GLOBAL BIO GAS MARKET (2025 - 2030)

The Global Bio Gas Market was valued at USD 68.2 billion in 2024 and is projected to reach a market size of USD 112.5 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 8.7%.

The Bio Gas Market represents the pinnacle of the circular economy in action, a transformative sector that performs a unique industrial alchemy: turning society's organic waste liabilities into high-value energy and agricultural assets. At its core, biogas is the product of anaerobic digestion, a natural process where microorganisms break down organic matter—such as agricultural residues, animal manure, sewage sludge, and food waste—in the absence of oxygen. The result is a methane-rich gas that can be harnessed for energy, and a nutrient-dense residue called digestate, which serves as a potent organic fertilizer. This market is not merely about producing another form of energy; it is a holistic solution that simultaneously addresses waste management, enhances energy security, and drives decarbonization. The current market landscape is undergoing a critical and rapid evolution, graduating from its historical roots in small, on-farm digesters to a sophisticated, industrial-scale industry. The narrative is shifting from simple on-site electricity and heat generation towards the high-value process of upgrading raw biogas into biomethane, also known as Renewable Natural Gas (RNG). This purified biomethane is chemically almost identical to fossil natural gas, allowing it to be injected directly into existing gas grids or used as a clean, renewable vehicle fuel. This capability is a game-changer, transforming biogas from a decentralized power solution into a strategic tool for decarbonizing the hard-to-abate gas and transport sectors. This transition is being supercharged by a perfect storm of geopolitical, environmental, and economic pressures. The global imperative to reduce greenhouse gas emissions, coupled with a heightened focus on energy security and independence from volatile fossil fuel markets, has placed biogas and biomethane at the forefront of national energy strategies. Governments are deploying a powerful arsenal of incentives, from feed-in tariffs to carbon credits and renewable fuel standards, to de-risk investment and accelerate deployment. The market now encompasses a complex symphony of microbiology, advanced engineering for digesters and upgrading systems, sophisticated logistics for feedstock collection, and intricate energy trading mechanisms. The long-term vision is one of a deeply integrated bio-economy, where urban and rural waste streams are systematically harnessed to create a resilient, decentralized, and circular energy system.

Key Market Insights:

• The IEA’s 2025 special outlook notes that biomethane production costs globally average between USD 36/MWh and USD 108/MWh, which is cheaper than many consumer gas prices in various regions, yet still roughly five times more expensive than conventional natural gas production.
• Agricultural waste, including animal manure and energy crops, remained the single largest feedstock category in 2024, accounting for approximately 65% of the total organic input into biogas plants worldwide.
• An analysis of biogas plant outputs in 2024 revealed that for every 1 million British Thermal Units (MMBtu) of biogas produced, an average of 1.2 metric tons of nutrient-rich digestate was also generated, creating a secondary market for organic fertilizers valued at over USD 3 billion globally.
• In 2024, the process of co-digestion—mixing multiple types of feedstock like food waste with manure—was utilized in over 50% of new medium-to-large-scale plants to optimize methane yield and improve process stability.
• The number of active biomethane plants injecting gas directly into the natural gas grid in Europe surpassed 1,300 in 2024, with these facilities collectively preventing an estimated 15 million metric tons of CO2 equivalent emissions.
• The transportation sector's use of bio-CNG (compressed biomethane) as a vehicle fuel grew by approximately 25% in 2024, with public transit fleets and heavy-duty trucks being the primary adopters.
• An estimated 20% of all organic municipal solid waste (MSW) collected in the European Union in 2024 was diverted from landfills to anaerobic digestion facilities, driven by stringent landfill reduction directives.
• The average Levelized Cost of Energy (LCOE) for electricity produced from a new agricultural biogas plant in 2024 was between $90-$120 per MWh, a figure highly dependent on government subsidies and feedstock costs.
• In 2024, small-scale, prefabricated modular biogas systems for on-site treatment of food waste from supermarkets and large restaurants saw a 30% increase in installations, driven by corporate sustainability goals and rising waste disposal fees.
• An analysis of the global biogas value chain in 2024 showed that operations and maintenance (O&M) activities constituted approximately 15-20% of a plant's annual operational expenditure.

