Coal Bed Methane (CBM) Market Report 2026

The coal bed methane (cbm) market size has grown strongly in recent years. It will grow from $21.01 billion in 2025 to $22.13 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to demand for cleaner energy sources, early coal seam gas discoveries, development of drilling technologies, utilization of coal mine methane, government support for gas production.

The coal bed methane (cbm) market size is expected to see strong growth in the next few years. It will grow to $27.35 billion in 2030 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to rising natural gas demand, focus on reducing coal mine emissions, advancements in extraction technologies, expansion of gas based power generation, integration with national gas infrastructure. Major trends in the forecast period include increasing development of cbm wells, rising adoption of horizontal drilling techniques, growing integration of cbm with gas grids, expansion of cbm power generation projects, increasing use of CO2 sequestration in cbm.

A significant increase in electricity consumption worldwide is driving growth in the coal bed methane (CBM) market. Electricity is a fundamental form of energy, naturally occurring (e.g., lightning) or generated (e.g., via generators), and is expressed through the movement and interaction of electrons. CBM is widely used as a cleaner energy source for electricity generation. As electricity demand rises, the need for low-carbon energy sources to produce power with reduced emissions also grows. For example, in July 2025, GOV.UK, a UK-based government organization, reported that electricity demand in 2024 remained broadly stable at 319 TWh, representing a 0.5% increase compared to 2023. Therefore, the global surge in electricity consumption is expected to propel the coal bed methane (CBM) market.

Leading companies in the coalbed methane (CBM) market are focusing on innovative solutions such as microbially enhanced coalbed methane (MECBM) technology to boost gas production, increase efficiency, and provide cleaner energy from coal seams. MECBM employs specialized microbes to break down coal’s organic matter, producing more methane than conventional extraction methods while minimizing environmental impact and offering a near-renewable gas source. For example, in April 2025, Oil and Natural Gas Corporation (ONGC), an India-based integrated oil and gas company, along with partners including Oil India and TERI, introduced MECBM technology, which injects nutrient-rich solutions to activate microbial communities within coal seams. The technology has been successfully tested across more than a dozen wells compared with traditional CBM methods, enhancing methane recovery, improving production efficiency, and supporting sustainability goals in otherwise difficult-to-extract reservoirs.

In February 2025, Diversified Energy Company PLC, a U.S.-based energy firm, acquired Summit Natural Resources LLC for around $42 million. Through this acquisition, Diversified Energy aimed to expand its midstream infrastructure, boost cash flows from coal mine methane environmental credits, and strengthen its asset portfolio in the Southern Appalachia region. Summit Natural Resources LLC, also U.S.-based, specializes in operated natural gas properties and related pipeline infrastructure, including production assets that generate coal mine methane and associated environmental credit opportunities.

Major companies operating in the coal bed methane (cbm) market are PetroChina Company Limited, Tamboran Resources Limited, Comet Ridge Limited, Baker Hughes Company, Halliburton Company, Origin Energy Limited, Santos Limited, Western Gas Corporation, Far East Energy Corporation, Queensland Gas Company Ltd., Arrow Energy Holdings Pty Ltd., Great Eastern Energy Corporation Ltd., Metgasco Ltd., G3 Exploration Limited (G3E), China United Coalbed Methane Corporation Ltd., Essar Oil and Gas Exploration & Production Limited, Gazprom, Pioneer Natural Resources Company, ExxonMobil Corporation (via XTO Energy), Australia Pacific LNG, Ember Resources, Senex Energy Limited.

Asia-Pacific was the largest region in the coal bed methane (CBM) market share in 2025. The regions covered in the coal bed methane (cbm) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the coal bed methane (cbm) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The coal bed methane (CBM) market consists of sales of secondary biogenic methane, thermogenic methane, residual thermogenic CO2 and heavy hydrocarbons. 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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