PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1923691
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1923691
The biomethane market is estimated to reach USD 56.64 billion by 2030 from USD 16.50 billion in 2025, at a CAGR of 28.0% during the forecast period. The biomethane market is being propelled by the rising focus on circular economy practices that transform organic waste into energy resources that are worth. The mounting limitations on landfills and more stringent regulations on wastewater treatment are leading cities and factories to biomethane as an alternative.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2020-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Million/Billion); Volume (BCM) |
| Segments | by Feedstock, Production Process, End-use, Region |
| Regions covered | Europe, Asia Pacific, North America, South America, Rest of the World |
Price swings in natural gas are making it necessary for energy consumers to explore the domestic renewable gas market as a supplier. Advances in upgrading, liquefaction, and digital plant optimization technologies are already leading to a better operational efficiency and reliability. Meanwhile, there are more and more gas grid interconnections and certification schemes for renewable gas that are making the market more transparent and tradable, thus facilitating the wider commercial use of biomethane.

"By production process, thermal gasification is projected to be the fastest-growing segment of the biomethane market during the forecast period."
The thermal gasification method, as a production process, is expected to occupy the fastest position among the biomethane segments during the coming years because of its capability to turn various kinds of dry and lignocellulosic feedstocks into renewable gas. The main difference from biological processes is that thermal gasification can easily process forestry residues, industrial waste, and other materials that are hard to digest, thus widening the overall biomethane feedstock base. The combination of increasing interest in advanced waste-to-energy systems and stricter regulations on landfilling is a major factor behind the rapid adoption of the technique. Innovations in technology are increasing the yield, quality of syngas, and interlinkage of the processes, thus minimizing risks to the operation. Moreover, the heightened investment in low-carbon fuels and the introduction of policy frameworks that favor advanced renewable gas technologies are improving the commercial viability of thermal gasification projects.
"The industrial segment is expected to remain the fastest segment by application"
The industrial segment is projected to be the largest application area in the biomethane market owing to the prevailing trend of the adoption of cost-effective decarbonization measures in the energy consuming industries. A number of industrial activities are very much dependent on natural gas for their operations that require high-temperature heating, thus making electrification either technically complicated or too expensive for the near future. Biomethane is a direct alternative that can be integrated easily and that helps the industrial sector to cut down their Scope 1 emissions without making any significant changes to existing machinery or facilities. Regulatory compliance, taxes on carbon emissions and compulsory emissions reporting are among the factors that have been speeding up the trend of biomethane usage. Apart from that, contracts for the long-term supply of biomethane have made it possible for industries to have a stable price during the ups and downs of the fossil fuel market, whereas the corporate net-zero pledges and sustainability targets are pushing the industries to consider renewable gas as a feasible option for decarbonization through which they could achieve their targets.
"By region, Europe is expected to be the second-largest region in the biomethane market during the forecast period."
By region, the biomethane industry is forecasted to have Europe as the second-largest market, thanks to its developed renewable gas ecosystem and robust and favorable policies. Some European countries have already achieved advanced deployment of the technology but still, the expansion continues through replacement of old technology, upgrading of capacities, and integration of biomethane into the energy transition plans. European market is supported by a good natural gas supply system, well-defined sustainability certification process, and large-scale use in sectors such as industrial, and transportation. The collaboration between the power companies, big energy firms, and farmers' cooperatives is still driving the market. Besides, Europe's worry about nitrous oxide emissions, its goal to be less dependent on gas from outside, and its being more supportive of the recycling economy are also factors that put the region at the forefront when it comes to global biomethane demand and thus, Europe's being a major player in the market despite it being a bit late in the game compared to the Asia-Pacific and other regions.
By Company Type: Tier 1- 65%, Tier 2- 24%, and Tier 3- 11%
By Designation: C-Level Executives - 30%, Managers- 25%, and Others- 45%
By Region: North America- 20%, Europe- 40%, Asia Pacific- 30%, and RoW- 10%
Note: Others include product engineers, product specialists, and engineering leads.
Note: The tiers of the companies are defined based on their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million
The biomethane market is dominated by a few major players that have a wide regional presence. The leading players in the biomethane market are Shell Biogas (United Kingdom), Air Liquide (France), BP p.l.c. (UK), Gasum Ltd (Finland), OPAL Fuels (US), Waga Energy (France), Vanguard Renewables (United States), Gothenburg Energy (Sweden), WELTEC BIOPOWER GmbH (Germany), PlanET Biogas Group (Germany), ETW Energietechnik GmbH (Germany), Clean Energy Fuels (United States), EQTEC PLC (Ireland), and GENeco (UK), among others.
The report defines, describes, and forecasts the e-fuel market by size, application, and fuel type. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates in terms of value, and future trends in the biomethane market.
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