Biomethane Market Size Analysis, Trend, Competitive Insights, Leading Players and Growth Opportunities by 2025-2032

Biomethane Market was valued at USD 9.74 Bn in 2024 and is expected to reach USD 26.50 Bn by 2032, at a CAGR of 13.33% during the forecast period.

SAN DIEGO, CA, UNITED STATES, July 9, 2025 /EINPresswire.com/ -- The Biomethane Market was valued at USD 9.74 billion in 2024 and is projected to reach USD 26.50 billion by 2032, growing at a CAGR of 13.33 % during the forecast period. The Biomethane production is expected to grow double from 2024 levels, and reach over 17 bcm by 2028. The majority of incremental biomethane volumes are expected to set to come from Europe and North America. More than 90% of current production is concentrated across developed market. The India, Brazil and China Biomethane Market are expected to grow at a high rate of CAGR during the forecast period.

Biomethane Market Overview

Biomethane is a gas, which is produced through the treatment of organic waste as a feedstock. It is notably produced from agricultural by-products, food scraps and wastewater. It is near-pure stream of methane, which is produced through the gasification and purification processes. Strategies and incentives to develop the biomethane sector is essential to reflect the available substrates for biomethane production and specific costs for the enhanced access of substrates and gas provision. It has usually long amortisation periods, the duration of temporal guarantee of the incentive. It is expected to contribute to the demand for renewable gas completely.

Key Market Dynamics

Despite, the biomethane industry is presently very small, it is generating increasing amounts of interest in numerous countries for its potential to transport clean energy to a varied array of end users. Currently around 10 bcm of biomethane are produced across the globe. Currently, Biomethane represents about 0.1% of natural gas demand. The full potential of biomethane needs the creation of holistic policy frameworks. One of the key drivers of the biomethane market is the worldwide ambition for decarbonization in retort to climate change. Technology advancement in the technics like anaerobic digestion, gas technologies, and power-to-gas systems are enhancing the efficiency and scalability of biomethane production.

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Government Support and Policy Frameworks drive the Biomethane Production

Strong government policies and incentive programs are expected to stimulate growth in biomethane production and consumption. In Europe, EU Renewable Energy Directive (RED II and RED III) and REPowerEU initiatives are taken with aim to increase the share of renewable gases. In North America, governing schemes like the Renewable Fuel Standard and Low Carbon Fuel Standard are expected to offer considerable credits for renewable natural gas. The governing frameworks are ensuring long-term revenue inevitability for developers. It helps to provide a expectable path for infrastructure development, which is making investment in biomethane projects.

Biomethane Market Outlook and Opportunities:

Energy sustainability and the net-zero decarbonization goal set are some of the prominent driving factors for the biomethane industry. It decreases requirement on trade in fossil fuels and encourages the expansion of a circular economy. The global transition to the acceptance of sustainable energy is expected to drive the demand for biomethane across the globe. The generation potential of sources of biomethane is expected to offer a key opportunity for biomethane industry. Precise energy crops, which are low-cost and low-maintenance crops are playing a vital part in the increase of biomethane production across the globe.

Biomethane Industry Recommendation:

Establish best practice waste management frameworks which confirm the isolation and valorisation of sustainable waste and residue feedstocks for biomethane.
An introduction of Guarantees of Origin (GoO) certificate systems as a condition for tracking and balancing biomethane injected into gas networks.
A presence of a biomethane supply provision mechanism balanced with demand pull policy controls within a wider policy framework, which is aimed at motivating biomethane market development.
The Comprehensive action is expected to take to reduce methane leakage to the greatest extent possible, which includes parameters like measurement, verification practices.
Biomethane Market Segment Analysis

Power generation is expected to hold the dominant Position in the Biomethane Market.

Power generation segment is expected to hold the dominant share in the biomethane market during the forecast period. The rapid expansion of the grid, mainly in areas with urbanization and infrastructure development are expected to drive the demand for biomethane. Technological advancements, predominantly in smart grid technologies are prompting the power generation market. The global shift toward cleaner electricity sources and the capability of biomethane to aid as a renewable substitute for natural gas in power plants are expected to boost the demand for biomethane.

Regional Analysis

Europe held the dominant Position in the Biomethane Market.

The massive majority of biomethane production lies in European and North American markets. The countries such as Denmark and Sweden are boasting more than 10% shares of biomethane in total gas sales in Europe. Countries outside Europe and North America are catching up rapidly, with the number of upgrading facilities across countries Brazil, China and India. Germany, Italy, the Netherlands and the United Kingdom have introduced support for biomethane in transport sector. In Europe, specified the wide-ranging impacts rising from Russia´s incursion of Ukraine, the importance of grading up biomethane is additional underlined by the energy safety benefits, which can offer as a domestically produced substitute to partially substitute natural gas imports from Russia.

Competitive Landscape

Many energy companies are expanding destructively in the biomethane sector, by leveraging their financial strength and infrastructure. The global biomethane market competitive landscape is characterized by a competitive and rapidly developing landscape, which is driven by high regulatory support, decarbonization energy goals, and high demand from sectors like transportation, and power generation and industrial manufacturing. Some of the prominent companies like Air Liquide, ENGIE, and Veolia are increasing their global biomethane footprints through organic growth and strategic acquisitions. For instance, In 2024, the AirLiquide has announced the expansion of biomethane production capacity in the U.S. The plant has expanded its construction with the two new plants in Pennsylvania and Michigan for biomethane production.

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The Global Biomethane Market was USD 9.74 billion in 2024 is expected to grow with a CAGR of 13.33% to reach at USD 26.50 billion by 2032. The global biomethane market is on a robust upward trajectory, driven by striving climate goals, developing waste management patterns, and steady technological improvements. Currently, biomethane usage is dominated by applications where the gas is used in united heat and power units.

Europe region held the dominant position in the global biomethane market with a share of more than 45% in 2024. High adoption and production of Biomethane across UK, Germany, France, Italy, Spain, and Sweden is expected to drive the market growth. European nations have employed robust regulatory frameworks and financial incentives to support the production and incorporation of biomethane into their energy grids. The REPowerEU strategy, and national decarbonization roadmaps are some of the driving factors, which are boosting the adoption of biomethane across developed countries. Additionally, high investments in anaerobic digestion and redeveloping facilities are expected to boost the biomethane production in Europe.

Leading suppliers of Biomethanes include Archaea Energy (USA), OPAL Fuels (USA), Chevron (USA), Kinder Morgan (USA), South Hills RNG (USA), Vanguard Renewables (USA), Air Liquide (France), Engie (France), TotalEnergies (France), Waga Energy (France), Terega Solutions (France), E.ON SE (Germany), Verbio Vereinigte Bioenergie AG (Germany), bmp greengas GmbH (Germany) and EnviTec Biogas AG (Germany).

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