Biogas Upgrading Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Water Wash, Chemical Scrubbing, Pressure Swing Adsorption (PSA), Membrane Separation, Cryogenic Separation), By Application (Municipal, Industrial, Agricultural), By Region, By Competition, 2020-2030F

Market Overview

Global Biogas Upgrading Equipment Market was valued at USD 8.6 billion in 2024 and is expected to reach USD 16.3 billion by 2030 with a CAGR of 11.1% through 2030. The Global Biogas Upgrading Equipment Market is driven by the rising demand for renewable energy, particularly Renewable Natural Gas (RNG), as governments and industries strive to reduce greenhouse gas emissions and transition away from fossil fuels. Stricter environmental regulations and international climate targets are pushing for cleaner energy sources, positioning upgraded biogas as a key solution. Biogas upgrading equipment transforms raw biogas into biomethane suitable for injection into natural gas grids or for vehicle fuel, enhancing energy efficiency and sustainability.

Advancements in technologies such as Pressure Swing Adsorption (PSA), membrane separation, and cryogenic processes have significantly improved the efficiency, reliability, and affordability of upgrading systems, spurring wider adoption. Additionally, growing investments in circular economy initiatives and waste-to-energy projects—especially in municipal solid waste, wastewater treatment, and agricultural sectors—are fostering market expansion. Digitalization and smart monitoring solutions are further optimizing plant performance and reducing operational costs. Supportive government policies, including subsidies and feed-in tariffs, particularly in Europe and North America, are accelerating deployment. Meanwhile, the Asia-Pacific region is witnessing rapid growth due to increasing energy needs and sustainability goals. These factors collectively contribute to the strong outlook and expansion of the global biogas upgrading equipment market.

Key Market Drivers

Rising Demand for Renewable Natural Gas (RNG) and Energy Transition Goals

One of the primary drivers of the global biogas upgrading equipment market is the surging demand for Renewable Natural Gas (RNG), also known as biomethane. This demand is a direct result of the global shift toward clean energy and the urgent need to reduce greenhouse gas emissions. As countries aim to meet their climate targets under international agreements such as the Paris Agreement, they are increasingly turning to low-carbon and carbon-neutral fuels. Biogas, when upgraded to biomethane using specialized equipment, serves as a direct substitute for fossil-based natural gas, providing a sustainable energy source for power generation, heating, and transportation. 

The upgraded biomethane has a methane content of over 90%, comparable to pipeline-quality natural gas. It can be injected directly into existing gas grids, reducing dependence on fossil fuels without requiring major infrastructure changes. In addition, RNG can be used as a vehicle fuel, especially in heavy-duty transportation sectors where electrification is less viable. This versatility is leading utilities, municipalities, and transport companies to invest in biogas upgrading facilities. 

Moreover, RNG offers the added benefit of carbon-negative potential when derived from organic waste materials such as agricultural residues, wastewater, and food waste. This aligns with the circular economy model, wherein waste is transformed into a valuable resource, promoting environmental sustainability and economic efficiency. The widespread availability of organic waste worldwide presents a significant opportunity for decentralized energy production using upgraded biogas.

Government support also plays a critical role in driving RNG demand. Many countries in Europe and North America have implemented feed-in tariffs, tax credits, grants, and subsidies specifically targeted at RNG projects. For example, California’s Low Carbon Fuel Standard (LCFS) offers financial incentives for using low-carbon fuels, making RNG production more financially attractive. Similar policies in Germany, Sweden, the Netherlands, and France are also fostering market growth.

The industrial sector is another important contributor, with companies adopting RNG to decarbonize their operations. RNG’s compatibility with existing gas infrastructure makes it a low-barrier solution for industrial users seeking to reduce their carbon footprint. Furthermore, corporations are under growing pressure from investors and stakeholders to meet Environmental, Social, and Governance (ESG) goals—making RNG a compelling option. Global renewable energy capacity reached over 3,200 gigawatts (GW) by the end of 2023, nearly tripling from about 1,100 GW in 2010 (IRENA). In 2022, renewable sources accounted for approximately 29% of global electricity generation, up from 20% in 2010 (IEA). Solar photovoltaic (PV) capacity grew from 40 GW in 2010 to more than 1,000 GW by 2023, making it the fastest-growing renewable energy technology worldwide (IRENA). Wind power capacity expanded from 160 GW in 2010 to over 830 GW by 2023, supplying around 8% of global electricity demand (Global Wind Energy Council). Investment in renewable energy reached over USD 500 billion in 2023, more than doubling since 2010 (UNEP).

Technological Advancements in Biogas Upgrading Systems

The biogas upgrading equipment market is significantly driven by ongoing technological advancements that have enhanced the efficiency, affordability, and scalability of upgrading systems. Traditional raw biogas typically contains 50–65% methane and a mix of other gases such as carbon dioxide (CO₂), hydrogen sulfide (H₂S), moisture, and trace contaminants. Upgrading equipment refines this mixture, removing non-methane gases to produce high-purity biomethane suitable for commercial use. Innovations in the underlying technologies have made this process more energy-efficient and cost-effective, making it increasingly viable for small- and large-scale applications.

Among the major technologies used, Pressure Swing Adsorption (PSA) and membrane separation have seen significant advancements. PSA technology, for instance, now allows for higher methane recovery rates with lower energy consumption. Membrane technology has also evolved with multi-stage configurations and improved polymer materials that enhance gas selectivity and durability. These improvements enable operators to achieve higher gas purity with reduced operational downtime and maintenance costs.

Other methods, such as chemical absorption, cryogenic separation, and water scrubbing, are also being optimized for specific use cases, including agricultural digesters, wastewater treatment plants, and landfill gas systems. Hybrid systems that combine multiple technologies—such as PSA with membrane or water scrubbing with chemical absorption—are becoming increasingly popular as they allow for greater customization, better methane recovery, and higher economic returns.

Automation and digital integration are further enhancing the performance of upgrading plants. Advanced monitoring and control systems powered by IoT (Internet of Things) and AI (Artificial Intelligence) technologies are enabling real-time tracking of gas composition, pressure, flow, and system health. This digitalization not only reduces labor costs but also improves safety, enhances uptime, and enables predictive maintenance, reducing the risk of unexpected breakdowns.

Furthermore, modular designs and containerized systems are gaining traction, particularly in rural and decentralized energy settings. These plug-and-play units can be quickly deployed, scaled up or down depending on feedstock availability, and relocated if needed. This flexibility is particularly important in emerging markets and small-scale agricultural or community-owned plants.

Research and development efforts continue to focus on improving methane recovery rates, reducing capital and operating costs, and increasing system lifespan. Public-private partnerships, university collaborations, and government-funded innovation programs are fueling progress in this area.

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Key Market Challenges

High Capital and Operational Costs

One of the most significant challenges facing the global biogas upgrading equipment market is the high initial capital expenditure (CAPEX) and ongoing operational expenditure (OPEX) associated with installing and maintaining upgrading systems. Unlike simpler renewable energy solutions such as solar or wind, biogas upgrading requires complex infrastructure, including digesters, upgrading modules (e.g., PSA, membrane, or chemical scrubbers), pre-treatment units, compressors, and post-treatment systems. These components collectively lead to high setup costs, often making the investment unviable without government incentives or long-term power purchase agreements.

For small- and medium-sized biogas producers—especially in developing regions or rural areas—the upfront costs are often prohibitive. Even where feedstock is abundantly available (e.g., agricultural waste, municipal solid waste, or wastewater sludge), many potential developers are unable to access the required capital to install upgrading units. Financial institutions often perceive such projects as high-risk due to uncertain returns and technical complexities, further limiting access to credit and financing.

Additionally, operational costs are significant. For instance, technologies like chemical scrubbing or cryogenic separation involve energy-intensive processes or require the continuous purchase of absorbents and refrigerants. Even technologies deemed more cost-efficient, such as membrane separation or PSA, incur costs related to maintenance, filter replacements, and methane losses during separation. Moreover, biogas composition can vary considerably depending on the type and quality of feedstock, requiring continuous monitoring and adaptive control systems, which add to operational complexity and expense.

Furthermore, unlike fossil fuel plants, RNG projects often have uncertain revenue models. Feed-in tariffs or incentives that support these projects may be subject to policy changes, political decisions, or expiration timelines. Without guaranteed long-term returns, investors may be hesitant to support these projects, especially in regions where policy frameworks are not well-established or consistent.

Another economic concern is scale dependency. While larger centralized biogas plants can achieve economies of scale and justify the investment in upgrading equipment, smaller decentralized plants struggle to achieve similar cost efficiencies. As a result, the market tends to favor industrial and municipal projects over small agricultural or rural projects—limiting widespread adoption.

