Biogas Market

Biogas Market Size, Market Forecast and Outlook By FMI

The biogas market was valued at USD 46.54 billion in 2025, projected to reach USD 50.31 billion in 2026, and is forecast to expand to USD 109.62 billion by 2036 at a 8.1% CAGR. Expanding renewable energy mandates, national energy security strategies favoring distributed generation from organic waste streams, and tightening methane emission regulations on agricultural and municipal waste operations are accelerating capital investment in biogas production infrastructure. Energy planners and waste management operators now treat anaerobic digestion as a dual-purpose solution that simultaneously generates renewable energy and manages organic waste disposal obligations.

Summary of Biogas Market

• The market is forecast to touch USD 109.62 billion by 2036.
• Annual growth of 8.1% is projected across the 2026-2036 forecast horizon.
• In 2025, market value was pegged at USD 46.54 billion.
• The forecast period unlocks an incremental opportunity worth USD 59.32 billion.
• Crops leads by Feedstock Type with 37.8% share in 2026.
• Co-generation leads by Application with 35.2% share in 2026.
• Demand is sustained by expanding renewable energy mandates that integrate biogas and biomethane into national energy mix targets alongside solar and wind generation.
• Among key countries, Brazil leads at 12.2% CAGR, followed by Germany at 11.6%, India at 9.3%, China at 8.9%, and Spain at 8.1%.

The renewable energy sector is experiencing a structural expansion in biogas production capacity as governments integrate anaerobic digestion into both energy policy and circular economy frameworks. FMI analysts observe that crop-based feedstocks, particularly energy maize and grass silage, continue to anchor European biogas production where feed-in tariff structures have established dedicated agricultural biogas supply chains.

Food waste diversion mandates in municipal solid waste management are creating a second major feedstock channel, with commercial and institutional food waste increasingly directed to centralized anaerobic digestion facilities rather than landfill. Biomethane upgrading, where raw biogas is purified to natural gas grid injection quality, is emerging as the highest-value output pathway, commanding premium pricing through renewable gas certificates and displacing fossil natural gas in heating and transport fuel applications.

Brazil sets a 12.2% CAGR trajectory, propelled by the RenovaBio program integration of biogas into decarbonization credit frameworks and abundant agricultural waste feedstock from sugarcane, livestock, and crop processing sectors. Germany maintains 11.6%, anchored by the world's most developed agricultural biogas infrastructure and biomethane grid injection capacity under the Renewable Energy Sources Act (EEG). India tracks at 9.3%, driven by the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme targeting compressed biogas production from agricultural waste. China registers 8.9%, supported by large-scale livestock waste biogas programs and rural energy diversification initiatives. Spain records 8.1%, driven by national biogas roadmap targets and food waste diversion mandates.

Biogas Market Key Takeaways

Metric	Details
Industry Size (2026)	USD 50.31 billion
Industry Value (2036)	USD 109.62 billion
CAGR (2026-2036)	8.1%

Source: Future Market Insights, 2026

Biogas Market Definition

Biogas is a renewable fuel gas produced through the anaerobic digestion of organic feedstocks including energy crops, food waste, wastewater sludge, industrial organic waste, and livestock manure. The raw gas, composed primarily of methane and carbon dioxide, is used directly in combined heat and power (CHP) engines, upgraded to biomethane for natural gas grid injection, compressed for vehicle fuel use, or combusted for industrial and building heat generation. Biogas production serves as both a renewable energy source and an organic waste management pathway within circular economy frameworks.

Biogas Market Inclusions

Market scope includes all biogas production from anaerobic digestion, biomethane upgrading, and biogas utilization across all application pathways. Coverage extends to global and regional market sizes, forecast period 2026 to 2036, segmentation by feedstock type and application, upgrading technology analysis, and renewable gas certificate market mapping.

Biogas Market Exclusions

The scope excludes landfill gas capture and utilization systems classified under separate waste management categories, conventional natural gas production and distribution, standalone composting operations without gas recovery, and biohydrogen production from biogas reforming classified separately.

