Biogas Market By Application (Heating, Electricity, CHP, Vehicle Fuel, Others), By Source (Agricultural Waste, Landfill, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast, 2019– 2026

The global biogas market is expected to grow at significant CAGR of over 5.8% over the forecast period 2019 to 2026 and will reach around US$ 32 billion by 2026.

Biogas is a biofuel naturally formed from the breakdown of organic waste. It is generally used for direct combustion or heating, generating electricity, combined heat and power (CHP) generation, and other applications such as, purification and exporting of natural gas and natural gas liquids. Biogas is majorly adopted because of its properties, including low-cost, high combustion and environment friendly. This clean renewable source of energy is created from waste matter of agricultural waste, landfills and other wastes, including waste from food production and water and wastewater treatment, among others.

The report provides analysis of global Biogas market for the period 2014-2026, wherein 2019 to 2026 is the forecast period and 2018 is considered as the base year.

Market Insights

Rise in production of waste is increasing the demand for waste treatment across the world. This is anticipated to benefit the demand for biogas, as, biogas is generated from decomposition of waste. According to World Bank, as of 2016, more than 2 billion tonnes of solid waste was generated across the world, and waste generation is forecasted to increase rapidly by 70% by 2050. This would lead to a rapid increase in production of biogas across the world.

According to World Biogas Association, biogas is capable of reducing climate change emissions across the globe by approximately 20%. Biogas would also help in treating wastes that could produce toxic methane emissions, and transform them into green energy. Rising demand for a sustainable development by using green and renewable sources of energy, is estimated to benefit the demand for biogas across the world.

Biogas is carbon neutral; hence, no greenhouse emissions occur when it is deployed. Thus, biogas is projected to be deployed as a powerful and renewable alternative to traditional vehicle fuels, such as, petrol and diesel. Also, rise in agriculture across countries like India and Indonesia, is posing as a major factor for the growth of biogas market during the forecast year. According to Indian Brand Equity Foundation, agricultural production in India is estimated to increase by 11% by 2020. Thus, increase in agricultural production, would increase in production of agricultural waste, which, in turn, would fuel the growth of biogas.

Energy produced from biogas may not be sufficient enough to fulfill the energy requirements of industries, such as, electric utilities. Moreover, large scale production of biogas is not possible, though, government and companies across the globe are investing to bring up such technologies. These factors pose as a restraint, hampering the growth of the market.

Application Stance

Electricity segment held the most significant market share in 2018. The segment development is driven by various factors, such as, rising demand for energy across the world, due to urbanization. Additionally, need for cleaner fuels, is also impacting the growth of this segment. Biogas is used as an alternative renewable fuel for generating electricity and for heating processes, which leads to substantial reduction in dependency on fossil fuels.

During the forecast period, combined heat and power (CHP) segment is estimated to have the largest CAGR OF 4.1% during the forecast period 2019 to 2026. For CHP, biogas helps in processing chemical energy present in the fuel, at a very low cost. With increasing government mandates on a specific proportion of energy to be produced using renewable sources across countries like US, UK and Poland, there will be a tremendous growth of biogas used in CHP, during the forecast period.

Source Outlook

Due to rise in agricultural production across the globe, the agricultural waste segment accounted for the principle income share in the biogas market in 2018. Biogas can be formed by utilizing both, crop waste as well as organic waste. The manure of poultry, cattle, and pigs can also be treated to produce biogas. Thus, huge presence of organic wastes is anticipated to fuel the growth of the agricultural waste segment during the forecast period.

In the forecast period, landfill segment is projected to grow at fastest growth rate. With rising amount of landfill waste, biogas poses as a cost-efficient solution for treatment of waste. According to the US Environmental Protection Agency, using landfill to generate biogas helps in reducing methane emissions and air pollution. Growing need of organizations to comply with strict environmental standards sticking to sustainable development, coupled with huge amount of landfill waste being generated year-on-year, is expected to fuel the growth of this segment over the forecast period.

Regional Snapshots

Asia Pacific acquired the prime share of Biogas market in 2018. Rise in agricultural production in various APAC countries including India and Indonesia is one of the major factors driving this region during the forecast period. Furthermore, expansion of infrastructure and household in countries like China and Japan is leading to rise in demand for heating fuel used in household, which, in turn, is expected to boost the growth of biogas in the region.

Europe Biogas market is expanding at the fastest rate, owing to major initiatives taken by European Biogas Association, to support in generation of biogas across all European countries, including, Switzerland, the Netherlands, France, Germany and Italy.

Presence of high-tech biogas players, increasing R&D activities in the United States is key reason for growth of North America Biogas market, during the forecast period.

The Latin America Biogas market is primarily driven by increasing demand for combined heat and power and electricity generation across countries including Brazil and Chile. The region is emerging and hence, expanding its infrastructure, which is leading to high demand for biogas to be used as an environment friendly substitute for heating fuel. The Middle East & Africa Biogas market is characterized by increasing focus of government to invest in biogas plants for reducing greenhouse gas emissions across the region.

Report coverage

The market research study on “(By Application: Heating, Electricity, CHP, Vehicle Fuel, Others, By (Source: Agricultural Waste, Landfill, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 – 2026” offers a detailed insights on the global biogas market entailing insights on its different market segments. Market dynamics with drivers, restraints and opportunities with their impact are provided in the report. The report provides insights on global biogas market, its applications, source, and major geographic regions. The report covers basic development policies and layouts of technology development processes. Secondly, the report covers global biogas market size and volume, and segment markets by application, source, and geography along with the information on companies operating in the market. The biogas market analysis is provided for major regional markets including North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. For each region, the market size and volume for different segments has been covered under the scope of report.

Key Players and Strategies

Principle market players incorporated in this report are Engie, Eggersmann GmbH, WELTEC BIOPOWER, Conveco S.r.L., Air Liquide, WAMGROUP S.p.A., EnviTec Biogas AG, BioConvesion Solutions and DMT Environmental Technology, among others.

Since the market is fragmented and large number of players are vying on the opportunities present in emerging economies, the leading players are also investing heavily in emerging regions and are using international trade as a media to spur their revenues and achieve global dominance.

The global biogas market is segmented as below:

Market Segmentation

Market By Application

• Heating
• Electricity
• CHP
• Vehicle Fuel
• Others

Market By Source

• Agricultural Waste
• Landfill
• Others

Market By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa