Biomethane Market Size, Share, Growth, and Industry Analysis, By Types (Energy Crops, Animal Manure, Municipal Waste, Waste Water Sludge, Others), By Applications (Construction, Industrial, Power Generation, Transport, Others) , and Regional Insights and Forecast to 2034

Biomethane Market Size

The Global Biomethane Market size was USD 2.05 Billion in 2024 and is projected to reach USD 2.18 Billion in 2025, further expanding to USD 3.67 Billion by 2034, exhibiting a CAGR of 5.96% during the forecast period [2025–2034]. With over 42% of demand coming from Europe, followed by Asia-Pacific at 29% and North America at 19%, the market is steadily expanding. Nearly 34% of production originates from energy crops, while 26% is derived from animal manure, reflecting growing diversification of feedstocks. Additionally, more than 37% of the transport sector has shifted towards biomethane fuels, showcasing a strong market trajectory.

The US Biomethane Market is witnessing significant growth, supported by rising adoption in industrial and transport sectors. Nearly 36% of US biomethane demand is tied to renewable fuel applications, while around 28% is driven by power generation projects. Furthermore, 41% of investments in the US biomethane industry target waste-to-energy facilities, highlighting increasing focus on circular economy practices. Close to 33% of regional growth stems from agricultural residue conversion, indicating substantial opportunities for sustainable energy expansion.

Key Findings

• Market Size: Global Biomethane Market size reached $2.05 Billion in 2024, $2.18 Billion in 2025, and is expected at $3.67 Billion by 2034, CAGR 5.96%. Value line: Global Biomethane Market will grow from $2.05 Billion in 2024 to $3.67 Billion by 2034 at 5.96% CAGR.
• Growth Drivers: 46% adoption in renewable energy, 36% transport usage, 33% industrial integration, 41% waste-to-energy focus, 27% circular economy initiatives.
• Trends: 47% municipal waste projects, 38% transport adoption, 52% waste-to-energy focus, 29% bio-CNG investment, 33% hybrid renewable integration shaping market direction.
• Key Players: TotalEnergies, Engie, Air Liquide, Chevron, Verbio Vereinigte Bioenergie AG & more.
• Regional Insights: Europe 42%, Asia-Pacific 29%, North America 19%, Middle East & Africa 10% reflecting diverse global biomethane adoption levels.
• Challenges: 41% lack policies, 34% regulatory gaps, 29% investor hesitation, 33% limited infrastructure, 37% high technology costs impact growth.
• Industry Impact: 44% emission reduction, 39% renewable fuel shift, 32% industrial adoption, 28% rural electrification, 36% urban waste management driving sustainable development.
• Recent Developments: 15% expansion in Europe, 18% innovation in purification, 22% recovery rate increase, 19% transport fuel growth, 14% capacity expansion in North America.

The Biomethane Market is gaining momentum with strong integration into industrial, transport, and power generation sectors. Around 42% of global adoption comes from Europe, while 29% stems from Asia-Pacific. More than 33% of innovations involve hybrid renewable projects, and 37% of adoption is led by bio-CNG fuel applications, boosting long-term demand potential.

Biomethane Market Trends

The Biomethane Market is witnessing significant transformation driven by renewable energy adoption and sustainable fuel demand. Around 40% of biomethane production globally is sourced from agricultural waste, while nearly 28% comes from municipal solid waste. Transportation applications account for over 35% consumption, with the residential and industrial sectors covering nearly 42% combined. Europe holds the highest adoption share, contributing approximately 47% of the global biomethane demand, followed by Asia-Pacific with 29%. Government policies supporting clean energy transitions have influenced more than 60% of new biomethane projects, while over 55% of stakeholders are investing in bio-CNG infrastructure. Rising environmental concerns are also pushing around 37% of manufacturing firms to shift towards biomethane-based energy solutions. These facts highlight the strong penetration of biomethane across multiple end-use sectors.

Biomethane Market Dynamics

OPPORTUNITY

Growing Demand for Renewable Transport Fuels

Over 38% of the global transportation sector is shifting towards renewable fuels, and biomethane adoption has expanded by nearly 33% in public transport systems. Close to 45% of fleet operators are planning investments in biomethane-based mobility solutions, highlighting a major growth opportunity for sustainable fuel providers.

DRIVERS

Expansion of Circular Economy Practices

Around 52% of waste-to-energy projects now include biomethane plants, with nearly 41% of municipal solid waste being redirected to renewable energy generation. Industrial demand for circular economy solutions has surged by 36%, creating robust momentum for biomethane adoption across regions.

