Biogas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The biogas market is segmented by Application (Electricity Generation, Biofuel Production, and Heat Generation), Feedstock (Livestock Manure, Sewage, Food Waste, Crop Residues, and Energy Crops), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in installed capacity (GW) for all the above segments.

Biogas Industry Overview

Biogas Market Summary
Study Period: 2019 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: > 4.5 %

Major Players

Biogas Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Biogas Market Analysis

The global biogas market is expected to reach 22.71 GW by the end of this year and is projected to register a CAGR of over 4.5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the long term, supportive government policies and regulations are expected to drive the growth of the market studied.
  • On the other hand, increasing competition from alternate renewable energy sources is expected to hamper the growth of biogas during the forecast period.
  • Nevertheless, the technological advancements and innovations in the biogas industry are likely to create lucrative growth opportunities for the biogas market in the forecast period.
  • The Europe region dominates the market and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with the adoption of power and heat generation in the countries of this region, including Germany, the United Kingdom and Italy.

Biogas Industry Segments

Biogas is a mixture made from methane (CH4) and carbon dioxide (CO2), along with water and traces of gases. These gases are produced by the breakdown of organic matter in the absence of oxygen. The biogas market is segmented by application, feedstock, and by geography. By application, the market is segmented into electricity generation, biofuel, and heat generation. By feedstock, the market is segmented into livestock manure, sewage, food waste, crop residues, and energy crops. The report also covers the market size and forecasts for the biogas market across major regions. For each segment except feedstock, the market sizing and forecasts have been done based on installed capacity (GW).

Application
Electricity Generation
Biofuel Production
Heat Generation
Feedstock
Livestock Manure
Sewage
Food Waste
Crop Residues
Energy Crops
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Biogas Market Trends

This section covers the major market trends shaping the Biogas Market according to our research experts:

Electricity Generation Expected to Dominate the Market

  • The world in the past decade witnessed a constant increase in global electricity generation due to increasing energy demand from ever-increasing levels of population, industrialization, and urbanization. In 2021, global electricity generation amounted to 2752.52 Terawatt-hours (TWh), which rose from 21570.7 TWh in 2010. According to the International Energy Agency, the global energy demand is expected to witness a year-on-year growth rate of 9% till 2030.​
  • Biogas is a crucial source of electricity generation in the power sector, thereby contributing to the global goals of the clean energy transition. The generation of electricity from Biogas is an established technology being widely implemented worldwide. CHP engines are often used for electricity generation, with heat recovery and use. ​
  • According to the World Biogas Association (WBA), Biogas can reduce global GHG emissions by 10-13% and provide renewable energy from the world's food waste, industrial production wastes, feedstocks from agriculture, and sewage. The reduction in GHG and optimization of fuels are expected to impact electricity generation from Biogas positively.​
  • Moreover, developing regions, such as Asia-Pacific, South America, and Africa, are developing several plans and strategies to increase the role of Biogas in their electricity generation mix. For instance, EnviTec Biogas AG is budling eight biogas plants in China, and the company has already handed over the five biogas plants to the government of China. Furthermore, The company is ready for the handover of its 6th and 7th biogas plants. Both plants have a biogas generation capacity of around 37,000 Nm³ per day. Moreover, the last 8th plant is expected to be completed by June 2022.​
  • Furthermore, in 2021, GAIL Limited announced an investment of more than INR. 50 billion to build a portfolio of around 1 GW of renewable energy, including solar, wind biogas, and ethanol plants. The company will set up at least two compressed biogas plants, and an ethanol factory would entail an investment of about INR 8 to 10 billion. The company aims to achieve 1 GW in three to four years. ​
  • Moreover, in May 2022, the Ghana government commissioned a new Hybrid-PV-Biogas-Pyrolysis-Plant with a capacity of 400kW at Ashanti, Ghana. The time required to complete this project was of the 48-month project. The plant can process 12 tons of waste into bio-fertilizer and energy daily. The project can generate power of 200KW from solar, 100KW from biogas, and an additional 100KW from the pyrolysis of plastic waste. ​
  • Thus, such developments are expected to support the growing electricity demand worldwide during the forecast period.
Biogas Market : Biogas Energy Installed Capacity, in MW, Global, 2015-2021

