Biomethane Market - Global Industry, Analysis, Size, Share, Growth, Trends, and Forecasts 2025-2034

Biomethane Market Size, Share & Growth Report, 2034

The global biomethane market size accounted for USD 9.3 billion in 2025 and is forecasted to hit around USD 29.18 billion by 2034, representing a CAGR of 13.55% from 2025 to 2034.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.

Key Takeaways

• Europe biomethane market dominated the global industry and accounted for over 46.16% revenue share in 2024.
• The biomethane market in North America is anticipated to witness a CAGR of 13.65% over the forecast period.
• The Municipal waste accounted for the highest revenue share of about 40.11% in 2024.The municipal waste segment is expected to register the fastest CAGR of 14.75% during the forecast period.
• The Construction accounted for the highest revenue share of over 44.11% in 2024. According to the IEA, bioenergy accounted for around 15% of the world’s primary energy demand in 2024.

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 Opportunity

What is the Key Growth Opportunity Responsible for the Growth of the Biomethane Market?

The key opportunity responsible for the growth of the market is the growing and diverse applications associated with the biomethane, like its application in transportation as fuel by replacing the use of fossil fuel which attracts the environmentally conscious consumers, in power generation to preserve the natural resources and by increasing the adoption of renewable energy sources, and in industrial processing, these applications and benefits aligns with the government’s policies and initiatives to preserve the natural resources and also contributes in sustainable living aligning with the growing environmental concerns and focusing on limiting the greenhouse gas emission and low carbon emitting which helps in the growth of the market. 

Market Challenge

The High Cost of Production is a Challenge in the Market, Which Hinders Growth

Biomethane processing and manufacturing require advanced technology and equipment for manufacturing with large infrastructure, which ultimately results in high production cost and also results in high cost of the final product, which lowers the adoption rate which hindering the growth of the market. The infrastructural development for biomethane production is also a challenge in some areas, and a lack of resource availability also hinders the production rate of biomethane due to less availability of feedstock, affecting the profitability. These factors are a challenge to the growth of the market. 

Regional Insights

How Did Europe Dominate the Biomethane Market in 2024?

The Europe biomethane market is expected to increase from USD 4.29 billion in 2025 to USD 13.48 billion by 2034, growing at a CAGR of 13.56% throughout the forecast period from 2025 to 2034.

Europe dominated the biomethane market in 2024. 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.

Europe shipped out 23,012 biogas shipments from August 2023 to July 2024 (TTM).

• These exports were handled by 2,776 European Union exporters to 2,373 Buyers, showing a growth rate of 40% over the previous 12 months.(Source: Volza)
• Globally, the European Union, India, and China are the top three exporters of Biogas. The European Union is the global leader in Biogas exports with 2152 shipments, followed closely by India with 2136 shipments, and China in third place with 1822 shipments.(Source: Volza)

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 2024.

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 )

Segmental Insights

Source Insights

How Did the Municipal Segment Dominate the Biomethane Market In 2024?

The municipal segment dominated the biomethane market in 2024. 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 2024?

The construction segment dominated the biomethane market in 2024. 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.

Recent Developments

• In December 2024, the European Biogas Association (EBA) launched a gasification plant across Europe, the launch focuses on converting organic materials into clean, renewable energy with advanced clean-tech manufacturing.(Source: Europeanbiogas)
• In February 2025, AstraZeneca, a UK-Swedish pharma giant, collaborated with Future Biogas to launch a biomethane plant in the UK without public subsidies. This initiative is to control and eliminate the CO2 emissions and to strengthen the UK’s renewable energy infrastructure.(Source: gasworld )
• In March 2025, TotalEnergies launched its 8th biomethane production unit in France BioNorrois plant. This will be the largest production plant, a step towards the production of renewable energies and a shift towards decarbonization.(Source: rigzone)

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