Biogas Market Report 2026

Biogas Market Overview

• Biogas market size has reached to $87.66 billion in 2025 • Expected to grow to $119.11 billion in 2030 at a compound annual growth rate (CAGR) of 6.3% • Growth Driver: Rising Research And Development Initiatives Propel Growth In The Biogas Market • Market Trend: Technological Advancements Propel Volvo Trucks In The Biogas-Powered Commercial Vehicles Market • Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

The key promising market opportunities in the biogas market include: • Biogas (Segmentation By Application) → Expected gain of $20883.94 Million • Residential (Segmentation By Source) → Expected gain of $19629.47 Million • Agricultural Waste (Segmentation By End Use) → Expected gain of $11078.42 Million

What Is Covered Under Biogas Market?

Biogas refers to a form of biofuel that is created spontaneously when organic waste decomposes. Biogas generation is also known as anaerobic digestion since it occurs in the absence of oxygen. Biogas helps mitigate methane emissions while producing cleaner fuel for cooking, lighting, and electricity. The main sources of biogas are municipal waste, industrial waste, agricultural waste, and others. Anaerobic Digestion (AD) of the organic portion of municipal solid waste (OFMSW) creates biogas that can be used to generate energy, hence reducing waste that would otherwise be landfilled. Biogas is used for residential, commercial, and industrial purposes. It is implemented in various areas such as power generation, heat generation, cogeneration, and others.

What Is The Biogas Market Growth Forecast?

The biogas market size is expected to see strong growth in the next few years. It will grow to $119.11 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to expansion of large-scale biogas facilities, integration with smart grids and IoT-based monitoring, adoption in industrial and commercial heat generation, rising investments in renewable energy infrastructure, development of advanced biogas upgrading technologies. Major trends in the forecast period include rising adoption of advanced anaerobic digestion technologies, expansion of municipal waste-to-biogas projects, increasing use of agricultural waste for biogas production, growing applications of biogas in residential and commercial sectors, integration of biogas with cogeneration systems.

What Is The Driver Of The Biogas Market?

The increasing research and development activities will support the growth of the biogas market. Biofuels are fuels produced from hydrocarbon-rich living organisms (biomass) such as plants or microalgae by thermal, chemical, or biochemical conversion processes. As with fuels, biofuels such as biodiesel, biogas, and syngas are combusted to generate energy. The research and development activities include manufacturing, processing, testing, and inspecting the materials by using different types of technologies for better products. For example, in January 2023, the US Department of Energy (DOE) announced over $100 million in funding to expand US biofuels production, as the Biden administration works to cut greenhouse gas emissions from transportation and meet climate goals. The department plans to award $118 million to 17 projects designed to accelerate the production of biofuels, which can be made from biomass including agricultural waste, soybean oil, and animal fats. The funds add to the more than $500 million the DOE has put into bioenergy and biorefinery research and development over the past two years. Therefore, the increasing research and development activities will drive the biogas industry.

How Will The Drivers Impact Growth In The Global Biogas Market?

• Rising Demand for Renewable Energy (Medium) – The rising demand for renewable energy will become a key driver of growth in the biogas market by 2030. a sustainable solution derived from organic waste. It not only provides a renewable energy source but also helps reduce greenhouse gas emissions. The implementation of renewable energy targets and carbon reduction policies by various countries is fuelling increased investment in biogas production and infrastructure. Additionally, technological advancements are enhancing the efficiency and cost-effectiveness of biogas generation, further supporting market growth. As a result, the rising demand for renewable energy is anticipated to contributing to a 1.5% annual growth in the market. • Increasing Global Awareness to Reduce Greenhouse Gas Emissions (Medium) – The increasing global awareness to reduce greenhouse gas emissions will emerge as a major factor driving the expansion of the market by 2030. As awareness of the environmental impact of greenhouse gases increases, governments, industries, and consumers are actively seeking cleaner energy alternatives. Biogas, generated from organic waste, offers a significantly lower carbon footprint compared to conventional fossil fuels. This environmental benefit positions biogas as a compelling option for sustainable energy production, encouraging greater adoption and investment in the sector. Consequently, the increasing global awareness to reduce greenhouse gas emissions is projected to contributing to a 1.0% annual growth in the market. • Increased Demand for Clean Energy Sources (Low) – The increased demand for clean energy sources will serve as a key growth catalyst for the market by 2030, as a renewable energy source with low carbon emissions, provides a sustainable replacement for fossil fuels. As industries, households, and governments strive to lower their carbon footprint, the adoption and utilization of biogas continue to rise. Therefore, this increased demand for clean energy sources is projected to supporting to a 0.8% annual growth in the market. • Rising Energy Prices (Low) – The rising energy prices will become a significant driver contributing to the growth of the market by 2030.as a renewable and locally produced energy source, biogas offers a cost-effective alternative to traditional fuels. With businesses and consumers looking for ways to lower energy expenses, the demand for biogas is increasing. This growing interest is prompting greater investment in biogas production and infrastructure. Additionally, higher energy costs are motivating governments and corporations to invest more in renewable energy solutions, further accelerating the expansion of the biogas market. Consequently, the rising energy prices is projected to contributing to a 0.5% annual growth in the market.

