Biogas Market: Size, Share, Trends, and Global Industry Analysis – By Source, By Application, and By Region (2025‑2032)

Market Overview

The biogas market size stood at US$ ≈133.61 billion in 2024— and is projected to reach at US$ 191.19 billion by 2032, reflecting a 4.3% CAGR during 2025‑2032. The U.S. biogas market is forecast to approach US$ 29 billion by 2032, driven by aggressive renewable‑gas procurement programs and landfill diversion policies.

SAC Insight evaluation shows three structural tailwinds:

(1) Escalating decarbonization targets across major economies,
(2) Rising demand for circular waste‑to‑energy solutions, and
(3) Steady improvements in upgrading technologies that lift biomethane yields.

Summary of Market Trends & Drivers

• Utilities and fleet operators are signing long‑term offtake deals for renewable natural gas, cementing demand visibility.
• Rapid scale‑up of anaerobic digesters on dairy and poultry farms is turning agricultural waste from a liability into a revenue stream.
• Policy momentum—such as higher renewable‑gas blending mandates in Europe and North America—accelerates market growth and technology adoption.

Key Market Players

The competitive landscape spans global biogas market conglomerates and regional specialists. Established names such as Air Liquide, Planet Biogas, Wartsila, and EnviTec Biogas command significant market share through integrated plant design and upgrading solutions. A fast‑growing cohort of innovators—including HomeBiogas, Quantum Green, and Brightmark Energy—focuses on modular digesters, on‑site biomethane production, and farm‑scale projects that shorten payback periods.

Key Takeaways

• Biogas industry value (2024): ~US$ 133.61 billion.
• Projected value (2032): ~US$ 191.19 billion at a 4.3% CAGR.
• Europe leads with approximately 53.6% market share in 2024, followed by North America.
• Electricity generation remains the largest application, but upgraded biomethane is the fastest‑growing segment.
• Municipal solid waste is the dominant feedstock; agricultural residues show the highest incremental growth.
• Biogas can cut greenhouse‑gas emissions by up to 80% versus fossil alternatives, bolstering its policy appeal.

Market Dynamics

Drivers

• Net-zero commitments and carbon pricing schemes boost the economic case for renewable gas.
• Growing corporate ESG goals spur long-term biomethane purchase agreements.
• Advances in membrane separation and cryogenic upgrading raise biomethane purity above 98%, widening end-use options.

Restraints

• High upfront capital for digesters and gas-cleaning units lengthens payback, especially for small operators.
• Feedstock logistics—collection, preprocessing, and transport—add complexity and cost.

Opportunities

• Co-digestion of food waste and manure improves gas yields and attracts tipping‑fee revenue.
• Integration with hydrogen and carbon-capture projects can create negative-emission fuel pathways.

Challenges

• Patchwork permitting rules slow project pipelines.
• Volatile feedstock supply from seasonal agricultural waste can constrain consistent output.

Regional Analysis

Europe retains the lion's share of biogas market size thanks to mature feed-in tariffs, landfill bans, and robust biomethane injection infrastructure, accounting for 53.6% share in 2024. North America follows, powered by California's Low-Carbon Fuel Standard credits and a growing network of RNG fueling stations. Asia-Pacific is the quickest climber as China and India scale municipal waste-to-energy projects.

• Europe: Strong policy support, >10,000 operational plants, focus on grid-quality biomethane.
• North America: Rapid growth in transportation fuel applications and dairy digester projects.
• Asia-Pacific: Government waste-management mandates and rural electrification programs drive adoption.
• Latin America: Emerging opportunities in agro-industrial waste valorization.
• Middle East & Africa: Early-stage market, but rising interest in large-scale landfill gas capture.

Segmentation Analysis

By Source

• Municipal Waste – Landfill & Wastewater, majority share.
Municipal solid waste and sewage sludge are the most widely used sources, leveraging existing collection networks and reducing landfill methane leaks.

• Agricultural Waste – Dairy, Poultry, Swine, fast-growing.
Farm residues and manure are increasingly digested on-site, turning waste into a revenue stream while lowering odor and nutrient runoff.

• Industrial Waste – Food & Beverage, Wastewater, niche but rising.
Food-processing by-products and industrial effluents offer high-energy substrates, and companies adopt biogas to meet corporate sustainability targets.

By Application

• Electricity Generation – ~30% revenue share.
Grid-connected combined heat and power (CHP) units monetize both electricity and thermal output, securing predictable cash flows.

• Vehicle Fuel – Highest CAGR.
Upgraded biomethane replaces diesel in transit buses and heavy-duty fleets, capitalizing on low-carbon fuel credits.

• Heat & Cooking Gas – Stable demand.
Direct combustion in district heating and household cooking offsets propane and fuel oil, particularly in rural areas.

• Upgraded Biogas (Biomethane) – Rapid scale-up.
Pipeline-grade biomethane meets natural-gas quality specs, unlocking large-volume offtake in residential, industrial, and mobility sectors.

Industry Developments & Instances

• March 2025: A leading Nordic energy firm opened its first liquefied biomethane station near Stockholm's Arlanda Airport to serve long-haul trucks.
• May 2024: A major U.S. dairy cooperative partnered with an RNG developer to monetize manure from 20 farms, targeting 2 million MMBtu annually.
• April 2024: A biotech company broke ground on three biofertilizer-plus-biogas plants in Poland, integrating nutrient recovery with RNG sales.
• June 2023: An Italian energy group acquired a domestic biogas portfolio to accelerate its circular-economy strategy.

Facts & Figures

• Roughly 2,200 biogas facilities operate across all 50 U.S. states.
• Europe produces ~2 billion m³ of biogas per year, enough to heat 1 million homes.
• 60–80% reduction in lifecycle GHG emissions when biomethane displaces diesel in heavy transport.
• Municipal sources account for 41.35% of global revenue, reflecting landfill diversion mandates.
• Upgraded biomethane demand is rising at >8% annually, outpacing raw biogas growth.

Analyst Review & Recommendations

SAC Insight analysis indicates a steady, policy-backed expansion rather than a boom-and-bust cycle. Players that bundle digester design, feedstock logistics, and gas upgrading into turnkey offerings will capture outsized biogas market share. Priorities for stakeholders include securing long-term feedstock contracts, optimizing capex through modular plant designs, and tapping carbon-credit revenues to shorten payback. With incremental technology gains and tightening climate targets, biogas is set to evolve from a niche waste-management solution into a mainstream pillar of the low-carbon energy mix by 2032.