Biogas Market to Hit $88.6 Billion by 2032 as Industries Shift to Green Energy Solutions

🚛 Global Biogas Market Forecasted at $88.6 Billion by 2032 as Industries Adopt Green Fuel Alternatives

WILMINGTON, DE, UNITED STATES, July 15, 2025 /EINPresswire.com/ --

According to a new report from Allied Market Research, the biogas market size was valued at $59.0 billion in 2022 and is projected to reach $88.6 billion by 2032, growing at a CAGR of 4.2% from 2023 to 2032. As industries and commercial sectors accelerate their transition toward sustainable energy solutions, biogas is emerging as a critical renewable energy source globally.

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🌿 What is Biogas?

Biogas is produced through the anaerobic digestion of organic waste materials such as municipal solid waste, animal waste, and agricultural residues. Comprising primarily methane and carbon dioxide, biogas serves as a versatile energy source for electricity generation, heating, cooking, and even as a vehicle fuel. The adoption of biogas for cooking and heating not only reduces reliance on conventional fuels like wood and coal but also helps mitigate deforestation and indoor air pollution in developing regions.

📊 Why the Biogas Market is Growing

The biogas market is witnessing robust growth due to increased focus on renewable energy solutions across industrial and commercial sectors. Industries are adopting biogas as a green alternative to reduce their carbon footprints while benefiting from reliable energy supplies.

1️⃣ Industrial & Commercial Applications

Biogas is increasingly utilized in industrial processes, including heating, cooling, and steam generation. Upgraded biogas, also known as biomethane, can be injected into natural gas grids, providing a sustainable option for industrial fuel demands.

Businesses in the commercial sector—including restaurants, hotels, supermarkets, and large office complexes—are deploying biogas systems to generate electricity, heating, and cooling solutions from their food waste and organic residues. This not only offsets energy costs but also helps manage waste disposal more sustainably.

2️⃣ Technological Innovations

Advancements in biogas technologies are unlocking new growth avenues. Developments such as fuel cells, microturbines, and combined heat and power (CHP) systems allow for efficient energy conversion from biogas. Innovations in digitalization and smart monitoring optimize resource utilization and enhance operational control of biogas plants, ensuring maximum system efficiency.

Emerging feedstocks, including algae and industrial organic waste streams, are expanding the market’s applicability. Improved anaerobic digestion techniques and high-rate digestion processes are also increasing biogas production yields, making operations more cost-effective.

🌏 Asia-Pacific Leads Global Demand

In terms of regional insights, the Asia-Pacific region held the largest market share in 2022, accounting for around two-fifths of the global biogas market revenue. This region is expected to maintain dominance through 2032, growing at a CAGR of 4.5%. Strong government incentives, rapid industrialization, and abundant agricultural waste resources make Asia-Pacific a thriving market for biogas projects.

India, China, and Southeast Asian nations are actively investing in biogas infrastructure to meet their energy security goals while addressing environmental concerns.

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💡 Key Market Segments

By source, the municipal waste segment accounted for the largest share in 2022 and is projected to grow steadily. Biogas derived from municipal solid waste is widely used for large-scale power generation, contributing to clean energy initiatives in urban centers.

By end-use industry, the power generation segment dominated the market, representing more than one-third of total revenue in 2022. Cogeneration applications—where biogas is used to simultaneously produce electricity and useful heat—are gaining traction, especially among commercial establishments seeking efficient energy solutions.

🚧 Challenges in the Biogas Market

Despite its potential, the biogas market faces challenges due to competition from conventional energy sources. Fossil fuels like coal, oil, and natural gas remain dominant in many regions, supported by subsidies and existing infrastructure. The relatively higher upfront investment and operational costs for biogas plants can pose barriers, particularly in price-sensitive markets.

However, as sustainability regulations tighten and environmental awareness grows, the long-term outlook for biogas remains strong.

🔋 Key Players Driving the Market

The competitive landscape of the biogas market includes major companies like:

Wärtsilä

EnviTec Biogas AG

Air Liquide USA

Hindustan Petroleum Corporation Limited

PlanET Biogas Group

BoxLNG Pvt. Ltd.

Bharat Biogas Energy Ltd.

Primove Engineering Pvt. Ltd.

GAIL Gas Limited

GPS Renewables Pvt. Ltd.

Other notable participants are Green Elephant, IOT Infrastructure, Praj Industries, and SLPP RE. These companies are investing in innovative technologies and expanding their biogas production capacities to cater to growing market demand.

📈 Future Opportunities

With continued innovation, supportive government policies, and rising energy demands from industries and commercial businesses, the global biogas market is set for significant expansion. The conversion of organic waste into energy not only addresses waste management challenges but also supports global sustainability targets.

As the biogas sector evolves, advancements in purification technologies, new feedstock utilization, and smart plant monitoring will drive efficiency gains and open new markets, particularly in transport fuel and grid injection applications.

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🌿 Conclusion

Projected to reach $88.6 billion by 2032, the biogas market will play a vital role in the global renewable energy transition. From industrial heating to power generation and sustainable fuel production, biogas offers a versatile solution for reducing carbon emissions and supporting circular economy principles.

Businesses adopting biogas technologies stand to benefit from cost savings, regulatory compliance, and enhanced sustainability credentials in an increasingly eco-conscious global marketplace. As investments rise and technology matures, biogas is poised to become a mainstream energy solution across regions and industries.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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