Biogas is a renewable energy source produced from organic materials such as agricultural waste, food waste, green waste and manure through anaerobic digestion. It has gained popularity as a sustainable alternative to fossil fuels and can be used as transportation fuel and for generating heat and power. Biogas production helps in waste management and prevention of methane emissions from landfills. Some key advantages of biogas include renewable source of energy, reduction in GHG emissions, energy security, and rural economic development. Growing need for alternative sources of energy coupled with stringent government regulations regarding emission control have augmented the demand for biogas across various industries.
The Global Biogas Market is estimated to be valued at US$ 75.46 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the biogas market are Aeolos Wind Energy Ltd, BORNAY, Braun Windturbinen GmbH, Britwind, EasyWind GmbH, Endurance Wind Power, ENESSERE S.r.l., Fortis Wind BV, iQron GmbH, PSW-Energiesysteme GmbH, Ryse Energy, SD Wind Energy Limited, TUGE Energia, Wind Energy Solutions B.V., and XZERES Wind Europe Ltd. The key players are focusing on investments in R&D for biogas upgrading technologies to separate CO2 and generate biomethane suitable for pipeline transmission and transportation.
The growing demand for renewable sources of energy along with stringent government regulations regarding emission control is expected to drive the growth of global Biogas Market Size during the forecast period. Biogas is gaining popularity as it helps in effective waste management along with energy production.
Various government initiatives and policies promoting the use of biogas are propelling the industry growth. Moreover, expansion of biogas plants across regions with high agricultural and livestock production is augmenting the market revenues. For instance, Scandinavian countries are focusing on building large-scale biogas plants as a sustainable waste management solution.
Market key trends
One of the key trends gaining traction in the biogas market is the use of anaerobic digestion to produce renewable natural gas from organic waste streams. Biomethane obtained from biogas purification can be directly injected into natural gas networks and used like conventional natural gas. Countries across Europe have initiated biomethane programs to decarbonize their gas supply. Germany being the global leader accounted for over 200 biomethane plants in 2020. With supportive policies, biomethane is projected to emerge as a major substitute for fossil natural gas worldwide over the coming years.
Porter’s Analysis
Threat of new entrants: The biogas market requires significant capital investments for production facilities and R&D. This barrier makes it difficult for new companies to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power in the biogas market as there exist a large number of suppliers. However, the switching costs are relatively low.
Bargaining power of suppliers: A few large companies dominate the supply of key components and equipment required for biogas production. This gives them significant bargaining power over smaller producers.
Threat of new substitutes: Alternate sources of renewable energy like solar and wind power pose a threat to the biogas market. Continuous technology improvement in substitute industries can weaken the bargaining power of biogas producers.
Competitive rivalry: With the presence of numerous global and regional players, competition in the biogas market is high. Companies differentiate their products and compete on effectiveness, efficiency and pricing to gain market share.
Geographical regions with high market concentration:
Europe accounts for the largest share of the global biogas market, both in terms of production and consumption. Countries like Germany, UK, Italy and France are major producers as well as consumers of biogas in Europe.
Fastest growing geographical region:
Asia Pacific region is expected to grow at the highest CAGR during the forecast period. Increasing focus on renewable resources for energy generation along with support through regulatory policies will drive the market in countries such as China and India. Decentralized biogas production using agricultural and municipal waste offers opportunities for market expansion.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it