Biomethane Market Manufacturers & Suppliers Company Analysis 2026-2035

What is the Current Biomethane Market Size?

The global biomethane market size was USD 17.32 billion in 2025 and is predicted to increase from USD 22.30 billion in 2026 and is expected to be worth around USD 216.81 billion by 2035, growing at a CAGR of 28.75% from 2026 to 2035. Europe dominated the biomethane market with the largest revenue share of 47.19% in 2025. The growth of the market is driven by rising environmental concerns and demand for renewable energy, aligning with government policies and initiatives, and technological advancements.

Market Highlights

• Europe biomethane market dominated the global industry and accounted for over 47.19% revenue share in 2025.
• The biomethane market in North America is anticipated to witness a CAGR of 13.98% over the forecast period.
• The Municipal waste accounted for the highest revenue share of about 41.14% in 2025.The municipal waste segment is expected to register the fastest CAGR of 14.89% during the forecast period.
• The Construction accounted for the highest revenue share of over 45.28% in 2025. According to the IEA, bioenergy accounted for around 15% of the world’s primary energy demand in 2025.

Market Overview

Rising Demand for Durable Materials: Biomethane Market to Expand

Biomethane is a renewable source of energy that is produced from organic matter by the process of anaerobic digestion, like food, manure, scrap, and agricultural residues, and by upgrading biogas in It contains a mixture of gases and is then upgraded to remove other gases and impurities except methane. It is also used and helps n waste management by using organic waste from the landfills.

They are used in various industries like construction, transportation, power generation, and heating, where there is a need for a renewable energy source. It is the best and a suitable sustainable alternative to fossil fuel to preserve the natural resources. It also limits carbon emissions and helps in preserving the environment pollution aligning with the rising environmental conditions.

What Are the Key Growth Drivers That Play a Significant Role in The Growth of The Biomethane Market?

The key growth drivers that play a significant role in the growth of the market are the growing environmental concerns and growing awareness among the population, and the need to reduce the greenhouse effect and reduce carbon emissions. This factor drives the growth and adoption of biomethane as a renewable source of energy. Technological advancement in the production process of biomethane and advanced technology in equipment such as anaerobic digestion also help enhance the efficiency and cost-effectiveness of the product.

Government initiatives and support for the adoption of renewable sources of energy, and the development of infrastructural projects for biomethane for clean energy generation, fuel the growth of the market. Biomethane production leverages organic waste sources like municipal solid waste, agricultural residues, and wastewater, contributing to a circular economy. These benefits and applications drive the growth and expansion of the biomethane market.

Market Trends

• Increasing focus on the use of renewable energy and clean fuel sources drives the demand for the biomethane market and helps the growth.
• Rising government focus on the adoption of renewable energy sources in various fields such as construction, power generation, and other sectors drives the growth of the market.
• The shift of consumers and manufacturers towards sustainability and decreasing the green energy effect with low carbon emission supports the growth of the market.
• Technological advancement and advancement in production processes and technologies to help reduce cost and for larger adoption drive the growth of the market. 

Report Scope

Market Dynamics

Market Drivers

The biomethane market is primarily driven by growing policy emphasis on decarbonization, renewable gas integration, and circular economy models that valorize organic waste streams. Governments are promoting biomethane production through feed-in tariffs, grid injection mandates, renewable gas targets, and guarantees of origin schemes to reduce dependence on fossil natural gas. Rising volumes of agricultural residues, livestock manure, food waste, and municipal organic waste are providing a steady feedstock base for anaerobic digestion and biogas upgrading facilities. In parallel, increasing demand for low-carbon fuels in power generation, heating, and transport, particularly for compressed and liquefied biomethane applications, is strengthening offtake certainty for producers. Utilities and industrial users are also adopting biomethane to meet emissions reduction commitments while leveraging existing natural gas infrastructure.