In summary, the high capital and operational costs, combined with inconsistent revenue models and limited access to financing, significantly constrain the growth of the biogas upgrading equipment market. Until cost structures are further optimized and financial support mechanisms become more stable and accessible, this challenge is likely to remain a key barrier, particularly in emerging economies where the potential for biogas is high but the financing ecosystem is underdeveloped.

Infrastructural and Regulatory Limitations

Another major challenge hampering the growth of the global biogas upgrading equipment market is the lack of adequate infrastructure and supportive regulatory frameworks, particularly in developing countries. Even in regions with considerable feedstock availability—such as agricultural waste, municipal solid waste, and industrial organic residues—the absence of supporting infrastructure severely limits the ability to collect, process, and distribute upgraded biogas (RNG) efficiently and economically.

One of the most critical infrastructural limitations is the lack of gas grid connectivity. Many rural or semi-urban biogas production sites are located far from existing natural gas pipelines, making it difficult or impossible to inject upgraded biomethane into the grid. Building new pipeline infrastructure specifically for these locations is often cost-prohibitive and time-consuming. As a result, many potential biogas upgrading projects are either shelved or converted into low-value applications such as electricity generation or heating for on-site use—limiting their commercial potential.

In addition, storage and distribution networks for RNG are underdeveloped in many parts of the world. Unlike liquid fuels, RNG requires high-pressure compression or liquefaction for effective transportation, which involves expensive infrastructure investments such as CNG or LNG filling stations, cylinder packs, and mobile units. Without these systems in place, it becomes difficult to commercialize upgraded biogas beyond local usage.

Regulatory uncertainty further compounds the problem. In many developing economies, policies governing biogas production, upgrading, and sale are either absent or inconsistent. A lack of clear standards for biomethane quality, grid injection protocols, and environmental compliance creates confusion among stakeholders and discourages private investment. In some countries, RNG is still not recognized as a distinct renewable energy source, which prevents project developers from accessing financial incentives or carbon credits available to other renewable energy sources like solar or wind.

Even in developed countries, where frameworks are more mature, regulatory bottlenecks exist. For example, permitting processes can be lengthy and complex, particularly in jurisdictions with multiple layers of environmental and safety compliance. Inconsistent or regionally fragmented policies—such as varying feed-in tariffs, grid injection standards, or taxation regimes—can hinder cross-border collaboration or scalability of projects.

Moreover, biogas projects often require collaboration between multiple stakeholders, including municipalities, private companies, agricultural cooperatives, and utility providers. Misalignment in interests or unclear roles among stakeholders can delay or derail project implementation.

Key Market Trends

Integration of Digitalization and Smart Monitoring Systems

A prominent trend in the global biogas upgrading equipment market is the increasing integration of digitalization and smart monitoring technologies. As the biogas industry evolves from small-scale, manually operated units to large-scale, automated plants, there is a growing need to enhance operational efficiency, reduce downtime, and ensure consistent gas quality. This has led to a surge in the adoption of digital tools such as IoT (Internet of Things), AI (Artificial Intelligence), cloud-based analytics, and remote monitoring systems in biogas upgrading operations.

Smart sensors and control systems are now being embedded into upgrading equipment to continuously monitor key parameters such as gas composition (methane and carbon dioxide levels), pressure, temperature, flow rates, and impurities like hydrogen sulfide or moisture. This real-time data enables operators to optimize the upgrading process dynamically, ensuring maximum methane recovery and minimizing losses. Predictive maintenance algorithms, powered by machine learning, can detect anomalies and flag potential equipment failures before they occur, significantly reducing unplanned downtime and extending equipment lifespan.

Digital twin technology is another emerging application. By creating a virtual replica of the upgrading plant, operators can simulate different operating conditions, test process improvements, and conduct training without disrupting actual operations. This leads to faster decision-making, reduced risks, and more efficient plant management.

Furthermore, cloud-based platforms are allowing centralized control and data access from remote locations. This is particularly useful for companies operating multiple upgrading facilities across regions. Through unified dashboards and mobile applications, plant managers can monitor performance, compare KPIs across sites, and make real-time adjustments without being physically present.

The trend toward digitalization is also helping meet increasingly stringent environmental and regulatory requirements. Detailed data logs and automated reporting systems simplify compliance with standards related to biomethane quality, emissions, and safety. In Europe and North America, where sustainability reporting is becoming mandatory, these digital solutions provide verifiable proof of environmental performance.

