PUBLISHER: TechSci Research | PRODUCT CODE: 1879000
PUBLISHER: TechSci Research | PRODUCT CODE: 1879000
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The Global Biomethane Market, valued at USD 4.68 Billion in 2024, is projected to experience a CAGR of 6.21% to reach USD 6.72 Billion by 2030. Biomethane is a renewable natural gas, chemically comparable to conventional natural gas, produced by upgrading biogas derived from the anaerobic digestion of organic matter or through biomass gasification. Key market growth drivers encompass global decarbonization initiatives aimed at reducing greenhouse gas emissions, alongside strategic energy security objectives. Policy support and incentivization mechanisms further underpin this expansion.
| Market Overview | |
|---|---|
| Forecast Period | 2026-2030 |
| Market Size 2024 | USD 4.68 Billion |
| Market Size 2030 | USD 6.72 Billion |
| CAGR 2025-2030 | 6.21% |
| Fastest Growing Segment | Agricultural Waste |
| Largest Market | North America |
Key Market Drivers
The global biomethane market is primarily propelled by the escalating worldwide drive for renewable energy and concerted decarbonization efforts. As nations and industries commit to reducing greenhouse gas emissions, biomethane offers a direct, dispatchable, and scalable alternative to fossil natural gas, capable of utilizing existing gas infrastructure. This strategic pivot towards cleaner energy sources positions biomethane as a critical component in achieving climate targets. According to the International Energy Agency's "Renewables 2023" report, published in January 2024, the biogas sector, encompassing biomethane, is forecasted to grow at a strong rate of 32% between 2023 and 2028, reflecting its essential role in energy transitions.
Key Market Challenges
The substantial capital investment required for establishing biomethane production infrastructure and the inherent high operational costs significantly impede the expansion of the global biomethane market. The considerable upfront expenditure for advanced anaerobic digestion facilities, gas upgrading technologies, and grid injection points presents a significant barrier to entry for potential investors and developers. This economic hurdle often delays project finalization and limits the widespread deployment of new biomethane plants, particularly for smaller enterprises or in regions with less mature financial support mechanisms.
Key Market Trends
Increasing corporate adoption of biomethane for ESG and decarbonization objectives is a pivotal market trend, reflecting a strategic shift in how businesses address their environmental footprint. Corporations are increasingly integrating renewable natural gas directly into their operations to achieve quantifiable emissions reductions and enhance sustainability reporting. This direct procurement fosters a robust demand side for biomethane, stimulating further investment and expansion in the production sector. According to the European Biogas Association's Statistical Report published in December 2024, approximately 23% of biomethane produced in Europe in 2023 was utilized for transport, 17% for heating in buildings, 15% for power generation, and 13% for industrial processes. This highlights the diverse application areas driven by corporate mandates.
In this report, the Global Biomethane Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies presents in the Global Biomethane Market.
Global Biomethane Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: