Reducing Fossil Fuel Dependency Rises Worldwide: FMI
Future Market Insight's (FMI's) latest research on the biogas market provides insights into factors influencing change in consumer behavior and consumption patterns along with their impact on the sales. It highlights crucial insights into factors that will drive growth in the market on the basis of source and application for the assessment period 2021-2031
DUBAI, UAE, Nov. 22, 2021 /PRNewswire/ -- Future Market Insights (FMI), Dubai: As per thorough research by FMI, the global biogas marketwill total US$ 61.2 Bn by the end of 2031. Suring applications of biogas in electricity generation, vehicle fuel, and heating among others is propelling the demand in the market.
Rising concerns regarding greenhouse gasses emissions and the implementation of stringent regulations to reduce fossil fuel dependency are encouraging countries to shift from using conventional sources of energy to biomass-derived sources such as biogas and bioethanol. On account of this, the biogas market is estimated to expand at a CAGR of 6.8% during the forecast period from 2021-2031.
Renewable sources of energy such as biogas are increasingly gaining acceptability as an alternative to petrol and diesel across the transportation sector. It is extensively being used in natural gas vehicles (NGVs) and dual-fuel vehicles in countries such as the U.S., Germany, Sweden, and the U.K. Driven by this, the sales of biogas are anticipated to rise year-over-year at 7.1% between 2020 and 2021.
Moreover, increasing consumer inclination towards adoption of biogas owing its advantages such as cost reduction, high vehicular performance, and sustainability is driving the market. Considering this, the demand for biogas is projected to grow in tandem with surging fuel consumption across the world.
In terms of source, municipal is likely to emerge as the most attractive segment in the market through 2031. Increasing utilization of municipal solid waste (MSW) and water treatment for the production of biogas is facilitating the growth in the segment.
"Growing utilization of anaerobic digestion plants for biogas production and introduction of the circular economy across the U.S., India, and China are expected to augment the growth in the biogas market," says an FMI analyst.
Key Takeaways from BiogasMarket Study
The North America market is estimated to expand at 6.1% CAGR through 2031 owing to implementation of favorable government policies promoting biogas production in the U.S.
Favored by the increasing demand for renewable sources of energy in the U.K. and Germany, the sales of biogas in Europe are expected to rise at a CAGR of 5.9% over the assessment period.
China is projected to emerge as the most lucrative market in East Asia, on the back of deployment of large-scale biogas plants in the country.
South Korea and Japan are forecast to collectively account for nearly 7.40% of the total biogas market share in 2021.
On the basis of applications, the electricity application segment is anticipated to account for the lion's share in the market, owing to increasing demand for clean energy.
Implementation of favorable government policies, encouraging the sales of biogas-driven buses, cars, and trucks through tax exemptions and investment subsidies in the U.S., Germany, China, and India is expected to drive the market.
Increasing use of biogas for generating electricity and heat across the power generation sector is spurring the sales in the electricity segment.
High capital investment required for setting up biogas plants is hampering the growth in the market.
Rising consumer preference towards adopting electric vehicles rather than natural gas vehicles is hindering the sales of biogas across the vehicle fuel segment.
The top five players in the global biogas market are Total SA, Air Liquide, Wartsila, Planet Biogas Global GmbH, and Envitec Biogas AG. As per FMI, these companies are anticipated to account for nearly 27.1% of the total sales in 2021.
Established players are focusing on investing in acquisitions, strategic collaborations, and mergers to expand their productions facilities. Through this, companies are aiming to expand their production capabilities to meet the surging for biogas in the energy segment. For instance,
In July 2021, Hitachi Zosen Inova, Swiss-Japanese cleantech company, announced entering into an agreement with Viessmann-based Schmack Group to acquire the business activities of two entities - microbEnergy GmbH and Schmack Biogas Service GmbH. The acquisition will help the company to expand their footprint in the field of renewable gases.
In October 2021, Envitech Biogas Ag, announced signing a contract with a China-based company, East China Engineering Science and Technology Co., Ltd. to establish the company's eighth production plant in China. The strategy will assist the company to increase biogas production using biogas upgradation systems via EnviThan.
Some of the key players operating in the market profiled by FMI are:
EnviTech Biogas AG
SCANDINAVIAN BIOGAS FUELS INTERNATIONAL AB
Schmack Biogas GmbH
Swedish Biogas International AB
PlanET Biogas Global GmbH
S. P. Renewable Energy Source Pvt. Ltd
Agrinz Technologies GmbH
More Valuable Insights on BiogasMarket
A detailed study by FMI provides an unbiased analysis of vital factors favoring the growth in the global biogas market through 2021 and beyond. The survey offers refined sales projections in biogas market with detailed segmentation:
The report offers insight into biogas market demand outlook for the forecast period 2021-2031
The market study also highlights projected sales growth for biogas market between 2021 and 2031
Biogas market survey identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
Biogas market share analysis, covering key companies within the industry and coverage of strategies such as mergers & acquisitions, joint ventures, collaborations or partnerships, and others
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