Global Biomethane Market
Oil and Gas

Key Trends and Insights into the Biomethane Market: Growth Rate and Opportunities to 2034

Updated 2025 Market Reports Released: Trends, Forecasts to 2034 – Early Purchase Your Competitive Edge Today!

What key factors are powering the surge in the biomethane market right now?

The biomethane industry has witnessed significant expansion in the past few years. The market, which was at $3.79 billion in 2024, is projected to rise to $4.06 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 7.2%. This growth during the historical period is linked to several factors such as heightened renewable energy goals, strengthened waste management strategies, improved energy security, introduction of circular economy initiatives, enhanced efforts towards decarbonization, infrastructure developments, and a surge in market demand and acceptance.

How fast Is the biomethane market expected to grow, and what’s its future value?

The growth trajectory predicted for the biomethane market size over the upcoming years is quite considerable, with an expectation to escalate to a substantial $5.11 billion value by 2029, at a compound annual growth rate (CAGR) of 5.9%. The surge expected during the forecasted time is ascribed to a number of factors, including the rise in climate policy objectives, elevation in green gas obligations, development in circular bioeconomy tactics, improvement in urban air quality, expansion of the biofuel market, and an increase in sustainability certificates and tractability. Further, the forthcoming period is expected to witness several trends, such as intensifying interest in renewable fuel alternatives, growth in biogas enhancement facilities, its usage as a clean transportation fuel, integration with organic waste handling systems, cultivation of sustainable supply chains, amplification in biomethane injection, cooperation between government entities and industry players, advancements in production methodologies, and the implementation of certification layouts.

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(Organic household waste, Animal manure, Energy crops, Agricultural waste, Sewage sludge, Industrial food processing waste, Other Feedstocks), By Production Method (Anaerobic Digestion, Gasification, Fermentation, Other Production Methods), By End User (Automotive, Power Generation, Industrial, Other End Users) – Market Size, Trends, And Global Forecast 2025-2034

What are the leading drivers of growth in the biomethane market?

An increased inclination towards environmentally friendly and sustainable fuels is anticipated to drive the biomethane market’s expansion in the future. These are energy options that emit minimal pollutants or greenhouse gases during their usage and production, making them more sustainable and eco-friendly than traditional fossil fuels. Their demand is on the rise as people are looking for alternatives that are beneficial to the environment, economically viable, and socially beneficial. Biomethane fits these criteria as a clean energy source. For example, the Energy Information Administration (EIA), a US government-based body, reported in June 2023 that nonfossil fuel energy sources composed 21% of the nation’s energy consumption in 2022, showing a 3% increase from the previous year. The rise was primarily due to major input from renewable and nuclear energy, contributing to the same 21% share. Hence, the growing preference for sustainable and clean fuel is contributing to the expansion of the biomethane market.

What are the key segments defining the biomethane market?

The biomethane market covered in this report is segmented –

1) By Feedstock: Organic Household Waste, Animal Manure, Energy Crops, Agricultural Waste, Sewage Sludge, Industrial Food Processing Waste, Other Feedstocks

2) By Production Method: Anaerobic Digestion, Gasification, Fermentation, Other Production Methods

3) By End User: Automotive, Power Generation, Industrial, Other End Users

Subsegments:

1) By Organic Household Waste: Kitchen Waste, Garden Waste, Organic Household Refuse

2) By Animal Manure: Cattle Manure, Poultry Manure, Pig Manure, Other Livestock Manure

3) By Energy Crops: Maize Silage, Grass Silage, Sorghum, Other Energy Crops

4) By Agricultural Waste: Crop Residues (Straw, Husks), Fruit And Vegetable Waste, Agricultural Byproducts

5) By Sewage Sludge: Primary Sludge, Secondary Sludge, Tertiary Sludge

6) By Industrial Food Processing Waste: Food Processing Residues (Fruit And Vegetable Peels), Dairy Waste, Beverage Industry Waste, Other Food Processing Byproducts

7) By Other Feedstocks: Green Waste, Wood Waste, Algae, Other Organic Waste

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Who are the key players steering the development of the biomethane market?

Major companies operating in the biomethane market are E.ON SE, Air Liquide S.A, The Southern California Gas Company, VERBIO SE, Société Générale de Surveillance, Veolia Group, Envitec Biogas AG, Orbital Gas Systems, Future Biogas Ltd., Green Gas International, ETW Energietechnik GmbH, Biokraft International AB, Gasrec Ltd., PlanET Biogas Global GmbH, CNG Services Ltd., Biogas Products Ltd., Nature Energy, Landwärme GmbH, AB HOLDING SPA, ENVO Group, Cryon Purr, Schmack Carbotech GmbH

What emerging trends are influencing the growth of the biomethane market?

Major firms in the biomethane market are shifting their attention to the creation of new biomethane production plants in an effort to optimize their market earnings. They construct facilities specifically designed to generate biomethane, a green type of natural gas which is produced from organic materials through procedures like anaerobic digestion. As an illustration, CycleO Group Limited, a British company that specializes in biomethane production, successfully launched Spain’s first biomethane plant that employs ammonia stripping technology in September 2023. The plant’s main purpose is to transform manure into sustainable ammonium nitrate and sulfate which are primarily utilized as fertilizers. Its maximum production limit is estimated to be approximately 15,000 MWh annually. To top it off, this marks CycleØ’s second operational plant in Spain, and the very first one that was entirely planned, owned, constructed, and managed by them in Spain. As a bonus, this newly opened facility will contribute to a decrease in nitrate pollution and emissions in the local farm.

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Which regions are most influential in expanding the biomethane market?

Europe was the largest region in the biomethane market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the biomethane market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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