RESTRAINTS

"High Infrastructure Costs"

Nearly 48% of potential projects face delays due to expensive biomethane upgrading and grid injection systems. Around 39% of small and medium-scale producers are unable to expand capacity owing to limited access to cost-efficient technologies and investment support.

CHALLENGE

"Policy and Regulatory Gaps"

Close to 44% of global markets lack clear biomethane injection policies, while 32% of regions struggle with inconsistent renewable energy mandates. This regulatory uncertainty has slowed adoption for nearly 29% of emerging market participants, posing a challenge for sector-wide growth.

Segmentation Analysis

The Global Biomethane Market size was USD 2.05 Billion in 2024 and is projected to touch USD 2.18 Billion in 2025 to USD 3.67 Billion by 2034, registering a CAGR of 5.96% during the forecast period [2025-2034]. Based on type and application, the market is segmented into diverse categories, each showing varied growth potential. Energy crops, animal manure, municipal waste, waste water sludge, and others are leading sources, while construction, industrial, power generation, transport, and other applications highlight increasing end-use demand. Each segment carries distinct market share percentages, with 2025 revenue distribution aligned with region-specific adoption.

By Type

Energy Crops

Energy crops dominate biomethane feedstock due to their high energy yield and efficiency. Nearly 34% of biomethane supply is derived from cultivated crops, making it a vital contributor for clean fuel initiatives. More than 40% of large-scale plants utilize energy crops, ensuring stable output for both industrial and transport use.

Energy Crops Market Size in 2025 was USD 0.74 Billion, representing 34% of the total Biomethane Market share. This segment is projected to grow at a CAGR of 6.4% from 2025 to 2034, driven by high adoption in bio-CNG and renewable energy programs.

Animal Manure

Animal manure accounts for nearly 26% of global biomethane feedstock, with dairy and livestock farming regions contributing heavily. Over 33% of rural renewable energy projects integrate biomethane from manure, ensuring both waste management and sustainable energy supply.

Animal Manure Market Size in 2025 was USD 0.57 Billion, representing 26% share, with an expected CAGR of 5.8% during 2025–2034.

Municipal Waste

Municipal waste contributes 21% of biomethane globally, supported by solid waste management policies. Around 37% of urban renewable gas projects are based on municipal waste conversion, offering strong urban adoption rates.

Municipal Waste Market Size in 2025 was USD 0.46 Billion, accounting for 21% share, with an expected CAGR of 5.5% during 2025–2034.

Waste Water Sludge

Waste water sludge accounts for nearly 12% of global biomethane, mainly supported by urban treatment plants. Around 31% of European wastewater facilities integrate biomethane recovery, making it an efficient resource channel.

Waste Water Sludge Market Size in 2025 was USD 0.26 Billion, 12% share, expected CAGR of 5.2% during 2025–2034.

Others

Other feedstocks, including forestry residues and agricultural by-products, make up 7% of global biomethane. Over 19% of small-scale projects use mixed feedstock under this category, ensuring diverse adoption.

Others Market Size in 2025 was USD 0.15 Billion, 7% share, expected CAGR of 5.1% during 2025–2034.

By Application

Construction

Construction applications use nearly 18% of global biomethane, largely for heating and on-site power generation. Around 32% of green building projects integrate biomethane as part of their renewable mix.

Construction Market Size in 2025 was USD 0.39 Billion, 18% share, CAGR 5.4% during 2025–2034.

Industrial

Industrial use accounts for 25% of biomethane demand, with chemical, food, and beverage industries leading. Nearly 39% of factories in Europe and Asia are integrating biomethane in their operations.

Industrial Market Size in 2025 was USD 0.55 Billion, 25% share, CAGR 6.2% during 2025–2034.

Power Generation

Power generation consumes nearly 27% of biomethane globally, supplying renewable electricity and heat. Around 41% of biogas power plants are now upgrading to biomethane for efficiency.

Power Generation Market Size in 2025 was USD 0.59 Billion, 27% share, CAGR 6% during 2025–2034.

Transport

Transport applications represent 22% of the market, with biomethane widely used as bio-CNG fuel. Over 36% of public transport buses in Europe and Asia run on biomethane-based fuels.

Transport Market Size in 2025 was USD 0.48 Billion, 22% share, CAGR 6.3% during 2025–2034.

Others

Other applications account for 8% of the global biomethane market, including household and small-scale rural electrification projects. Nearly 21% of rural renewable adoption uses biomethane-based systems.

Others Market Size in 2025 was USD 0.17 Billion, 8% share, CAGR 5.2% during 2025–2034.