Market Drivers:

A primary driver for the biogas market is its unique ability to solve the pressing global challenge of organic waste management.

Urban centers are grappling with overflowing landfills, while the agricultural sector faces issues with manure and crop residue disposal. Biogas technology provides an elegant, value-generating solution. It diverts this waste from landfills, preventing the uncontrolled release of methane (a potent greenhouse gas), and transforms it into two valuable products: renewable energy and organic fertilizer. This perfect alignment with the principles of the circular economy, where waste is redefined as a resource, is driving strong policy support and investment from both public and private sectors.

The global push for energy independence and the urgent need to decarbonize the energy system are powerful catalysts for the biogas market.

Biogas provides a domestic, dispatchable, and renewable energy source that can reduce reliance on imported and volatile fossil fuels, particularly natural gas. The ability to upgrade biogas to biomethane (RNG) is especially critical, as it provides a "drop-in" renewable gas that can be used in existing infrastructure to decarbonize the heating and industrial sectors. As nations intensify their efforts to meet climate targets, biogas is increasingly recognized as a key, readily deployable tool in the energy transition.

Market Restraints and Challenges:

The most significant restraint is the high initial capital investment required to construct a biogas plant, which can be a major barrier, especially for smaller farms or municipalities. The market also faces logistical challenges related to the collection, transport, and storage of diverse and often inconsistent organic feedstock. Furthermore, optimizing the biological process within the digester requires technical expertise, and operational issues can lead to inefficiencies and downtime, posing a challenge to achieving consistent profitability without supportive government policies.

Market Opportunities:

A monumental opportunity lies in the production of bio-CO2, a high-purity carbon dioxide stream that is a natural by-product of the biogas upgrading process. This bio-CO2 can be captured and utilized in applications like food and beverage carbonation, green concrete production, or as a feedstock for e-fuels. There is also immense potential in developing advanced, multi-stage digesters that can process more challenging feedstocks like lignin-rich biomass. Furthermore, creating integrated bio-refineries where biogas production is just one part of a larger value chain that also produces bioplastics and biochemicals represents a major future opportunity.

GLOBAL BIO GAS MARKET

Market Segmentation:

Segmentation by Feedstock:

• Agricultural Waste (Manure, Crop Residue)
• Municipal & Sewage Waste
• Industrial Waste (Food Processing, etc.)

The fastest-growing segment is Municipal & Sewage Waste. Driven by stringent regulations to divert organic waste from landfills and strong government investment in sanitation infrastructure, the use of municipal solid waste (MSW) and wastewater sludge as feedstock is expanding rapidly, especially in and around urban centers.

The most dominant segment is Agricultural Waste. Globally, the sheer volume of available animal manure and crop residues makes agriculture the largest and most established source of feedstock for biogas production. The on-farm model, where waste is converted to energy locally, remains the backbone of the industry.

Segmentation by Application:

• Electricity Generation
• Heat Generation
• Upgraded to Biomethane (RNG)

The fastest-growing segment is Upgraded to Biomethane (RNG). The immense strategic value of creating a renewable substitute for fossil natural gas for grid injection and as a transport fuel is driving explosive growth. Favorable policies and the high market value of biomethane make this the most dynamic application.

The most dominant segment is Electricity Generation. Historically, the most common application for biogas has been its use in combined heat and power (CHP) units to generate on-site electricity and heat. The vast installed base of these CHP systems ensures that electricity generation remains the dominant application by volume.

Segmentation by Plant Size:

• Small-Scale (< 500 kW)
• Medium-Scale (500 kW - 3 MW)
• Large-Scale (> 3 MW)

The fastest-growing segment is Large-Scale. Driven by industrial-level projects that aggregate waste from multiple sources and focus on producing biomethane for grid injection, the development of large-scale plants is accelerating. These projects benefit from economies of scale and attract significant corporate and infrastructure investment.

The most dominant segment is Small-Scale. Numerically, small, on-farm, or community-level digesters make up the vast majority of biogas installations worldwide. While their individual output is low, their collective numbers, particularly in regions with strong agricultural sectors, make this the dominant segment in terms of unit count.

