Anaerobic Digestion Market - Global Industry Size, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Anaerobic Digestion Market Size is valued at USD 10,149 Million in 2021 and is estimated to achieve a market size of USD 21,853 Million by 2030; growing at a CAGR of 9.2%.

The growing burden of waste in the environment is the leading factor boosting the anaerobic digestion market revenue. Rising stringent regulations regarding these wastes is one of the top anaerobic digestion market trends fueling industry growth.

According to the American Biogas Council, anaerobic digestion (AD) is a series of the biological process by which organic matter such as food or animal waste is broken down to produce biogas and biofertilizer. This biological process is carried out in the absence of oxygen in a sealed tank known as anaerobic digester. Anaerobic digestion is an eco-friendly, cost-effective solution to deal with rapidly increasing waste. There are two main benefits of anaerobic digestion. It has a positive impact on the environment, and it can provide direct financial returns. Anaerobic digestion turns waste into renewable resources, removes harmful pathogens from biological waste, produces cleaner fuel, reduces carbon footprint, and benefits the local community, industry farmers, environment, and government.

Global Anaerobic Digestion Market DRO’s:

Market Drivers:

• Growing demand for renewable energy sources
• Strict government guidelines to reduce greenhouse gas emissions
• Growing volume of solid waste

Market Restraints:

• High initial investment
• The complexity of anaerobic digestion process

Market Opportunities:

• Increasing adoption of organic feedstock for biogas generation
• Growing demand from developing countries

Report Coverage

Growing demand for renewable energy sources is the leading aspect driving the anaerobic digestion market value. Biogas is produced when organic materials are anaerobically digested. Biogas is a renewable energy source. Biogas can be used to fuel engines and generators that generate mechanical power, heat, and/or electricity, or a combination of these. It can also be compressed for vehicle fuel and used in similar applications as natural gas after treatment.

Increased government initiatives to reduce greenhouse gas emissions support the growth of the anaerobic digestion market. Anaerobic digestion also contributes to lower methane emissions. Capturing methane is important because methane is a powerful greenhouse gas that, if allowed to escape into the atmosphere, contributes to climate change. Promoting the use of technologies such as anaerobic digestion will aid in meeting the Biden Administration's methane emission targets (2030 Greenhouse Gas Pollution Reduction Targets).

However, the high initial investment required to carry out the procedure commercially is limiting the market's growth. In addition to that, anaerobic digestion is a complex biochemical reaction that needs to be carried out in stages, posing a barrier to market growth. Furthermore, anaerobic digestion procedure helps in reducing waste from the environment which is expected to create several growth opportunities for the market throughout the forecast timeframe from 2022 to 2030.

Anaerobic Digestion Market Segmentation

The worldwide anaerobic digestion market is split based on source of feedstock, end-use, and geography.

Market by Source of Feedstock

• Agriculture
• Industrial
• Municipal
• Others

According to our anaerobic digestion market forecast, the municipal source of feedstock gathered a significant amount of share in 2021. According to the World Bank’s What A Waste 2.0 report, the world generates 2.01 billion tonnes of municipal solid waste yearly. Among that, nearly 33% of the waste is not managed in an environmentally safe manner. The report also estimates that global waste is projected to grow to 3.4 billion tonnes by 2050. The East Asia-Pacific region generates over 23% of the world's waste, while South Asia, Sub-Saharan Africa, the Middle East & North African region are the world's fastest waste-producing regions.

The agriculture source of feedstock sub-segment is anticipated to witness substantial growth during the forecasted timeframe from 2022 to 2030. According to the United Nations Environment Programme, approximately 1.3 billion tonnes of food products intended for human consumption are wasted or lost globally each year, with domestic kitchen waste accounting for approximately one-third of biodegradable municipal solid waste. Every year, India generates approximately 350 million tonnes of agricultural waste. According to estimates from the Ministry of New and Renewable Energy, this waste can produce more than 18,000 MW of power per year, in addition to producing green fertilizer for agricultural use.

Market by End-Use

• Commercial
• Residential
• Industrial

According to our anaerobic digestion industry analysis, commercial buildings will gain a significant impetus in the coming years. The rising application of biogas for power generation or heating is expanding the usage of anaerobic digestion in commercial buildings such as hospitals, hotels & restaurants, schools, and corporate buildings. The market for the residential sector is also expanding at a noteworthy rate throughout the forecasted timeframe from 2022 to 2030. The growing awareness and adoption of biogas in residential areas for cooking and heating purposes are likely to fuel the residential sector over the projected years.

Anaerobic Digestion Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa