Biogas Plant Market size was valued at USD 4.36 billion in 2024 and is expected to reach USD 13.21 billion by 2037, expanding at around 8.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of biogas plant is assessed at USD 5 billion.
The growth of the market can be attributed to the increasing rate of pollution around the world, which in turn is giving rise to the environmental concerns associated with carbon emissions. According to the World Health Organization, 91% of the world's population resides in places where the air quality index exceeds the WHO guidelines. Moreover, 4.2 million deaths occur every year as a result of exposure to outdoor air pollution.
In addition, as fossil fuels are limited in quantity and are widely consumed for various purposes, the emphasis on alternative environment-friendly fuels that produce imperishable forms of energy is expected to witness growth. This is another factor considered to drive market growth in the upcoming years. Furthermore, the growing adoption of the Paris climate change agreement by a large number of countries is also projected to increase the usage of biogas in the near future, in order to minimize the implications of global warming.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
8.9% |
Base Year Market Size (2024) |
USD 4.36 billion |
Forecast Year Market Size (2037) |
USD 13.21 billion |
Regional Scope |
|
Application (Electricity Generation, Biofuel, Heat Generation)
The electricity generation segment in the biogas plant market is poised to grow at the highest share by the end of 2037 on account of rising demand for electricity and growing electrification of transport. As per the data provided by International Energy Agency (IEA), the total energy consumption in the world increased by 856 TWh from 2017 to 2018. The values for the same were 21,460 TWh and 22,316 TWh in the respective years. Along with these, the increasing disposable income of people around the world coupled with escalating usage of digitally connected devices is also evaluated to boost the growth of this market segment in the future.
Type (Small-Scale, Medium-to-Large Scale Digesters)
Biogas plant market from the small-scale segment is estimated to have significant growth over the forecast period owing to the increasing implementation of these types of biodigesters in rural areas of developing countries to reduce dependency on liquefied petroleum gas (LPG), natural gas and other hydrocarbon fuels. Moreover, government are initiating efforts in order to encourage the people living in rural area to adopt biogas digester by making them aware about adverse effects of fuel.
Our in-depth analysis of the global market includes the following segments:
Type |
|
Application |
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Feedstock |
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APAC Market Forecast
The Asia Pacific industry is set to account for largest revenue share of 30% by 2037, backed by ample availability of organic waste in countries, namely India, China, and Thailand, along with growing government initiatives. According to the World Bank, 23% of the world's waste is generated in East Asia and the Pacific. It is calculated that by 2030, around 602 million tons of waste would be accumulated in this region.
Europe Market Forecast
The biogas plant market in Europe is predicted to gather the largest share by the end of 2037, ascribing to the huge volume of biogas production and rising spending by key market players to build modern biogas production facilities in the region. Moreover, increasing stricter regulations on greenhouse gas (GHG) emissions would greatly stimulate the market growth in this region.
Author Credits: Dhruv Bhatia
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