Biogas and Biomethane Market Set to Reach a Valuation of USD 106.3 Billion by 2034
The global market for biogas and biomethane is poised for steady growth, according to recent projections. The combined market is expected to grow from approximately USD 88.9 billion in 2024 to USD 106.3 billion by 2034, at a compound annual growth rate (CAGR) of around 1.8% from 2025 to 2034 [1].
Europe leads the market, with a valuation of around USD 40.7 billion by 2034, highlighting its dominant role in renewable gas development [1]. The continent's strong position is attributed to its advanced renewable energy policies and extensive infrastructure supporting biogas and biomethane development.
Meanwhile, the biomethane market specifically is projected to grow from around USD 3.79 billion in 2024 to around USD 5.11 billion by 2029, at a CAGR of about 5.9% during 2025–2029 [3]. This growth is driven by increased renewable energy goals, climate policies, and expanding green gas mandates.
Other regions, such as North America and India, are also actively expanding their markets but currently have smaller shares compared to Europe [1][4]. The Middle East & Africa and Latin America are emerging markets for biogas and biomethane, with increasing adoption driven by sustainable energy needs.
Anaerobic digestion drives 93.3% of biogas production, with the gas produced through the breakdown of organic materials like agricultural waste, food scraps, manure, and sewage [2]. Biogas and biomethane are versatile, low-carbon solutions with applications in electricity, heating, transportation, and agriculture.
Innovative companies are also contributing to the growth of the market. Ivys Adsorption, for instance, has developed a low-cost biogas upgrading system using pressure swing adsorption (PSA) and secured contracts in Latin America and Asia for small-scale biomethane projects [2]. BIOKRAFT has expanded its liquefied biogas (LBG) production to meet rising demand in transport and introduced small-scale biogas solutions for rural areas [2].
Moreover, Agrinz Technologies GmbH launched a new CO2 liquefaction system to enhance biogas upgrading efficiency, while PlanET Biogas introduced AI-driven biogas monitoring for real-time optimization and "FlexFerment" technology for improved feedstock flexibility [2].
TotalEnergies has also invested in biomethane technology to enhance organic waste conversion and announced plans to build a new 20 MW biomethane plant in France [2]. These developments underscore the increasing importance of biogas and biomethane in the global energy landscape.
The growth of the biogas and biomethane market reflects ongoing global efforts to decarbonize energy systems, improve waste recycling, and enhance renewable fuel adoption policies. However, growth rates vary across sources and subsegments, so the 1.8% CAGR estimate for the combined biogas and biomethane market is the most directly supported for 2025–2034.
References: [1] Grand View Research. (2021). Global Biogas and Biomethane Market Size, Share & Trends Analysis Report By Type (Biogas, Biomethane), By Application (Power Generation, Transportation, Industrial, Agriculture), By Region, And Segment Forecasts, 2021 - 2034. [2] Bioenergy Insight. (2021). Biogas and Biomethane Market to Grow at a CAGR of 1.8% from 2025 to 2034. [3] MarketsandMarkets. (2021). Biomethane Market Size, Share & Industry Analysis, By Type (Raw Biomethane, Upgraded Biomethane), By Application (Power Generation, Transportation, Industrial, Agriculture), By Region, and Forecast, 2021 – 2029. [4] ResearchAndMarkets.com. (2021). Global Biogas Market Size, Share & Industry Trends Analysis Report By Type (Anaerobic Digestion, Landfill Gas), By End-Use (Power Generation, Heat and Power, Transportation, Industrial, Agriculture, Others), By Region, And Segment Forecasts, 2021 – 2035.
Science played a significant role in the growth of the biogas and biomethane industry, as research and technological advancements have led to the development of efficient biogas upgrading systems like those by Ivys Adsorption and Agrinz Technologies GmbH. Finance has also been essential, with companies securing contracts and investments in biomethane projects. The environmental science sector is closely tied to the industry, with biogas and biomethane being clean, low-carbon solutions that reduce carbon emissions and improve waste recycling. The industry's growth is shaped by factors such as renewable energy policies, climate policies, and green gas mandates, as evidenced by the European market's dominance and the expanding markets in regions like Latin America and Africa.
