Biogas Market Projected to Surpass $109 Billion by 2036

The worldwide biogas market is poised for substantial growth, fueled by government mandates promoting renewable energy and intensified efforts to curb greenhouse gas emissions. Future Market Insights forecasts the market, valued at $46.54 billion in 2025, to reach $50.31 billion by the end of 2026. Between 2026 and 2036, the market is anticipated to expand at a compound annual growth rate (CAGR) of 8.1%, achieving an estimated value of $109.62 billion.

Key drivers for this expansion include the increasing integration of anaerobic digestion in national energy strategies, growing investments in waste-to-energy infrastructure, and tightening regulations on methane emissions from agricultural and municipal waste sectors. Governments and utilities are increasingly recognizing biogas production as a dual-benefit solution, providing renewable energy while managing organic waste streams.

According to the analysis, crops emerged as the leading feedstock type, accounting for 37.8% of the market share. Co-generation, the simultaneous production of heat and power (CHP), represents the largest application segment with 35.2% market share, as industries seek to improve energy efficiency. Brazil is identified as the fastest-growing country market, with an projected CAGR of 12.2%.

Market analysts suggest that companies investing in biomethane upgrading technologies, advanced anaerobic digestion systems, and strategic renewable gas partnerships are well-positioned to capitalize on the long-term growth trajectory. The overall trend indicates a shift towards a more integrated renewable energy ecosystem.