By Type

Energy Crops

Energy crops remain the primary feedstock for the biomethane industry, driven by their superior methane yield, predictable output, and suitability for large-scale digestion systems. These crops account for nearly 34% of the global biomethane supply and continue to serve as the backbone for utility-scale biomethane plants. Their consistent quality enables reliable gas production, which is essential for transport fuel programs, industrial cogeneration, and decentralized renewable energy strategies. More than 40% of major biomethane facilities depend on dedicated energy crops, highlighting their central role in supporting the shift toward low-carbon fuel alternatives.

In 2025, the Energy Crops segment recorded a market size of USD 0.74 Billion, representing 34% of the total Biomethane Market share. This segment is projected to expand at a CAGR of 6.4% through 2034, powered by rising adoption of bio-CNG, integration of agriculture-based renewable programs, and expanding regulatory support for clean fuel generation worldwide.

Animal Manure

Animal manure contributes approximately 26% of global biomethane feedstock, reflecting the strong alignment between livestock farming and circular bioenergy systems. The segment benefits from high availability of organic waste and the dual objective of energy generation and waste reduction. Over 33% of rural renewable energy projects now rely on manure-based biomethane solutions, particularly in dairy-intensive regions where biogas plants help mitigate methane emissions while supplying dependable energy. This pathway is increasingly supported by government incentives for agricultural sustainability and climate-smart farming practices.

The Animal Manure segment reached USD 0.57 Billion in 2025, representing 26% of the total market. It is expected to grow at a CAGR of 5.8% from 2025 to 2034, driven by expanding livestock operations, emission-reduction policies, and the need for cost-efficient rural energy solutions.

Municipal Waste

Municipal waste plays a crucial role in urban biomethane generation, contributing around 21% of global output. The segment benefits from rising solid waste volumes and government-led waste-to-energy initiatives. Nearly 37% of urban renewable gas projects are built around municipal waste conversion, supporting landfill diversion goals and providing cities with cleaner energy alternatives. This feedstock also supports circularity by transforming organic fractions of municipal waste streams into usable fuel.

Municipal Waste achieved a market size of USD 0.46 Billion in 2025, accounting for 21% of global share. With a projected CAGR of 5.5% through 2034, growth is supported by urban waste management mandates and the scaling of smart city sustainability initiatives.

Waste Water Sludge

Wastewater sludge accounts for nearly 12% of global biomethane feedstock, with strong adoption in modern wastewater treatment plants. Europe leads in this segment, where 31% of wastewater facilities already integrate biomethane recovery systems. This pathway supports energy-neutral wastewater treatment and reduces the carbon footprint of municipal utilities. Sludge digestion is increasingly favored for its ability to generate grid-ready biomethane while lowering operational costs.

The Waste Water Sludge segment reached USD 0.26 Billion in 2025, contributing 12% of market share. Expected to grow at 5.2% CAGR through 2034, this segment benefits from expanding wastewater modernization programs and resource-recovery frameworks.

Others

The “Others” category, including agricultural by-products, forestry residues, and mixed organic waste, contributes 7% of global biomethane supply. These feedstocks support flexible and decentralized biomethane production, especially in rural and semi-urban regions. More than 19% of small-scale projects utilize this category to diversify feedstock portfolios, reduce costs, and adapt to seasonal variations.

The segment reached USD 0.15 Billion in 2025, representing 7% share, with projected 5.1% CAGR through 2034 driven by rural electrification and diversified biomass utilization.

By Application

Construction

The construction segment uses 18% of global biomethane output, primarily for heating, on-site operations, and sustainable building initiatives. With green construction gaining momentum, nearly 32% of environmentally certified projects incorporate biomethane within their renewable energy mix. This positions biomethane as a reliable and low-emission fuel for construction-related energy needs.

The Construction segment was valued at USD 0.39 Billion in 2025, representing 18% share, and is forecasted to grow at 5.4% CAGR through 2034.

Industrial

Industrial applications account for 25% of global biomethane demand, driven by sectors such as chemicals, food processing, and manufacturing. Nearly 39% of factories in Europe and Asia have begun integrating biomethane for heat, steam, and combined heat-and-power systems, supporting decarbonization goals and reducing reliance on fossil fuels.

The Industrial segment reached USD 0.55 Billion in 2025, representing 25% share, with expected 6.2% CAGR from 2025 to 2034.

Power Generation

Power generation remains the largest application, consuming 27% of global biomethane. Its use in renewable electricity and district heating is accelerating, as 41% of biogas plants upgrade to biomethane for higher efficiency and grid injections.

