Organic Biogas Market Size, Share, Growth, and Industry Analysis, By Types (Poultry & Livestock, Crop Waste, Forestry Waste, Landfill Gas, Others) , Applications (Power Generation, Urban Heating, Fuel, Others) and Regional Insights and Forecast to 2033

Organic Biogas Market Size

The Organic Biogas Market was valued at USD 1,743.68 million in 2024 and is expected to reach USD 1,865.74 million in 2025, growing to USD 3,307.01 million by 2033, with a compound annual growth rate (CAGR) of 7% from 2025 to 2033.

The U.S. Organic Biogas Market is expected to experience significant growth, driven by increasing demand for renewable energy, sustainable waste management solutions, and supportive government policies, with a strong focus on environmental benefits and energy independence.

The organic biogas market is rapidly expanding due to its potential as a renewable energy source and an effective waste management solution. Globally, there are over 132,000 biogas plants, with Europe alone contributing more than 20,000 operational units. In Germany, biogas plants produced approximately 95 terawatt-hours (TWh) of energy in 2022, making it a key player in the market. China, India, and the United States are also significantly investing in biogas projects, with India aiming to establish 5,000 compressed biogas (CBG) plants by 2025 under its Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.

The global biogas production is estimated to reach 40 billion cubic meters annually by 2030, doubling from the 20 billion cubic meters recorded in 2023. Organic biogas is widely utilized in electricity generation, heat production, and transportation fuel. Moreover, technological advancements in anaerobic digestion and biogas upgrading to biomethane are facilitating its integration into natural gas grids. The increasing adoption of biogas-powered vehicles, with over 1.5 million such vehicles operating globally, indicates its growing role in decarbonizing transportation. Governments worldwide are implementing feed-in tariffs, tax incentives, and subsidies to promote biogas utilization, accelerating the shift toward a sustainable energy mix.

Organic Biogas Market Trends

The organic biogas market is shaped by several emerging trends that are enhancing its efficiency, scalability, and adoption rates. One of the key trends is the rising production of biomethane from biogas, allowing its seamless injection into national gas grids. In 2022, Europe produced 3.5 billion cubic meters of biomethane, with projections estimating 10 billion cubic meters by 2030. Countries like France, Denmark, and Sweden are leading in biomethane production, integrating it into their energy supply chains.

Another notable trend is the increasing use of biogas in the transportation sector. More than 600 biogas refueling stations have been established in Europe alone, supporting the use of bio-CNG (compressed natural gas) and bio-LNG (liquefied natural gas) in heavy transport. Sweden, a pioneer in biogas-powered transport, has over 200,000 vehicles running on biogas fuels, reducing dependency on fossil fuels.

Furthermore, agriculture-based biogas production is on the rise, with livestock farms contributing nearly 40% of the total feedstock supply. The demand for decentralized energy production is pushing farmers to install small-scale biogas plants, improving waste management and energy self-sufficiency.

Another significant trend is the integration of Artificial Intelligence (AI) and automation in biogas plants, optimizing anaerobic digestion efficiency. AI-driven monitoring systems have improved gas yield by 15–20% in some pilot projects. With continuous advancements in biogas purification technology, methane content in upgraded biogas has reached over 98% purity, making it a reliable alternative to natural gas.

These trends indicate a promising future for the organic biogas market, driven by technology, policy support, and increasing environmental awareness.

Organic Biogas Market Dynamics

DRIVER

"Growing government initiatives for biogas expansion"

"Governments worldwide are ramping up policies to accelerate biogas adoption, ensuring a cleaner and more sustainable energy future." The European Union's Fit for 55 plan aims to replace 17% of natural gas consumption with biomethane by 2030. China has built over 80 million household biogas digesters, primarily in rural areas, reducing dependence on traditional fuels. India's SATAT initiative targets producing 15 million metric tons of biogas annually by 2025. The United States has more than 2,300 operational biogas systems, with potential for over 15,000 additional projects. These initiatives demonstrate the strong commitment of governments to integrating organic biogas into national energy policies.

RESTRAINT

"High initial capital investment and operational costs"

"The financial burden of setting up and maintaining biogas plants remains a significant hurdle for widespread adoption." The average cost of building a commercial-scale biogas plant ranges from $1.5 million to $5 million, depending on capacity and technology. Small-scale biogas systems, which are essential for rural areas, still require $5,000 to $15,000 per unit, making them unaffordable for many farmers. Upgrading biogas to biomethane increases operational costs by 30–40%, creating financial challenges. Grid connection costs can range from $200,000 to $1 million per plant, depending on infrastructure availability. Addressing these cost barriers through subsidies and innovative financing models is crucial for market expansion.

