Rising concerns regarding greenhouse gasses emissions and the implementation of stringent regulations to reduce fossil fuel dependency are encouraging countries to shift from using conventional sources of energy to biomass-derived sources such as biogas and bioethanol. On account of this, the biogas market is estimated to expand at a CAGR of 6.8% during the forecast period from 2021-2031.
Renewable sources of energy such as biogas are increasingly gaining acceptability as an alternative to petrol and diesel across the transportation sector. It is extensively being used in natural gas vehicles (NGVs) and dual-fuel vehicles in countries such as the U.S., Germany, Sweden, and the U.K. Driven by this, the sales of biogas are anticipated to rise year-over-year at 7.1% between 2020 and 2021.
Moreover, increasing consumer inclination towards adoption of biogas owing its advantages such as cost reduction, high vehicular performance, and sustainability is driving the market. Considering this, the demand for biogas is projected to grow in tandem with surging fuel consumption across the world.
In terms of source, municipal is likely to emerge as the most attractive segment in the market through 2031. Increasing utilization of municipal solid waste (MSW) and water treatment for the production of biogas is facilitating the growth in the segment.
“Growing utilization of anaerobic digestion plants for biogas production and introduction of the circular economy across the U.S., India, and China are expected to augment the growth in the biogas market,” says an FMI analyst.
Key Takeaways from Biogas Market Study
- The North America market is estimated to expand at 1% CAGR through 2031 owing to implementation of favorable government policies promoting biogas production in the U.S.
- Favored by the increasing demand for renewable sources of energy in the U.K. and Germany, the sales of biogas in Europe are expected to rise at a CAGR of 5.9% over the assessment period.
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China is projected to emerge as the most lucrative market in East Asia, on the back of deployment of large-scale biogas plants in the country.