Biogas Market Research Methodology

• Primary Research: Analysts engaged with biogas plant operators, biomethane upgrading technology providers, and renewable energy procurement managers to map the feedstock logistics, conversion economics, and off-take agreement structures driving capacity investment.
• Desk Research: Data collection phases aggregated national renewable energy mandate databases, biogas plant registration records, feed-in tariff and renewable gas certificate pricing data, and company annual reports from leading biogas producers and energy utilities.
• Market-Sizing and Forecasting: Baseline values derive from a bottom-up aggregation of biogas production capacity and utilization rates, applying mandate-driven off-take volume requirements and biomethane upgrading penetration curves to project market growth.
• Data Validation and Update Cycle: Projections are tested against publicly reported expenditure guidance from leading industry participants, cross-referenced with regulatory filing data and trade association statistics to maintain forecast accuracy.

Key Industry Highlights

Governmental Support in Terms of Subsidies and Policies Fosters Growth

Crop residue, waste water sludge, and animal waste are the primary feedstock used for production of biogas through anaerobic digestion, thus, the biogas is considered a renewable form of energy. The anaerobic digestion sector is distinctively positioned to accomplish the Global Methane Pledge made by 100+ countries since 2021.

Active government support across countries serve as a primary factor for the industry's growth. Government policies focusing on fixed tariffs and premiums, as well as auctions, are driving the renewables sector forward. The government across several countries are implementing new policies that supports growth.

For instance, Biogas Programme (Phase-I) for FY 2021-2022 to 2026-2026 implemented by the Indian government supports companies engaged in the biogas industry. Given India's livestock population of 535.78 million, which includes approximately 302 million bovines, there is great opportunity for the establishment of biogas facilities. The cattle sector currently contributes significantly to India's GDP and is estimated to continue to grow.

The spread of biogas technology benefits Indian farmers directly and indirectly. Other policies that support the growth of biogas industry include, Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, National Biogas Programme (NBP), AP Renewable Energy Export Policy, Bihar Policy for Promotion of Bihar New & Renewable Energy Sources, Waste to Energy (Central Financial Assistance), and others.

Increasing Number of Biogas Plant Installation Across the Globe to Augment Expansion

Several countries are planning to install large number of biogas plants in the coming years. Low-carbon technologies and planned mitigation activities will be critical in each step toward achieving that objective.

Sistema.bio has been functioning in India since 2017. According to the firm's director, the company intends to deploy over 10,000 biogas plants around the country, with each system estimated to save 8 to 10 tonnes of CO2 annually by replacing LPG and firewood usage.

Biogas and upgraded biogas (biomethane) play a crucial role in the pathway of net zero carbon emission. The primary by-product of wet biomass anaerobic digestion (AD) is biogas. It can be refined to bio-methane to replace natural gas, or it can be utilized locally for heating or for power and heat production (CHP). In light of this, it is one way to lessen fossil fuel consumption and aid in the move toward a net zero energy system.

Growing Demand for Biogas Upgradation and Increasing Adoption of Upgraded Biogas as Transportation Fuel to Elevate Sales

The processed form of biogas, known as biomethane, has nearly 100% methane content and a quality comparable to that of natural gas. Moreover, gasification and power-to-methane systems can produce biomethane. Its numerous uses include producing sustainable fuel for the transportation sector and providing heat and electricity for our buildings and industries.

Hydrogen produced through biological, thermochemical, and bio-electrochemical processes, from biogenic sources is known as bio-hydrogen. Renewable gases like biomethane and biogas reduce emissions throughout the entire value chain. To reduce greenhouse gas emissions as swiftly in a number of sectors, including industry, transportation, buildings, and agriculture, their utilization is crucial.

Building new gas infrastructure doesn't necessitate spending money when biomethane is used to replace fossil fuels. The current gas infrastructure is prepared for biomethane. This is essential for accelerating decarbonisation and giving customers access to reasonably priced renewable energy.

Furthermore, biomethane is easily produced and stored at a steady rate, which helps balance the energy supply from renewable, intermittent energy sources like wind and solar. Additionally, it may be produced and traded inside Europe, guaranteeing supply security and reducing reliance on outside sources for the European Union.

