Biogas Market Shows Potential in Transportation Fuel Applications

The global biogas market was valued at USD 65.53 billion in 2023 and is projected to reach USD 87.86 billion by 2030, expanding at a CAGR of 4.2% from 2024 to 2030. Market growth is supported by rising demand across multiple application areas, including heat generation, electricity production, upgraded biogas, vehicle fuel, and cooking gas. Increasing emphasis on renewable energy adoption and sustainable waste management continues to position biogas as a key alternative energy source worldwide.

Key Market Trends & Insights

Europe emerged as the leading regional market, accounting for approximately 41% of global revenue in 2023. Strong policy frameworks, decarbonization targets, and advanced waste-to-energy infrastructure have contributed significantly to regional dominance. In particular, Italy’s biogas market is benefiting from government initiatives aimed at reducing carbon emissions and accelerating the transition toward renewable energy systems.

From an application perspective, electricity generation remained the largest segment, contributing around 30% of total revenue in 2023. The growing integration of biogas into power generation systems reflects increasing demand for renewable electricity and grid stability solutions. By source, municipal waste represented the largest share, accounting for 41.35% of revenue in 2023, supported by rising urban waste volumes and improved waste collection and processing systems.

Market Size & CAGR

• 2023 Market Size: USD 65.53 Billion
• 2030 Projected Market Size: USD 87.86 Billion
• CAGR (2024–2030): 4.2%
• Largest Regional Market (2023): Europe

The increasing shift toward renewable energy, particularly in the electric power sector, has substantially boosted biogas demand for electricity applications. In parallel, growing concerns over fossil fuel dependency and energy security are generating new opportunities for biogas utilization in vehicle fuel applications, especially in regions promoting clean mobility initiatives.

In North America, the United States represented one of the largest biogas markets in 2023 and is expected to register strong growth over the forecast period. Government regulations aimed at reducing reliance on conventional fuels and achieving zero carbon emission targets are playing a crucial role in market development. Favorable regulatory frameworks, environmental incentives, geopolitical support, and agricultural and economic policies continue to strengthen market fundamentals in the country.

Biogas demand across North America is primarily supported by its expanding use in cooking gas, electricity generation, vehicle fuel, and heat applications. High demand for green fuels, stringent environmental regulations, and increased investment in biogas refinery development are further contributing to regional market growth.

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Key Companies & Market Share Insights

The biogas market is highly competitive, characterized by the presence of several global and regional players. Leading biogas solution and service providers include Air Liquide, PlanET Biogas, Wartsila, EnviTech Biogas AG, Robert Bosch GmbH, Asia Biogas, and Schmack Biogas GmbH. Companies such as Air Liquide, PlanET Biogas, Wartsila, and EnviTech Biogas AG are recognized for their full-scale manufacturing capabilities and strong investments in research and development.

Spanish companies are also actively promoting biogas adoption. For example, Repsol announced the development of an industrial-scale biogas project in June 2020, highlighting growing corporate participation in renewable gas initiatives.

Key Biogas Companies

• 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.

Conclusion

The global biogas market is positioned for steady growth through 2030, driven by increasing renewable energy adoption, supportive government policies, and expanding applications across electricity, transportation, and heating sectors. While short-term disruptions such as the COVID-19 pandemic temporarily affected demand, long-term fundamentals remain strong. Continued investments in infrastructure, technological advancements, and regulatory support are expected to sustain market expansion and reinforce biogas as a critical component of the global clean energy transition.

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