Segmentation by End-User:

• Agriculture
• Industrial
• Municipal/Utilities

The fastest-growing segment is Municipal/Utilities. As cities increasingly adopt circular economy principles and invest in advanced waste management, municipal water and waste utilities are rapidly becoming key developers and operators of biogas facilities, using sewage sludge and the organic fraction of city waste to generate energy.

The most dominant segment is Agriculture. The farming sector remains the largest and most established end-user of biogas technology. Farmers utilize on-site digesters to manage manure, create their own energy, and produce valuable bio-fertilizer, making agriculture the foundational end-user of the biogas industry.

Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

The most dominant region is Europe, holding a commanding market share of 45%. Led by powerhouse nations like Germany, France, and Italy, Europe has the most mature market, supported by decades of strong policy frameworks, advanced technology, and a comprehensive network of biogas facilities.

The fastest-growing region is Asia-Pacific. Propelled by enormous volumes of available agricultural and municipal waste, pressing energy needs, and strong government initiatives like India's SATAT scheme, the region is experiencing the most rapid development of new biogas and biomethane capacity.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a dual effect on the biogas market. In the short term, it caused disruptions to supply chains for new plant construction and created operational challenges due to lockdowns. However, the crisis also served as a powerful long-term catalyst. It exposed the vulnerabilities of centralized, global energy supply chains and underscored the value of domestic, decentralized, and resilient energy sources like biogas, leading to increased strategic interest and policy support in the post-pandemic recovery phase.

Latest Market News:

• October 2025: TotalEnergies announced the commissioning of its new large-scale biomethane production plant in Grand-Est, France, which will process over 200,000 tons of organic waste annually and inject the resulting Renewable Natural Gas directly into the local grid.
• August 2025: India's Ministry of New and Renewable Energy reported that over 50 new large-scale bio-CNG plants have become operational under the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative, significantly boosting the country's clean vehicle f

  The Global Bio Gas Market was valued at USD 68.2 billion in 2024 and is projected to reach a market size of USD 112.5 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 8.7%.

  The Bio Gas Market represents the pinnacle of the circular economy in action, a transformative sector that performs a unique industrial alchemy: turning society's organic waste liabilities into high-value energy and agricultural assets. At its core, biogas is the product of anaerobic digestion, a natural process where microorganisms break down organic matter—such as agricultural residues, animal manure, sewage sludge, and food waste—in the absence of oxygen. The result is a methane-rich gas that can be harnessed for energy, and a nutrient-dense residue called digestate, which serves as a potent organic fertilizer. This market is not merely about producing another form of energy; it is a holistic solution that simultaneously addresses waste management, enhances energy security, and drives decarbonization. The current market landscape is undergoing a critical and rapid evolution, graduating from its historical roots in small, on-farm digesters to a sophisticated, industrial-scale industry. The narrative is shifting from simple on-site electricity and heat generation towards the high-value process of upgrading raw biogas into biomethane, also known as Renewable Natural Gas (RNG). This purified biomethane is chemically almost identical to fossil natural gas, allowing it to be injected directly into existing gas grids or used as a clean, renewable vehicle fuel. This capability is a game-changer, transforming biogas from a decentralized power solution into a strategic tool for decarbonizing the hard-to-abate gas and transport sectors. This transition is being supercharged by a perfect storm of geopolitical, environmental, and economic pressures. The global imperative to reduce greenhouse gas emissions, coupled with a heightened focus on energy security and independence from volatile fossil fuel markets, has placed biogas and biomethane at the forefront of national energy strategies. Governments are deploying a powerful arsenal of incentives, from feed-in tariffs to carbon credits and renewable fuel standards, to de-risk investment and accelerate deployment. The market now encompasses a complex symphony of microbiology, advanced engineering for digesters and upgrading systems, sophisticated logistics for feedstock collection, and intricate energy trading mechanisms. The long-term vision is one of a deeply integrated bio-economy, where urban and rural waste streams are systematically harnessed to create a resilient, decentralized, and circular energy system.

