Global Biomethane Market Set to Reach USD 216.05 Billion by 2033, Growing at a CAGR of 9%
New York, NY – September 3, 2025 – The global biomethane market, valued at USD 96.21 billion in 2024, is projected to grow from USD 106.61 billion in 2025 to USD 216.05 billion by 2033, achieving a robust compound annual growth rate (CAGR) of 9% during the forecast period (2025–2033), according to a comprehensive report by Straits Research. This significant growth is driven by rising environmental concerns, increasing demand for renewable energy, and biomethane’s versatile applications in the automotive and power generation sectors.
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Driving Sustainability with Biomethane
Biomethane, a renewable natural gas produced from organic matter such as agricultural waste, animal manure, sewage sludge, and industrial food processing waste, is gaining traction as a sustainable alternative to fossil fuels. Through processes like anaerobic digestion and gasification, biomethane is purified to extract methane with high calorific value, making it an eco-friendly fuel for vehicles and a green energy source for power generation. Unlike traditional energy sources, biomethane significantly reduces greenhouse gas emissions, aligning with global efforts to combat climate change.
The automotive industry is a key driver of biomethane demand, with its potential to replace fossil fuels like gasoline, reducing both costs and harmful emissions. Additionally, biomethane’s compatibility with existing natural gas infrastructure eliminates the need for costly new systems, further boosting its adoption in energy generation.
Key Market Drivers
- Environmental Benefits: Biomethane’s ability to reduce greenhouse gas emissions makes it a critical solution for meeting global energy demands sustainably. Its production from organic waste ensures no additional carbon dioxide is released into the atmosphere, unlike conventional fossil fuels.
- Energy Security: Growing global demand for electricity and heat generation, coupled with concerns over energy security, is accelerating the adoption of biomethane as a reliable and renewable energy source.
- Government Support: Favorable policies and financial incentives from governments worldwide, particularly in Europe and North America, are fostering biomethane production and consumption. For instance, the U.S. Department of Energy (DOE) and the Department of Agriculture (USDA) have outlined initiatives to advance biogas use in alignment with renewable energy goals.
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Regional Insights
- Europe: Leading the global biomethane market, Europe benefits from strong government regulations, increased investments in biogas technology, and rapid urbanization. The region’s automotive sector is increasingly adopting biomethane as a vehicle fuel, further driving market growth.
- North America: The second-largest market, North America is seeing growth due to innovative waste treatment technologies and large-scale wastewater biogas plants processing millions of gallons daily.
- Asia-Pacific: Emerging economies like China and India are experiencing rapid growth in biomethane production, fueled by abundant agricultural waste and supportive government programs. China’s installed biogas electricity capacity reached 350 MW in 2016, signaling significant potential.
- Latin America and Middle East & Africa: While currently holding smaller market shares, these regions are poised for growth as renewable energy adoption increases and biogas projects, such as those supported by UNIDO in South Africa, gain momentum.
Market Challenges
The high combustible nature of biomethane requires careful handling during production and transportation, posing a challenge to market expansion. However, advancements in safety protocols and technology are mitigating these risks, paving the way for broader adoption.
Opportunities for Growth
Europe’s biomethane market, the largest globally, offers significant opportunities for manufacturers due to favorable regulations and growing demand for biogas in power generation. Additionally, agricultural economies like India and Indonesia are expected to see substantial market expansion as biomethane production provides farmers with new revenue streams.
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Key Players in the Biomethane Market
Leading companies driving innovation and growth in the biomethane market include:
- PlanET Biogas Global GmbH
- CNG Services Ltd.
- VERBIO SGN
- EnviTec Biogas AG
- Future Biogas Ltd.
- Gazania Ltd.
- ETW Energietechnik GmbH
- MagneGas
- Schmack Carbotech GmbH
- Biogas Products Ltd.
- South Hills RNG
- Air Liquide
- Engie
- Nature Energy Biogass A/S
- Gasum
Recent Developments
In May 2021, Bayo-Tech and IBMS Group partnered to launch a renewable hydrogen project utilizing biomethane produced from food waste, highlighting the industry’s shift toward innovative and sustainable solutions.
Market Segmentation
- By Feedstock: Organic household waste, animal manure, energy crops, agricultural waste, sewage sludge, industrial food processing waste, others
- By Application: Automotive, power generation, others
- By Production Method: Fermentation, gasification, anaerobic digestion
- By End User: Industrial, commercial, residential
- By Region: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
About Straits Research
Straits Research is a leading market research and intelligence firm specializing in providing actionable insights and comprehensive reports across various industries. For more details on the biomethane market, including charts, statistics, and analyst commentary, visit Straits Research.
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