Biogas Market to Grow at a CAGR of 9.36% from 2026 to 2034; Rising Need for Renewable and Energy Sources to Foster Market Growth

The global biogas market size was valued at USD 52.22 billion in 2025. The market is projected to grow from USD 56.10 billion in 2026 to USD 114.81 billion by 2034, exhibiting a CAGR of 9.36% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Biogas Market Size, Share & Industry Analysis, By Feedstock (Organic Residue and Waste {Biowaste, Municipal, Sewage, Agriculture Waste, and Others} and Energy Crops), By Production Method (Biodigester, Wastewater Digester, Landfill Gas Recovery, and Others), By Application (Electricity Generation, Heating, Combine Heat and Power (CHP), and Others), and Regional Forecast, 2026-2034”.

The biogas industry is powering a greener future by transforming organic waste into clean energy through anaerobic digestion. From farm residue to food waste, advanced technologies convert these resources into electricity, heat, and fuel. Driven by rising sustainability goals, government incentives, and the push to cut emissions, biogas is emerging as a key pillar of the circular economy. The increasing need for renewable and energy sources to decrease dependence on fossil fuels and rising adoption of efficient waste management tactics are propelling market expansion.

Gasum Announced Its Decision to Invest in Two New Large-Scale Biogas Plants in Sweden

In March 2026, Gasum advanced its sustainability agenda by approving investments in two new large-scale biogas plants in Sweden. Both projects received backing from the Klimatklivet initiative, which focuses on cutting emissions through impactful local and regional action. Supported by the Swedish Environmental Protection Agency, each facility secured a subsidy of USD 17.22 million. The initiative aims to accelerate greenhouse gas reductions by promoting renewable energy solutions rooted in biogas.

Rapid Innovations in Anaerobic Digestion and Gas Upgrading Technologies to Propel Market Growth

The evolution of anaerobic digestion and gas upgrading technologies is driving the biogas sector forward. Enhanced digestion systems now deliver faster processing time, lower operational costs, and improved gas yields from a wide array of organic waste streams, including agricultural, industrial, and municipal sources. Meanwhile, advanced upgrading solutions such as membrane filtration, pressure swing adsorption, and water scrubbing are enabling the conversion of raw biogas into premium-grade biomethane for use in transportation and energy grids. These technological strides are boosting project feasibility, attracting investor confidence, and promoting widespread adoption across industries.

However, high upfront capital investments required for infrastructure and plant development are hampering the biogas market growth.

Launch of New Projects by Leading Companies to Boost Market Expansion

Leading companies in the biogas market are strengthening their market presence through strategic alliances, mergers & acquisitions, and the launch of new projects. By investing in advanced anaerobic digestion and gas-upgrading solutions, they are enhancing operational efficiency and scaling production capacity. In addition, long-term feedstock supply and offtake agreements are helping ensure consistent operations and predictable revenue streams.

List of Key Players Mentioned in the Report

• EnviTec Biogas AG (Germany)
• Future Biogas Ltd (U.K.)
• Air Liquide (France)
• PlanET Biogas Group (Germany)
• Weltec Biopower GmbH (Germany)
• Biokraft (Sweden)
• Ameresco Inc. (U.S.)
• Quantum Biopower (U.S.)
• AB HOLDING SPA (Italy)
• Renergon International AG (Germany)
• StormFisher (Canada)
• Wärtsilä (Finland)
• DMT International (U.S.)
• Gasum Oy (Finland)
• Praj Industries (India)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/biogas-market-100910

Key Industry Development

• April 2024: Ameresco introduced a renewable energy project portfolio worth USD 140 million, featuring biogas and renewable natural gas (RNG) initiatives. These projects focus on converting organic waste and landfill gas into clean energy. It supports sustainable waste management, reduces greenhouse gas emissions, and boosts the adoption of low-carbon fuels across the transportation and power generation sectors.

Further Report Findings

• Europe accounts for the largest biogas market share, driven by its commitment to carbon neutrality and progressive renewable energy policies. Strategic initiatives such as the European Union’s REPowerEU plan are accelerating biogas and biomethane production while reducing dependence on fossil fuels, positioning the region at the forefront of sustainable energy transformation.
• Market growth in Asia Pacific is driven by rising energy demand, increasing environmental awareness, and strong policy backing. China and India are heavily investing in bio-CNG and biogas initiatives to manage agricultural and municipal waste efficiently. Rapid urbanization and industrial expansion further unlock opportunities for scalable waste-to-energy solutions.
• Based on the feedstock, the organic residue and waste segment leads the market, with a 77.01% share in 2025, owing to its abundance and high biodegradability. Continuous generation of agricultural waste, manure, and food waste ensures a stable and low-cost feedstock supply for efficient biogas production.

Table of Segmentation