The biogas market is expected to register a CAGR of more than 4.5% during the forecast period, owing to increasing investments and government initiatives regarding biogas production. Many countries across the world are emphasizing on reducing the increasing level of carbon emissions. Using renewable sources, such as biogas, can help reduce the growing carbon footprint, and thereby, reduce the average rate of increase in the temperature of the earth. Biogas can be utilized in domestic applications, such as cooking, industrial applications, like generating heat and electricity, and in the commercial sector for greenhouse purposes. The biogas market is primarily driven by the growing focus on alternative fuels, to achieve an imperishable form of energy and security. However, the high initial investments and the set-up costs of the production units are expected to restrain the growth of the market studied.
- Biogas production from energy crops accounts for the maximum energy production across the world. During 2018, it was estimated that around 0.5% of the total agricultural land produced energy crops.
- With the potential to reduce greenhouse emissions by 10%-13% of the current greenhouse gas emission of 4360 Metric Tons (Mt) CO2 equivalent, and with the potential to meet 19% of the global electricity demand by 2050, the biogas market is excepted to have a tremendous opportunity in the near future.
- Europe was the largest biogas market in 2018, with six major players. The region was estimated to have produced around 700 petajoules (PJ) of biogas.
Key Market Trends
Energy Crops to Witness a Significant Growth
- Energy crops are solely cultivated to produce energy. Carbon dioxide captured during photosynthesis, to produce cereal, oilseeds, or grass, is harvested and used to produce energy through various methods, such as anaerobic digestion.
- During 2018, nearly 290 TWh/year of energy was generated from energy crops. It is estimated that nearly 4,157 TWh/year of the energy could have been produced if 7% of the total agricultural land was utilized.
- The potential to generate energy from the major feed stock is estimated to be around 10,000 to 14,000 TWh, by 2030. The energy produced is expected to cater to 16% of the electricity demand, 32% of the natural gas demand, and it can displace 28% of the coal usage across the world. Thus, energy crops are expected to be a prominent source, which will help the biogas market grow during the forecast period.
Europe to Dominate the Market
- With the maximum volume of biogas production in 2018, Europe dominated the biogas market. Europe produces almost 45% of the total biogas produced across the world.
- In 2018, the region had around 17,783 plants, with an approximate installed capacity of around 11GW. Germany is the dominant country, with the highest number of biogas plants, followed by Italy, France, Switzerland, and the United Kingdom.
- The region cumulatively generated around 55 TWh of electricity in 2018, with Germany being the largest producer. Moreover, Italy, the United Kingdom, the Czech Republic, France, and Poland are a few other biogas-based electricity producers in the region.
The biogas market is moderately consolidated. Some of the key players in the biogas market include Engie SA, DMT International, IES Biogas, EnviTec Biogas AG, Weltec Biopower GmbH, Schmach Biogas GmbH, and AEV Energy Gmbh.
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