Biogas Plant Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Operation Mode (Continuous Flow Filling, Semi-Batch Filling), By Size (Large Size Biogas Plant, Small Size Biogas Plant), By Feedstock Type (Agricultural Waste, Animal Waste, Sewage Sludge, Industrial Waste, Others), By Application (Electricity Generation, Heat Generation, Biofuel Generation), By Industry Verticals (Energy and Power, Oil and Gas, Automotive, Others), By Region, By Competition Forecast 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.23 Billion
CAGR (2026-2031)	6.03%
Fastest Growing Segment	Electricity Generation
Largest Market	Asia Pacific
Market Size (2031)	USD 8.85 Billion

Market Overview

The Global Biogas Plant Market will grow from USD 6.23 Billion in 2025 to USD 8.85 Billion by 2031 at a 6.03% CAGR. Biogas plants are specialized industrial facilities that utilize anaerobic digestion to convert organic substrates, such as agricultural residues and municipal waste, into renewable energy and nutrient-rich digestate. The primary drivers propelling this market include the global imperative to decarbonize energy grids and stringent government mandates requiring sustainable waste management practices. These fundamental factors provide a robust foundation for industry growth, distinct from temporary technological shifts, by establishing long-term demand for renewable natural gas and electricity generation derived from biological sources.

However, the expansion of the sector is frequently hampered by high upfront capital costs and complex permitting procedures that create barriers to entry for developers. These financial and regulatory hurdles can significantly slow the deployment of new infrastructure in developing regions. According to the American Biogas Council, in 2025, the United States biogas industry brought 125 new projects online during the previous year representing over 3 billion dollars in new capital investments. This statistic underscores the substantial economic resources necessary to overcome development challenges and sustain market momentum.

Key Market Drivers

Implementation of Supportive Government Policies and Financial Incentives acts as a primary catalyst for the Global Biogas Plant Market by mitigating the high initial capital expenditures associated with anaerobic digestion infrastructure. State-sponsored mechanisms, such as feed-in tariffs and renewable energy certificate programs, provide revenue certainty for developers, thereby unlocking private project financing. According to Ofgem, July 2025, in the 'Green Gas Support Scheme: annual report April 2024 to March 2025', the scheme provided £20.1 million in support payments to registered participants based on 321.7 GWh of eligible green gas injected into the grid. Such direct financial injections are critical for bridging the economic viability gap for new bio-methanation facilities, ensuring that projects can transition from the permitting phase to active operation despite fluctuating energy prices.

Rising Demand for Renewable Natural Gas in the Transportation Sector is simultaneously accelerating market expansion as fleet operators seek carbon-negative alternatives to diesel. This trend is particularly evident in the heavy-duty logistics industry, where electrification remains challenging, driving a sustained requirement for upgraded biogas. According to Clean Energy Fuels Corp., February 2025, in the 'SEC 10-K Report', the company sold 236.7 million gasoline gallon equivalents of renewable natural gas in 2024, reflecting a robust uptake in the mobility segment. This surging consumption incentivizes the construction of dedicated upgrading units at existing and new plants. Consequently, the infrastructure footprint is widening in key markets; according to Bioenergy News, December 2025, Europe closed 2024 with 1,620 biomethane-producing facilities, illustrating the tangible scale of capacity growth responding to these sectoral demands.

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Key Market Challenges

High upfront capital costs and complex permitting procedures constitute a formidable barrier to the expansion of the Global Biogas Plant Market. Developing these facilities requires significant financial outlay for advanced anaerobic digestion technology, feedstock pre-treatment systems, and grid interconnection infrastructure. This capital intensity often deters investors who seek quicker returns, particularly in regions where financial incentives are inconsistent or insufficient to offset initial expenditures. Consequently, many potential projects stall in the feasibility phase, unable to secure the necessary funding to navigate the lengthy construction and commissioning timelines.

Furthermore, regulatory complexities exacerbate these financial burdens. Developers must navigate a fragmented landscape of environmental permits, zoning laws, and waste handling regulations that vary significantly by jurisdiction. This bureaucratic red tape delays project realization and increases development costs, making it difficult for new market entrants to absorb the financial risk. According to the European Biogas Association, in 2024, the biomethane sector was projected to require 27 billion euros in private investment by 2030 to effectively scale capacity. This magnitude of required funding highlights the severity of the financial hurdles, which, combined with regulatory delays, directly restricts the speed of infrastructure deployment and limits overall market growth.

Key Market Trends

The integration of Carbon Capture, Utilization, and Storage (CCUS) systems is transforming biogas facilities from simple energy producers into carbon-negative hubs. Operators are increasingly installing liquefaction units to capture the biogenic carbon dioxide stream—historically vented as a byproduct of upgrading—to supply industrial markets or for permanent geological sequestration. This technological evolution allows plants to monetize a secondary revenue stream while significantly lowering their carbon intensity scores, which is crucial for complying with tightening emission regulations. According to the European Biogas Association, December 2024, in the 'Statistical Report 2024', estimates project that more than 650,000 tonnes of biogenic CO2 could be captured annually from biomethane plants by 2027, highlighting the rapid scaling of this technology.

