What Has Been the Progress and Growth of the Biomethane Market in Recent Years?
The biomethane market has seen considerable growth due to a variety of factors.
• There has been a robust growth in the biomethane market in the past few years. The market, which will gain momentum from $3.79 billion in 2024 to $4.06 billion in 2025, is projected to register a compound annual growth rate (CAGR) of 7.2%.
This growth during the historical period can be linked to heightened targets for renewable energy, enhanced waste management strategies, improved energy security, accelerated initiatives for a circular economy, intensified efforts for decarbonization, rapid infrastructure development, and increased market demand and acceptance.
What Is The Expected Growth In The Biomethane Market Size Evolve over the Forecast Period?
The biomethane market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the biomethane market is projected to experience significant growth, expanding to a valuation of $5.11 billion by 2029 at a compound annual growth rate (CAGR) of 5.9%.
This expected growth over the forecast period can be ascribed to factors such as amplified climate policy endeavors, expanded green gas directives, escalating strategies centered around the circular bioeconomy, improvements in urban air quality, the expansion of the biofuel market, and enhanced sustainability certification and traceability. Key trends for the forecast period consist of a rising interest in alternative renewable fuels, the development of biogas upgrading facilities, an increased role as a clean transportation fuel, integration with organic waste management systems, the formation of sustainable supply chains, the growth of biomethane injection, partnerships between governmental bodies and industry stakeholders, technological innovations in production, and the implementation of certification schemes.
What Main Forces Are Fueling Expansion In The Biomethane Market?
The growing inclination toward eco-friendly and sustainable fuels is projected to fuel the biomethane market's expansion. Eco-friendly and sustainable fuel alludes to energy sources that cause minimum harm to the environment and promote sustainability, emitting negligible pollutants or greenhouse gases during their production and usage. The appeal for these fuels is elevating because they propose an eco-friendly and sustainable alternative to traditional fossil fuels. Biomethane, being a clean energy source, offers several advantages that are in line with environmental sustainability, economic progress, and societal welfare. For instance, the Energy Information Administration (EIA), a US-based government body, reported in June 2023 that 21% of U.S. energy consumption in 2022 came from nonfossil fuel energy sources, showing a 3% increase from the previous year. This rise was triggered by a substantial input from nonfossil energy sources, including renewables and nuclear, which together made up 21% of the country's energy consumption in 2022. Thus, the growing fondness for environmentally friendly and sustainable fuel is infueling the expansion of the biomethane market.
What Are The Primary Segments In The Global Biomethane Market?
The biomethane market covered in this report is segmented –
1) By Feedstock: Organic Household Waste, Animal Manure, Energy Crops, Agricultural Waste, Sewage Sludge, Industrial Food Processing Waste, Other Feedstocks
2) By Production Method: Anaerobic Digestion, Gasification, Fermentation, Other Production Methods
3) By End User: Automotive, Power Generation, Industrial, Other End Users
Subsegments:
1) By Organic Household Waste: Kitchen Waste, Garden Waste, Organic Household Refuse
2) By Animal Manure: Cattle Manure, Poultry Manure, Pig Manure, Other Livestock Manure
3) By Energy Crops: Maize Silage, Grass Silage, Sorghum, Other Energy Crops
4) By Agricultural Waste: Crop Residues (Straw, Husks), Fruit And Vegetable Waste, Agricultural Byproducts
5) By Sewage Sludge: Primary Sludge, Secondary Sludge, Tertiary Sludge
6) By Industrial Food Processing Waste: Food Processing Residues (Fruit And Vegetable Peels), Dairy Waste, Beverage Industry Waste, Other Food Processing Byproducts
7) By Other Feedstocks: Green Waste, Wood Waste, Algae, Other Organic Waste
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Which Emerging Market Trends Are Altering The Biomethane Industry?
Firms predominantly engaged in the biomethane sector are shifting their concentration towards the establishment of novel biomethane production plants to optimize their market profitability. These production facilities are specialized units meant for the creation of biomethane, an eco-friendly gas produced from organic matter via methods like anaerobic digestion or other biological techniques. For example, in September 2023, CycleO Group Limited, a British company specializing in biomethane production, set up the first biomethane facility equipped with ammonia stripping in Spain. The establishment is designed to convert manure into sustainable ammonium nitrate and sulfate which can be utilized as fertilizers. The facility has an optimum output potential of 15,000 MWh annually and represents CycleØ's second operation in Spain, but the first one that was fully financed, constructed and managed by the company in the country. This plant is expected to significantly minimise nitrate contamination and emissions at the local farm.
Who Are the Key Players In The Biomethane Market?
Major companies operating in the biomethane market are:
• E.ON SE
• Air Liquide S.A
• The Southern California Gas Company
• VERBIO SE
• Société Générale de Surveillance
• Veolia Group
• Envitec Biogas AG
• Orbital Gas Systems
• Future Biogas Ltd.
• Green Gas International
• ETW Energietechnik GmbH
• Biokraft International AB
• Gasrec Ltd.
• PlanET Biogas Global GmbH
• CNG Services Ltd.
• Biogas Products Ltd.
• Nature Energy
• Landwärme GmbH
• AB HOLDING SPA
• ENVO Group
• Cryon Purr
• Schmack Carbotech GmbH
What Is The Most Dominant Region In The Biomethane Market?
Europe was the largest region in the biomethane market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the biomethane market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
