Waste-Derived Biogas Global Market Report 2025

The waste-derived biogas market size has grown strongly in recent years. It will grow from $58.7 billion in 2024 to $63.74 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to rise in environmental awareness, rise in energy demand from the commercial and industrial sectors, rise in concern about overuse of fossil fuels, rising demand for biomethane in transportation and increasing research and developments efforts.

The waste-derived biogas market size is expected to see strong growth in the next few years. It will grow to $89.96 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to growing corporate initiatives, rising need for renewable energy sources, rising environmental awareness, increasing industrial utilization of biogas and increasingly adopting biogas systems. Major trends in forecast period includes development of biogas-powered vehicles, smart sensors and AI are optimizing biogas plant operations, advanced anaerobic digestion, smart biogas monitoring, and integrated waste management systems.

The forecast of 9% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariffs on biogas purification and upgrading technologies, especially membrane separation units from key European suppliers, are likely to affect the cost structure of U.S. waste-derived biogas facilities, potentially delaying expansion and commercialization efforts. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

Increasing awareness about environmental protection is expected to drive the growth of the waste-derived biogas market in the coming years. Environmental protection refers to the efforts aimed at safeguarding the natural environment from harmful human activities through regulations, policies, and sustainable practices to maintain ecosystem health and biodiversity. This rising awareness is fueled by stricter environmental regulations and growing public concern about climate change. As governments and communities acknowledge the importance of sustainable practices, there is a stronger push for solutions such as waste-derived biogas that help mitigate environmental damage. Waste-derived biogas contributes to environmental protection by reducing landfill waste, cutting methane emissions, and providing a clean, renewable energy source that replaces fossil fuels. For instance, in August 2024, according to the Office for National Statistics, a UK government agency, the Environmental Protection Expenditure (EPE) survey reported a total spending of £2.2 billion ($2.42 billion) in 2022, a 10% increase from £2 billion ($2.2 billion) in 2021. Therefore, the growing emphasis on environmental protection is driving the growth of the waste-derived biogas market.

Leading companies in the waste-derived biogas market are forming strategic partnerships to develop advanced biogas upgrading systems. These collaborations help to advance research and development, expand market reach, and accelerate commercialization. By uniting resources and expertise, strategic partnerships foster innovation and support the wider adoption of waste-derived biogas solutions. For instance, in June 2023, Mapfre S.A., a Spain-based insurance company, partnered with Abante, a Spain-based financial advisory and asset management firm, and IAM Carbonzero, an energy sector specialist, to launch MAPFRE Energías Renovables II, FCR, Europe’s first biomethane mutual fund. This initiative aims to invest in the development of 20-25 biomethane power plants in Spain over five years, supporting energy independence, sustainability, and ESG (Environmental, Social, and Governance) investments, while targeting a return of 12%-15% annually. The investment focuses on biomethane, a fully renewable biofuel derived from animal and vegetable waste, which can be integrated into the natural gas grid, used to generate electricity, and serve as an alternative fuel source.

In December 2022, BP plc, a UK-based oil and gas company, acquired Archaea Energy for an undisclosed amount. This acquisition enables BP to accelerate its bioenergy growth, support its decarbonization goals, and expand its footprint in the U.S. biogas market, boosting its financial performance and advancing its commitment to achieving net-zero emissions. Archaea Energy Inc. is a US-based company that specializes in the production of waste-derived biogas.

Waste-derived biogas is a renewable energy source produced through the anaerobic digestion of organic waste materials. This process occurs when microorganisms break down biodegradable waste - such as agricultural residues, food waste, or municipal solid waste - in an oxygen-free environment. The resulting biogas, composed mainly of methane and carbon dioxide, can be used for electricity and heat generation or even as vehicle fuel after proper upgrading.

The main sources of waste-derived biogas include agricultural waste, industrial waste, municipal waste, and other organic sources. Agricultural waste consists of organic residues from farming activities, which can be processed in anaerobic digesters to produce biogas for renewable energy. The technology used in biogas production includes anaerobic digestion and landfill gas recovery. Biogas is utilized for various applications, such as electricity generation, heat production, vehicle fuel, and other purposes. It serves a range of end-users, including residential, commercial, industrial, and utility sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials - such as rare earth elements vital for clean energy technologies - posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.

The waste-derived biogas market research report is one of a series of new reports that provides waste-derived biogas market statistics, including the waste-derived biogas industry global market size, regional shares, competitors with the waste-derived biogas market share, detailed waste-derived biogas market segments, market trends, and opportunities, and any further data you may need to thrive in the waste-derived biogas industry. This waste-derived biogas market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Major players in the waste-derived biogas market are Cargill Inc., Air Liquide S.A., Wartsila Corporation, Ameresco Inc., Clarke Energy Ltd., EnviTec Biogas AG, Greenlane Renewables Inc., Zorg Biogas AG, Waga Energy S.A., Gasum Oy, DMT Environmental Technology B.V., bwe Energiesysteme GmbH & Co. KG, Vanguard Renewables LLC, Hitachi Zosen Inova AG, PlanET Biogas Global GmbH, StormFisher Environmental Ltd., Quadrogen Power Systems Inc., Schmack Biogas GmbH, Bright Renewables B.V., BEKON Energy Technologies GmbH & Co. KG, Green Elephant Biogas Pvt. Ltd., Veolia Environnement S.A., SP Renewable Energy Sources Pvt. Ltd.

North America was the largest region in the waste-derived biogas market in 2024. Asia pacific is expected to be the fastest-growing region in the forecast period. The regions covered in waste-derived biogas report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the waste-derived biogas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The waste-derived biogas market consists of revenues earned by entities by providing services such as biogas plant development and installation, waste collection and pre-treatment services, biogas upgrading and purification, operation and maintenance services, and biogas-to-energy solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The waste-derived biogas market also includes sales of products including biogas digesters, biogas upgrading systems, gas storage tanks, combined heat and power (CHP) units, and biogas-powered generators. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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