by Market Overview:
Biogas is produced from organic waste sources such as animal manure, municipal waste, plant material, sewage, green waste or food waste through anaerobic digestion. It is a renewable energy source primarily composed of methane and carbon dioxide. Biogas has applications across various end-use industries such as power generation, transportation, and heating & cooking. It provides an economically viable and environment-friendly alternative to conventional fossil fuels.
Market Dynamics:
Transition towards cleaner fuels coupled with rising environmental concerns is a key factor driving the growth of biogas market. Governments across various countries are promoting the use of biogas through financial incentives and policies in order to reduce dependence on fossil fuels and curb carbon emissions. For instance, through the Biogas Support Scheme, the UK government provides financial support to electricity generated from anaerobic digestion systems using biomass feedstock. Similarly, rules introduced under the Renewable Portfolio Standard in the US require utilities to generate a certain percentage of electricity from renewable sources including biogas. Moreover, biogas production from organic wastes helps in effective waste management, thereby creating new revenue opportunities for market players.
The global Biogas Market Trends is estimated to be valued at US$ 65.5 Mn in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights
Segment Analysis
The biogas market can be segmented based on source into agricultural waste, municipal waste, energy crops, and others. Among these, the agricultural waste segment dominates the market and accounts for over 35% share. This is because agricultural waste such as cattle dung and crop residues are abundantly available and considered as the primary raw material for biogas production.
PEST Analysis
Political: Governments across the world are supporting the production and usage of biogas through various incentive schemes and policies. This is driven by the aim to increase adoption of renewable sources of energy and reduce dependence on fossil fuels.
Economic: The biogas market is highly influenced by fluctuations in crude oil prices. Lower crude oil prices make fossil fuel-based energy cheaper, hampering the growth of alternative fuels like biogas. However, rising energy demand and focus on indigenous resources is creating new economic opportunities.
Social: Growing environmental concerns around the world related to climate change and carbon emissions is driving the social acceptance for renewable and sustainable sources of energy like biogas. The disposal of agricultural and municipal waste is also an important social issue that biogas helps address.
Technological: Advanced gas cleanup and refining technologies allow producing biomethane that can be directly used as compressed natural gas or injected into gas pipelines. New pretreatment technologies for biomass also enhance biogas yields.
Key Takeaways
The global biogas market is expected to witness high growth, exhibiting CAGR of 4.2% over the forecast period 2023 to 2030, due to increasing use of biogas for generating renewable power and heat. The market size for 2023 is estimated at US$ 65.5 million.
Regional analysis: Europe dominates the biogas market and is expected to continue its lead, driven by strong government support policies in countries like Germany and Italy. Asia Pacific is anticipated to be the fastest growing market due to ongoing investments in biogas production facilities, especially in China and India.
Key players operating in the biogas market include Air Liquide, PlanET Biogas, Wartsila, EnviTech Biogas AG, Robert Bosch GmbH, Asia Biogas, and Schmack Biogas GmbH. These players are focusing on enhancing biogas yields through advanced technologies and expanding production capacities to cater to the growing global demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile i
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