Market Restraints

Despite favorable policy momentum, the biomethane market faces restraints related to high upfront capital costs for anaerobic digesters, upgrading systems, and grid interconnection infrastructure. Feedstock availability can be inconsistent due to seasonal agricultural cycles, competing uses for organic waste, and logistical challenges in collection and transport. Regulatory complexity across permitting, waste handling, grid injection standards, and environmental compliance can delay project timelines and increase development risk. In some regions, limited gas grid access or insufficient pipeline capacity constrains the economic viability of smaller or remote biomethane plants.

• Additionally, fluctuations in natural gas prices can affect the relative competitiveness of biomethane, particularly in markets without long-term policy support mechanisms.

Market Opportunities

The biomethane market presents strong opportunities through integration with waste management systems, sustainable agriculture, and renewable energy storage strategies. Expansion of biomethane use in heavy-duty transport, shipping, and industrial heat applications offers pathways to decarbonize sectors that are difficult to electrify.

Advances in biogas upgrading technologies, including membrane separation, pressure swing adsorption, and cryogenic systems, are improving methane recovery rates and lowering operating costs. There is also growing opportunity in coupling biomethane production with carbon capture to generate negative-emission fuels. Development of local energy communities and decentralized gas networks can further support rural economies while enhancing energy security and grid resilience.

Market Challenges

Key challenges for the biomethane market include ensuring long-term feedstock security while maintaining sustainability and avoiding land-use conflicts. Scaling projects beyond pilot and regional levels requires coordinated infrastructure planning, skilled workforce availability, and stable policy frameworks. Public acceptance issues related to odor, traffic, and plant siting can delay or block new developments if stakeholder engagement is insufficient.

Standardization of biomethane quality, certification, and cross-border trading mechanisms remains uneven, limiting market integration. Finally, maintaining consistent operational performance across diverse feedstocks and plant sizes continues to require technical expertise and robust monitoring systems to ensure economic and environmental performance over time.

Value Chain Analysis

• Feedstock Procurement and Pretreatment: This involves identifying, collecting, and transporting organic waste materials to the production facilities. Feedstocks.
  
  • Key Players: EnviTec Biogas AG, PlanET Biogas, Hitachi Zosen Inova, WELTEC BIOPOWER GmbH, BioConstruct, and Engie SA.
• Upgrading and Purification: In this raw biogas is processed to remove carbon dioxide, water, hydrogen sulfide, and other trace gases, increasing the methane concentration to over 90% to meet pipeline quality standards.
  
  • Key Players: Air Liquide, Greenlane Renewables, DMT Clear Gas Solutions, CarboTech AC GmbH, and MalmbergGruppen AB.
• Distribution and Storage: The purified biomethane is compressed and injected into existing natural gas grids or liquefied for transport via cryogenic tankers to demand points.
  
  • Key Players: Gasum Ltd., OPAL Fuels, Air Liquide, DHL Group, and FedEx Logistics.
• End-Use and Commercialization: In this, biomethane is used in various applications to replace fossil fuels, such as power generation as compressed natural gas (CNG) for vehicles and for industrial and residential heating.
  
  • Key Players: TotalEnergies and Archaea Energy

Segmental Insights

Source Insights

How Did the Municipal Segment Dominate the Biomethane Market In 2025?

The Municipal waste accounted for the highest revenue share of about 41.14% in 2025. Municipal is the largest source for biomethane production, with growing environmental challenges. Biowaste collected from the municipal area is crushed into small pieces and prepared for anaerobic digestion and kept in tanks for a few weeks. Then the gas from the tank is upgraded, that is, purified by removing contaminants, and the methane gas is collected. Then this biomethane is used for various applications.

This process of producing methane is very cost-efficient and helps reduce the waste generated. This renewable source of energy is then used by other sectors like construction, transportation, electricity, and heat generation due to its benefits and low carbon emission properties as compared to natural fuel. This supports the growth and expansion of the market.

