Biogas Upgrading Equipment Market size is anticipated to reach USD 11 Billion by the end of 2036, expanding around 15% CAGR during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of biogas upgrading equipment was over USD 2 Billion. The demand is driving research and development for more effective and cleaner alternatives including biogas, biodiesel, and ethanol due to rising greenhouse gas emissions and the need to diversify energy options. As an alternative to natural gas, biogas is employed. As a result, the market is expanding due to the demand for cleaner fuel. Around 21.5 gigawatts of installed biogas energy capacity were had been utilized in 2022. This was the highest point throughout the period under review and represented a rise of 2.4% from the previous year.
Additionally, more refined biogas production with the right tools is required to fulfill the demand, which is expanding quickly. As a result, there is a rising need for equipment updates, which will fuel the expansion of the worldwide biogas refining equipment market throughout the forecast period. Methane can now be separated from carbon dioxide and other gases using biogas upgrading technology, producing concentrated biogas that is almost entirely methane. Additionally, it guarantees that all biomethane standards are appropriate for use in natural gas distribution systems or as fuel for CNG cars, among other uses.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 15% |
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Base Year Market Size (2023) |
~ USD 2 Billion |
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Forecast Year Market Size (2036) |
~ USD 11 Billion |
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Regional Scope |
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Type (Water Scrubber, Chemical Scrubber, PSA, Membrane)
Biogas upgrading equipment market for the water scrubber segment is anticipated to hold a share of 40% during the forecast period. The most common and oldest method of cleaning is water scrubbing. It is offered for sale in the market in a variety of capacities that range from 0.2 kWh/Nm3 to 0.06 kWh/Nm3. The less than 2% decarbonization process is constant at all flow rates and has lower operational expenses. One of the best technologies for usage in various rooms is water washing technology, which is always being developed. Due to the high demand for this technology relative to other technologies, the water purifier category is anticipated to grow in the water scrubber segment throughout the projected period.
Applications (Municipal and Domestic Sewage, Industrial Wastewater, Landfill Gas, Agriculture Wastes)
The agriculture wastes segment is expected to account for 42% share of the global biogas upgrading equipment market during the forecast period. A large amount of cellulosic biomass, in the form of agricultural waste, is available in rural areas. Also, the increasing number of farms is driving the growth of agricultural wastes globally. As per a report, over 2 million farms existed worldwide in 2022. There are approximately 893.4 million acres of farmland in the United States, with the average farm size being 446 acres. Furthermore, agro-waste is an essential source for the production of biogas since it contains significant amounts of lignin, cellulose, hemicelluloses, nitrogen, and carbon. Since this agricultural waste contains energy potential, it must be used properly without causing pollution. Eco-friendly technology is the adaptation of biogas technology employing lignocellulosic waste and animal manure as a source of microorganisms. Therefore, the deployment of biogas upgrade equipment is in demand to reduce CO2 emissions. These factors are contributing to the growth of the segment.
Our in-depth analysis of the global biogas upgrading equipment market includes the following segments:
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Type |
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Applications |
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European Market Forecast
Biogas upgrading equipment market in Europe is expected to hold a share of 35% during the forecast period. To meet the challenging goal of 20% of final energy consumption set by the EU, bioenergy from renewable energy sources is essential. The favourable support circumstances provided by the government may positively impact market growth. In 2020, biogas accounted for 10.5% of the EU27's consumption of bioenergy and 4.5% of the EU27's total gross inland gas consumption. The government therefore completely encourages the use of renewable energy sources in all sectors, which has expedited the expansion of renewable energy sources including biofuels, biogas, and refined biogas. This is done to improve energy security. Also, according to estimates, biogas will be able to replace 10% of the gas consumption for the EU27 by 2030 and up to 30% to 40% by 2050. Therefore, these factors are driving the market growth in the region.
North American Market Statistics
The biogas upgrading equipment market in North America is anticipated to hold a share of 25% during the forecast period. The market expansion can be ascribed to the region's growing desire for renewable energy as a means of reducing reliance on fossil fuels. In the years to come, the market's growth will also be aided by favorable government policies supporting biogas generation and the expansion of the region's agriculture sector.
Author Credits: Dhruv Bhatia
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