Biogas Market Report 2026

The biogas market size has grown strongly in recent years. It will grow from $87.66 billion in 2025 to $93.2 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth in organic waste collection and management, government incentives for renewable energy, rising demand for clean cooking and electricity, development of small-scale biogas plants, awareness about methane emission reduction.

The biogas market size is expected to see strong growth in the next few years. It will grow to $119.11 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to expansion of large-scale biogas facilities, integration with smart grids and IoT-based monitoring, adoption in industrial and commercial heat generation, rising investments in renewable energy infrastructure, development of advanced biogas upgrading technologies. Major trends in the forecast period include rising adoption of advanced anaerobic digestion technologies, expansion of municipal waste-to-biogas projects, increasing use of agricultural waste for biogas production, growing applications of biogas in residential and commercial sectors, integration of biogas with cogeneration systems.

The biogas market is poised for growth, supported by an upsurge in research and development activities. Biofuels, derived from hydrocarbon-rich living organisms, are pivotal in the energy generation landscape. Biofuels, including biodiesel, biogas, and syngas, are combusted to produce energy through thermal, chemical, or biochemical conversion processes. The ongoing research and development endeavors encompass manufacturing, processing, testing, and inspection of materials, employing diverse technologies to enhance product quality. A notable example is the January 2023 initiative by the U.S. Department of Energy (DOE), allocating over $100 million in funding to expand U.S. biofuels production. This strategic move aligns with the Biden administration's efforts to curb greenhouse gas emissions from the transportation sector and achieve climate objectives. The DOE's plan entails awarding $118 million to 17 projects aimed at accelerating biofuels production from biomass, including agricultural waste, soybean oil, and animal fats. This funding supplements the over $500 million invested by the DOE in bioenergy and biorefinery research and development over the past two years, affirming the pivotal role of research and development in propelling the biogas market.

Companies within the biogas market are strategically advancing their technologies to fortify their market position. An exemplar of this strategic focus is Volvo Trucks, a Sweden-based truck manufacturer, which, in February 2023, introduced a robust gas-powered truck capable of running on liquified biogas. Specifically, the Volvo FH (Forward control High entry) and FM (Forward control Medium height cab) gas-powered trucks witnessed a substantial power boost, with an additional 500 horsepower supplementing their existing 420 and 460 horsepower engines. Moreover, these gas engines underwent noteworthy technological enhancements, leading to a remarkable improvement in fuel efficiency, reaching up to 4%. Complementing these advancements, a new gas tank, expanded by 10%, contributes to an extended operational range for these innovative gas-powered trucks. This initiative underscores the industry's commitment to leveraging cutting-edge technologies for enhanced performance and sustainability in the biogas market.

In February 2023, Shell plc, a UK-based oil and gas company, acquired Nature Energy Biogas A/S for an undisclosed sum. This acquisition is intended to strengthen Shell's position as a leader in the renewable natural gas (RNG) sector, enhancing its integrated RNG value chain on a global scale. Shell aims to broaden its portfolio of operational plants, associated feedstock supplies, and innovative technologies for RNG production. This strategic initiative aligns with Shell's Powering Progress strategy, allowing the company to profitably expand its low-carbon offerings across multiple sectors. Nature Energy Biogas A/S, based in Denmark, specializes in producing biogas from agricultural, industrial, and household waste as a replacement for fossil fuels.

Major companies operating in the biogas market are Engie SA, EnviTec Biogas AG, Gasum Oy, Ameresco Inc, Wartsila Corporation, Schmack Biogas GmbH, Future Biogas Limited, Weltec Biopower GmbH, PlanET Biogas Group GmbH, Zorg Biogas GmbH, Evergaz, Veolia Environnement SA, BTS Biogas Srl, DVO Inc, Greenlane Biogas, Paques Environmental Technologies Inc, Harp Renewables Limited, GranBio, HomeBiogas, Biogas Solutions Ltd, BD Agro Renewables, Asia Biogas.

Europe was the largest region in the biogas market in 2025. Asia-Pacific is expected to record the fastest growth over the forecast period. The regions covered in the biogas market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biogas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biogas market consists of sales of fixed dome biogas and floating drum biogas. 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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