Moreover, digital integration enables energy optimization. For example, by analyzing historical operational data, systems can adjust gas compression cycles or membrane flows to reduce energy consumption during low-demand periods—improving cost efficiency and environmental performance. The share of renewables in global final energy consumption rose from 10.3% in 2010 to around 17% in 2023, driven by growth in heating, cooling, and transport sectors (IRENA). In 2024, it accounted for over 40% of total global power generation capacity, reflecting accelerating decarbonization efforts (IEA).

Growing Adoption of Modular and Scalable Upgrading Solutions

Another major trend in the biogas upgrading equipment market is the growing preference for modular and scalable systems, driven by the need for flexibility, faster deployment, and lower capital risk. As biogas production expands across diverse geographies—from rural farms to urban waste treatment plants—equipment manufacturers are shifting toward standardized, containerized, and plug-and-play upgrading solutions that can be rapidly installed and tailored to varying capacities.

Traditional upgrading systems often required significant on-site construction, extensive civil works, and long installation timelines. In contrast, modular systems come pre-engineered and factory-tested, reducing on-site installation time to a few weeks or even days. This is especially beneficial for small- to medium-sized projects in the agricultural or municipal sectors, where construction disruptions and prolonged commissioning phases can be costly.

One of the core advantages of modular solutions is scalability. As feedstock availability grows or demand for biomethane increases, plant operators can easily expand their upgrading capacity by adding additional modules. This "build-as-you-grow" model minimizes initial investment and allows project developers to align capital expenditure with actual gas production and market conditions, improving financial viability.

These modular systems are often housed in shipping containers or skid-mounted units, making them easy to transport and deploy in remote or decentralized locations. This feature is especially valuable in emerging markets or developing regions where centralized infrastructure may be lacking. As governments in Asia-Pacific, Latin America, and parts of Africa begin exploring biogas as a renewable energy source, modular upgrading systems are becoming the go-to choice due to their mobility, ease of deployment, and lower risk profile.

Another emerging trend is the customization of modular units based on local requirements. Manufacturers are offering systems with built-in automation, remote monitoring, weatherproofing, and energy optimization features tailored to specific feedstocks—be it manure, food waste, or sewage sludge. Hybrid modular systems that combine membrane separation, PSA, or chemical scrubbing technologies are also gaining popularity to address varying biogas compositions.

From a sustainability perspective, modular designs often have a smaller environmental footprint and use fewer raw materials. Additionally, the prefabrication process ensures better quality control, reduces material waste, and shortens supply chain lead times—further contributing to sustainability goals.

Segmental Insights

Application Insights

Municipal segment dominated the Biogas Upgrading Equipment Market in 2024 and is projected to maintain its leadership throughout the forecast period, driven by the rising need for sustainable waste management and renewable energy production in urban areas. Municipalities generate large volumes of organic waste daily from sources such as sewage treatment plants, food waste, and municipal solid waste (MSW). Instead of sending this organic fraction to landfills, many cities are turning to anaerobic digestion processes to convert it into biogas. However, to increase its utility and market value, this biogas is often upgraded into biomethane—a cleaner and higher-quality fuel that can be injected into natural gas grids or used for transportation.

Upgraded biogas helps municipalities reduce their greenhouse gas emissions, comply with environmental regulations, and promote circular economy practices. Furthermore, many governments, particularly in Europe and North America, have introduced policies, subsidies, and feed-in tariffs that incentivize the development of biogas projects at the municipal level. These supportive frameworks have accelerated the installation of biogas upgrading equipment in wastewater treatment facilities and municipal solid waste plants.

Another key factor contributing to the dominance of the municipal segment is scale. Compared to agricultural or small industrial plants, municipal projects generally handle larger volumes of organic material, making it more feasible and cost-effective to invest in advanced upgrading systems such as pressure swing adsorption (PSA), membrane separation, or chemical scrubbing. With the global push toward urban sustainability and zero-waste targets, municipalities are expected to continue leading the demand for biogas upgrading equipment over the coming years.

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Regional Insights

Largest Region

North America dominated the Biogas Upgrading Equipment Market in 2024 and is anticipated to maintain its leadership throughout the forecast period, primarily due to its strong emphasis on renewable energy adoption, supportive regulatory frameworks, and advanced technological infrastructure. The United States and Canada have made significant investments in transforming organic waste into renewable natural gas (RNG) to reduce greenhouse gas emissions and diversify their energy mix. Policies such as the Renewable Fuel Standard (RFS) in the U.S. and Canada’s Clean Fuel Regulations have created a strong financial incentive for biogas upgrading, especially in the transportation and utility sectors.

Moreover, North America’s well-established natural gas pipeline infrastructure has made it easier for upgraded biogas to be injected directly into the grid, increasing the commercial viability of RNG projects. Public and private investments in waste-to-energy facilities, particularly in urban areas and agricultural regions, have further accelerated market growth. The region is also witnessing a growing number of partnerships between municipalities, energy companies, and agricultural cooperatives to set up large-scale anaerobic digestion and biogas upgrading plants.

Technological advancements in upgrading methods such as membrane separation, pressure swing adsorption, and water scrubbing have also contributed to efficiency gains and cost reduction, encouraging broader adoption across industries. In addition, environmental awareness and the push toward carbon-neutral targets have encouraged corporations and government entities alike to explore biogas as a sustainable fuel alternative. With continued policy support and innovation, North America is expected to maintain its leadership position in the biogas upgrading equipment market over the foreseeable future.

Emerging Region

South America is the emerging region in the Biogas Upgrading Equipment Market, driven by a combination of increasing environmental awareness, abundant organic waste resources, and growing interest in renewable energy alternatives. Countries like Brazil, Argentina, and Chile are beginning to recognize the potential of biogas not only as a waste management solution but also as a clean and decentralized energy source. The region generates large volumes of agricultural residues, livestock manure, and municipal solid waste—resources that can be effectively utilized in anaerobic digestion processes to produce biogas and upgraded to biomethane for broader applications.

Governments in the region are gradually introducing supportive policies to encourage investment in biogas infrastructure. Brazil, for instance, has introduced national programs to promote biomethane in the transportation and industrial sectors, aiming to reduce reliance on fossil fuels and enhance energy security. Similarly, Argentina’s emphasis on diversifying its energy mix and reducing greenhouse gas emissions is opening new avenues for biogas project development.

Moreover, international cooperation and funding from organizations like the Inter-American Development Bank and various European agencies are helping build technical capacity and finance biogas upgrading projects in the region. While South America still faces challenges such as high initial investment costs and limited awareness, the rapid urbanization, need for sustainable waste disposal, and the pursuit of carbon neutrality targets are expected to drive adoption. With increasing private sector interest and technological partnerships, South America is set to become a significant growth area for biogas upgrading equipment in the coming years.

 Recent Developments

• In May 2025, TotalEnergies sold a 50% stake in Polska Grupa Biogazowa (PGB) to HitecVision for EUR 190 million (approximately USD 213 million). This strategic partnership is aimed at accelerating the development of biogas projects across Europe, combining TotalEnergies’ renewable energy expertise with HitecVision’s strong investment capabilities. The collaboration will focus on scaling up biogas production capacity, particularly in Poland, to support the energy transition and reduce reliance on fossil fuels.
• In April 2025, Reliance Industries commissioned a compressed biogas (CBG) plant in Andhra Pradesh, developed at a cost of INR 139 crore (around USD 17 million). The facility aligns with the state government's broader plan to deploy 500 such units to boost clean energy production and manage agricultural waste efficiently. The plant marks a significant step in Reliance’s bioenergy strategy, contributing to circular economy goals and rural development through waste-to-energy initiatives.

Key Market Players

• Greenlane Renewables Inc.
• Pentair Haffmans B.V.
• Air Liquide S.A.
• Xebec Adsorption Inc.
• DMT Environmental Technology B.V.
• Envitech Biogas AG
• Bright Biomethane B.V.
• Malmberg Water AB

Report Scope:

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

• Biogas Upgrading Equipment Market, By Technology:

o   Water Wash

o   Chemical Scrubbing

o   Pressure Swing Adsorption (PSA)

o   Membrane Separation

o   Cryogenic Separation        

• Biogas Upgrading Equipment Market, By Application:

o   Municipal

o   Industrial

o   Agricultural        

• Biogas Upgrading Equipment Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   South America

§  Brazil

§  Colombia

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Biogas Upgrading Equipment Market.

Available Customizations:

Global Biogas Upgrading Equipment Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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