Biomethane Market Size to Rise Worth USD 8.41 Billion by 2029
The global biomethane market size was valued at USD 5.76 billion in 2021. The market is expected to grow from USD 6.04 billion in 2022 and reach USD 8.41 billion by 2029 with a CAGR of 4.8% during the forecast period. Increasing demand for emission-free natural gas and generation of various raw materials, such as industrial waste, food waste, agricultural waste, and others, is anticipated to drive market growth. Rise in demand for gas from the automotive industry for power generation and transportation fuel is expected to propel the market course. The transformation of waste into renewable energy and increasing environmental concerns is projected to assist in the market development. Fortune Business Insights™ shares this information in its report titled “Biomethane Market, 2022–2029.”
Industry Developments:
July 2021- Weber Green Tech, an investor and partner in Renergon International AG, invested in advanced biogas technology to support global sustainability goals of energy conversion. The merger is set to create a new key player in the market in the operation and construction of organic waste processing plants.
Report Highlights:
Report CoverageDetailsForecast Period2022–2029Forecast Period 2022 to 2029 CAGR4.8%2029 Value ProjectionUSD 8.41 BillionBase Year2021Market Size in 2022USD 6.04 BillionHistorical Data for20218–2020No. of Pages264Segments coveredFuel Type, By End-User, Application and RegionGrowth DriversMounting Demand from the Automotive Industry to Boost Market GrowthPower Generation to Head Due to Increasing Requirement of Electric Grid Networks
Market Drivers and Restraints:
Mounting Demand from the Automotive Industry to Boost Market Growth
One of the major reasons for the increase in the demand for bio-methane is the generation of the demand from the automotive industry which is projected to boost the biomethane market growth. A German Energy Agency named Deutsche Energie Agentur (DENA) reported in 2020 that filling station sales exceeded 1 TWh, which was around 733 GWh in 2019.
However, massive financial investment for installing the facility and extremely combustible nature of the gas is expected to obstruct the market development.
Segments
Organic Residue & Waste to Dictate Due to its Easy Convenience
On the basis of feedstock the market is divided into organic residue & wastes and energy crops. Organic residue & wastes segment accounts for the major part due to the easy convenience of raw material globally. China has an agricultural waste worth of 4.8 billion tons. Organic residue & waste is divided into biowaste, municipal waste, sewage waste, and agriculture waste.
Anaerobic Digestion Segment to Dominate the Market Owing to its Cost-effectiveness
The anaerobic digestion segment is majorly dominating the market with 78.15% shares. Recently, anaerobic digestion units have been developed worldwide, especially in the U.S., Europe, and China. The U.S. presents the highest total biogas production but originates from landfill at 75%. This country’s 1,497 anaerobic plants treat sewage sludge, biowaste, and agricultural & industrial wastes. On the other hand, biogas production in Germany is mainly based on farming and industrial wastes.
Power Generation to Head Due to Increasing Requirement of Electric Grid Networks
On the basis of application, the market is segmented into automotive, power generation, and others. Power generation segment is estimated to have a major part due to the augmented requirement for electric grid networks in residential sectors for various uses such as water heating and cooking. The automotive segment is also estimated to have sizeable growth due to the rising demand for renewable natural gas for vehicle fuel.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market’s key players.
Regional Insights
Europe to Lead Market Owing to Increasing Number of Manufacturers
Europe is projected to govern the biomethane market share due to increasing number of manufacturers in the region. Growing number of biomethane projects in Germany, the U.K., the Netherlands, Denmark, Sweden, and France is also estimated to contribute to market progress.
North America is estimated to have substantial growth over the forecast period due to growing demand for heating and electricity. The U.S. holds a leading share in this region in the market due to increasing demand for heating water and electricity generation.
Asia Pacific to have a profitable market due to the vast agricultural waste ratio in the region. Rising demand for renewable natural gas and import activities will boost the market.
Competitive Landscape
Transformation Strategies by Key Players to Progress Market Growth
Transformation strategies by the market players are anticipated to advance market grip. In September 2020, Weltec Biopower started building a new biogas plant in South Korea. The plant will convert biogas into heat in an integrated gas boiler. The plant was commissioned in spring 2021 with a 7 MW capacity and can digest up to 93,000 tons of food waste a year. The market includes other key players such as WELTEC BIOPOWER GMBH, AB Holding SpA, RENERGON International AG, Gasrec, and PlanET Biogas Global GmbH.