Biomethane Market by Application (Automotive, Power Generation, and Others), Production Method (Fermentation & Gasification), and Feedstock (Municipal Waste, Bio-waste, Sewage Waste, Organic Residue & Waste and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032

Market Perspective

The global Biomethane Market size was valued at approximately USD 2.31 billion in 2022 and is projected to reach around USD 4.68 billion by 2032, with a compound annual growth rate of approximately 7.32% between 2023 and 2032.

The increasing demand for biomethane as a sustainable and renewable natural gas, driven by growing environmental concerns, is a major factor fueling revenue growth in the global market. Additionally, the expanded use of biomethane for power generation, heating, and as an alternative fuel in the automotive industry is further boosting the market growth.

Biomethane is an eco-friendly and highly effective fuel, which is created through the anaerobic digestion of organic materials such as green waste, food waste, home garbage, and industrial waste. The increased usage of biomethane for energy production, in order to fulfill the growing global electricity demand, is expected to drive market expansion. Moreover, favorable government regulations that support biomethane production are encouraging market demand.

However, the market's growth could be restricted by the high installation and operational costs and hefty initial investment. Despite these limitations, the market is likely to expand due to the increased demand for renewable and sustainable energy sources. The use of biogas as the starting point for biomethane production, which can be produced from various feedstock sources, including plants and animals, is also driving the biomethane market share.

Key Insights

• Based on application, the power generation segment held the largest market share
• Based on feedstock, the organic residue & waste segment dominated the market
• Based on the production method, the gasification segment generated the highest revenue
• On the basis of region, Europe accounted largest market share

Growing Demand for Increased Refined Biogas is Propelling the Market Growth

The world faces the crucial challenge of depleting fossil fuels and environmental degradation. Renewable energy, specifically biogas, holds a promising solution to reduce reliance on oil and promote sustainability. Biogas is a significant source of methane, which can be further processed into biomethane. Biomethane, a renewable fuel with comparable properties to natural gas, powers natural gas vehicles. According to the International Renewable Energy Agency, biogas can cut greenhouse gas emissions by 60% to 80% compared to fossil-based fuels. In Germany, about 150 gas stations provide 100% biomethane. The increasing production of biomethane-powered automobiles is expected to drive the demand for refined biogas.

Major Players in Biogas Industry Are Focusing on Increasing Productivity is a New Trend in the Market

The biogas industry is highly fragmented, with numerous regional and international companies vying for market positions. To improve productivity and enhance their standing, several players are investing in organic and inorganic developments. Most businesses are concentrating on increasing their production capacity by constructing new factories or expanding existing ones. For example, Weltec Biopower constructed a facility in Veria, Greece, in May 2020, backed by the largest cow and pig slaughterhouses in Greece. Brightmark Energy also announced in February 2020 that it would be expanding its dairy biogas project in Western New York. The Yellowjacket project will extract methane from 265,000 gallons of dairy manure each day to create renewable natural gas and other useful byproducts.

Recent Development

In May 2021: According to an agreement between BayoTech and IBMS Group, the UK's first sustainable hydrogen project will employ biomethane created from food waste as a fuel. The project will generate 1,000 kg of renewable hydrogen each day to drive zero-emission vehicles in the UK's Surrey and London regions

In February 2021: Verbio Vereinigte BioEnergie AG announced that their straw-to-biomethane facility will start up in the fall of that same year. The Nevada, Iowa, plant is being built with the intention of reducing air pollution brought on by the extensive burning of used straws

Segmentation Analysis

In terms of application, the market is categorized into automotive, power generation, and others. The power generation segment dominated the market due to the rising need for home electric grid networks for various purposes including cooking and water heating, the power generating category now maintains the greatest market share. Additionally, many anaerobic digesters are converting to enhanced biogas units for power generation from biogas in order to achieve greater efficiency. The growing population is driving up the demand for power, which further supports the expansion of this segment. Moreover, the rapidly expanding urbanization has resulted in more building construction projects in the residential sector.

On the basis of production method, the market is categorized into fermentation & gasification. The gasification segment dominates the market share, as it is one of the several processes used to produce biomethane. In the gasification process, carbon- or organic-based substances are converted into hydrogen, carbon monoxide, and carbon dioxide. Gasification is regarded as a renewable energy source that produces power.

By feedstock, the market is categorized into municipal waste, bio-waste, sewage waste, organic residue & waste, and others. The organic residue & waste segment dominates the market share because this raw material is abundantly available. Agriculture waste and bio waste are the principal raw resources that are extensively available worldwide, according to the organic residue & wastes sub-split.

For example, China generates over 4.8 billion tons of agricultural waste. India produces over 350 million tons per year, with France producing 60 million tons, Canada producing 81 million tons, and the Brazilian agro-industrial system producing 291 million tons.

Europe is Dominating the Market Share Due to Rise in Refining Industry and Technological Advancement

Europe holds the lion's share of the biomethane market, fueled by advancements in production methods and rising investments in the refining industry. The region's increasing production and consumption of biomethane make it a global leader in the market. The automotive industry's adoption of biomethane as a vehicle fuel to replace fossil fuels like gasoline and reduce greenhouse gas emissions is driving the global biomethane market growth.

North America is the Fastest Growing Market Due to the Development of Facilities

North America is the fastest-growing market for biomethane, with tremendous growth anticipated over the forecast period. The region's long winters and increasing demand for power and heating are driving the growth. The United States dominates the biomethane market in North America. The development of new Renewable Natural Gas (RNG) facilities in the US is affecting the global demand for power and spurring the industry to expand, with potential greenhouse gas reduction and coal alternatives.

Competitive Landscape

• PlanET Biogas
• AB Holding S.p.A.
• Ameresco
• PlanET Biogas
• VERBIO Vereinigte BioEnergie AG
• Biogas Products Ltd
• J V ENERGEN LLP
• Taronis Fuels, Inc.
• Scandinavian Biogas Fuels International AB
• ETW Energietechnik GmbH

The global biomethane market is segmented as follows:

Application

• Automotive
• Power Generation
• Others

By Production Method

• Fermentation
• Gasification

By Feedstock

• Municipal Waste
• Bio-waste
• Sewage Waste
• Organic Residue & Waste
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America