The biogas market comprises of equipment and services required for the production of biogas through the anaerobic digestion of organic waste. Biogas is majorly produced from agricultural waste, industrial waste, municipal solid waste and energy crops. It is a renewable source of energy and provides an alternative to conventional fossil fuels. Biogas helps in reducing greenhouse gas emissions, managing waste and creating decentralized renewable energy.

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. Biogas production has been increasing significantly over the past few years owing to the rising demand for renewable sources of energy and focus on waste management. Technological advancements have allowed for improved biogas yield, higher plant efficiencies and integration with combined heat and power systems.

Market Trends

Some of the key trends in the Biogas Market Size include growing focus on agricultural waste utilization and increased investments in biogas upgrading. Agricultural waste such as manure and residue is abundantly available worldwide and provides a cost-effective feedstock for biogas production. However, the lower methane content requires upgrading to be used as vehicle fuel or injected into natural gas pipelines. This has led to significant R&D funding and new market entrants providing upgrading technologies.

Market Opportunities

The two major opportunities in the biogas market are expanding applications in the transportation sector and focus on decentralized biogas production. Biogas upgrading allows for its use as a bio-Compressed Natural Gas or bio-Liquefied Natural Gas transport fuel. This helps reduce dependence on crude oil and meets renewable energy targets in the transportation industry. Additionally, small decentralized biogas plants near source of waste help avoid high transportation costs and supply renewable energy locally for households and businesses.

Impact of COVID-19 on Biogas Market
The COVID-19 pandemic has impacted the global biogas market in both positive and negative ways. On the negative side, lockdowns enforced worldwide disrupted supply chains for biogas equipments and constrained transportation of biomass feedstock for biogas plants. This led to reduced biogas production in the initial months of the pandemic. Many planned biogas projects were also delayed due to travel restrictions and diversion of resources towards fighting the pandemic.

However, the pandemic also brought opportunities that supported the biogas market's growth. The need to reduce dependence on fossil fuels and look for alternate renewable sources of energy was highlighted. Several governments announced incentives and subsidies to boost production of green fuels like biogas. The favorable policies attracted new investments into the sector. As agriculture and waste management activities were classified essential, biogas production from these feedstock streams largely continued through the crisis. Many countries used the lockdown period to upgrade and expand existing biogas facilities.

Looking ahead, the biogas industry is well-positioned to witness strong recovery and growth in the post-COVID era. Sustained government backing for renewables and rising emphasis on energy security and resilience will drive further capacity additions. Advanced technologies facilitating efficient waste conversion and distributed power generation hold promise. Strategic partnerships between project developers, utilities and technology providers can accelerate market expansion. Wider spread of biomass based mini and micro-grid systems too will support the biogas market going forward.

Europe- Concentration of Biogas Value
Europe accounts for the largest share of value in the global biogas market currently. Countries like Germany, Italy, France and UK are global leaders based on installed biogas capacity and production volumes. The region has a strong policy push for renewables along with high organic waste volumes from agriculture and municipalities. Presence of major biogas equipment manufacturers have made project execution cost effective here. Germany alone accounts for about half the biogas plants worldwide owing to long standing feed-in-tariffs and carbon goals. Other nations are also actively promoting biogas based on circular economy principles.

Asia Pacific- Fastest Growing Region for Biogas
The Asia Pacific region has emerged as the fastest growing market for biogas globally in recent years. This growth can be attributed to rising energy demands of developing economies, focus on waste management and efforts to diversify the energy mix away from fossil fuels. Countries like China, India and others in Southeast Asia are ideal for biogas with abundant biomass availability and policy schemes akin to European nations. Stable expansion of the industrial, commercial and residential sectors further drives the need for renewable process heat and power in this region. Significant capacity increases are expected in Asia Pacific to meet its future energy needs sustainably with technologies like biogas.

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