Strategic diversification into lignocellulosic and agricultural waste feedstocks is simultaneously reshaping the market's operational foundation, moving away from a reliance on energy crops and landfills. Developers are prioritizing substrates such as livestock manure and crop residues to ensure long-term sustainability and avoid competition with food systems. This shift is driving a surge in farm-based infrastructure, where anaerobic digesters are specifically tailored to process high-volume, fibrous organic matter. According to the American Biogas Council, February 2025, in the '2024 Biogas Industry Data' report, the United States saw the agriculture-based digester segment grow by 24% year-over-year in 2024, significantly outpacing other project types. This trend indicates a structural realignment towards circular agriculture models that manage waste while generating renewable energy.

Segmental Insights

The Electricity Generation segment is identified as the fastest growing area in the Global Biogas Plant Market, primarily due to the rising global demand for reliable, baseload renewable energy. Unlike intermittent sources such as solar or wind power, biogas facilitates continuous electricity production, effectively stabilizing national grids and ensuring energy security. This rapid expansion is significantly accelerated by supportive regulatory frameworks and financial incentives, such as Feed-in Tariffs, implemented by environmental agencies and governments worldwide to reduce carbon footprints. Furthermore, the increasing electrification of industrial and rural sectors continues to drive the widespread adoption of biogas-based power generation technologies.

Regional Insights

Asia Pacific dominates the Global Biogas Plant Market, primarily due to the region's expansive agricultural sector and accelerating industrialization. This leadership is underpinned by the abundant availability of organic feedstocks, such as livestock manure and crop residues, which facilitates consistent bioenergy production. Furthermore, strategic government interventions act as a critical catalyst for market expansion. Institutions such as China’s National Development and Reform Commission and India’s Ministry of New and Renewable Energy have established robust regulatory frameworks to incentivize infrastructure development. These policies effectively align waste management challenges with renewable energy goals, securing the region's commanding market position.

Recent Developments

• In December 2024, WELTEC BIOPOWER was commissioned by the recycling enterprise Eco Sustainable Solutions Ltd. to construct a new biomethane plant near Bournemouth Airport in the United Kingdom. The German plant manufacturer was selected to deliver a facility capable of processing household waste and agricultural residues into renewable gas for the national grid. The project specifications included the installation of stainless steel digesters and advanced control systems to ensure efficient anaerobic digestion. This development marked a continuation of the collaboration between the two companies, building upon their history of successful joint biogas projects in the region.
• In September 2024, Evonik introduced a new product to the biogas upgrading market by launching the SEPURAN Green G5X 11" membrane. This advanced hollow-fiber membrane was designed to offer higher capacity and efficiency for separating carbon dioxide from methane, thereby optimizing the production of biomethane. The product launch addressed the growing demand for large-scale biogas processing solutions that require fewer membrane modules while maintaining high purity levels. Evonik claimed that this innovation would enable plant operators to reduce installation space and operational costs, supporting the industry's drive towards more cost-effective renewable gas generation.
• In April 2024, TotalEnergies entered into a significant collaboration with Vanguard Renewables to develop renewable natural gas (RNG) projects in the United States. The two companies signed an agreement to establish an equally owned joint venture dedicated to building and operating facilities that convert food biowaste and farm manure into RNG. The partnership aimed to launch ten initial projects over the following year, with a long-term goal of creating a substantial pipeline of developments across the country. This alliance combined TotalEnergies’ global expertise in large-scale energy projects with Vanguard Renewables’ established leadership in the American organics-to-energy market.
• In March 2024, Hitachi Zosen Inova expanded its capabilities in the renewable gas sector by acquiring a majority stake in Schmack Biogas Srl, an Italian biogas business. This strategic move allowed the Swiss clean energy solutions provider to integrate Schmack Biogas’s wet fermentation technology into its portfolio, complementing its existing dry anaerobic digestion offerings. The acquisition was aimed at strengthening the company's position in the Italian market and enhancing its ability to deliver comprehensive solutions for generating energy from agricultural and food waste. By combining their respective expertise, the entities planned to accelerate the deployment of biogas plants across Europe.

Key Market Players

• EnviTec Biogas AG
• Weltec Biopower Gmbh
• Ameresco Inc
• AB Holding SpA
• StormFisher
• Verbio Vereinigte BioEnergie AG
• Greenlane Renewables Inc
• WTS Wiltfang GmbH & Co. KG
• Haarslev Industries A/S
• PlanET Biogas Global GmbH

By Operation Mode	By Size	By Feedstock Type	By Application	By Industry Verticals	By Region
Continuous Flow Filling Semi-Batch Filling	Large Size Biogas Plant Small Size Biogas Plant	Agricultural Waste Animal Waste Sewage Sludge Industrial Waste Others	Electricity Generation Heat Generation Biofuel Generation	Energy and Power Oil and Gas Automotive Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biogas Plant Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biogas Plant Market, By Operation Mode:

• Continuous Flow Filling
• Semi-Batch Filling

• Biogas Plant Market, By Size:

• Large Size Biogas Plant
• Small Size Biogas Plant

• Biogas Plant Market, By Feedstock Type:

• Agricultural Waste
• Animal Waste
• Sewage Sludge
• Industrial Waste
• Others

• Biogas Plant Market, By Application:

• Electricity Generation
• Heat Generation
• Biofuel Generation

• Biogas Plant Market, By Industry Verticals:

• Energy and Power
• Oil and Gas
• Automotive
• Others

• Biogas Plant Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE