Biogas Market Manufacturers, Demand, Forecast To 2030

(MENAFN- Straits Research) Introduction

Biogas is a renewable energy source produced when microorganisms break down organic matter without oxygen in an anaerobic digestion process. Recent years have seen a rise in the use of biogas as a "greener" fuel. With the proper processing, biogas can be upgraded to replace mined natural gas for use as fuel for electricity production and transportation. Biogas can significantly contribute to reducing greenhouse gases as they have the possibility of reducing the need to use fossil fuels. Providing a renewable, non-polluting energy source helps keep the environment free of dangerous emissions.

Market Dynamics Rising Need for Cleaner Energy Drives the Global Market

Consumer preferences are shifting toward renewable energy sources because of awareness of global warming and climate change. Various initiatives to offset these emissions include shifting to alternative energy sources and increasing energy efficiency. As a result, the demand for biogas as an alternative to fossil fuels is surging rapidly. Significant investment has been made in alternative fuels and renewable energy, and this trend is expected to continue in the coming years. The rising preference for environmentally friendly energy that minimizes emissions is expected to increase the demand.

The growing need to minimize reliance on fossil fuels is expected to generate an opportunity for biogas in car fuel application. Biogas can be utilized in vehicles initially designed to run on natural gas after being upgraded to include at least 95% methane by volume. The concentrated biogas near 100% methane is called 'biomethane' or 'renewable natural gas.' Biogas-fuelled vehicles can reduce CO2 emissions as compared to fossil fuels. These factors are anticipated to create opportunities for the market over the forecast period.

Regional Analysis

Europe is the most significant shareholder in the global biogas market and is expected to grow at a CAGR of 2.7% over the forecast period. The European biogas market is growing owing to technological developments and increasing investments in the region's refinery industry. Companies across Europe are investing huge capital in research and development of biogas production from existing sources and planning to increase the share of feedstock over the next few years, which will fuel the market growth of biogas across the region. Governments and different European organizations are initiating projects to promote and encourage the use of biogas actively. European Union has set a target to utilize more renewable energy as compared to fossil fuels. The government's focus on decreasing carbon emissions also presents growth opportunities for the European biogas market.

Asia-Pacific is expected to grow at a CAGR of 6.1%, generating USD 15,343 million during the forecast period. The primary reasons for the region's high growth include increased demand for biogas and growing investments by both public and private sectors to develop biogas technologies. The high demand for energy and strict environmental regulations are also assisting the growth of the Asia-Pacific biogas market. The primary factors contributing to the considerable growth of the market include increasing government initiatives regarding energy security and energy independence and growing biotechnology industries.

In North America, the growing demand for biogas in applications such as cooking gas, electricity, vehicle fuel, heat, and others is expected to positively impact the industry growth over the forecast period. Technological advancement and awareness of biogas used as a clean fuel are significant drivers that have boosted the North American market. The increasing adoption of biogas in Canada majorly drives the biogas market growth in North America. Biogas production is expected to increase due to the demand for fuel with low emissions of harmful gases and the need for a reduction in greenhouse gas emissions.

Key Highlights

• The global biogas market was valued at USD 60,072 million in 2021. It is projected to reach USD 88,354 million by 2030, growing at a CAGR of 4.38% during the forecast period (2022-2030).
• Based on source type, the global biogas market can be divided into agriculture, industrial, and municipal. The agriculture segment is the highest contributor to the market and is anticipated to grow at a CAGR of 4.6% during the forecast period.
• Based on the application, the market can be divided into electricity, heat, vehicle fuel, upgraded biogas, and cooking gas. The electricity segment owns the highest market share and is expected to grow at a CAGR of 3.8% over the forecast period.
• Europe is the most significant shareholder in the global biogas market and is expected to grow at a CAGR of 2.7% over the forecast period.