Biomethane Market To Reach USD 34.32 Billion By 2032 Demand Fueled By Renewable Energy Transition, Sustainable Fuel Adoption, And Circular Economy Initiatives

(MENAFN- GlobeNewsWire - Nasdaq) The global biomethane market is gaining strong momentum, driven by increasing commitments to decarbonization, renewable energy targets, and the pursuit of sustainable transportation fuels.

Austin, July 31, 2025 (GLOBE NEWSWIRE) -- The global biomethane market was valued at USD 12.70 billion in 2024 and is projected to reach USD 34.32 billion by 2032, growing at a compound annual growth rate (CAGR) of 13.23% from 2025 to 2032.

Increasing use of biomethane for transportation, power generation, heating, and as a feedstock to produce green hydrogen is driving the market. Government incentives such as feed-in-tariffs, carbon credits, and the requirement for usage of renewable fuel – especially in the European Union, North America, and in the Asia-Pacific in some regions are boosting the attractiveness of investment in biomethane plants. Furthermore, biomethane is considered a critical facilitator of the circular economy, utilizing organic waste and sewage sludge to produce clean energy, thereby supporting waste management and greenhouse gas (GHG) reduction objectives.

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The U.S. biomethane market size was USD 2.2 billion in 2024 and is expected to reach USD 6.64 billion by 2032 and grow at a CAGR of 14.72% over the forecast period of 2025-2032. Its mature renewable energy policies and substantial natural gas infrastructure, combined with increasing demand for low-carbon ply the transportation and industrial sectors. The nation's policy landscape includes a range of complementary regulatory mechanisms (for example, the Renewable Fuel Standard (RFS) and the California Low Carbon Fuel Standard (LCFS)) that incentivize the production and use of renewable natural gas (RNG), including biomethane, through financial credits.

Key Players:

• Engie
• Air Liquide
• Gasum
• EnviTec Biogas AG
• Future Biogas Ltd.
• Waga Energy
• PlanET Biogas Group
• Clean Energy Fuels Corp.
• Bright Biomethane
• Xebec Adsorption Inc.
• Veolia
• Greenlane Renewables
• Archaea Energy
• Hitachi Zosen Inova AG
• Axiom Energy Group
• Pentair
• Verbio AG
• TotalEnergies
• Nature Energy
• Biogest

Biomethane Market Report Scope:

Report Attributes	Details
Market Size in 202 4	USD 12.70 Billion
Market Size by 2032	USD 34.32 Billion
CAGR	CAGR of 13.23% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Feedstock: Organic Household Waste, Agricultural Waste, Industrial Food Processing Waste, Animal Manure, Energy Crops, Sewage Sludge, Others (e.g., Municipal Solid Waste, Garden Waste) . By Production Method: Anaerobic Digestion, Gasification, Others (e.g., Power-to-Gas, Pyrolysis) . By Application: Automotive (Vehicle Fuel), Power Generation, Heating, Injection into Natural Gas Grid, Others (e.g., Industrial Use, CHP Systems) . By End-Use Industry: Residential, Commercial, Industrial, Transportation, Utilities

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By Feedstock

Agricultural waste was the leading feedstock in the biomethane market in 2024, with over 32% share of the market globally. This can be attributed to the large and continuous supply of organic waste, such as crop straw, manure, and other biodegradable residues, which are generated from agricultural operations. The waste streams are full of organic material, which is great for anaerobic digestion (AD) and biogas and biomethane production.

By End-Use Industry

The transportation application led the biomethane industry size in 2024, owing to increasing consumption of low-emission and sustainable fuels in public and private transport structures. The biomethane variants that are available as a replacement for CNG are rapidly gaining market acceptance as a clean bus and truck fuel because they can be used in existing natural gas infrastructure and vehicles.

Regional Analysis

Europe was the leading region for the biomethane market in 2024, contributing around 47.32% of the global revenue, owing to its robust policy support, developed infrastructure, and dedication toward climate neutrality. The area has been a leader in the adoption of biomethane, spurred by ambitious renewable energy targets as part of initiatives like the European Green Deal, the Fit for 55 package, and national requirements to include renewable gas into existing grids.

Recent Developments

• In March 2025 , Veolia Group (France) inaugurated its largest biomethane facility in Normandy, France, with an annual production capacity of 25 GWh, sourced from municipal waste. The project contributes directly to France's green gas target of 10% renewable gas in the grid by 2030.
• In December 2024 , Clean Energy Fuels Corp. (USA) signed a long-term agreement with Amazon to supply over 150 million gallons of RNG for its trucking fleet, marking one of the largest biomethane deals for the transportation sector globally.

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Market USP 's

• Policy Heatmap and Regulatory Intelligence Dashboard - Side-by-side comparison of worldwide market biomethane policies, incentives, and mandates that impact market competitiveness and investment decisions.
• Disrupting and Integrating the Value Chain of Biomethane – Analysis of inefficiencies and disconnects in the biomethane value chain present creating opportunities for innovation and cost reduction.
• End-Use Applications Overview – Overview of leading-edge applications of biomethane in transport, power, and industry with examples of early pilots and technology uptake .
• Return on Sustainability (RoS) Analysis - A quantitative analysis of the environmental, social, and economic returns of biomethane, such as emissions reduction and ESG performance .
• Regional Organic Waste Supply Potential and Price Overview – Guide to the potential supplied to biomethane production by region, organic waste pricing, and both current and future availability trends.

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