Integrated Investment Plans for Biogas Industry from Several Countries

Three prominent factors driving the biogas industry across the globe are the need for greenhouse gas emission reduction, waste management and pollution reduction. The development of biogas industry in South Africa is at a nascent stage and support from governmental and private organizations in terms of subsidy and funding is likely to amplify growth during the forecast period.

For instance, The Global Environment Facility (GEF)-funded Project along with UNIDO and other key stake holders commenced the integrated investment plan for setup of large industrial-scale biogas projects within South Africa.

The project is highlighted to set a positive impact on the overall growth of biogas industry across Middle East and Latin America. The funding raised towards the setup of biogas industry were in terms of debt, equity, mezzanine finance, quasi-equity, de-risking products, concessional finance, guarantees, project finance and grant funding.

Technological Limitations coupled with Limited Applicability in Urban Settings Estimated to Hamper Growth

Human activities such as livestock farming and rice faming leads to accumulation of waste on large scale at disposal sites. This accumulation in turn leads to an increase in the atmospheric concentration of methane to 1.7 ppm.

However, this accumulation and methane generation do not directly impose any effect on the human health. Having said that, methane is considered as part of chemical processes in the atmosphere and greenhouse gas that is 22 times harmful than CO2.

Methane generation leads to greenhouse effect further intensifying global warming. According to recent study by, Environmental Protection Agency (EPA), the methane emission (a by-product of biogas production) has contributed to a 20% increase in the greenhouse effect. These factors are estimated to further propel the greenhouse effect. In addition, generation of methane in large quantities leads to ozone depletion.

Moreover, the biogas industry heavily relies on anaerobic digestion as there are few technological advancements in the biogas production technology. The current biogas production technology is not as efficient that further intensifies the production of methane. All these factors tend to increase the large problems associated with matching the current trend of using biogas for large number of population and energy demand.

2021 to 2026 Global Biogas Sales Analysis Compared to Demand Forecast for 2026 to 2036

The global biogas industry was valued at USD 46.54 billion in 2025. The biogas market has experienced significant growth over the past few decades, driven by increasing demand for renewable energy and the urgent need to address environmental concerns. Advancements in technology and rising awareness of climate change have expanded biogas applications to urban settings and large-scale operations.

Governmental policies and incentives in various countries promoted renewable energy sources, further catalyzing growth. The integration of biogas into energy grids and its use as a vehicle fuel have broadened its appeal. Additionally, the rising emphasis on waste management and circular economy principles has led to increased investment in anaerobic digestion facilities.

The industry is predicted to reach USD 43,052.7 million by 2026 and is further anticipated to grow at a CAGR of 8.1% during the assessment period. It is projected to reach USD 93,679.9 million by 2036.

The biogas market is poised for substantial growth during the forecast period, driven by increasing global energy demands and a shift towards renewable energy sources. As governments and organizations intensify efforts to meet carbon reduction targets, biogas is emerging as a viable solution for sustainable energy production.

Innovations in anaerobic digestion technology and improved biogas upgrading methods are estimated to enhance efficiency and expand applications across various sectors, including agriculture, waste management, and transportation. The growing focus on circular economy principles, coupled with rising waste generation, will likely lead to investments in biogas facilities and infrastructure.

Market Concentration

Tier 1 companies comprise of players with a revenue of above USD 1,000 million. These companies capture a significant share ranging between 25% to 30% in the global market. These players are characterized by high production capacity and a wide product portfolio.

These leaders are distinguished by their extensive expertise in manufacturing and a broad geographical reach that is underpinned by a robust consumer base. Prominent companies within Tier 1 include BP p.l.c., Shell, Veolia, TotalEnergies, Eni S.p.A., VNG AG, and other players.

Tier 2 companies include mid-size players with revenue of below USD 1,000 million. These businesses have a presence in specific regions and highly influence the local industry. Businesses in this segment are characterized by a strong presence overseas and a robust industry knowledge.

These players have access to good technology and ensure regulatory compliance but may not have advanced technology and a wide global reach. Well-known enterprises in tier 2 include Engie, GRTgaz, GAIL Gas Limited, Scandinavian Biogas, and other players.

Country-wise Insights

The section provides companies with an overview of the industry. It comprises a detailed ananlysis of the emerging trends and opportunities on a country-by-country basis. This country-specific examination of the dynamics of the industry is predicted to help companies in understanding the complex nature of the industry.

