Ottawa, Jan. 13, 2026 (GLOBE NEWSWIRE) -- The global biogas market size was estimated at USD 171.19 billion in 2025 and is expected to increase from USD 178.88 billion in 2026 to USD 265.60 billion by 2035, growing at a CAGR of 4.49%. The Europe dominated biogas market with the largest share of 42.66% in 2025. A study published by Towards Chemical and Materials a sister firm of Precedence Research. The market is driven by decarbonization efforts, stringent governmental regulations, and the shift of energy production toward high-value industrial integration and advanced resource recovery.
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What is Going on in the Global Biogas Industry?
The shift to biomethane (RNG) is a key trend in the global biogas market, with the conversion of raw biogas into biomethane. By removing carbon dioxide and impurities, manufacturers are creating fuel that is chemically identical to natural gas. The government initiatives and policies promoting renewable energy sources are forcing manufacturers to invest in R&D to ensure sustainable products with safety and environmental standards for biogas projects.
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Biogas Market Report Highlights
- By region, Europe led the market with the largest revenue share of over 42.66% in 2025. Stringent climate targets and initiatives drive the growth.
- By region, Asia Pacific is expected to have fastest growth in the market in the forecast period between 2026 and 2035. Sustainability initiatives and growing environmental concerns drive the growth.
- By source, the municipal segment led the market with the largest revenue share of 43.11% in 2025. Governments and municipal supportive initiatives drive the growth.
- By source, the industrial segment is projected to grow at a CAGR between 2026 and 2035. The growing demand for industrial biogas for plants drives the growth.
- By application, the electricity segment led the market with the largest revenue share of 32.55% in 2025.Captive power generation models drive the demand for the market.
- By application, the upgraded biogas segment is projected to grow at a CAGR between 2026 and 2035. Compatibility with natural gas infrastructure supports the growth of the market.
Biogas Market Report Scope
| Report Attribute | Details |
| Market size value in 2026 | USD 178.88 Billion |
| Revenue forecast in 2035 | USD 265.60 Billion |
| Growth Rate | CAGR 4.49% |
| Base year for estimation | 2025 |
| Historical data | 2026 - 2035 |
| Forecast period | 2026 - 2035 |
| Segments covered | By Source, By Application, By Region |
| Regional scope | North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
| Key companies profiled | Wärtsilä Corporation, PlanET Biogas Group, BioConstruct GmbH, ENGIE SA, 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. |
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Major Government Initiatives for the Biogas Industry:
- SATAT (Sustainable Alternative Towards Affordable Transportation): This scheme encourages entrepreneurs to establish Compressed Biogas (CBG) plants and supply the fuel to Oil Marketing Companies for use in automotive and industrial sectors.
- GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan): Operating as a multi-ministerial "Waste to Wealth" initiative, it focuses on converting cattle dung and agricultural residue into biogas and organic manure to improve rural cleanliness and farmer income.
- National Bioenergy Programme (2021–2026): This umbrella program provides Central Financial Assistance (CFA) for setting up various bioenergy projects, including small and medium-scale biogas plants for thermal and power applications.
- Waste-to-Energy Programme: Part of the National Bioenergy Programme, this specific sub-scheme offers financial support for large-scale biogas and BioCNG projects that utilize urban, industrial, and agricultural wastes.
- Mandatory CBG Blending Obligation: Starting in the 2025–26 financial year, the government has mandated a phased blending of Compressed Biogas into the natural gas grid, beginning with a 1% obligation for the City Gas Distribution sector.
What Are the Major Trends in the Biogas Market?
- Integration with Hydrogen Production: There is a rising trend of using biogas as a feedstock for Bio-hydrogen. Through steam methane reforming (SMR) of biomethane, industries are producing hydrogen by lowering their carbon footprint.
- Growing Consumer Demand: The consumer preference for sustainable energy solutions and the adoption of biogas technologies are driving innovation towards environmentally friendly practices.
- Bio-CO2 Capture and Utilization: The Manufacturer avoids the carbon dioxide exposure during the biogas cleaning process. Instead, they are capturing this high-purity Bio-CO2for use in the food and beverage industry, greenhouses, or as a raw material for synthetic e-fuels.
- Expansion in Heavy Transport: Biogas is increasingly utilized as a solution for and gaining momentum as a standard fuel source for heavy-duty trucking, maritime shipping, and public transit to meet net-zero mandates.
Is Technological Integration Driving the Innovation in the Biogas Market?
Artificial intelligence integration in biogas plants offers innovation and process optimization. The modern plants are integrating AI-driven sensors to monitor microbial health in real-time. The Advanced technologies, like cryogenic separation of biomethane production, are used for process proficiency and operational efficiency.
