"Actionable Insights to Fuel Your Growth"
The global biogas market size was USD 24.03 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with this industry witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, this market exhibited a decline of 5.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is expected to grow from USD 25.61 billion in 2021 to USD 37.02 billion by 2028 at a CAGR of 5.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
This gas is a mixture of gases produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, or food waste. It primarily contains carbon dioxide and methane and little amount of water vapors and supplied compounds. This gas is burnt in the presence of oxygen, which releases energy. This energy is used for different purposes, such as generating electricity, cooking food, transportation, and heating. Rising concerns about environmental safety and increased demand for clean energy are the factors driving the growth of the market.
COVID-19 Pandemic Severely Affects Bioenergy Projects
Several restrictions on travel, work, and industry due to COVID-19 led to the discard of uncountable barrels of oil and trillions of cubic meters of gas from the global energy system in 2020. European countries such as Spain, UK, Italy, Germany, and France; and China in the Asia Pacific are the major shareholders of the global market. Conversely, these countries have undergone various regional and national level shut down of residential, commercial, and industrial operations to contain the spread of this viral infection. Various bioenergy projects across the globe are facing major problems due to this pandemic. Components, raw materials, and manpower shortages have greatly impacted project development, resulting in delays. In March 2020, Strabag, one of the key players in this market, halted its operations due to COVID-19.
The U.S. Energy Information Administration (EIA) estimates that biomass would be used to generate 27.3 billion kilowatt-hours (kWh) of electricity in 2020, down from 28.8 billion kWh in 2019.
Request a Free sample to learn more about this report.
Several Countries are Accepting the Paris Climate Change Agreement
Many countries are coming forward and showing conviction in the Paris Climate Change Agreement. The agreement insists the countries increase their renewable energy consumption. Biogas is one of the major low-cost renewable energy sources that help the countries to minimize GHG emissions and implement the Kyoto Protocol agreements. Hence numerous countries have made a considerable investment in this form of energy.
Conversion of Waste into Renewable Energy to Drive Market
Presently, energy demand in urban areas is increasing rapidly due to the migration of people from rural to urban areas. According to the United Nations, more than 50% of the global population lives in urban areas. Additionally, waste generation has also increased significantly over the past few years due to population expansion. If these wastes are not disposed of properly, they pose a significant risk to the environment and public health. Therefore, extensive waste treatment facilities are required. Biogas is produced from a wide range of organic matters. Hence, this gas system turns the waste management issue into a revenue opportunity.
High Demand for Upgraded Biogas Will Augment Market Growth
The shortage of conventional fossil fuel coupled with environmental degradation is one of the major global problems. The use of renewable energy is expected to help overcome these problems. This gas plays a crucial role in forming a sustainable society and reducing dependency on oil. This gas includes the high content of methane, which is further upgraded into biomethane. Biomethane has the same properties as natural gas and can be used as a renewable fuel for natural gas vehicles.
According to the International Renewable Energy Agency (IRENA), this gas as a vehicle fuel can reduce greenhouse gas emissions by about 60% to 80% compared to fossil-based fuels. Presently, in Germany, around 150 filling stations offer 100% biomethane. Thus, increasing the production of automobiles is projected to boost the demand for biomethane.
Huge Capital Investment for Biogas Plants Setup May Hinder Market Growth
Biogas plants require high capital investment. The plant requires the land in acres. Also, the cost of equipment, feedstock materials, engineering, and labor is also high. The process of feedstock buying, storing, and sorting are challenging and costly. Moreover, the operation of plants and the sale & distribution of this gas are also costly. Hence, high capital investment for plants setup and operation may hinder market growth.
Organic Residue & Wastes Is Primarily Used For Production
The market is distributed into organic residue & wastes and energy crops on the basis of feedstock. Organic residue & wastes are further trifurcated into biowaste, municipal & sewage, agricultural waste, and others. The organic residue & wastes segment dominated the global market. Agricultural waste includes organic waste generated in any farming-related activities. As per Global Bioenergy Statistics, 3–14% of the total energy supply globally can be fulfilled by the energy generated from agricultural waste.
