From the period of 2022 to 2028, the Global Biogas Market is expected to reach USD 75.2 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 4.1%.
Biogas is a gas mixture made from agricultural waste, manure, municipal trash, plant material, sewage, green waste, or food waste. It is mostly made up of carbon dioxide and methane, with a small quantity of water vapors and supplied chemicals. When this gas is burned in the presence of oxygen, energy is released. This energy is used for a variety of functions, including electricity generation, food preparation, transportation, and heating. The industry is expanding due to rising concerns about environmental safety and greater demand for sustainable energy. The rise in environmental awareness and supply concerns associated with the use of fossil fuels is likely to boost the expansion of the global waste-derived Biogas Market. Furthermore, the global market is being driven by rapid infrastructure development and rising energy consumption from the commercial and industrial sectors. Furthermore, the implementation of strict pollution rules, increased awareness of environmental conservation, increased worry about fossil fuel misuse, and a surge in corporate measures against corporate social responsibility (CSR) activities all contribute to the market's growth.
Key Highlights from the Report
- On the basis of Source, the market is segmented into Municipal, Industrial, and Agricultural. In the global waste-derived Biogas Market, the agriculture sector is likely to play a considerable role. This is owing to the fact that crop residue can be utilized to make biogas, which is mostly constituted of methane (CH4) and carbon dioxide (CO2). Furthermore, Biogas can be used for low-cost heating and cooking in many regions of the world. It can also be utilized to produce mechanical or electrical power.
- On the basis of Application, the market is segmented into Vehicle Fuel, Electricity, Heat, Upgraded Biogas, and Cooking Gas. The increased usage of Biogas for electricity generation has been attributed to a growing interest in renewable energy, notably in the electric power sector.
- Asia Pacific is the fastest regional segment in terms of growth. Due to rapid industrial expansion, increased consumer knowledge of Biogas use, and significant investments in new projects, India, China, and Japan are likely to be key markets in Asia-Pacific. Furthermore, market growth is aided by favorable government initiatives such as a national zero organic waste to landfill policy. Furthermore, the government implements measures to stimulate early investment in waste processing for energy production, which contributes to market growth.
High Demand for Upgraded Biogas Will Augment Market Growth
One of the key worldwide issues is the lack of traditional fossil fuels combined with environmental degradation. Renewable energy is projected to aid in the resolution of these issues. This gas is critical to the formation of a sustainable society and the reduction of oil dependency. This gas contains a lot of methane, which is then converted into biomethane. Biomethane is a renewable fuel that has the same qualities as natural gas and may be used in natural gas automobiles.
Huge Capital Investment for Biogas Plants Setup May Hinder Market Growth
Biogas plants are expensive to construct. The plant requires acres of land. Equipment, feedstock materials, engineering, and personnel costs are likewise significant. Purchasing, storing, and sorting feedstock is a time-consuming and costly operation. Furthermore, the operation of plants, as well as the sale and distribution of this gas, are both expensive. As a result, the substantial capital investment required to start-up and operate factories may limit market expansion.
Over the projection period, Europe is expected to have tremendous growth. The expansion is linked to technological advancements and increased expenditures in the refinery industry in the region. Companies across Europe are pouring money into Research and Development (R&D) for Biogas production from existing sources, with plans to raise the share of feedstock in the next years, fueling the region's Biogas demand. Germany is the dominant country with the highest number of Biogas plants, followed by Italy, France, Switzerland, and the United Kingdom.