  

  Key Market Insights:

• The IEA’s 2025 special outlook notes that biomethane production costs globally average between USD 36/MWh and USD 108/MWh, which is cheaper than many consumer gas prices in various regions, yet still roughly five times more expensive than conventional natural gas production.
• Agricultural waste, including animal manure and energy crops, remained the single largest feedstock category in 2024, accounting for approximately 65% of the total organic input into biogas plants worldwide.
• An analysis of biogas plant outputs in 2024 revealed that for every 1 million British Thermal Units (MMBtu) of biogas produced, an average of 1.2 metric tons of nutrient-rich digestate was also generated, creating a secondary market for organic fertilizers valued at over USD 3 billion globally.
• In 2024, the process of co-digestion—mixing multiple types of feedstock like food waste with manure—was utilized in over 50% of new medium-to-large-scale plants to optimize methane yield and improve process stability.
• The number of active biomethane plants injecting gas directly into the natural gas grid in Europe surpassed 1,300 in 2024, with these facilities collectively preventing an estimated 15 million metric tons of CO2 equivalent emissions.
• The transportation sector's use of bio-CNG (compressed biomethane) as a vehicle fuel grew by approximately 25% in 2024, with public transit fleets and heavy-duty trucks being the primary adopters.
• An estimated 20% of all organic municipal solid waste (MSW) collected in the European Union in 2024 was diverted from landfills to anaerobic digestion facilities, driven by stringent landfill reduction directives.
• The average Levelized Cost of Energy (LCOE) for electricity produced from a new agricultural biogas plant in 2024 was between $90-$120 per MWh, a figure highly dependent on government subsidies and feedstock costs.
• In 2024, small-scale, prefabricated modular biogas systems for on-site treatment of food waste from supermarkets and large restaurants saw a 30% increase in installations, driven by corporate sustainability goals and rising waste disposal fees.
• An analysis of the global biogas value chain in 2024 showed that operations and maintenance (O&M) activities constituted approximately 15-20% of a plant's annual operational expenditure.

• 

  Market Drivers:

  A primary driver for the biogas market is its unique ability to solve the pressing global challenge of organic waste management.

  Urban centers are grappling with overflowing landfills, while the agricultural sector faces issues with manure and crop residue disposal. Biogas technology provides an elegant, value-generating solution. It diverts this waste from landfills, preventing the uncontrolled release of methane (a potent greenhouse gas), and transforms it into two valuable products: renewable energy and organic fertilizer. This perfect alignment with the principles of the circular economy, where waste is redefined as a resource, is driving strong policy support and investment from both public and private sectors.

  The global push for energy independence and the urgent need to decarbonize the energy system are powerful catalysts for the biogas market.

  Biogas provides a domestic, dispatchable, and renewable energy source that can reduce reliance on imported and volatile fossil fuels, particularly natural gas. The ability to upgrade biogas to biomethane (RNG) is especially critical, as it provides a "drop-in" renewable gas that can be used in existing infrastructure to decarbonize the heating and industrial sectors. As nations intensify their efforts to meet climate targets, biogas is increasingly recognized as a key, readily deployable tool in the energy transition.

  Market Restraints and Challenges:

  The most significant restraint is the high initial capital investment required to construct a biogas plant, which can be a major barrier, especially for smaller farms or municipalities. The market also faces logistical challenges related to the collection, transport, and storage of diverse and often inconsistent organic feedstock. Furthermore, optimizing the biological process within the digester requires technical expertise, and operational issues can lead to inefficiencies and downtime, posing a challenge to achieving consistent profitability without supportive government policies.

  Market Opportunities:

  A monumental opportunity lies in the production of bio-CO2, a high-purity carbon dioxide stream that is a natural by-product of the biogas upgrading process. This bio-CO2 can be captured and utilized in applications like food and beverage carbonation, green concrete production, or as a feedstock for e-fuels. There is also immense potential in developing advanced, multi-stage digesters that can process more challenging feedstocks like lignin-rich biomass. Furthermore, creating integrated bio-refineries where biogas production is just one part of a larger value chain that also produces bioplastics and biochemicals represents a major future opportunity.

  Market Segmentation:

  Segmentation by Feedstock:

• Agricultural Waste (Manure, Crop Residue)
• Municipal & Sewage Waste
• Industrial Waste (Food Processing, etc.)

• The fastest-growing segment is Municipal & Sewage Waste. Driven by stringent regulations to divert organic waste from landfills and strong government investment in sanitation infrastructure, the use of municipal solid waste (MSW) and wastewater sludge as feedstock is expanding rapidly, especially in and around urban centers.