The Power Generation segment reached USD 0.59 Billion in 2025, representing 27% share, expected to grow at 6% CAGR through 2034.

Transport

The transport sector accounts for 22% of biomethane demand, supported by regulatory shifts toward clean mobility. More than 36% of public transport buses in Europe and Asia run on bio-CNG, reducing urban pollution and supporting national climate targets.

The Transport segment was USD 0.48 Billion in 2025, representing 22% share, with projected 6.3% CAGR through 2034.

Others

Other applications, including households and rural electrification, account for 8% of global biomethane demand. Nearly 21% of rural clean energy programs rely on biomethane to deliver low-cost and reliable energy solutions.

The Others segment stood at USD 0.17 Billion in 2025, representing 8% share, growing at 5.2% CAGR.

Biomethane Market Regional Outlook

The Global Biomethane Market size was USD 2.05 Billion in 2024 and is projected to reach USD 2.18 Billion in 2025, further expanding to USD 3.67 Billion by 2034 at a CAGR of 5.96% during the forecast period. Regionally, Europe accounts for the largest share at 42%, followed by Asia-Pacific with 29%, North America at 19%, and Middle East & Africa with 10%. This distribution reflects key differences in infrastructure maturity, policy incentives, feedstock availability, and sustainability commitments. Developed regions such as Europe and North America benefit from established waste management systems and regulatory pressure to decarbonize energy supply chains, while Asia-Pacific and Middle East & Africa are gaining momentum through rural electrification, industrial diversification, and rapidly increasing demand for renewable fuels. Together, these regions signal a global shift toward cleaner, more circular, and resource-efficient biomethane systems.

North America

North America holds 19% of the Biomethane Market share, supported by accelerating demand in the United States and Canada for low-carbon fuels. The region’s growth is shaped by strong federal and state-level incentives promoting renewable natural gas (RNG) adoption, especially under policies like the Low Carbon Fuel Standard (LCFS). Nearly 36% of biomethane projects in North America are associated with transport applications, including heavy-duty trucking fleets and public bus networks transitioning to bio-CNG. Around 29% of projects serve industrial sectors, where manufacturers aim to reduce emissions and energy dependence on fossil fuels. Agricultural states such as California, Wisconsin, and Texas contribute significantly through livestock manure-based biomethane production, while Canada’s rural regions leverage agricultural residues for decentralized energy systems.

North America Biomethane Market Size in 2025 was USD 0.41 Billion, representing 19% of the total market. Growth is projected at a CAGR of 5.7% from 2025 to 2034, driven by expanding transport decarbonization programs, utility companies adopting renewable gas blending, and increased corporate investments in sustainability. Ongoing enhancements in biogas upgrading technologies, along with infrastructure upgrades for gas injection into natural gas grids, are expected to further strengthen the region’s market position.

Eurpoe

Europe dominates the global biomethane landscape with a 42% share, reflecting the region’s long-standing commitment to renewable energy and circular waste management. Countries such as Germany, France, the Netherlands, and Sweden lead biomethane production through extensive municipal waste-to-energy systems and advanced agricultural biogas facilities. More than 47% of municipal waste-to-energy projects in Europe are linked to biomethane conversion, highlighting the continent’s robust policy framework that prioritizes recycling, energy recovery, and CO₂ reduction. Additionally, nearly 38% of public transport buses in major European cities operate on bio-CNG, significantly reducing urban air pollution and dependence on fossil fuels.

Europe Biomethane Market Size in 2025 was USD 0.92 Billion, representing 42% of the total market. The region is expected to grow at a CAGR of 6% from 2025 to 2034, fueled by EU directives promoting renewable fuels, energy security concerns, and ongoing investments in biomethane injection infrastructure for national gas grids. Europe continues to serve as a model for other regions by showcasing how biomethane can support climate targets, waste reduction, and energy diversification simultaneously.

Asia-Pacific

Asia-Pacific holds 29% of the global biomethane market and is one of the fastest-growing regions due to strong government support for renewable energy and rising industrial energy needs. Major economies such as China, India, and Japan are investing heavily in both rural and urban biomethane programs. Over 41% of rural renewable energy initiatives in Asia-Pacific utilize biomethane for cooking, heating, and electricity generation, helping reduce reliance on traditional biomass and fossil fuels. In parallel, nearly 32% of industrial energy transition projects in the region rely on biomass, biogas, and biomethane technologies to support high-efficiency, low-emission processes.

Asia-Pacific Biomethane Market Size in 2025 was USD 0.63 Billion, representing 29% of the total market. Expected to grow at a CAGR of 6.2% from 2025 to 2034, this expansion is driven by rapid industrialization, expanding agricultural waste availability, and government-led clean energy missions. China continues to lead in large-scale biomethane production capacity, while India is rapidly scaling up bio-CNG infrastructure as part of its national energy diversification strategy.

Middle East & Africa

Middle East & Africa represents 10% of the global biomethane market and is steadily emerging due to rising renewable energy investments and waste-to-energy initiatives. The African continent sees significant adoption of small-scale biomethane systems, with 27% of rural renewable projects integrating biomethane for lighting, cooking, and community electrification. Meanwhile, Middle Eastern nations such as the UAE and Saudi Arabia are increasingly targeting transport bio-CNG projects and industrial gas diversification as part of their long-term sustainability strategies.

Middle East & Africa Biomethane Market Size in 2025 was USD 0.22 Billion, representing 10% of the total market. This region is projected to grow at a CAGR of 5.3% from 2025 to 2034, driven by government-backed infrastructure development, renewable diversification goals, and growing interest in circular resource management. With expanding waste management systems and rising focus on energy security, the region holds strong potential for accelerated biomethane adoption in the coming decade.

List of Key Biomethane Market Companies Profiled

Investment Analysis and Opportunities in Biomethane Market

The Biomethane Market is experiencing strong investment activity with nearly 48% of total funding directed toward waste-to-energy projects. Around 36% of investors are prioritizing transport applications such as bio-CNG and LNG mobility solutions. Europe attracts nearly 42% of overall biomethane investment, while Asia-Pacific follows with 29% owing to expanding infrastructure and industrial demand. Private equity groups contribute 27% of new funding, while institutional investors account for 19% of capital inflows. Additionally, more than 33% of energy transition funds in North America are targeting biomethane infrastructure projects. These statistics highlight the growing opportunities for both large-scale and small-scale producers, making biomethane one of the fastest emerging clean energy investments globally.

New Products Development

New product development in the Biomethane Market is intensifying as more than 41% of companies are launching advanced upgrading technologies for higher efficiency. Around 37% of producers have introduced modular biomethane units suitable for small-scale farms and municipalities. Transport applications have seen nearly 32% of innovation activity, with upgraded bio-CNG and bio-LNG fuel solutions introduced for buses and heavy-duty vehicles. Additionally, 26% of developments are focused on digital monitoring systems to optimize feedstock efficiency and reduce emissions. More than 21% of technology launches target hybrid renewable projects integrating biomethane with hydrogen and solar power systems. These innovative product introductions highlight the accelerating trend of biomethane as a versatile clean energy solution.

Recent Developments

• Chevron Collaboration: Chevron partnered with regional utilities, covering nearly 12% of new biomethane supply projects in 2024. The collaboration focuses on renewable transport fuel integration across multiple cities.
• Waga Energy Expansion: Waga Energy expanded its biomethane upgrading units in Europe, increasing capacity by 15% in 2024, with new projects integrated into municipal solid waste processing plants.
• Air Liquide Innovation: Air Liquide launched high-efficiency biomethane purification systems in 2024, reducing emissions by 18% while increasing gas recovery rates by 22% in large-scale plants.
• Verbio Vereinigte Bioenergie AG Projects: Verbio expanded in North America with biomethane projects utilizing agricultural residues, adding 14% capacity growth in 2024 compared to the previous year.
• TotalEnergies Renewable Transport Initiatives: TotalEnergies invested in bio-CNG fueling stations in 2024, covering nearly 19% of its European fleet operations, accelerating adoption in heavy transport applications.

Report Coverage

The Biomethane Market report provides a comprehensive analysis of global market dynamics, covering detailed insights by type, application, and region. The study highlights that Europe leads the global market with 42% share, followed by Asia-Pacific at 29%, North America at 19%, and Middle East & Africa at 10%. By type, energy crops contribute 34% of the total market share, while animal manure accounts for 26%, municipal waste for 21%, wastewater sludge for 12%, and others for 7%. On the application front, power generation leads with 27% share, industrial usage at 25%, transport at 22%, construction at 18%, and others at 8%. The report also analyzes investment patterns, showing that nearly 48% of capital is being directed towards waste-to-energy projects, while 36% targets the transport fuel sector. It provides in-depth coverage of key players, including TotalEnergies, Engie, Air Liquide, Chevron, Gasum, and others, profiling their market strategies and competitive strengths. Furthermore, the report outlines key developments such as product launches, expansions, and partnerships, with 41% of companies focusing on new technologies. This coverage ensures stakeholders gain strategic insights into opportunities, restraints, and drivers shaping the biomethane market globally.