According to the World Bioenergy Association (WBA), globally, more than 1.6 billion tonnes of food is lost every year. Suppose all accessible food waste is collected and recycled by the anaerobic digestion process. In that case, it has the potential to generate around 880 to 1100 TWh of energy, which can be used as electricity and heat.
Energy crops are projected to show significant growth during the forecast period. In the U.S., numerous states such as Minnesota, North Dakota, Iowa, Illinois, Nebraska, and Arkansas have high availability of crop residues from corn, wheat, and soybean, which can all be digested for the production of this gas.
To know how our report can help streamline your business, Speak to Analyst
Electricity Generation Application Dominated the Market Share
The market can be segmented into electricity generation, heating, combined heat and power (CHP), and others on the basis of application. Electricity demand is growing continuously owing to enhanced living standards and electrification of transportation. The heating segment is projected to gain more traction during the forecast period. In the updated Renewable Energy Directive (RED), the member states need to achieve a target to increase renewable energy in heating and cooling by 1.3% points/year, which would open up doors for heating applications.
The other segment includes the transportation segment. Implementation of environmental protection regulations globally is enhancing the demand for alternate fuels. In Germany, around 900 natural gas filling stations are available for more than 100,000 natural gas vehicles. Of those, 150 stations offer 100% biomethane, and over 300 filling stations offer mixtures from biomethane and natural gas.
Europe Biogas Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The global market has been studied geographically across five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. The major biogas market share was held by Europe in 2020. Europe currently produces around 2 billion cubic meters (bcm) of biogas per year. Recently in Renewable Energy Directive II (RED II), the overall EU target for Renewable Energy Sources (RES) consumption by 2030 has been raised to 32%. Germany, U.K., Spain, Italy, and Sweden are the key countries for bio-based energy. Germany is the major producer across the globe, with more than 10,000 plants operating in the country.
The Asia Pacific market is expected to gain more traction during the forecast period. Developing economies such as India and China are implementing strong regulations to lower their carbon footprint, which is a crucial factor driving the biogas market growth. According to the Indian ministry, 1.45 lakh metric tons of waste were generated per day in India. Only 53 percent of waste was processed under the Swachh Bharat Mission (SBM), a flagship program of the Prime Minister. The Centre aims to attain 100% scientific management of solid waste, and make the country Open-Defecation Free.
North America has been a significant region for the global market. The U.S. has more than 2,200 plants in all 50 states, i.e., 253 anaerobic digesters on farms, 1,269 water resource recovery facilities, 68 stand-alone systems that digest food waste, and 652 landfill gas projects.
Key Players to focus on Increasing Production Capacities
The global biogas market is extremely fragmented due to the presence of abundant regional and international players. Numerous players across the globe are progressively contributing in organic & inorganic developments to strengthen their market position. Most companies are focusing on enhancing their production capabilities by introducing new or expanding the existing plants. For instance, in May 2020, Weltec Biopower built a plant in Veria, Greece. The main investor of the project is the largest abattoirs for cows and pigs in Greece. In February 2020, Brightmark Energy company announced to expand its Western New York dairy biogas project. The ‘Yellowjacket’ project would extract methane from 265,000 gallons of dairy manure per day and convert it into renewable natural gas and other valuable by-products.
An Infographic Representation of Biogas Market
To get information on various segments, share your queries with us
The market research reports provide a detailed analysis of the global biogas industry and focus on key aspects such as leading companies and leading feedstock, and the application of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD Billion) & Volume (Million Cubic Meters)
By Feedstock; Application; and Region
As per the Fortune Business Insights study, the global market was USD 24.03 billion in 2020.
The global market is projected to grow at a CAGR of 5.4% in the forecasted period.
The market size of Europe stood at USD 13.84 billion in 2020.
Based on the application, the electricity generation segment is holding the dominant share in the market.
The global market size is anticipated to reach USD 37.02 billion by 2028, growing at a substantial CAGR of 5.4% during the forecast period (2021 -2028).
Based on feedstock, the organic residue & wastes segment is holding the dominating share in the market.
Rising concerns about environmental safety and increased demand for clean energy are the factors driving the growth of the market.
The top players in the market are EnviTec Biogas AG, Air Liquide, Ameresco, and StormFisher, among others.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry