Biogas Market Expected To Fuel Industry Growth With $87.85 Billion By 2030: Grand View Research Inc.

 

The global biogas market size is expected to reach USD 87.85 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.3% from 2022 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 Nestlé 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.

The market is expected to witness growth on account of the rising product demand from various applications such as electricity, heat, vehicle fuel, upgraded biogas, and cooking gas. Shifting focus toward the use of renewable energy, particularly in the electric power sector, has significantly driven the demand for biogas in electricity applications. In addition, the increasing need to reduce dependency on fossil fuels is creating lucrative opportunities for biogas in vehicle fuel applications.

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The U.S. is one of the largest markets for biogas in North America in 2021 and is projected to grow at a significant CAGR in terms of value over the forecast period. The United States government has introduced several regulations to lessen its dependency on conventional fuels and meet the goal of zero carbon emissions. Significant factors that are influencing the biogas market growth such as favorable regulatory & political support, environmental support, customer support, and geopolitical support, agricultural and economic support.

Biogas Market Report Highlights

• In terms of revenue, the municipal segment accounted for a prominent share in the market in 2021 and is further expected to witness prominent growth over the forecast period
• The U.S. in the North America region dominated the market and accounted for about 79.39% of the global revenue share in 2021
• As of 2021, Europe accounted for 41.81% revenue share of the overall market for biogas

• Favorable regulatory policies along with rising government investments will further boost the adoption of biogas in the country. For instance, the Dubai Municipality build a biogas plant at the Warsan sewage treatment plant, and this project will help decrease carbon dioxide emissions. This project is guided by the Dubai Clean Energy Strategy 2050, and with this strategy, the city aims to become the world's minimum carbon footprint city by the year 2050.

The demand for biogas in North America is primarily driven by the U.S. The growing demand for the product in applications, such as cooking gas, electricity, vehicle fuel, heat, and others, is expected to have a positive impact on the industry growth over the forecast period. Major factors supporting the growth of the market include high demand for green fuels, stringent environmental regulations, and increased investment in the development of refineries.

The abrupt onset of the COVID-19 pandemic caused an industrial lockdown that brought all manufacturing activity to a grinding halt in most industries around the world. Hence, it has also impacted product demand in heat generation applications. Sluggish industrial activities have reduced the demand for heat consumption, thereby negatively affecting the demand for biogas.

List of Key Players in the Biogas Market

• Agrinz Technologies GmbH
• Air Liquide
• DMT International
• Gasum Oy
• HomeBiogas Inc
• PlanET Biogas
• Scandinavian Biogas Fuels International AB
• Schmack Biogas Service
• Total
• Xebec Adsorption Inc