Biogas Market to Grow by USD 19.51 Billion (2024-2028), Driven by Municipal Solid Waste Growth, with AI-Driven Insights - Technavio

NEW YORK, Dec. 2, 2024 /PRNewswire/ --Report on how AI is driving market transformation - The global biogas market  size is estimated to grow by USD 19.51 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  6.01%  during the forecast period. Increased generation of municipal solid waste is driving market growth, with a trend towards increased use of biogas as piped gas. However, drawbacks associated with biogas production  poses a challenge.Key market players include 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.

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Key Market Trends Fueling Growth

Biogas is a natural byproduct of anaerobic digestion, derived from the bacterial fermentation of organic materials. This renewable energy source can be utilized to generate power and heat or refined for use as natural gas for vehicles. Known as bio-methanation, this application of biogas is increasingly adopted worldwide. For instance, Dane County Landfill in Wisconsin produces 250 gallons of compressed natural gas (CNG) daily, powering its fleet of garbage trucks and reducing dependence on oil. By converting 22 diesel-fueled vehicles to CNG, the company aims to decrease greenhouse gas emissions by approximately 515 metric tons annually. This equates to the environmental impact of planting 13,202 trees, removing 109 cars from the road, and recycling 185 tons of waste. Furthermore, biogas is gaining popularity as a piped gas for cooking and heating purposes due to its cost-effectiveness and similar characteristics to traditional gas. The environmental benefits of biogas make it an attractive alternative to conventional fossil fuels, contributing to the growth of the global biogas market. 

The Biogas market is experiencing significant growth due to various trends. Agricultural support and manufacturing activity are driving demand for Biogas as a renewable energy source. Heat generation applications are also increasing, especially in light of climate change concerns. Biogas plants are producing Renewable Natural Gas (RNG) from feedstocks like agricultural waste, municipal bio-waste, and industrial food waste. Financial aid for Biogas projects is available from public authorities and private sector investors, making land acquisition more accessible. Upgrading the biogas segment to Biomethane is a focus, reducing H2S and water contaminants. Municipal sources like MSW and landfills are key feedstocks, decreasing greenhouse emissions. The refinery industry is exploring Biogas as a replacement for LPG. Rural communities are benefiting from small-scale biodigesters. Circular economy principles are being applied through Anaerobic Digestion, reducing carbon dioxide emissions and creating value from waste. Humidity and remote monitoring systems are essential considerations for efficient plant operation. 

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Market Challenges

• Biogas production has seen consistent growth in recent years but faces challenges to expansion. Technological advancements are needed to improve efficiency and reduce impurities in the gas. Biogas production systems are not very efficient, and the lack of new technology hinders cost-effectiveness and popularity. Large-scale production remains a challenge, limiting biogas adoption in utility-level projects. Biogas contains impurities and low methane levels, leading to lower energy yields and potential engine damage. Its intermittency, caused by temperature changes and bacterial activity, further complicates matters. These factors have resulted in fewer investments in the biogas market compared to solar and wind energy, hindering market growth during the forecast period.
• The Biogas market is growing as more focus is placed on renewable energy and waste treatment. However, challenges persist in implementing large-scale biogas projects using biodigesters. Methane production depends on factors like humidity and temperature, making it crucial to have reliable remote monitoring systems. Private sector investors are interested in biogas from municipal bio-waste, agricultural waste, and industrial effluents. However, high upfront costs and competition from Liquefied Petroleum Gas and fossil fuels are obstacles. Rural communities can benefit from small-scale biodigesters for heat and electricity generation. Public authorities and venture capitalists are essential for environmental safety and financial support. Plastics in waste can hinder the anaerobic digestion process, requiring pre-processing. Circular economy principles can help reduce greenhouse gas emissions by utilizing biogas as vehicle fuel, cooking gas, and upgraded biogas for power generation applications. Biogas can replace fossil fuels in combustion engines, reducing pollution. However, carbon capture and utilization technology is needed to minimize carbon emissions. Connected Energy, a leading biogas company, offers customer support and geopolitical backing to overcome these challenges. They aim to provide green energy solutions while minimizing environmental impact and supporting the circular economy.