Europe to Dominate the Market

  • According to the Europe Biogas Association (EBA), biogas production in Europe is expected to reach 98 billion cubic meters (bcm) of biomethane by 2050.​
  • In the recent years, Europe witnessed significant growth in the installation of a biogas plant. As of 2021, according to the European Biogas Association, about 18,977 biogas plants and 1,023 biomethane plants were installed, with a total installed capacity of 167TWh and 2.5 billion cubic meters (bcm).​
  • Germany has more than 9,692 biogas plants, as of 2021. Apart from biogas plants, Germany also has a small number of plants burning wood or generating heat from biogenic waste. From 1,050 plants in 2000, the number of biogas plants reached nearly 9,692 in 2021. ​
  • Further, the country develops a new biogas infrastructure that can provide additional support to the growing biogas market. For instance, in April 2022, Wärtsilä announced the construction of a major bio-LNG facility in Germany. The facility is likely to be the second-largest facility in the world capable of liquefying biomethane and synthetic methane from renewable energy to produce REEFUEL - a carbon-neutral transportation fuel. The plant is expected to become fully operational by the first quarter of 2024.​
  • Similarly, in June 2020, a collaboration of industry partners in the biomethane industry and the Deutsche Engergie-Agentur, built a new biogas pipeline that can bundle raw biogas supplies up to 48 biogas plants across Germany.​
  • As of 2021, the United Kingdom had around 1,841MW of biogas installed capacity. Most of the biogas (including sewage and landfill gases) produced in the United kingdom (19TWh) is used for power generation. ​
  • Moreover, According to the Renewable Energy Association, around 8PJ of biomethane is qualified for payments under the renewable heat incentive (RHI), and biomethane production likely to reach 110PJ in 2026 as new plants come online. ​
  • For instance, in December 2021, AstraZeneca announced a partnership with Future Biogas, to support the development of a 125GWh biomethane production plant fitted with carbon capture technology. The construction of the plant is expected to begin in 2023 and is expected to commence commercial operations by 2025. Such projects are likely to lead to the growth of the biogas market during the forecast period.​
  • Hence, the afore-mentioned points, Europe is likely to dominate the market during the forecast period.
Biogas Market: Growth Rate by Region, 2022-2027

Biogas Market Competitor Analysis

The biogas market is moderately consolidated. Some of the key players in the biogas market (in no particular order) include Engie SA, DMT International, IES Biogas, EnviTec Biogas AG, Weltec Biopower GmbH, Schmach Biogas GmbH, and AEV Energy GmbH.

Biogas Market Top Players

  1. Engie SA

  2. Bekon GmbH

  3. DMT International

  4. EnviTec Biogas AG

  5. AEV Energy GmbH

*Disclaimer: Major Players sorted in no particular order

Biogas Market Concentration

Biogas Market Recent Developments

  • In January 2022, BioConstruct announced that it had signed a power purchase agreement (PPA) with Cologne-based electricity trading company, Next Kraftwerke in Germany. The company also revealed that, under the agreement, Next Kraftwerke would market 40,000 MWh of biogas electricity in the first quarter of 2022. BioConstruct is responsible for delivering the electricity from its biogas plants and its customers’ facilities. A total of 86 biogas CHPs are involved in the fixed-price PPA.
  • In May 2022, Enertech Fuel Solutions announced plans to invest INR 600 crore for its foray into the compressed biogas (CBG) business. The investment is expected to be made next year for a pan-India in the CBG business. The project is expected to be developed in different phases. In the first phase, to establish four CBG plants in Gujarat, Uttar Pradesh, Punjab, and Haryana. In the second phase, to invest one more plant in each of these states, while adding two more plants in Madhya Pradesh.

Biogas Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Biogas Production Installed Capacity and Forecast in GW, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitute Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Electricity Generation

      2. 5.1.2 Biofuel Production

      3. 5.1.3 Heat Generation

    2. 5.2 Feedstock

      1. 5.2.1 Livestock Manure

      2. 5.2.2 Sewage

      3. 5.2.3 Food Waste

      4. 5.2.4 Crop Residues

      5. 5.2.5 Energy Crops

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Engie SA

      2. 6.3.2 DMT International

      3. 6.3.3 IES Biogas

      4. 6.3.4 EnviTec Biogas AG

      5. 6.3.5 Weltec Biopower GmbH

      6. 6.3.6 Hitachi Zosen Inova AG

      7. 6.3.7 AEV Energy GmbH

      8. 6.3.8 AAT Abwasser- und Abfalltechnik GmbH

      9. 6.3.9 BEKON GmbH

      10. 6.3.10 Nijhuis Saur Industries

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Biogas Market Research FAQs

The Biogas Market is studied from 2019 - 2028.

The Biogas Market is growing at a CAGR of >4.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2019 - 2028.

Europe holds highest share in 2021.

Engie SA , Bekon GmbH , DMT International , EnviTec Biogas AG , AEV Energy GmbH are the major companies operating in Biogas Market.

Biogas Industry Reports

In-depth industry statistics and market share insights of the Biogas sector for 2020, 2021, and 2022. The Biogas research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Biogas report PDF.

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