Biomethane Market Size Worth USD 28.02 Billion by 2034 | CAGR: 13.4%

The global biomethane market size is expected to reach USD 28.02 billion by 2034, according to a new study by Polaris Market Research. The report “Biomethane Market Size, Share, Trends, Industry Analysis Report: By Production Technology (Anaerobic Digestion and Gasification), Application, Feedstock, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Biomethane, a renewable gas produced by the anaerobic digestion of organic waste or through the upgrading of biogas, serves as an alternative to natural gas and plays a critical role in achieving carbon neutrality and reducing reliance on fossil fuels. The demand for clean and renewable energy sources has spurred as the world continues to face climate challenges such as global warming, pushing the adoption of biomethane.

The global push for decarbonization and the transition to cleaner energy sources has made biomethane an attractive option in various sectors, particularly in transportation, industrial applications, and power generation. Governments worldwide are setting goals to reduce greenhouse gas emissions and implement renewable energy strategies, which are fueling the demand for biomethane. Many countries have also set targets to reduce their reliance on natural gas by increasing the share of renewable gases in their energy mix. This creates significant market biomethane opportunities, particularly in nations with strong environmental policies, such as the European Union, the United States, and China.

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Technological advancements have also contributed to the biomethane market expansion. Innovations in anaerobic digestion technology, which breaks down organic matter to produce biogas, have led to more efficient and scalable production methods for biomethane. In addition, biogas upgrading technologies, which improve the quality of biogas by removing impurities, have become more sophisticated, allowing for higher purity levels of biomethane to be produced and fed into natural gas grids. These advancements reduce production costs and improve the overall feasibility of biomethane projects, attracting both public and private investments.

Key Highlights of Biomethane Market Report

• In terms of production technology, the anaerobic digestion segment held the largest biomethane market share in 2024 due to its widespread adoption as an efficient and cost-effective technology for producing renewable gas.
• Based on application, the electricity generation segment dominated the market share in 2024 due to the increasing global focus on renewable energy integration into power grids.
• In the global market, Europe held the largest market share in 2024 due to strong regulatory support, a well-established infrastructure for biomethane production, and high adoption rates of biomethane technologies and fuels.
• The Asia Pacific biomethane market is estimated to grow rapidly in the coming years, driven by increasing demand for renewable energy. Government initiatives in countries such as India and China are also contributing to the market expansion in the region.
• Some of the global key market players are 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; and South Hills RNG.

Polaris Market Research has segmented the biomethane market report based on production technology, application, feedstock, and region:

By Production Technology Outlook (Revenue – USD Billion, 2020–2034)

• Anaerobic Digestion
• Gasification

By Application Outlook (Revenue – USD Billion, 2020–2034)

• Electricity Generation
• Vehicle Fuel
• Heating

By Feedstock Outlook (Revenue – USD Billion, 2020–2034)

• Agricultural Waste
• Municipal Waste
• Animal Manure
• Wastewater Sludge

By Regional Outlook (Revenue – USD Billion, 2020–2034)

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Netherlands
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Malaysia
  • South Korea
  • Indonesia
  • Australia
  • Vietnam
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Israel
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America

Biomethane Market Report Scope