The predictive maintenance and automated feeding optimization are driving gas yields and reducing operational downtime. Additionally, integrating biogas plants with other systems like hydroponic farming or hydrogen production offers innovation in a sophisticated biogas system.
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Market Opportunity
How does the Power-to-Gas Integration create a Balancing Opportunity for the Electrical Grid and the Application Sector?
Biogas plants are increasingly being used as flexible storage. By converting excess electricity into hydrogen and then into methane, power-to-gas systems provide critical grid-balancing services by enhancing grid stability, especially for renewable energy production to achieve a more sustainable energy future. The Power-to-Gas integration enables the utilization of renewable energy in various sectors like heating, transportation, and electricity generation.
Can the Waste Carbon Dioxide from Biogas Production be Sold?
A major emerging opportunity is the capture of Bio-CO2 during the gas-cleaning process. CO2 produced as a byproduct in biogas plants can be captured, purified, and sold commercially by establishing carbon dioxide recovery infrastructure and ensuring regulatory standards. This high-purity, biogenic CO2 is in high demand for the food and beverage industry, and as a feedstock for sustainable aviation fuels, turning a previous waste stream into a secondary market-ready product.
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Biogas Market Segmentation Insights
Segmental Insights
Product Type Insights
How did the Municipal Segment Dominate the Biogas Market in 2025?
The municipal segment dominated the market in 2025. The segment benefits most from regulatory mandates, owing to its role as a centralized energy-from-waste hub that provides the most predictable and scalable feedstock supply within the industry. Governments prioritize municipal initiatives aimed at mitigating the environmental hazards associated with open-air decomposition and achieving urban decarbonization objectives.
By leveraging existing urban collection networks and situating facilities adjacent to wastewater treatment plants, this segment minimizes logistical and transportation costs. It also serves as a long-term investment driver by providing a low-risk environment, thereby acting as a key catalyst in the global biogas industry.
The industrial segment is anticipated to grow fastest, driven by high organic content and a rapid shift towards industrial energy self-sufficiency and integrated biorefinery models, where waste is converted into a crucial fuel resource for manufacturing. Biogas systems enable industrial plants to achieve faster operation and lower energy costs, encouraging private equity and corporate sustainability investments and innovation.
This focus on onsite circularity and advanced pretreatment technologies positions the industrial segment as the most profitable and strategically important growth sector by securing energy independence and the elimination of waste disposal costs.
Application Insights
Which Application Segment Leads the Biogas Market?
The electricity segment dominated the market in 2025. The leadership is through the extensive deployment of combined heat and power systems that convert raw biogas into a reliable source of renewable energy. The dominance is accelerated by technological advancement of biogas-to-power technologies and the vital contribution of biogas to grid stabilization and decentralized energy security.
The electricity segment remains the primary source in gas grids and heavy-duty transportation due to integration with waste management infrastructure and its ability to provide on-site energy solutions for industrial and agricultural operations. This emphasis on power generation systems is a central pillar in the global transition towards a circular bioeconomy.
The upgraded biogas segment is expected to grow at the fastest CAGR over the forecast period, known for biomethane or renewable natural gas, experiencing growth due to its versatility and high purity standards. The market expansion is boosted by global demand for cleaner automotive fuels and strategic initiatives aimed at integrating renewable gas into existing natural gas infrastructure.
The government support and regulations for decarbonization targets and advanced waste-to-energy programs further promote this segment's development as a key alternative to fossil fuels in both industrial and transportation sectors
Regional Insights
How did Europe dominate the Biogas Market?
The Europe’s biogas market size was valued at USD 73.03 billion in 2025 and is expected to surpass around USD 113.46 billion by 2035, expanding at a compound annual growth rate (CAGR) of 4.52% over the forecast period from 2026 to 2035. Europe dominated the market, accounting for a 42.66% share in 2025.
Europe led the market, characterized by mature infrastructure and aggressive decarbonization mandates. This dominance is maintained through a robust regulatory framework that incentivizes renewable energy development and investments in advanced refining technologies. A strategic transition toward biomethane significantly contributes to this leadership. Biomethane seamlessly integrates into existing natural gas grids and offers a dispatchable, clean energy source that balances flexible renewable sources such as solar and wind.
The government policy support for circular economy initiatives, stringent greenhouse gas emission standards, and the need for energy security are accelerating the adoption of biogas as a vital alternative to fossil fuels across industrial and transportation sectors. Additionally, this region positions itself as the global hub for biogas innovation and production due to its agricultural residues and municipal waste.
Germany Biogas Market Growth Trends
Germany continues to be the prominent leader in the Europe market, maintaining its status as the continent's largest producer over the long term. This leadership is supported by a mature industrial landscape and sophisticated regulatory framework that has evolved from traditional production incentives toward high-value grid flexibility and market-oriented strategies. Germany’s extensive technical expertise, advanced decarbonization efforts, and considerable installed capacity ensure its continued leadership as the global hub for biogas innovation.
