Biomethane Market Size - Regional Outlook, Growth Potential, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2025 - 2034

Biomethane Market Size

The global biomethane market generated substantial revenues in 2024 and is expected to grow at a moderate CAGR from 2025 to 2034, driven by the mounting concerns of environmental sustainability, rising energy demands, and the move toward decarbonization in the development of energy. The biomethane product is derived from the anaerobic digestion or gasification of organic materials (agricultural/wastewater sludge/municipal waste). Biomethane being renewable is valuable. With the existing natural gas infrastructure, biomethane supports shrubs to reduce greenhouse gas emissions and helps the world transition to cleaner fuels.

Moreover, due to the increasing adoption of biomethane in transportation (which is commonly used in the compressed form of bio-CNG for buses and other bus and fleet applications), this product can chart new revenue streams and improve the appeal for the market. For instance, Maruti Suzuki launched its first electric vehicle (EV) within the financial year and actively promoted eco-friendly technologies, including strong hybrids, biogas, flex fuel, and CNG. It provided customers with a range of choices across various price points, and it aimed to lower emissions and reduce fuel consumption.
 

Government policies supporting the integration of renewable energy sources, along with governing obligations to reduce and decrease carbon footprints, have greatly aided in achieving the momentum of the market. In addition, the increased acceptance of biomethane in the transportation, industrial heating, and electricity sectors has further defined it as a sustainable fuel alternative. Also, as global energy systems continue to change towards circular economy models and low-emission sources, biomethane's position within future energy portfolios will be strengthened.
 

Significant investments are coming from several countries with aggressive goals to reduce their greenhouse gas emissions and diversify energy supply by enabling biogas, and/or biomethane to be integrated into their national energy grids. These regulatory frameworks have encouraged investment in the development and production of biomethane from both the private and public sectors. However, there are limitations on market growth, chiefly high capital costs, with the most substantial costs associated with upgrading biogas to pipeline-quality biomethane.
 

Also, infrastructure gaps in developing geographies, feedstock availability, and quality concerns over biomethane production continuity constrain the market. Further, several regions still do not have inherent infrastructure with gas grid connectivity, or incentives to support investment in biomethane projects.
 

Biomethane Market Trends

The biomethane industry is maturing and embedding itself into energy networks via several trends. One likely trend will be the growing diversification of feedstock types by including agricultural waste, organic waste, industrial organic waste, and algae-based systems. Companies are establishing multi-feedstock biogas facilities to enable sustainable supply chains. Another trend is developments in the biogas technology itself, including anaerobic digestion and membrane separation. As the technology develops it has become increasingly economically viable to convert biogas to high-purity biomethane.
 

There is also a trend toward the increased application of biomethane alternatives to decarbonize heavy-duty transport sectors. There are various governments and logistics companies working to advance bio-CNG and bio-LNG fueling infrastructure reducing diesel reliance. There is also increased application of integration with hydrogen systems, more so as a hybrid renewable source. We see an increased push for carbon capture and utilization technologies located near biomethane to reduce net emissions and further advance systems that can be classified as negative-emission fuels.
 

Biomethane Market Analysis

The agricultural waste segment held the largest share in 2024. Agricultural residues are a readily available and sustainable feedstock for biomethane, and agricultural residues are found in rural areas, which enables an efficient method to address methane from open decomposing waste. Government and environmental agencies have increasingly recognized the potential for energy from agricultural waste and have started programs and funding initiatives for farm-based anaerobic digestion monitoring.
 

In addition, the increasing number of cooperatives and partnerships between farmers and energy developers provides more cost-sharing and adds a local or community character to marketing energy as supplementary revenue. In addition to surfacing clean fuel for agricultural use, agricultural biomethane plants can contribute to nutrient recycling, and digestate, as a by-product of biogas production, can be a valued fertilizer. With added pressure on farmers about how and where to manage waste sustainably, a biomethane project surfaces as the simplest answer while reducing farmer environmental impacts and alternative sources of revenue generation.
 

North America biomethane market is predicted to grow steadily at a decent CAGR through 2034. The development of the biomethane industry in the region is strong due to increasing biogas infrastructure, active government policy support, and rising decarbonization efforts in both energy and transportation. The United States has demonstrated some of its success in biomethane development in its Renewable Fuel Standard (RFS) program. This program incentivizes the use of renewable natural gas (RNG) (or biomethane) as a vehicle fuel. Canada specified the Clean Fuel Regulations emphasize value added to low-carbon fuels in national supply chains and enable biomethane to enter this value proposition.
 

The number of investments in anaerobic digestion facilities has been rapidly growing, especially in agribusiness hubs and food processing areas. As municipalities and logistics hubs deploy fleets of RNG vehicles, the use of biomethane as a vehicle fuel has bolstered. These vehicles also rely on RNG public-private partnerships - which has also enabled utilities to inject biomethane into the local gas grid to reduce the carbon intensity of their gas and heating supply. However, both lack of access to gas grid systems and significant development costs are a challenge, especially considering the cost of new and existing infrastructure (e.g. pipeline extensions) to site builds. That said, greatly improved economics from new carbon credit trading systems and green gas certification programs will support continued development.
 

Biomethane Market Share

Leading key players in the global biomethane industry include:

• ETW Energietechnik
• Green Elephant
• SoCalGas
• J V Energen
• Verbio
• Gazasia
• Mailhem Ikos Environment
   

To fortify their positions in a biomethane economy, different firms have used a number of different strategies. The first strategy used was partnerships/joint ventures with, and long-term feedstock agreements with agricultural cooperatives and municipalities to build local plants to produce biomethane from agriculture and food waste. Another opportunity for scale is pursuing both regional and large-scale partnerships through partnerships with municipalities that have an established cap and trade market and other financial incentives to help offset capital expenditures.
 

The other strategy firms have used is investing heavily in upgrading biogas upgrading technologies including but not limited to, membrane separation and pressure swing technologies, among others, to decrease the costs of purifying, the costs of components, and to improve the grade of biomethane from the feedstock. A third, but noteworthy, strategy was to horizontally diversify by expanding offerings that can be sold in adjacent markets such as biofertilizers and CO₂ recovery. Lastly, the companies are also using sustainability certifications, green gas labels, and carbon credits effectively to gain customers and investors interested in the 'green' renewable energy lifecycle process.  
 

Biomethane Market News

• In March 2025, TotalEnergies SE commissioned its eighth biomethane production facility in France. The new BioNorrois plant in Fontaine-le-Dun injected 153 gigawatt-hours (GWh) of biomethane annually into Natran’s natural gas transmission network, which meets the yearly gas needs of over 30,000 people.
   
• In February 2025, Poland inaugurated its first odorless biomethane plant, located at the Agricultural Experimental Farm in Brody. The installation, owned by the University of Life Sciences in Pozna, has an electric capacity of 0.499 MW and produced around 650,000 cubic meters of biomethane annually. The biomethane was compressed for use as bioCNG fuel emphasizing the plant’s odorless operation as a major advancement.