OPPORTUNITY

"Rising demand for biofuels in transportation"

"Biogas is emerging as a key alternative fuel, reducing carbon emissions and enhancing energy security in the transport sector." The global number of biogas-fueled vehicles has surpassed 1.5 million, with Europe and Asia leading adoption. Germany has over 900 biomethane filling stations, supporting the transition to renewable fuels. The use of bio-LNG in heavy-duty transport can reduce CO₂ emissions by up to 80% compared to diesel. By 2030, biogas could meet 10–15% of Europe's transport fuel demand, reducing reliance on fossil fuels. With stringent emission regulations in place, biogas-fueled transportation is set to experience accelerated growth.

CHALLENGE

"Inconsistent feedstock supply and seasonal fluctuations"

"Unstable feedstock availability remains a major barrier, impacting the continuous production of biogas and plant efficiency." Agricultural waste accounts for over 60% of biogas feedstock, but seasonal variations in crop yields affect supply consistency. Food waste-based biogas plants experience fluctuations of up to 30% in feedstock availability due to changes in consumer behavior. The livestock sector contributes 500 million metric tons of manure annually, but its distribution is uneven, limiting consistent biogas production. Poor waste segregation in developing nations leads to contamination, reducing biogas yield by 10–20%. Developing efficient waste collection systems and diversifying feedstock sources can help overcome these challenges.

Segmentation Analysis

The organic biogas market is segmented based on feedstock type and application, determining the growth trajectory and demand patterns. Different feedstock sources, such as poultry & livestock waste, crop waste, forestry waste, and landfill gas, contribute significantly to biogas production. Each feedstock has unique energy output and processing requirements, influencing plant efficiency.

In terms of application, organic biogas is widely used in power generation, urban heating, fuel, and other industrial uses. The growing demand for sustainable energy sources is increasing the adoption of biogas in these sectors. Power generation holds the largest share, with many countries integrating biogas plants into their national grids. The transportation sector is also witnessing significant growth, as bio-CNG and bio-LNG gain traction in heavy-duty transport and municipal fleets.

The segmentation of the organic biogas market highlights the diverse applications and feedstock sources driving the industry. Governments, private players, and industries are investing in biogas infrastructure based on these segmentation trends, fostering sustainable energy solutions.

By Type

• Poultry & Livestock Waste: "Poultry and livestock waste are crucial contributors to biogas production, transforming animal manure into a valuable energy source." Over 500 million metric tons of livestock manure is generated globally every year, making it a major feedstock for biogas plants. In China alone, 35% of biogas plants rely on livestock waste, leveraging the high methane yield from animal manure. The average methane yield from cattle manure is 0.24 cubic meters per kg, while poultry manure can generate 0.37 cubic meters per kg due to its higher organic content. The use of livestock waste in biogas plants helps reduce methane emissions by up to 50%, significantly lowering greenhouse gas impact.
• Crop Waste: "Crop residues offer a sustainable solution for biogas production while minimizing agricultural waste disposal issues." Annually, over 2 billion metric tons of crop waste is generated worldwide, with only a fraction utilized for biogas. The United States produces over 400 million tons of agricultural residues, with corn stover and wheat straw being the primary feedstocks for biogas. The methane yield from crop waste varies from 0.20 to 0.35 cubic meters per kg, depending on the type of residue and digestion efficiency. India is ramping up its use of rice straw in biogas production, tackling air pollution caused by stubble burning.
• Forestry Waste: "Forestry residues, including wood chips and sawdust, present an untapped potential for biogas generation." Global forestry operations generate over 500 million tons of biomass waste annually, a largely underutilized energy source. Biogas plants utilizing woody biomass have an energy efficiency of up to 70%, making them highly effective for combined heat and power (CHP) applications. The Nordic countries are investing in biogas from forestry residues, given their abundant wood-processing industries.
• Landfill Gas: "Landfills are a major source of methane emissions, making landfill gas capture a crucial sustainability initiative." Worldwide, landfills contribute nearly 11% of methane emissions, representing a significant potential for biogas recovery. The United States has over 500 landfill gas-to-energy (LFGTE) projects, preventing millions of tons of CO₂-equivalent emissions. Landfill gas plants can produce up to 5 MW of power per landfill site, depending on waste decomposition rates.

By Application

• Power Generation: "Biogas-powered electricity generation is a key driver in the renewable energy mix, providing reliable and sustainable power solutions." Over 60% of global biogas production is used for electricity generation, ensuring energy security and grid stability. Germany leads in biogas power production, generating over 33 TWh annually, enough to supply millions of households.
• Urban Heating: "Biogas is increasingly utilized for district heating systems, reducing dependency on fossil fuels for residential and commercial heating." In Sweden, over 90% of district heating systems incorporate renewable gas, including biomethane. Biogas heating systems can reduce heating costs by up to 40%, making them an attractive alternative for municipalities.
• Fuel: "The transportation sector is embracing biogas as an alternative fuel, cutting down carbon emissions in mobility and logistics." Over 1.5 million vehicles globally run on biogas-based fuels, with adoption increasing in urban transit systems. Bio-LNG adoption in heavy transport can cut CO₂ emissions by 80%, making it a preferred solution for trucking industries.

Regional Outlook

The organic biogas market exhibits strong regional variations based on government policies, feedstock availability, and infrastructure development. Europe leads global biogas production, followed by Asia-Pacific, North America, and the Middle East & Africa.

North America

North America's biogas market is expanding rapidly, driven by policy support and growing investment in renewable energy. Over 2,300 biogas plants are operational in the U.S., with the potential for 15,000 more projects. California leads biogas production, supporting over 100 dairy digesters to capture methane emissions.

Europe

Europe remains at the forefront of biogas development, driven by strong policy frameworks and ambitious climate targets. Germany has over 9,500 biogas plants, producing over 33 TWh of electricity annually. France aims to inject 30% biomethane into its national gas grid by 2030, ensuring energy diversification.

Asia-Pacific

Asia-Pacific’s biogas market is booming due to rapid urbanization, waste management initiatives, and government investments. China has over 80 million household biogas digesters, making it the largest biogas producer in the region. India’s SATAT initiative aims to establish 5,000 compressed biogas plants by 2025, increasing biofuel adoption.

Middle East & Africa

Biogas adoption in the Middle East & Africa is growing as countries seek sustainable waste management solutions. South Africa has over 300 biogas plants, mainly utilizing agricultural waste and municipal sludge. The UAE is investing in large-scale biogas projects, targeting organic waste utilization and energy security.

List of Key Organic Biogas Market Companies Profiled

• Air Liquide
• Carbotech
• Xebec Adsorption
• Atlas Copco (Cirmac)
• Greenlane
• DMT Environmental Technology
• MT Energie
• EnviTec Biogas
• Viessmann Group (Schmack Biogas, Kohler & Ziegler)
• Malmberg Water

Top Companies by Market Share

• Air Liquide – A global leader in biogas purification and biomethane production, Air Liquide has one of the largest market shares in the organic biogas sector.
• EnviTec Biogas – A pioneer in biogas plant technology, EnviTec Biogas dominates the market with its turnkey solutions and innovative upgrading technologies.

Investment Analysis and Opportunities

• In 2023, over 90 new biogas projects were initiated in the United States, adding to the already existing 2,251 projects in operation.
• Germany has more than 9,500 biogas plants, producing over 30 terawatt-hours (TWh) of electricity annually.
• France has set a target to inject 30% biomethane into the national gas grid by 2030.
• China has built over 80 million household biogas digesters, ensuring sustainable energy access in rural areas.
• India plans to establish 5,000 compressed biogas plants by 2025 under its SATAT initiative, providing a major investment opportunity.
• In South Africa, over 300 biogas plants have been developed, primarily using agricultural waste and municipal sludge.
• The UAE is focusing on large-scale biogas projects to enhance organic waste utilization and achieve energy security.

New Product Development

• New biogas upgrading technologies are achieving 99% methane purity, making biomethane a direct substitute for natural gas.
• Co-digestion processes are now integrating agricultural residues, municipal waste, and industrial effluents, increasing biogas yield by 20-30%.
• Bio-LNG production facilities are being established, providing a sustainable fuel for long-haul trucks and maritime transport.
• Automation in biogas plants is improving real-time monitoring and efficiency, reducing operational costs by up to 15%.
• The development of modular biogas units is bringing sustainable energy solutions to off-grid and rural communities worldwide.

Five Recent Developments by Manufacturers in the Organic Biogas Market (2023 and 2024)

• Air Liquide launched new biogas purification units in 2023, significantly increasing biomethane production capacity in North America.
• EnviTec Biogas entered the Japanese market with its first biogas plant project, strengthening its global footprint.
• Viessmann Group introduced a new membrane biogas upgrading system in 2024, achieving higher energy efficiency and methane purity.
• Greenlane Renewables secured multiple RNG project partnerships in Europe, expanding renewable gas production.
• Xebec Adsorption developed an advanced PSA-based biogas upgrading system that reduces operational costs by 12-18%.

Report Coverage of Organic Biogas Market

This report provides a comprehensive analysis of the organic biogas market, covering key aspects such as market size, growth drivers, and emerging trends. The report offers an in-depth look at the market's segmentation by type and application, exploring how different feedstocks (such as poultry & livestock, crop waste, and forestry waste) contribute to biogas production. Additionally, the report examines the major applications of organic biogas, including power generation, urban heating, and fuel, highlighting their current and future roles in the renewable energy landscape.

The report also presents a detailed regional analysis, including insights into the market's performance in North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region is evaluated for its biogas infrastructure, investments, and government policies that support the growth of the organic biogas industry. Key players in the market are profiled, along with recent technological advancements and developments by manufacturers, providing a snapshot of how companies are driving innovation in the biogas sector.

Moreover, the report delves into investment opportunities, outlining strategies for stakeholders looking to capitalize on the rapidly growing demand for sustainable energy solutions. It also highlights market challenges and restraints that could affect future growth, offering valuable insights into how the industry can overcome these obstacles. The report ultimately serves as a crucial resource for businesses and investors seeking to understand the dynamics of the organic biogas market and make informed decisions about market entry, expansion, and technology adoption.