Why is the Asia Pacific the Fastest-Growing Region in the Biogas Market?
The Asia-Pacific region is emerging as the fastest-growing market in biogas, driven by rapid industrialization and an abundant supply of organic feedstocks from both the agricultural and municipal sectors. Government mandates aimed at reducing reliance on fossil fuels and carbon neutrality targets are driving market growth. The region is transitioning increasingly toward decentralized energy solutions and large-scale waste-to-wealth initiatives, which convert organic residues into sustainable power and clean cooking fuels.
The substantial investments in advanced conversion technologies facilitate the rapid expansion of the upgraded biogas segment, enabling the integration of renewable gases into existing infrastructure to meet the rising energy demands of expanding urban populations.
India Biogas Market Growth Trends
India is experiencing significant growth in the biogas market driven by government initiatives, rising demand for energy, and the need for sustainable waste management. India is the third-largest energy consumer, which focuses on renewable and clean fuel. Additionally, government support and technology adoption are driving the market.
More Insights in Towards Chemical and Materials:
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- Green Gas Market Size to Hit USD 3.96 Billion by 2035
- Floating Liquefied Natural Gas (FLNG) Terminals Market Size to Hit USD 66.62 Bn by 2034
- U.S. Gas Pipeline Infrastructure Market Size to Hit USD 2,431.55 Bn by 2034
- Asia Pacific Gas Pipeline Infrastructure Market Size to Surge USD 1,592.78 Bn by 2034
- Industrial Gas Pipeline Infrastructure Market Volume to Hit USD 67.55 Mn Tn by 2034
- Europe Oil & Gas Infrastructure Market Size to Hit USD 140.09 Bn by 2034
- Asia Pacific Oil & Gas Infrastructure Market Size to Reach USD 365.90 Bn by 2034
- Asia Pacific Oil & Gas Market Size to Hit USD 2.79 Trillion by 2034
- U.S. Oil & Gas Infrastructure Market Size to Hit USD 147.32 Billion by 2034
- Oil & gas infrastructure Market Size to Reach USD 1,377.87 Bn by 2034
- U.S. Oil & Gas Market Size to Hit USD 2.24 Trillion by 2034
- Oil & Gas Market Size to Reach USD 8.79 Trillion by 2034
- Gas Separation Membrane Market Size to Hit USD 3.62 Billion by 2034
- Renewable Natural Gas Market Size to Hit USD 31.37 Bn by 2034
- Natural Gas Market Size to Reach USD 6.96 Trillion by 2034
- GCC Natural Gas Market Size to Hit USD 93.33 Billion by 2035
Biogas Market Top Key Companies:
Top Market Players in the Biogas Market & Their Offerings:
- Agrinz Technologies GmbH: Engineering and consultancy for turnkey biogas plants and waste-to-value solutions.
- ENGIE SA: Large-scale biomethane production and waste-to-gas infrastructure for industrial and mobility use.
- Wärtsilä Corporation: Advanced biogas upgrading and liquefaction systems for high-purity biomethane and bio-LNG.
- PlanET Biogas Group: Design, construction, and servicing of high-efficiency biogas and biomethane plants globally.
- EnviTec Biogas AG: Full-service biogas plant construction, operation, and direct marketing of renewable gas and electricity.
- BioConstruct GmbH: Planning and construction of turnkey biogas, biomethane, and wind energy plants for agriculture and industry.
- Air Liquide: Membrane-based purification and liquefaction technologies to convert raw biogas into grid-quality biomethane.
- Gasum Oy: Production and distribution of biogas through a comprehensive network of refueling stations in the Nordic region.
- DMT International: Specialized biogas treatment and upgrading technologies, including methane purification and CO2 recovery.
- Scandinavian Biogas Fuels International AB: Industrial-scale production of liquid biogas (bio-LNG) from organic waste and wastewater.
- TotalEnergies: Development and operation of large-scale biomethane production units integrated into a global energy portfolio.
- Xebec Adsorption Inc.: Modular Pressure Swing Adsorption (PSA) systems for upgrading biogas to renewable natural gas.
- Schmack Biogas Service: Comprehensive technical maintenance, biological support, and modernization for existing biogas plants.
- 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.
Biogas Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2035. For this study, Towards Chemical and Materials has segmented the global Biogas Market.
By Source
- Municipal
- Landfill
- Wastewater
- Industrial
- Food Scrap
- Wastewater
- Agricultural
- Dairy
- Poultry
- Swine Farm
- Agricultural Residue
By Application
- Vehicle Fuel
- Electricity
- Heat
- Upgraded Biogas
- Cooking Gas
By Regional
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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