PUBLISHER: Grand View Research | PRODUCT CODE: 1404693
PUBLISHER: Grand View Research | PRODUCT CODE: 1404693
The global biogas market size was estimated at USD 87.86 billion in 2030 and is projected to grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2030. Electricity was the dominant application segment in 2021 with a revenue share of 29.85%. Shifting focus toward the use of renewable sources of energy, mainly in the electricity sector, has considerably boosted the demand for biogas in electricity applications. In addition, the growing need to reduce dependency on fossil fuels is forming lucrative prospects for biogas in applications such as vehicle fuel.
The COVID-19 pandemic is also impacting the demand for biogas in heat generation applications. Sluggish industrial activities have reduced the demand for heat consumption, thereby negatively affecting the demand for biogas. The shifting priorities of consumers to focus on essentials such as food and medicines is further affecting the product demand in the cooking gas application segment owing to the high initial investment associated with setting up digesters.
The growing trend of the circular economy, particularly in European countries, is shifting the focus of food and beverage industries towards proper management of food waste to attain a zero-waste economy. Therefore, companies such as Nestle S.A., PepsiCo, Inc., and Unilever plc have started directing some food waste to biogas production to generate power for manufacturing units.
The increasing adoption of biogas in Canada is a major growth driver for the growth of the market in North America. Biogas production is expected to increase to increasing demand for fuel with low emission of harmful gases and the need for a reduction in greenhouse gas emissions. Manufacturers of biogas are adopting strategies, such as mergers and acquisitions, to increase their market share and production capacity in the region. South Africa is expected to provide ample opportunities for the market on account of ongoing concerns regarding GHG emission levels in the country. The country is focusing on developing biogas production to limit carbon emissions in the country.