How Will The Restraints Impact Growth In The Global Biogas Market?

• High Cost of Biogas Production (Medium) – High Cost of Biogas Production will restrict the growth of the Biogas market during the forecast period. Biogas production involves significant capital investment in anaerobic digesters, gas upgrading equipment, and feedstock processing facilities. The high production costs, particularly for small-scale systems, affect the economic viability of biogas projects. Cost competitiveness with conventional energy sources remains challenging without subsidies, limiting market growth and adoption rates. • Stricter Environmental Regulations (Low) – Stricter Environmental Regulations will restrict the growth of the Biogas market during the forecast period. Biogas production is subject to environmental regulations covering emissions, waste management, and feedstock sourcing. Compliance with air quality standards, digestate management requirements, and odor control regulations increases operational costs and complexity. Stricter environmental regulations can affect project economics and limit the location of biogas facilities, impacting market growth. • Impact of Trade and Tariff (Low) – Impact of Trade and Tariff will restrict the growth of the Biogas market during the forecast period. Biogas equipment and technology imports are subject to trade tariffs and restrictions, affecting project costs and timelines. Trade barriers can limit access to advanced anaerobic digestion technology and gas upgrading equipment. International trade tensions may also affect feedstock availability and biogas project development, impacting market growth.

Key Players In The Global Biogas Market

Major companies operating in the biogas market are Engie SA, EnviTec Biogas AG, Gasum Oy, Ameresco Inc, Wartsila Corporation, Schmack Biogas GmbH, Future Biogas Limited, Weltec Biopower GmbH, PlanET Biogas Group GmbH, Zorg Biogas GmbH, Evergaz, Veolia Environnement SA, BTS Biogas Srl, DVO Inc, Greenlane Biogas, Paques Environmental Technologies Inc, Harp Renewables Limited, GranBio, HomeBiogas, Biogas Solutions Ltd, BD Agro Renewables, Asia Biogas

Global Biogas Market Trends and Insights

Major companies operating in the biogas market are focusing on developing advanced solutions, such as high-efficiency gas engines to enhance fuel efficiency and extend operational range. High-efficiency gas engines are engines designed to convert more fuel into usable energy while minimizing waste and emissions. For instance, in February 2023, Volvo Trucks, a Sweden-based truck manufacturer, launched a new, stronger gas-powered truck that can run on liquified biogas. The Volvo FH (Forward control High entry) and FM (Forward control Medium height cab) gas-powered trucks have 500 horsepower added to their existing 420 and 460 horsepower engines. The gas engines also receive significant technological improvements that increase their fuel efficiency by up to 4%. This, along with a new, 10% larger gas tank, results in a greater range.

What Are Latest Mergers And Acquisitions In The Biogas Market?

In February 2023, Shell plc, a UK-based oil and gas company, acquired Nature Energy Biogas A/S for an undisclosed amount. The acquisition aims to solidify Shell's position as a leader in the renewable natural gas (RNG) sector, enhancing its integrated RNG value chain globally. Shell intends to expand its portfolio of operating plants, associated feedstock supply, and innovative technology for RNG production. This strategic move aligns with Shell's Powering Progress strategy, enabling the company to profitably grow its low-carbon offerings across various sectors. Nature Energy Biogas A/S is a Denmark-based company that produces biogas from agricultural, industrial, and household waste to replace fossil fuels.

What Defines the Biogas Market?

The biogas market consists of sales of fixed dome biogas and floating drum biogas. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Biogas Market Report 2026?

The biogas market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the biogas Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?