Anaerobic Digestion Market Report 2024

This Anaerobic Digestion market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The anaerobic digestion market size has grown strongly in recent years. It will grow from $10.67 billion in 2023 to $11.65 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth observed during the historic period can be attributed to several factors, including increased energy demand and diversification, stricter waste management regulations, heightened environmental concerns, government incentives and subsidies, and better availability of feedstocks.

The anaerobic digestion market size is expected to see strong growth in the next few years. It will grow to $16.76 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. The anticipated growth during the forecast period can be attributed to several factors, including circular economy initiatives, consumer demand for sustainability, a rising need for renewable natural gas, increasing energy security and diversification, and growing awareness of methane emission reduction. Key trends expected during this period include the integration of other renewable technologies, advanced process optimization, improved feedstock diversity, decentralized and community-based systems, and the incorporation of advanced pretreatment techniques.

The growth of the anaerobic digestion market is expected to be driven by the increasing demand for renewable natural gas (RNG). RNG is methane derived from organic materials, such as agricultural waste, food scraps, or wastewater, through anaerobic digestion or gasification processes. The rising demand for RNG is largely due to its benefits in reducing greenhouse gas emissions and the support from government incentives promoting sustainable energy sources. Anaerobic digestion plays a crucial role in this process by converting organic waste into methane, which is then purified and upgraded to produce a clean, renewable energy source. For example, in August 2024, the U.S. Energy Information Administration, a US-based government agency, projected that natural gas consumption in the United States would increase by approximately 1% in 2024, averaging 90 billion cubic feet (Bcf) of natural gas per day. This growing demand for RNG is driving the expansion of the anaerobic digestion market.

Key players in the anaerobic digestion market are investing in advanced solutions such as anaerobic digester facilities to improve waste-to-energy conversion efficiency and optimize methane production. Anaerobic digester facilities are specialized systems that decompose organic waste without oxygen, generating biogas for energy and digestate for use as fertilizer. For instance, in July 2022, Evergreen Environmental Inc., a US-based industrial hygiene and safety management consulting company, inaugurated a new anaerobic digester facility in Oshawa, Ontario. This facility is designed to process up to 200,000 metric tons of organic waste annually, converting it into renewable natural gas and usable fertilizer. The facility addresses local waste management challenges by diverting waste from landfills and minimizing environmental impacts. The digester will employ advanced technology already utilized in other municipalities across Ontario and is expected to be fully operational by 2025. It will generate renewable natural gas and nutrient-rich fertilizer, benefiting local agricultural, commercial, and residential sectors.

In June 2023, Suez SA, a France-based environmental services company, acquired a 60% stake in Anaerobic Power Biogas Benešov spol. s r.o. (APBB) for an undisclosed amount. This acquisition aims to advance Suez’s expansion into Czech municipal and industrial waste management and green energy production, in line with its commitment to biowaste recovery and innovation in sustainability and climate change solutions. Anaerobic Power Biogas Benešov spol. s r.o., based in the Czech Republic, specializes in waste management and the conversion of organic waste into biogas through anaerobic digestion.

Major companies operating in the anaerobic digestion market are ENGIE Group, Viessmann Climate Solutions SE, Gasum Oy, Ameresco Inc., EnviTec Biogas AG, Bioenergy Devco, AB HOLDING SPA, Adnams plc, Capstone Green Energy Corporation, WELTEC BIOPOWER GMBH, BDI-BioEnergy International GmbH, Scandinavian Biogas Fuels International AB, Clarke Energy., PlanET Biogastechnik GmbH, Xergi A/S, Schmack Biogas GmbH, Agrinz Technologies GmbH., Northern Biogas, Bright Biomethane, Agraferm GmbH, AAT Abwasser- und Abfalltechnik GmbH, Biogest AG.

North America was the largest region in the anaerobic digestion market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the anaerobic digestion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the anaerobic digestion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Anaerobic digestion is a biological process that decomposes organic matter without the presence of oxygen. This method is frequently used for managing and treating various types of waste, such as agricultural, food, and municipal waste, and for generating biogas, which is a renewable energy source. Anaerobic digestion plays a crucial role in waste management and renewable energy production, providing both environmental and economic advantages.

The primary feedstocks for anaerobic digestion include organic waste, agricultural residues, wastewater sludge, and energy crops. Organic waste consists of biodegradable materials from plants and animals, such as food scraps, garden waste, and other organic residues. These materials can be processed through different digestion systems, including mesophilic anaerobic digestion, thermophilic anaerobic digestion, and multi-stage anaerobic digestion, which are applicable to residential, commercial, and industrial settings. The end uses of anaerobic digestion encompass power generation, transportation fuel, fertilizer production, and other applications.

The anaerobic digestion market research report is one of a series of new reports that provides anaerobic digestion market statistics, including anaerobic digestion industry global market size, regional shares, competitors with anaerobic digestion market share, detailed anaerobic digestion market segments, market trends and opportunities, and any further data you may need to thrive in the anaerobic digestion industry. This anaerobic digestion market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The anaerobic digestion market consists of revenues earned by entities by providing services such as waste collection, feedstock preparation, biogas processing, energy generation, and digestate management. The market value includes the value of related goods sold by the service provider or included within the service offering. The anaerobic digestion market also includes sales of biogas, compost, liquid fertilizers, and digestate. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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