Biogas Market to Hit $88.6 Billion by 2032 | Growth, Trends & Opportunities in Renewable Energy

♻️ Biogas Industry 2023–2032: Global Market Outlook, Drivers & Innovations

WILMINGTON, DE, UNITED STATES, August 14, 2025 /EINPresswire.com/ --

According to the latest report by Allied Market Research, the biogas market size reached $59.0 billion in 2022 and is projected to hit $88.6 billion by 2032, growing at a CAGR of 4.2% from 2023 to 2032. The demand for biogas is driven by its role as a renewable, eco-friendly energy source with diverse applications ranging from electricity generation to transportation fuel.

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What is Biogas?

Biogas is produced through the anaerobic digestion of organic matter, mainly composed of methane and carbon dioxide. It serves as a sustainable alternative to fossil fuels and is used for:

Electricity generation

Heating and cooking

Transportation fuel (biomethane)

Its adoption reduces dependency on traditional fuels like wood and charcoal, helping combat deforestation and indoor air pollution. Moreover, biogas production supports waste management, turning organic waste into valuable energy.

Upgraded biogas, known as biomethane, can be injected into the natural gas grid or used directly as a vehicle fuel, broadening its commercial potential.

Market Drivers

1. Industrial & Commercial Adoption

The industrial sector is increasingly shifting toward low-carbon energy sources, making biogas a viable solution. Industries utilize biogas for steam generation, heating, and cooling, replacing fossil fuels. Biomethane injection into the natural gas grid for industrial use further boosts its relevance.

In the commercial sector, hotels, restaurants, supermarkets, and institutions are leveraging biogas to cut energy costs and reduce carbon emissions. Cogeneration or Combined Heat and Power (CHP) systems using biogas enable simultaneous production of electricity and heat, improving efficiency.

2. Waste-to-Energy Benefits

Biogas production turns organic waste streams—like food waste, agricultural residues, and municipal waste—into renewable power. This not only lowers landfill pressure but also creates a circular economy approach to waste management.

Market Challenges

Despite its benefits, biogas faces strong competition from conventional energy sources like coal, oil, and natural gas. These fossil fuels enjoy established infrastructure and, in some regions, government subsidies.

Higher Initial Costs – Setting up anaerobic digesters and upgrading facilities involves significant investment, making it harder for biogas to compete economically in certain markets. Production Variability – Feedstock availability impacts output consistency, requiring backup systems or storage to maintain stable supply.

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Opportunities in the Biogas Market

1. Technological Innovations

Advances in anaerobic digestion methods—like co-digestion and high-rate digestion—are improving biogas yields. New upgrading technologies are producing high-purity biomethane for injection into pipelines or as a vehicle fuel.

2. Alternative Power Generation

Innovations in fuel cells and microturbines enhance electricity generation efficiency from biogas. Integration of digital monitoring systems helps optimize operations, reduce downtime, and maximize returns.

3. Novel Feedstocks

Emerging use of algae and industrial organic waste streams expands feedstock availability, creating new deployment opportunities.

Segments Overview

By Source:

Municipal Waste – Largest share in 2022, projected to grow at a CAGR of 3.9%.

Animal Waste

Agricultural Waste

Others

By End-Use Industry:

Electricity Generation – Dominated in 2022, over one-third market share.

Cogeneration (CHP)

Others

By Region:

Asia-Pacific – Major market share in 2022, driven by large populations, energy needs, and strong renewable adoption policies.

Competitive Landscape

Key players in the biogas industry include:

Wärtsilä

EnviTec Biogas AG

Air Liquide USA

Hindustan Petroleum Corporation Limited

PlanET Biogas Group

BoxLNG Pvt. Ltd.

Bharat Biogas Energy Ltd.

Primove Engineering Pvt. Ltd.

GAIL Gas Limited

GPS Renewables Pvt. Ltd.

These companies are investing in cost-effective, high-efficiency biogas solutions and expanding into emerging markets.

Key Findings

Municipal waste remains the largest feedstock source.

Power generation leads as the top end-use industry.

Asia-Pacific continues to dominate the global market landscape.

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Conclusion

The biogas market is poised for consistent growth over the next decade, fueled by the global shift toward renewable energy, industrial decarbonization, and advanced waste-to-energy solutions. Although competition from fossil fuels and high initial costs remain challenges, technological advancements, new feedstocks, and policy support are expected to accelerate adoption. Biogas stands as a critical pillar in achieving net-zero targets and fostering a sustainable energy future.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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