Biogas market seen rising to $111.1B by 2035

The global biogas market is projected to climb from $71.9 billion in 2026 to $111.1 billion by 2035, driven by renewable fuel mandates, corporate decarbonization goals and growing demand for biomethane. Europe remains the largest region, while South America is expected to grow the fastest as project economics improve across feedstock, upgrading and digital plant operations.

Why it matters: - The biogas market is moving from a waste-management niche into a larger clean-fuels industry tied to grid injection, transport fuel and carbon-credit revenue. - The projected rise to $111.1 billion by 2035 signals continued investment in anaerobic digestion, gas upgrading and biomethane infrastructure. - Policy support and compliance markets are increasingly shaping project economics across Europe, North America and emerging markets.

What happened: - The global biogas market was valued at $68.5 billion in 2025 and is projected to reach $71.9 billion in 2026 and $111.1 billion by 2035, according to the market outlook. - The forecast implies a 4.95% compound annual growth rate from 2026 to 2035. - Wet anaerobic digestion represented 63.5% of global installations in 2025 and remains the default choice for liquid-heavy feedstocks. - A sample report is available here. - The full report can be purchased here.

The details: - Biogas is produced from the anaerobic digestion of agricultural waste, animal manure, municipal solid waste and industrial organic residues. - The gas is typically made up of 50% to 70% methane and carbon dioxide. - Biogas can be used directly for electricity and heat, or upgraded to biomethane for pipeline injection or vehicle fuel. - Livestock manure accounted for 40.0% of the feedstock market in 2025. - Food and beverage waste is projected to grow at a 7.65% CAGR through 2035. - Agri residues were valued at $13.2 billion, supported by crop-stubble burning bans in Asia. - Dry anaerobic digestion is the fastest-growing process technology at an 8.10% CAGR. - Landfill gas recovery was valued at $7.8 billion. - Plant capacity below 0.5 MW is the fastest-growing segment at an 8.60% CAGR. - The 0.5 to 2 MW segment held a 47.5% share. - Plants above 2 MW were valued at $11.9 billion. - Electricity generation led applications with a 54.9% share. - Vehicle fuel and renewable natural gas is the fastest-growing application at a 9.20% CAGR. - Heat generation was valued at $9.4 billion, supported by district heating in Northern Europe. - Europe held 60.3% of the market in 2025, with Germany accounting for 34.8% of the regional share. - Asia-Pacific held a 16.8% share, led by China at 38.2% of regional share. - North America held 15.2% share, with the U.S. accounting for 72.4% of the regional market. - South America is projected to grow at a 10.15% CAGR, led by Brazil. - Middle East and Africa growth is being supported by South Africa, the UAE, Saudi Arabia and Egypt. - The market remains fragmented, with an estimated Herfindahl-Hirschman Index below 600 and the top five players holding about 22% to 28% of revenue. - EnviTec Biogas AG, Air Liquide S.A., Weltec Biopower GmbH, PlanET Biogas Global GmbH and Hitachi Zosen Inova AG are among the leading companies. - EnviTec commissioned a 5.2 MW co-digestion facility in Lower Saxony in March 2025. - The European Commission published implementing rules for the Biomethane Industrial Partnership in January 2025. - The U.S. Department of Agriculture awarded $128 million in grants in September 2024 for 47 biogas and RNG projects across 19 states. - Air Liquide signed a 15-year biomethane offtake agreement in June 2024. - Hitachi Zosen Inova completed integration of dry-digestion technology in January 2024.

Between the lines: - The market is shifting away from electricity-only plants toward multi-product assets that can sell renewable natural gas, power, heat and credits. - Upgrading systems are becoming more important as pipeline-quality biomethane becomes easier to produce and monetize. - AI, IoT sensors and machine-learning tools are changing plant operations by improving methane yields and reducing downtime. - Modular digesters are opening more opportunities in emerging markets where conventional plant construction is slower and more expensive. - High capital costs, feedstock fragmentation and permitting delays remain major obstacles, especially for smaller operators.

What's next: - The report expects more projects to pair biogas plants with electrolyzers for power-to-gas and biological methanation. - The outlook points to wider adoption of carbon-credit stacking, feedstock aggregation platforms and digital plant management tools. - The European biomethane market is likely to keep expanding under policy support, while Brazil and other South American markets may outpace other regions on growth. - Operators that combine feedstock logistics, gas upgrading and revenue diversification are positioned to benefit most over the next decade.

The bottom line: - Biogas is evolving into a broader renewable fuels platform, with policy support, biomethane demand and digital efficiency gains driving the next phase of growth.