  The most dominant segment is Agricultural Waste. Globally, the sheer volume of available animal manure and crop residues makes agriculture the largest and most established source of feedstock for biogas production. The on-farm model, where waste is converted to energy locally, remains the backbone of the industry.

  

  Segmentation by Application:

• Electricity Generation
• Heat Generation
• Upgraded to Biomethane (RNG)

• The fastest-growing segment is Upgraded to Biomethane (RNG). The immense strategic value of creating a renewable substitute for fossil natural gas for grid injection and as a transport fuel is driving explosive growth. Favorable policies and the high market value of biomethane make this the most dynamic application.

  The most dominant segment is Electricity Generation. Historically, the most common application for biogas has been its use in combined heat and power (CHP) units to generate on-site electricity and heat. The vast installed base of these CHP systems ensures that electricity generation remains the dominant application by volume.

  

  Segmentation by Plant Size:

• Small-Scale (< 500 kW)
• Medium-Scale (500 kW - 3 MW)
• Large-Scale (> 3 MW)

• The fastest-growing segment is Large-Scale. Driven by industrial-level projects that aggregate waste from multiple sources and focus on producing biomethane for grid injection, the development of large-scale plants is accelerating. These projects benefit from economies of scale and attract significant corporate and infrastructure investment.

  The most dominant segment is Small-Scale. Numerically, small, on-farm, or community-level digesters make up the vast majority of biogas installations worldwide. While their individual output is low, their collective numbers, particularly in regions with strong agricultural sectors, make this the dominant segment in terms of unit count.

  Segmentation by End-User:

• Agriculture
• Industrial
• Municipal/Utilities

• The fastest-growing segment is Municipal/Utilities. As cities increasingly adopt circular economy principles and invest in advanced waste management, municipal water and waste utilities are rapidly becoming key developers and operators of biogas facilities, using sewage sludge and the organic fraction of city waste to generate energy.

  The most dominant segment is Agriculture. The farming sector remains the largest and most established end-user of biogas technology. Farmers utilize on-site digesters to manage manure, create their own energy, and produce valuable bio-fertilizer, making agriculture the foundational end-user of the biogas industry.

  

  Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

• The most dominant region is Europe, holding a commanding market share of 45%. Led by powerhouse nations like Germany, France, and Italy, Europe has the most mature market, supported by decades of strong policy frameworks, advanced technology, and a comprehensive network of biogas facilities.

  The fastest-growing region is Asia-Pacific. Propelled by enormous volumes of available agricultural and municipal waste, pressing energy needs, and strong government initiatives like India's SATAT scheme, the region is experiencing the most rapid development of new biogas and biomethane capacity.

  COVID-19 Impact Analysis:

  The COVID-19 pandemic had a dual effect on the biogas market. In the short term, it caused disruptions to supply chains for new plant construction and created operational challenges due to lockdowns. However, the crisis also served as a powerful long-term catalyst. It exposed the vulnerabilities of centralized, global energy supply chains and underscored the value of domestic, decentralized, and resilient energy sources like biogas, leading to increased strategic interest and policy support in the post-pandemic recovery phase.

  Latest Market News:

• October 2025: TotalEnergies announced the commissioning of its new large-scale biomethane production plant in Grand-Est, France, which will process over 200,000 tons of organic waste annually and inject the resulting Renewable Natural Gas directly into the local grid.
• August 2025: India's Ministry of New and Renewable Energy reported that over 50 new large-scale bio-CNG plants have become operational under the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative, significantly boosting the country's clean vehicle fuel capacity.

• Latest Trends and Developments:

  The defining trend is the rapid scaling of biogas upgrading technologies to produce high-purity biomethane for grid injection and as a transport fuel. Another key development is the focus on "digestate valorization"—processing the digestate by-product to create high-value, specialized bio-fertilizers. Furthermore, the integration of AI and machine learning for optimizing the biological processes within the digester and for predictive maintenance of plant equipment is becoming increasingly prevalent.

  Key Players in the Market:

• EnviTec Biogas AG
• WELTEC BIOPOWER GmbH
• PlanET Biogastechnik GmbH
• TotalEnergies
• Shell Plc
• Engie SA
• Veolia
• Suez
• Wärtsilä
• Air Liquide
• uel capacity.