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Segment Overview 

This biogas market report extensively covers market segmentation by

1. Application 
• 1.1 Co-generation
• 1.2 Power generation
• 1.3 Heat in buildings
• 1.4 Upgraded to biomethane
2. Source 
• 2.1 Agricultural waste
• 2.2 Landfill
• 2.3 Sewage sludge and others
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Co-generation-  The co-generation segment, also known as combined heat and power (CHP), is a significant part of the global biogas market. Co-generation systems use biogas as fuel to produce both electricity and heat, which can be employed for various applications, including industrial processes, space heating, and cooling. These systems offer high energy efficiency, achieving up to 90% efficiency compared to 30%-40% for conventional electricity generation. This efficiency leads to substantial cost savings and environmental benefits. Co-generation with biogas reduces greenhouse gas emissions by utilizing organic waste as a fuel source, generating electricity while capturing the heat produced during production. Co-generation systems are adaptable to various scales, making them suitable for both large and small-scale applications. Government policies, such as feed-in tariffs and renewable energy targets, are expected to fuel the growth of co-generation systems, driving the expansion of the global biogas market.

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Research Analysis

Biogas is a renewable energy source produced through the anaerobic digestion of organic materials, such as municipal bio-waste, agricultural waste, and energy crops. The primary component of biogas is methane, which can be used as a substitute for Liquefied Petroleum Gas (LPG) in rural communities and as vehicle fuel or cooking gas. Biogas production contributes to the circular economy by transforming waste into a valuable resource, reducing greenhouse gas emissions and mitigating climate change. Public authorities and private sector investors are increasingly recognizing the potential of biogas as a sustainable alternative to fossil fuels in the electric power sector. Upgraded biogas can be used to generate electricity, with surplus electricity sold back to the grid. Feedstocks for biogas production include various organic materials, such as plastics, agricultural waste, and food waste. However, the process requires specific conditions, including appropriate humidity levels and temperature, to ensure efficient methane production. The biogas industry also produces carbon dioxide as a byproduct, which can be utilized for various applications, including enhanced oil recovery and as a feedstock for the production of food-grade carbon dioxide. The biogas market is expected to grow significantly in the coming years, driven by increasing demand for renewable energy and the need to reduce greenhouse gas emissions. Financial aid and incentives from governments and international organizations are also supporting the expansion of the biogas industry.

Market Research Overview

Biogas is a renewable energy source produced through the anaerobic digestion of organic waste, such as agricultural waste, municipal bio-waste, and industrial effluents. The process results in the production of methane, which can be used as a fuel for heat and electricity generation, or upgraded into biomethane for use as vehicle fuel, cooking gas, and liquefied petroleum gas (LPG) replacement. Rural communities, public authorities, and private sector investors are increasingly turning to biogas as a solution for waste treatment and green energy production. Biogas production reduces greenhouse gas emissions by decreasing the reliance on fossil fuels and combustion engines, which contribute to pollution and climate change. Anaerobic digestion occurs in a biodigester, where the organic waste is broken down by microorganisms in the absence of oxygen. The process requires specific conditions, including the right temperature, humidity, and pH level. Remote monitoring systems are used to ensure optimal conditions and prevent contaminants, such as hydrogen sulfide and water, from affecting the biogas quality. Small-scale biodigesters are becoming increasingly popular, allowing for decentralized biogas production in rural areas and reducing the need for long-distance transportation of waste. Connected Energy, a leading player in the biogas industry, provides financial aid, land, and feedstock for small-scale biogas projects, making it easier for communities to adopt this sustainable technology. The biogas industry is a key player in the circular economy, as it transforms waste into a valuable energy source. It also supports various sectors, including the electric power sector, manufacturing activity, and agriculture, by providing a sustainable alternative to fossil fuels and reducing greenhouse gas emissions. However, biogas production also faces challenges, such as the need for environmental safety measures and the presence of contaminants in the feedstock. The upgraded biogas segment, which focuses on the production of high-quality biomethane, is gaining popularity due to its potential as a renewable natural gas and vehicle fuel. In conclusion, the biogas market offers a sustainable and renewable energy solution for various sectors, including heat generation applications, transportation, and electricity production. It reduces greenhouse gas emissions, supports the circular economy, and provides financial, environmental, and geopolitical benefits. However, it also requires careful consideration of the specific conditions for biogas production and the challenges associated with feedstock contaminants and environmental safety.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Co-generation
• Power Generation
• Heat In Buildings
• Upgraded To Biomethane
• Source
• Agricultural Waste
• Landfill
• Sewage Sludge And Others
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio