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Biogas Market Size, Share, and Trends 2025 to 2034

The global biogas market size is calculated at USD 170.89 billion in 2025 and is forecasted to reach around USD 291.66 billion by 2034, accelerating at a CAGR of 4.33% from 2025 to 2034. The Europe biogas market size surpassed USD 67.66 billion in 2025 and is expanding at a CAGR of 4.40% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.

  • Last Updated : 02 Jun 2025
  • Report Code : 1636
  • Category : Energy and Power

Biogas Market Size and Forecast 2025 to 2034

The global biogas market size was accounted for USD 161.03 billion in 2024 and is anticipated to reach around USD 291.66 billion by 2034, growing at a CAGR of 4.33% from 2025 to 2034.

Biogas Market Size 2025 to 2034

Biogas Market Key Takeaways

  • In terms of revenue, the biogas market is valued at $170.89 billion in 2025.
  • It is projected to reach $291.66 billion by 2034.
  • The biogas market is expected to grow at a CAGR of 4.33% from 2025 to 2034.
  • Europe dominated the global biogas market with the largest market share of 39.59% in 2024.
  • By application, the electricity segment contributed the highest market share of 32% in 2024.
  • By source, the municipal segment has held the biggest market share of 45% in 2024.
  • By source, the industrial segment is expanding at the fastest CAGR during the forecast period.

Impact of Artificial Intelligence (AI) on the Biogas Market

Integrating AI into maintenance can provide better maintenance and simplify the process. Integration of smart technology with biogas plant operation and biogas production process to better monitor and evaluate important ads such as total waste, non-convertible waste change, volatile organic compounds, chemical oxygen demand, pH, and temperature. The possibility of joint intelligence is presented with a visual representation of biogas plant operation and monitoring process and different equipment with advanced applications in automation and prediction. Prediction and optimization of biogas production from micro-AD plants based on a new design concept. AI-based models are generated from historical data of different systems and can be used for the immediate commercialization of AD plants leading to the growth of the biogas market.

Europe Biogas Market Size and Growth 2025 to 2034

The Europe biogas market size was evaluated at USD 63.75 billion in 2024 and is predicted to be worth around USD 115.61 billion by 2034, rising at a CAGR of 4.40% from 2025 to 2034.

Europe Biogas Market Size 2025 to 2034

Europe dominated the global biogas market with the largest market share of 39.59% in 2024. The factors such as surge in demand for biogas in diverse sectors and industries, innovation and technological developments, and growing investments in the energy sector is contributing to the market growth.

The European Green Deal aims to make the EU the world’s first climate-neutral region by 2050, reducing pollution and restoring healthy nature and ecosystems. As countries such as Italy and Germany have proven, biogas could be a companion to the decarbonization of the European economy and Europe’s energy transition. The Renewable Energy Sources Directive (“RED II”) includes an EU-wide legal renewable energy target of 32% renewable energy by 2030, with specific targets from the Ministry including increasing the share of renewables, with progress to be reviewed in 2023. The heating sector has seen an annual increase of 1.3%, leading to growth in the biogas market.

  • In October 2024, the European Energy Exchange (EEX) will announce the three-month biogas Guarantee of Origin (GO) auction on behalf of the French Ministry. In the tender, the French government sells the GO produced by selected biogas plants that benefit from the state’s support system.

Biogas Market Share, By Region, 2024 (%)

North America, on the other hand, is expected to develop at the fastest rate during the forecast period. The UK dominates the biogas market in Asia-Pacific region. The huge number of market players is operating in the region. The government of Europe is highly investing in the research and development activities for the development of the market. In addition, the private entities are taking initiatives for the growth of the biogas market in Asia-pacific region.

North America is becoming a growing biogas market as U.S. biogas producers learn that these plants are making a real impact nationwide. Biogas is produced by digesting and chemically treating organic matter, but this organic matter can be obtained in many ways. The U.S. manufactures products using detailed specifications, raw materials, and technological advances. Feedstocks, installation information, costs and efficiencies of different conversion devices, and studies on the limitations of pipeline-quality biogas production were used to calculate the energy costs of biogas plants operating on waste, manure, wastewater, and sewage, sludge, and biomass waste feedstocks, this cause growth of biogas market.

Asia Pacific is expected to grow significantly in the biogas market during the forecast period. Due to the increasing organic waste in the Asia Pacific, the use of biogas is increasing. At the same time, animal manure, as well as food waste, is also contributing to the growing demands. Moreover, there is a rise in the energy demand, which in turn increases the use of as well as the development of biogas. Furthermore, the adoption of technologies is also enhancing this process. Thus, all these processes, along with the government support, promote the market growth. 

China 

The demand for energy is rising in China, due to which they are establishing biogas plants. At the same time, the adoption of advanced technologies is also increasing, which is being used in the development of these plants. Furthermore, to support these developments, the government as well as the private sectors are also contributing to the same. 

India 

The increasing organic waste, as well as animal manure, is encouraging the development of biogas in India. At the same time, various policies as well as subsidies are also being provided by the government and the private sectors to support these developments. 

Biogas Market Growth Factors

  • Biogas is used as fuel in a combustion engine and converted into an electric generator to power generator to generate electricity, leading to the growth of the biogas market.
  • Once biogas is fully purified, it can be used to power natural gas vehicles (NGV) or dual-fuel vehicles instead of fossil fuels, which will lead to the growth of the biogas market.
  • Stored biogas can replace coal or natural gas to provide clean, renewable, and reliable energy, which will lead to the growth of the biogas market.
  • Biogas is a renewable energy that uses the anaerobic digestion process to convert waste into gas (called biogas), which has led to the growth of the industrial biogas market.
  • Catalytic conversion of a biogas mixture of methane and carbon dioxide to produce methanol with steam has led to the growth of the biogas market.

Market Scope

Report Coverage Details
Market Size by 2034 USD 291.66 Billion
Market Size in 2025 USD 170.89 Billion
Growth Rate from 2025 to 2034 CAGR of 4.33%
Largest Market Europe
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Source, Feedstock, Application, Size, Technology, Region
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Furthermore, the growing demand and preference for clean energy and low-carbon electricity is boosting the expansion of the global biogas market. The regions such as Europe and North America have started using biogas for the production of electricity. The importance of biogas has been understood by every nation, which has created substantial impact on the development and growth of the global biogas market.

In addition, several countries are coming together and forming collaborations and signing agreements against the greenhouse gas emission and carbon emission. This factor is paving new way for the growth of the global biogas market at a rapid pace. The growing environmental concerns against harmful and toxic gases emissions are supporting the biogas market growth all around the world.

The global biogas market is highly uneven with the local players as well as major market players. The key market players are collaborating with government agencies for the growth of the biogas market. The main focus of the market players in the biogas market is to focus on expanding their business. This is possible due to the growing government initiatives and adoption of key marketing strategies. The major strategies adopted by market players are business expansion, collaboration, agreement, mergers, and acquisitions. Thus, all of these strategies helped firms to gain huge market share in energy sector as well as the global biogas market.

Source Insights

The municipal segment has held the biggest market share of 45% in 2024. The main source of biogas is municipal waste. The municipal waste includes newspapers, clothing, furniture, bottles, cans, food, and appliances. The municipal waste is also known as garbage that is collected from each and every individual of every locality. The wide range of waste is used for the production of biogas. The municipal waste is found abundantly, which is driving the growth of the segment.

Biogas Market Share, By Source, 2024 (%)

The industrial segment is fastest growing segment during the forecast period. The factories and industries emit toxic gases and harmful waste in large amount. This waste and garbage are considered as industrial waste. Every year around 7.6 billion tons of industrial waste is produced in the U.S. The industrial waste is available on a large scale, which is supporting the growth of the global biogas market over the forecast period.

Application Insights

The electricity segment contributed the highest market share of 32% in 2024. The biogas helps in the production of electricity. The government of developed and developing countries is striving harder for electricity generation in rural areas. The surge in demand for power generation is resulting into the growth of the market for biogas. The country such as India uses biogas on a large scale for the generation of power and electricity.

The upgraded biogas segment is fastest growing segment of the biogas market in 2021. The biogas is converted into other gas such as biomethane with the removal of carbon dioxide and hydrogen from it. This creates premium or high quality of biogas which can be used in various industries and sectors. Thus, this is creating demand for biogas in the global market.

Strategic Initiatives 

  • In May 2025, the government's decision was welcomed by the Indian Biogas Association (IBA) of increasing the procurement rates of compressed biogas (CBG). This decision is enhancing the potential of the bioenergy sector.
  • In May 2025, to develop compressed bio gas plants in 2 phases, 18 acres of land at Deonar was approved by BMC to Mahanagar Gas Limited (MGL). This land will process 1,000 tons of wet waste every day, where 600 crore for the construction and operation of these plants will be invested by the MGL. 
    (Source: https://www.goodreturns.in)
    (Source: https://timesofindia.indiatimes.com)

Biogas Market Comapanies

  • Agrinz Technologies GmbH
  • Air Liquide
  • DMT International
  • Gasum Oy
  • HomeBiogas Inc.
  • PlanET Biogas
  • Scandinavian Biogas Fuels International AB
  • Schmack Biogas Service
  • Total
  • Xebec Adsorption Inc.

Recent Developments

  • In March 2024, PRODEVAL, AVENTECH, and INSA Lyon will join forces to ensure a carbon-neutral and sustainable business in the energy sector. The ALLIANCE project aims to offer the biogas industry new and unprecedented solutions to reach international standards in the construction of biogas and CO2 liquefiers. The aim is to be effective in solving important issues such as energy independence and decarbonization.
  • In October 2024, Axpo announced that acquired a plant in West Pomerania which produces green energy mainly from agricultural waste. The company plans to build more biogas projects in the country in the coming years, making Poland one of five European countries where Axpo has entered the biogas market.

Segments Covered in the Report

By Source

  • Agricultural
    • Dairy
    • Poultry
    • Swine Farm
    • Agricultural Residue
  • Industrial
    • Food Scrap
    • Wastewater
  • Municipal
    • Landfill
    • Wastewater

By Application

  • Vehicle Fuel
  • Electricity
  • Heat
  • Upgraded Biogas
  • Cooking Gas

By Feedstock

  • Organic Residue & Wastes
  • Sewage Sludge
  • Energy Crops
  • Others

By Size

  • < 500 kW
  • 500 kW – 3 MW
  • 3 MW

By Technology

  • With Pre-hydrolysis
  • Without Pre-hydrolysis

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East and Africa

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Frequently Asked Questions

According to Precedence Research, the global biogas market size was valued at USD 161.03 billion in 2024 and is anticipated to hit around USD 291.66 billion by 2034.

The global biogas market is expected to drive growth at a CAGR of 4.33% from 2025 to 2034.

The major players operating in the biogas market are PlanET Biogas, Biogas Fuels International AB, Gasum Oy, Agrinz Technologies GmbH, DMT International, HomeBiogas Inc., Xebec Adsorption Inc., Air Liquide, Schmack Biogas Service, and Total Energies.

The increasing use of biogas in various industries is offering attractive chances for the global biogas market to expand and develop throughout the forecast period. Furthermore, some countries are banding together, forging collaborations, and signing agreements to reduce greenhouse gas and carbon emissions.

Europe dominated the biogas market in 2024 and will lead during the forecast period.

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