The examination comprises of key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the industry within each country. This section aims to assist companies in making informed decisions and developing strategies tailored to individual countries.

Brazil is projected to dominate the country-wise growth in the industry during the forecast period with an estimated CAGR of 12.2%. Germany, India, and China are predicted to follow behind Brazil to become the key countries in the industry with forecasted CAGRs of 11.6%, 9.3%, and 8.9% respectively.

Countries	CAGR 2026 to 2036
Brazil	12.2%
Germany	11.6%
India	9.3%
China	8.9%
Spain	8.1%

Source: FMI analysis based on primary research and proprietary forecasting model

Growth in China driven by Presence of Large Number of Biogas Plants and Technological Advancements in Biogas Production

The sale of biogas in China is projected to reach USD 7,981.6 million and is predicted to grow at a CAGR of 8.9% by 2036. The government’s commitment towards renewable energy and waste management is a prime factor driving the growth of biogas industry in China. Globally, China is the largest agricultural waste producer, thus, the demand for production of biogas from agricultural waste is evolving rapidly in the country.

The energy access in the China has been promoted by using biogas in order to reduce the dependency on coal and other fossil fuel sources. The large number of population further contributes towards accumulation of municipal solid waste. This in turn provides an opportunity for production of biogas using municipal solid waste.

Expansion in the United States Fueled by Advanced Waste Collection and Segregation Technologies

The United States biogas market is estimated to reach USD 10,619.7 million by 2036 and is further predicted to grow at a CAGR of 8.1%. In North America, the United States has the largest number of operational biogas plants accounting for nearly 2,300 plants.

The agricultural sector in USA has further contributed towards the growth of the industry as several farms in the United States have set-up anaerobic digestion plants contributing towards high biogas production. There are several federal and state policies such as Renewable Fuel Standard (RFS) that provide incentives for the biogas production plants.

Growth of the Industry in Germany Driven by Implementation of Net Zero Carbon Emission and Adoption of Biofuel in the Transportation Sector

The sale of biogas industry in Germany is projected to reach USD 9,343.6 million and grow at a CAGR of 6.9% by 2036. Supportive governmental policies and subsidies coupled with advanced production technologies and renewable energy goals are prominent factors driving the demand of biogas industry in Germany. The Germany biogas production has been increasing rapidly owing to the set-up of Renewable Energy Sources Act (EEG) in 2000.

The EEG act has provided feed-in tariffs for biogas production, thereby, contributing to the growth of biogas industry in the country. As of 2025, Germany had 20,000 biogas plants showcasing the presence of the robust biogas industry presence in the country. The country is also steadily increasing the contribution of biogas in meeting the energy demand. For instance, around 7% of Germany’s energy demand was fulfilled by its biogas industry in 2025.

Category-wise Insights

The section provides companies with insightful data and analysis of the two leading segments. Segmentation of these categories is likely to assist organizations in understanding the dynamics of the industry and investing in beneficial zones.

Examination of the growth is anticipated to help companies in gaining a thorough understanding of the trends, opportunities, and challenges. This analysis is predicted to help companies in navigating the complex environment of the business world and making informed decisions.

Crop residue is estimated to emerge as a leading feedstock type with a value share of 37.8% in 2026. By application, co-generation is anticipated to dominate with a value share of 35.2% in the same year.

Presence of Lignocellulose in Crop Residue Elevates its Demand

Segment	Crop Residue (Feedstock Type)
Value Share (2026)	37.8%

Crop residue are abundantly available globally as compared over other feedstock, thus, the feedstock can be supplied on regular basis further driving the biogas production. The adoption of crop residue as feedstock for biogas production in gaining traction as the government push towards the adoption of green practices and aim to minimize the greenhouse gas emissions.

The accumulated crop residue is usually un-treated or burn further leading to GHG emission. For instance, around 1.3 billion tons of crop residue are produced manually as per the report by Food and Agriculture Organization (FAO). Huge availability of crop residue can be effectively used to produce biogas and contribute towards sustainable climate.

