Biomethane Market to Reach USD 32.6 Billion by 2035

The global biomethane market is experiencing a phase of large-scale commercialization, with accelerated investments in renewable gas infrastructure and circular economy initiatives. The market, valued at an estimated USD 15.4 billion in 2025, is projected to reach USD 32.6 billion by 2035, expanding at a compound annual growth rate (CAGR) of 7.8%. Biomethane is increasingly recognized as a strategic renewable fuel that reduces reliance on fossil natural gas and supports decarbonization targets across various energy sectors.

Governments worldwide are strengthening renewable energy policies and waste-to-energy initiatives, positioning biomethane as a critical component of future low-carbon energy systems. Key growth drivers include rising investments in renewable gas infrastructure, increased utilization of agricultural waste, food waste, and other waste streams for energy production, and growing demand for renewable fuels in transportation, industrial heating, and power generation.

Agricultural waste is expected to dominate the feedstock segment, accounting for 32.4% of demand in 2025. Power generation is the largest application segment, contributing 46.2% of revenue. Anaerobic digestion leads the production methods with a 57.4% revenue share.

Nikhil Kaitwade, Senior Energy Market Analyst at Future Market Insights, stated that biomethane is rapidly evolving from a niche renewable fuel into an essential component of global decarbonization strategies. Continued investments in waste-to-energy infrastructure and circular economy initiatives are expected to create long-term opportunities.