Biomethane Market by Feedstock (Agriculture Residue, Municipal Waste, Energy Crops), Production Process (Anaerobic Digestion & Fermentation, Thermal Gasification), End-use (Power generation, Transportation, Industrial), Region - Global Forecast to 2030

The biomethane market is estimated to reach USD 56.64 billion by 2030 from USD 16.50 billion in 2025, at a CAGR of 28.0% during the forecast period. The biomethane market is being propelled by the rising focus on circular economy practices that transform organic waste into energy resources that are worth. The mounting limitations on landfills and more stringent regulations on wastewater treatment are leading cities and factories to biomethane as an alternative. Price swings in natural gas are making it necessary for energy consumers to explore the domestic renewable gas market as a supplier. Advances in upgrading, liquefaction, and digital plant optimization technologies are already leading to a better operational efficiency and reliability. Meanwhile, there are more and more gas grid interconnections and certification schemes for renewable gas that are making the market more transparent and tradable, thus facilitating the wider commercial use of biomethane.

“By production process, thermal gasification is projected to be the fastest-growing segment of the biomethane market during the forecast period.”

The thermal gasification method, as a production process, is expected to occupy the fastest position among the biomethane segments during the coming years because of its capability to turn various kinds of dry and lignocellulosic feedstocks into renewable gas. The main difference from biological processes is that thermal gasification can easily process forestry residues, industrial waste, and other materials that are hard to digest, thus widening the overall biomethane feedstock base. The combination of increasing interest in advanced waste-to-energy systems and stricter regulations on landfilling is a major factor behind the rapid adoption of the technique. Innovations in technology are increasing the yield, quality of syngas, and interlinkage of the processes, thus minimizing risks to the operation. Moreover, the heightened investment in low-carbon fuels and the introduction of policy frameworks that favor advanced renewable gas technologies are improving the commercial viability of thermal gasification projects.

“The industrial segment is expected to remain the fastest segment by application”

The industrial segment is projected to be the largest application area in the biomethane market owing to the prevailing trend of the adoption of cost-effective decarbonization measures in the energy consuming industries. A number of industrial activities are very much dependent on natural gas for their operations that require high-temperature heating, thus making electrification either technically complicated or too expensive for the near future. Biomethane is a direct alternative that can be integrated easily and that helps the industrial sector to cut down their Scope 1 emissions without making any significant changes to existing machinery or facilities. Regulatory compliance, taxes on carbon emissions and compulsory emissions reporting are among the factors that have been speeding up the trend of biomethane usage. Apart from that, contracts for the long-term supply of biomethane have made it possible for industries to have a stable price during the ups and downs of the fossil fuel market, whereas the corporate net-zero pledges and sustainability targets are pushing the industries to consider renewable gas as a feasible option for decarbonization through which they could achieve their targets.

“By region, Europe is expected to be the second-largest region in the biomethane market during the forecast period.”

By region, the biomethane industry is forecasted to have Europe as the second-largest market, thanks to its developed renewable gas ecosystem and robust and favorable policies. Some European countries have already achieved advanced deployment of the technology but still, the expansion continues through replacement of old technology, upgrading of capacities, and integration of biomethane into the energy transition plans. European market is supported by a good natural gas supply system, well-defined sustainability certification process, and large-scale use in sectors such as industrial, and transportation. The collaboration between the power companies, big energy firms, and farmers’ cooperatives is still driving the market. Besides, Europe’s worry about nitrous oxide emissions, its goal to be less dependent on gas from outside, and its being more supportive of the recycling economy are also factors that put the region at the forefront when it comes to global biomethane demand and thus, Europe’s being a major player in the market despite it being a bit late in the game compared to the Asia-Pacific and other regions.

Breakdown of Primaries:

In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:

By Company Type: Tier 1- 65%, Tier 2- 24%, and Tier 3- 11%

By Designation: C-Level Executives - 30%, Managers- 25%, and Others- 45%

By Region: North America- 20%, Europe- 40%, Asia Pacific- 30%, and RoW- 10%

Note: Others include product engineers, product specialists, and engineering leads.

Note: The tiers of the companies are defined based on their total revenues as of 2023. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million

The biomethane market is dominated by a few major players that have a wide regional presence. The leading players in the biomethane market are Shell Biogas (United Kingdom), Air Liquide (France), BP p.l.c. (UK), Gasum Ltd (Finland), OPAL Fuels (US), Waga Energy (France), Vanguard Renewables (United States), Gothenburg Energy (Sweden), WELTEC BIOPOWER GmbH (Germany), PlanET Biogas Group (Germany), ETW Energietechnik GmbH (Germany), Clean Energy Fuels (United States), EQTEC PLC (Ireland), and GENeco (UK), among others.

