Biogas Market In 2029
Biogas Market Drivers & Restraints 2025.webp
Biogas Market Segments 2025.webp
Biogas Market Regional 2025.webp
The Business Research Company's Biogas Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, December 29, 2025 /EINPresswire.com/ -- Biogas Market to Surpass $115 billion in 2029. In comparison, the Natural Gas market, which is considered as its parent market, is expected to be approximately $1,952 billion by 2029, with Biogas to represent around 6% of the parent market. Within the broader Biogas industry, which is expected to be $10,208 billion by 2029, the Biogas market is estimated to account for nearly 1% of the total market value.
Which Will Be the Biggest Region in the Biogas Market in 2029
Western Europe will be the largest region in the biogas market in 2029, valued at $64,467 million. The market is expected to grow from $45,152 million in 2024 at a compound annual growth rate (CAGR) of 7%. The strong growth is supported by the increasing demand for renewable energy.
Which Will Be The Largest Country In The Global Biogas Market In 2029?
Germany will be the largest country in the biogas market in 2029, valued at $31,576 million. The market is expected to grow from $24,762 million in 2024 at a compound annual growth rate (CAGR) of 5%. The steady growth can be attributed to the government initiatives in the increasing automotive and transportation sectors
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What will be Largest Segment in the Biogas Market in 2029?
The biogas market is segmented by source into municipal waste, industrial waste and agricultural waste. The agricultural waste market will be the largest segment of the biogas market segmented by source, accounting for 60% or $68,722 million of the total in 2029. The agricultural waste market will be supported by the growing availability of crop residues and animal manure, government incentives for waste-to-energy projects and product launch.
The biogas market is segmented by applications into residential, commercial and industrial. The residential market will be the largest segment of the biogas market segmented by applications, accounting for 64% or $73,958 million of the total in 2029. The residential market will be supported by increasing household organic waste generation, rising adoption of decentralized biogas systems, government subsidies for small-scale biogas plants, growing awareness of sustainable waste management, demand for clean cooking fuel in rural areas, rising energy costs driving alternative solutions, integration of biogas with home heating systems, policies promoting household renewable energy adoption, efforts to reduce reliance on fossil fuels, and initiatives supporting off-grid energy solutions.
The biogas market is segmented by end-user into power generation, heat generation, cogeneration and other end-users. The heat generation market will be the largest segment of the biogas market segmented by end-user, accounting for 33% or $38,497 million of the total in 2029. The heat generation market will be supported by increasing demand for sustainable heating solutions, government incentives for renewable heat projects, rising fuel costs driving interest in alternative energy sources, integration of biogas into district heating systems, stringent emissions regulations promoting cleaner fuels, adoption of combined heat and power (CHP) systems, growing industrial and commercial use of biogas for heating applications, financial benefits from carbon credit programs, expansion of off-grid heating solutions in rural areas and corporate commitments to reducing carbon footprints.
What is the expected CAGR for the Biogas Market leading up to 2029?
The expected CAGR for the biogas market leading up to 2029 is 7%.
What Will Be The Growth Driving Factors In The Global Biogas Market In The Forecast Period?
The rapid growth of the global biogas market leading up to 2029 will be driven by the following key factors that are expected to reshape industrial energy management, waste valorisation, and manufacturing processes worldwide.
Increasing Fuel Costs - The increasing fuel costs will become a key driver of growth in the biogas market by 2029. As global crude oil and natural gas prices fluctuate due to geopolitical instability, supply chain disruptions, and inflationary pressures, businesses and governments are increasingly turning to biogas to mitigate energy price volatility. Biogas offers a renewable alternative that reduces dependence on fossil fuels, providing long-term cost savings for industries, municipalities, and agricultural operations. As a result, the increasing fuel costs is anticipated to contributing to a 1.5% annual growth in the market.
Increased Demand For Clean Energy Sources - The increased demand for clean energy sources will emerge as a major factor driving the expansion of the biogas market by 2029. Governments and industries are prioritizing low-carbon solutions to reduce greenhouse gas emissions, comply with environmental regulations, and transition away from fossil fuels. Biogas, produced from organic waste through anaerobic digestion, offers a reliable alternative for electricity generation, transportation, and industrial applications. Technological advancements in biogas upgrading and purification are further enhancing its efficiency, making it a viable substitute for natural gas. Consequently, the increased demand for clean energy sources is projected to contributing to a 1.0% annual growth in the market.
Growing Demand From The Automotive And Transportation Sectors - The growing demand from the automotive and transportation sectors will serve as a key growth catalyst for the biogas market by 2029. Governments and businesses are prioritizing renewable fuels to meet stringent emission regulations and sustainability targets. Compressed biomethane, derived from biogas, is gaining traction as a clean alternative to conventional fossil fuels in heavy-duty vehicles, public transport, and logistics fleets. Advancements in biogas upgrading technology are improving fuel efficiency and compatibility with existing natural gas infrastructure, further supporting market expansion. Therefore, this growing demand from the automotive and transportation sectors is projected to supporting to a 0.8% annual growth in the market.
Rising Demand For Renewable Energy - The rising demand for renewable energy will become a significant driver contributing to the growth of the biogas market by 2029. Governments and industries are investing in cleaner alternatives to reduce carbon emissions, enhance energy security, and comply with environmental regulations. Biogas, produced from organic waste, offers a renewable solution for power generation, heating, and transportation, reducing dependence on fossil fuels. Technological advancements in biogas upgrading and integration with existing energy infrastructure are further driving market expansion. Consequently, the rising demand for renewable energy is projected to contributing to a 0.5% annual growth in the market.
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What Are The Key Growth Opportunities In The Biogas Market in 2029?
The most significant growth opportunities are anticipated in the agricultural waste biogas market, the residential biogas market, and the biogas for heat generation market. Collectively, these segments are projected to contribute over $52 billion in market value by 2029, driven by the expanding availability of organic waste feedstocks, rising household adoption of clean cooking and heating systems, and growing industrial demand for cost-efficient renewable heat. This surge reflects the accelerating global transition toward circular energy systems, as biogas solutions enable efficient waste-to-energy conversion, lower carbon emissions, and enhanced energy security. Together, these factors are fuelling transformative growth within the broader biogas industry.
The residential biogas market is projected to grow by $20,973 million, the agricultural waste biogas market by $19,671 million, the biogas for heat generation market by $11,096 million over the next five years from 2024 to 2029.
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