The global Biogas market is projected to grow at a CAGR of 6.2% to reach USD 99 billion by 2026 from 65 billion in 2019. The biogas plant is an infrastructure facility used to produce biogas using a fermentation process. Rising investment in renewable energy sources, rising concerns over environmental emissions, and government grants are proliferating the demand for biogas plants. The biogas market is largely growing on account of environmental concerns regarding reducing greenhouse gas emissions and effective utilization of waste. Various governing bodies and organizations across the world are thus investing heavily in renewable energy sources for reducing carbon emissions and also to ensure a stable and secure energy supply.
Every part of the earth has significant potential to generate biogas and, and the market of biogas is also expected to grow on account of the growing availability of sustainable feedstocks. The Biogas market is also growing on account of new emerging applications and use cases which include Wastewater treatment plants, data centers, and pulp paper companies, and grid Connections/gas Grids. The market of Biogas is highly interlinked and dependant on feedstock scenarios and prices of conventional methane and other competing alternatives. The biogas plants can be small scale (e.g. households and farms) and large scale (for entire cities). These plants can operate using a wide range of organic matter, such as domestic and commercial food waste, municipal and industrial sewage, agricultural material, and livestock manures. Energy crops have high energy potential enabling the installation of bigger biogas plants; it is beneficial for farmers as they have good control over feedstock supply for farms and generates local employment and additional income for farmers.
The research report analyses the ecosystem of Biogas and categorizes the Biogas Market to forecast the revenues and analyse the trends in each of the following below-mentioned market segments.
The unique insights provided by biogas market report also includes the following:
In terms of market by source, the industrial segment is estimated to be the largest segment during the forecast period
On the basis of source, the market is segmented into agricultural, municipal, and industrial. The Industrial segment of the biogas market is expected to be the biggest segment of the biogas market in the forecast period. Industrial biogas plants usually use industrial residues are as a source of energy instead of manure. These include industrial waste from the food-processing industry and sludge from wastewater treatment plants. The possible applications include heat combustion systems, motors, and turbines.
By Application, Electricity Generation is expected to be the largest segment
In terms of application, the global biogas market can be segmented as Automotive Fuel, Electricity Generation, Heating, Cooking, and Others. The electricity generation segment dominated the Biogas market in terms of revenue in 2019. Electricity generated from Biogas can compete with conventional electricity generating systems. This can be very helpful to supply electricity to the most remote areas not connected by the grid and also where transportation of fuel for electricity generation is a big challenge. The automotive fuel segment is expected to be the second biggest segment due to growing usage of bio-CNG in the transportation sector.
Europe is expected to be the largest segment in the forecast period
The European region accounted for the largest share of the Biogas market. While Asia Pacific is expected to be the fastest-growing market in terms of CAGR trend. Germany is a leading market for biogas generation in Europe and has a higher share of energy crops for energy production. Approximately, 50% of the biogas production is using energy crops, manure, and bio-waste in Germany. Maize Silage has a share of around 69% of overall renewable resources for biogas substrates in Germany. The preference of energy crops for biogas production is also due to higher biogas yield obtained from energy crops.
Feed-in-tariff (FiT), is a policy to promote the production of renewable energy through various developments in the sector in Germany. FiT supported the use of energy crops for the production of renewable energy between 2004-2012 by providing incentives and bonuses. However, after 2014, FiT did not provide any bonus for use of energy crops in biogas plants. Despite these changes, energy crops is one of the major input material used in biogas plants across Germany.
The Asia Pacific region is growing on account of government initiatives, the establishment of small scale household biogas plants, and the construction of biogas plants in rural areas. Major biogas equipment manufacturers are eyeing opportunities in countries like India and China, on account of lower labor costs and support from the respective governments. Key Biogas markets in Asia- Pacific include China, Japan, India, South Korea, Thailand, and Indonesia.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
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