Study Coverage:

The report defines, describes, and forecasts the e-fuel market by size, application, and fuel type. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates in terms of value, and future trends in the biomethane market.

Key Benefits of Buying the Report

• The biogas market is mainly influenced by the global shift to decarbonized and eco-friendly energy systems, especially in areas where it is difficult to eliminate the use of fossil gas completely. The increasing worries about methane getting emitted, along with climate change, and energy security, are fast-tracking the biomethane usage as a renewable, low-carbon gas alternative to natural gas and hence, it is being adopted more and more. Biomethane is being generated from various waste streams including agricultural residues, animal dung, and municipal waste, thereby not only power generation and more but also being able to achieve the circular economy goals. Its complete compatibility with the existing gas infrastructure allows it to be used effortlessly in all the mentioned areas viz. transport, industrial heating, power generation, and grid injection. The stricter emission regulations and other related government policies, have led to a situation where investment in biomethane projects is becoming more and more common. At the same time, the advancements in the technologies used for anaerobic digestion, gas upgrading, and digital plant optimization are having a positive impact on the efficiency and scalability of the process. Alongside the above-mentioned factors, the corporate sustainability commitments are becoming a major driving force behind the global energy transition to a low carbon scenario, and thus, biomethane is gradually being identified as one of the key players.
• Product Development/Innovation: The biomethane industry is making strides through product and process innovations that aim to improve not only the efficiency of production but also the scalability and environmental performance. Among the most significant developments in this area are the new anaerobic digestion systems that are being created by companies. These systems are characterized by higher methane yields, greater flexibility in the types of feedstock used, and shorter retention times. Moreover, biogas upgrading technologies such as membrane separation, pressure swing adsorption, and cryogenic upgrading have all met and exceeded the quality requirements for biomethane and have done so with a lower energy footprint. The market trend is to promote the installation of small and flexible biomethane units that can take the place of big and centralized infrastructures as they come closer to waste sources and thus eliminate the long and costly transportation industry. Automation and digital monitoring system integration are already in place, providing support for the optimization of the process in real-time, maintenance based on predictions, and tracking of emissions. Furthermore, advances in digestate management, nutrient recovery, and biological methanation are also contributing to the increase in resource efficiency. Research and experimentation are continuously exploring co-digestion and the use of advanced waste streams, which are in fact increasing feedstock diversity and thus the contribution of biomethane to circular and low-carbon energy systems.
• Market Development: In September 2025, Hapag-Lloyd and Shell Biogas signed a multi-year deal for liquefied biomethane delivery to support the former's decarbonization programme. The coalition between the two companies, which started in 2023, allows Hapag-Lloyd's LNG dual-fuelled ships, to burn the eco-friendly marine fuel without the need for any modification of their machinery. Shell has already set up liquefied biomethane supply points at 22 bunkering places across the globe, thereby making the renewable fuel even more available. The biogas certified by ISCC EU and the like provides extensive lifecycle GHG reductions which enhance the reduction of emissions in not just fleet operations but also in customer supply chains.
• Market Diversification: TotalEnergies, in May 2025, made a deal through an SPA to divest half of the shares in Polska Grupa Biogazowa (PGB) which is the main biogas producer in Poland, to HitecVision. PGB has already acquired 20 units whose combined biomethane capacity amounts to more than 450 GWh and is also looking to reach 2 TWh by 2030. The alliance not just hastens PGB's foray into biomethane but also goes hand in hand with TotalEnergies' farmdown strategy to improve the renewable investment portfolio, while HitecVision seizes the opportunity of having a solid platform for driving growth in the biogas market in Poland which is still in the developing phase.
• Competitive Assessment: Assessment of rankings of some of the key players, including of TotalEnergies (France), Veolia (France), Chevron Corporation (United States), Shell Biogas (United Kingdom), Air Liquide (France), BP p.l.c. (United Kingdom), Raízen (Brazil), Gasum Ltd (Finland), Anaergia (Canada), EnviTec Biogas AG (Germany), Kinder Morgan (United States), Ameresco (United States), ENGIE (France), E.ON SE (Germany), Verbio SE (Germany), OPAL Fuels (United States) among others.

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