Co-generation Applications Finds Several Uses to Meet Primary Energy Demand

Segment	Co-generation (Application)
Value Share (2026)	35.2%

Co-generation also known as combined heat and power (CHP) utilizes biogas for electricity and heat generation that can be further used in industrial production activities or for meeting the primary energy demand. The increasing demand for sustainability and carbon neutrality has increased the demand for meeting energy demand from renewable sources, thus driving the application of biogas in co-generation.

Several countries have implemented policies for utilizing and meeting the energy demand from renewable sources. For instance, the total energy demand in the United States is met by biogas industry, showcasing the strong growth of co-generation application in the biogas industry.

Several studies showcase that the co-generation facilities tend to reduce the greenhouse gas emission by 60% compared to fossil fuel sources. All these factors offer economic and environmental advantages further marking the strong foothold of co-generation application in the biogas industry.

Competition Outlook

Key players in the industry include BP p.l.c., Shell, Engie, Veolia, and TotalEnergies. The biogas market is slightly consolidated with key plays in the market having about 25% to 30% share prioritizing technological advancements, integrating sustainable practices, and expanding their footprints across the globe.

Customer satisfaction remains paramount, with a keen focus on producing biogas to meet diverse energy demands. Businesses are actively fostering collaborations to stay at the forefront of innovation, ensuring their biogas aligns with the evolving consumer demands while maintaining the highest standards of quality and adaptability.

Scope of the Report

Metric	Value
Quantitative Units	USD 50.31 billion to USD 109.62 billion, at a CAGR of 8.1%
Market Definition	Biogas is a renewable fuel gas produced through the anaerobic digestion of organic feedstocks including energy crops, food waste, wastewater sludge, industrial organic waste, and livestock manure. The raw gas, composed primarily of methane and carbon dioxide, is used directly in combined heat and power (CHP) engines, upgraded to biomethane for natural gas grid injection, compressed for vehicle fuel use, or combusted for industrial and building heat generation.
Feedstock Type Segmentation	Crops, Food Waste, Wastewater Sludge/Industrial Waste, Livestock Waste
Application Segmentation	Co-generation, Power Generation, Heat in Building, Upgraded to Biomethane, Others
Regions Covered	North America, Latin America, Europe, East Asia, South Asia, Oceania, Middle East & Africa
Countries Covered	Brazil, Germany, India, China, Spain, and 40 plus countries
Key Companies Profiled	BP p.l.c., Shell, Engie, Veolia, TotalEnergies, Scandinavian Biogas, Green Elephant, LMS Energy, Future Biogas Ltd., Bharat Biogas Energy Limited (BBEL), Morrow Renewables, Eni S.p.A., GRTgaz, Asia Biogas (Thailand) Co. Ltd., GENeco, VNG AG, PlanET Biogas Group, Biocore Environmental Limited, Bio Capital, GAIL Gas Limited
Forecast Period	2026 to 2036
Approach	Forecasting models apply a hybrid bottom-up and top-down methodology starting with installed base metrics and production volumes, cross-validated against industry expenditure data and regulatory compliance adoption rates.

Key Segments of Market Report

By Feedstock Type:

Feedstock type is segmented into crops, food waste, wastewater sludge/industrial waste, and livestock waste.

By Application:

Power generation, co-generation, heat in building, upgraded to biome thane, and others (vehicle fuel, generation of co2, cooking gas) are the applications.

By Region:

The industry is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.

Bibliography

• 1. International Energy Agency. (2024). Outlook for biogas and biomethane: prospects for organic growth. IEA.
• 2. European Biogas Association. (2024). EBA statistical report: European biogas production data. EBA.
• 3. Ministry of Petroleum and Natural Gas, Government of India. (2024). SATAT scheme: compressed biogas production targets and progress. MoPNG.
• 4. Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis. (2024). RenovaBio: biogas integration into decarbonization credit framework. ANP.
• 5. Organisation for Economic Co-operation and Development. (2024). Renewable energy outlook: biogas and biomethane market development. OECD.
• 6. Bundesministerium fur Wirtschaft und Klimaschutz. (2024). National biomass strategy: biogas production and upgrading capacity. BMWK.

This bibliography is provided for reader reference. The full Future Market Insights report contains the complete reference list with primary research documentation.