The wastewater sludge segment expects significant growth in the biomethane market during the forecast period. Biomethane gas is produced from wastewater sludge by anaerobic digestion, where organic matter is broken down in the presence of bacteria and absence of oxygen, and then methane is produced and then used for application in various sectors. It also supports waste management, environmental benefits, offering, energy recovery, and the use of renewable energy sources. It is used for environmental benefits as it helps reduce greenhouse gas emissions and also helps reduce the carbon footprint. This helps in a wide range of applications due to its benefits associated with it and supports the growth and expansion of the market.

End-Use Insights

Which End-Use Segment Dominated the Biomethane Market In 2025?

The construction segment dominated the highest revenue share of over 45.11% in 2025. The growing demand from the construction industry for electricity generation as a transportation fuel, grid integration, for heating and cooking of appliances at construction sites, reducing the fossil fuel reliance, and helps reduce carbon emissions as compared to natural resources. Biomethane production utilizes organic waste as feedstock, contributing to a circular economy and minimizing waste generation. These factors increase adoption and help in the growth and expansion of the market.

The industrial segment expects significant growth in the biomethane market during the forecast period. In industries, biomethane is used as a substitute for natural gas as it is a renewable source of energy and also supports environmental stress reduction through waste management. The growing applications in industries for the use of biomethane increase the adoption due to its cost-effectiveness and less environmental degradation and harm. These factors help in the growth and expansion of the biomethane use in the industrial sector and also support the expansion of the market.

Regional Insights

The Europe biomethane market size was valued at USD 8.17 billion in 2025 and is expected to be worth around USD 102.31 billion by 2035, exhibiting at a compound annual growth rate (CAGR) of 28.77% over the forecast period from 2026 to 2035.

Europe dominated the biomethane market in 2025. Europe is the leading producer of biomethane due to large production units in the region, which drives the growth of the market in the region. The growing environmental concerns due to waste generation by the industries and other sectors, and demand for biomethane for energy generation, fuel, and electricity by the leading producers, drive the growth of the market in Europe.

Technological innovation in the processing and production of biomethane in the region and alignment with sustainability by reducing the greenhouse effect and limiting the carbon footprint further fuel the growth of the market in the region. These factors and benefits in the market drive the growth and support the expansion of the market in the region.

The UK is the Largest Producer of Biogas and biomethane, which drives the Growth

The UK has seen and experienced a significant growth in the market, and the growth is driven by the growing infrastructure development projects and also growing biomethane plants in the country, which fuels the growth of the market in the country. The large production sector in the UK produces a significant amount of biomethane from the plant, which is used and consumed for the generation of electricity and also in transportation, which contributes to the growth of the market.

Key players of the region also have a significant role in the market due to their large investments. The growing technological advancement and investment by the government for research and development of the projects further supports growth and result in the expansion of the biomethane market in the country.

North America Is Seen as A Steady Growth Due To the Growing Demand from Industries for Power Generation and Industrial Applications.

North America is expected to experience significant growth in the biomethane market in the forecast period. The growing industrial demand for renewable sources of energy and rapid growth in the biomethane production and infrastructure fuel the growth of the market. Diverse applications in the region, such as sustainable alternatives to traditional fuel for electricity generation, transport fuel, and heating, support the growth in the region. The region is also experiencing growth due to government initiatives and policies for the use of sustainable sources, especially biofuels fuels the growth of the market. The growing animal manure use, industrial food processing, and municipal waste processing in the region have a significant role to play in the processing of biomethane, which helps the growth and expansion of the market in the region.

The US Has Seen a Steady Growth in the Biomethane Market in 2025.

The US has seen significant growth due to rapid growth in the industrial sector in the country, and a wide range of applications associated with its benefits, like power generation, transportation, and industrial processes, drive the growth of the market. Municipal waste is the leading revenue-generating source in the US market, which aligns with environmental concerns in the country. Growing investments by the key market players for the development of infrastructural projects and for innovation and research in the processing of the biomethane drive the market to grow, and also help in the expansion of the market further. the USA shipped out 205 biogas shipments. These exports were handled by 29 USA exporters to 29 Buyers.(Source: Volza )

Why Did Asia Pacific Become a Notable Region in the Biomethane Market?

Asia Pacific region is experiencing notable growth in the global market, primarily due to the abundant availability of feedstock from agricultural and municipal waste, increasing energy demands driven by economic growth and urbanization, and strong government policy support. Governments across the region, particularly in China and India, are actively promoting the sector through supportive policies, subsidies, and blending mandates. These efforts aim to enhance energy security, effectively manage waste, and meet climate change goals while aligning with the principles of a circular economy with improved sanitation and agricultural productivity.

India Biomethane Market Trends

India plays a significant role in the global market, primarily motivated by a strong push to reduce its reliance on imported liquefied natural gas. The country has vast amounts of agricultural residue, cow dung, and municipal solid waste, providing ample feedstock potential. The focus is on converting this waste into compressed biogas for use as a clean cooking and transportation fuel.

Emergence of the Latin America in the Biomethane Market

Latin America is also growing rapidly in the global market, fueled by an abundance of organic feedstocks, increasing government initiatives aimed at energy security and diversification, and a growing concern for sustainable waste management. This region is characterized by extensive agricultural zones and expanding urban centers, which generate significant amounts of organic waste ideal for biogas production and upgrading to biomethane. Given its high dependence on fossil fuels and vulnerability to fluctuating international energy prices, governments are compelled to seek domestic renewable energy sources.

Brazil Biomethane Market Trends

Brazil is experiencing significant growth, especially from agro-industrial residues and urban waste. The country aims to leverage its bioenergy potential to replace a substantial portion of its diesel consumption while fulfilling its commitments under the Global Methane Pledge. Policies such as the RenovaBio program and the new Fuel of the Future Law provide a robust framework for biomethane development.

How will the Middle East and Africa influence the Biomethane Market?

The Middle East and Africa represent an influential market in the global landscape. This growth is primarily driven by the availability of diverse organic feedstocks, an urgent need for sustainable waste management solutions, and increased government efforts toward energy diversification and decarbonization. The region is highly vulnerable to climate change impacts, such as heatwaves and droughts, which underscores the need for sustainable solutions. Governments are increasingly implementing policies, incentives, and frameworks to support market expansion.

UAE Biomethane Market Trends

The UAE is a significant contributor to this trend, focusing on waste management and diversifying its energy mix away from traditional oil and gas in line with its long-term sustainability goals. Government initiatives and investments in waste-to-energy projects are central to this strategy. For example, the biogas plant at the Warsan sewage treatment facility aims to reduce the carbon footprint of major cities.

Recent Developments

• In January 2026, Moeve and Pretium Renovables announced a partnership to develop a potential six new biomethane plants in Spain. Moeve is accelerating its push into renewable gas, signing a strategic agreement with Pretium Renovables to develop biomethane projects across Spain. The partnership aims to create four to six new plants, each producing an estimated 60 GWh per year, as part of Moeve’s Positive Motion transformation strategy.(Source: www.indianchemicalnews.com)
• In December 2025, Dublin-based Greengate Biogas, a developer of biomethane projects in Ireland, announced the appointment of Charles Kane as its newest CEO. Kane brings more than a decade of senior leadership experience in anaerobic digestion and biomethane development. He has experience in delivering anaerobic digestion portfolios, managing funder relationships, and implementing industry standards, Greengate says.(Source: www.wastetodaymagazine.com)

Top Companies List

• Air Liquide
• Engie
• Nature Energy Biogas A/S
• Gasum
• Terega Solutions
• Waga Energy
• TotalEnergies
• Chevron
• Kinder Morgan
• Archea Energy
• Envitec Biogas AG
• Future Biogas Ltd.
• E.ON SE
• Verbio Vereinigte Bioenergie AG
• South Hills RNG

Segments Covered

By Source 

• Energy Crops
• Animal Manure
• Municipal Waste
• Waste Water Sludge
• Other Source

By End-use 

• Construction
• Industrial
• Power Generation
• Transport
• Other End Uses

By Region 

• North America 
  
  • U.S.
  • Canada
• Europe 
  
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Asia Pacific 
  
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Latin America 
  
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA) 
  
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait