Anaerobic Digestion Market Report 2026

The anaerobic digestion market size has grown strongly in recent years. It will grow from $12.79 billion in 2025 to $14.02 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to increasing availability of organic waste streams, adoption of anaerobic digestion in wastewater treatment, expansion of livestock farming operations, rising demand for renewable energy sources, early government incentives for biogas production.

The anaerobic digestion market size is expected to see strong growth in the next few years. It will grow to $20.01 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing investments in bioenergy infrastructure, rising demand for renewable transportation fuels, expansion of decentralized waste-to-energy systems, growing focus on nutrient recycling, increasing integration with smart grid systems. Major trends in the forecast period include increasing adoption of multi-stage digestion systems, rising utilization of agricultural residues as feedstock, growing integration of biogas upgrading technologies, expansion of community-scale digestion plants, enhanced focus on digestate utilization.

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.

Major companies active in the anaerobic digestion market are concentrating on developing advanced technologies such as high-temperature ablative pyrolysis systems to improve energy recovery and operational efficiency. High-temperature ablative pyrolysis (HTAP) is a thermochemical process that converts forestry residues, agricultural waste, and other non-food biomass into syngas and biochar. The resulting syngas can be used to generate onsite electricity or upgraded into pipeline-quality renewable natural gas, while the biochar can be utilized in agricultural or industrial applications. For example, in December 2025, Clean Energy Technologies Inc., a U.S.-based company, introduced its HTAP platform with integration capabilities for both existing and planned anaerobic digestion and RNG facilities. The platform converts difficult-to-digest biomass and digestate into additional renewable energy and biochar. It supports up to 1.6 megawatts of onsite power, produces around 13 MMBtu per hour of additional RNG, and enables syngas upgrading when paired with anaerobic or catalytic methanation systems. The system also offers potential incremental RNG value exceeding $3 million annually per installation and helps reduce digestate management costs, allowing operators to expand output while enhancing both environmental and economic performance.

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 Veolia Environnement S.A., Suez (SUEZ Group), EnviTec Biogas AG, WELTEC BIOPOWER GmbH, PlanET Biogas Group GmbH, Xergi A/S, BTS Biogas, CH4 Biogas, Clarke Energy, Bioenergy DevCo, AAT Abwasser‑und Abfalltechnik GmbH, Agraferm Technologies AG, Northern Biogas, Biogest AG, Anaergia Inc., Hitachi Zosen Inova AG, Gasum Oy, SP Renewable Energy Sources Pvt. Ltd., Nature Energy Biogas A/S.

North America was the largest region in the anaerobic digestion market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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