Biomethane Market 2030: Unlocking Potential Beyond Expectations

The global biomethane market was valued at USD 7,994.9 million in 2024 and is expected to reach USD 17,031.9 million by 2030, expanding at a CAGR of 13.5% from 2025 to 2030. Biomethane is a renewable energy source with a wide range of applications, including construction, power generation, transportation, and various industrial uses.

The increasing demand for efficient and sustainable power transmission solutions is anticipated to drive market growth during the forecast period. Biomethane is produced from the biological decomposition of organic materials such as agricultural residues, food waste, sewage sludge, and other biodegradable feedstocks. As a renewable and low-carbon energy source, it is widely regarded as a viable alternative to conventional fossil fuels. The production of biomethane is based on anaerobic digestion, a renewable process in which microorganisms break down organic matter in the absence of oxygen to generate biogas, which is subsequently upgraded to biomethane.

Key Market Trends & Insights

• Regional Insights: Europe led the global biomethane market in 2024, accounting for more than 45.6% of total revenue. This dominance is expected to continue throughout the forecast period due to the increasing availability of biomethane feedstocks and a strong regional focus on alternative and renewable energy sources. Additionally, European universities and research institutions are actively conducting advanced research aimed at reducing technology costs, supported by grants and funding provided by the European Commission for research and development initiatives.
• Source Insights: Municipal waste emerged as the largest source segment in 2024, contributing approximately 39.0% of total revenue, and is projected to record the fastest CAGR of 14.7% over the forecast period. Rising urbanization and the growing need for sustainable waste management solutions are key drivers for this segment. Organic fractions of municipal solid waste, including food waste, garden residues, and biodegradable packaging, are processed through anaerobic digestion to produce biogas, which is then upgraded to biomethane. This process helps reduce landfill dependence and methane emissions while supporting circular economy objectives by converting waste into renewable energy.
• End-Use Insights: The construction sector accounted for the largest end-use share, generating over 43.0% of total revenue in 2024. According to the International Energy Agency (IEA), bioenergy contributed approximately 10% of global primary energy demand in 2023, with a significant portion utilized in the form of biogas, including biomethane. Within the construction industry, biomethane is primarily used for heating and cooking purposes, and a substantial share is also injected into gas networks for use as a transportation fuel.

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Market Size & Forecast

• 2024 Market Size: USD 7,994.9 Million
• 2030 Projected Market Size: USD 17,031.9 Million
• CAGR (2025-2030): 13.5%
• Europe: Largest market in 2024

Key Companies & Market Share Insights

Leading companies operating in the biomethane market are implementing various strategies to enhance their market presence and expand their product and service offerings. Key initiatives include capacity expansions, strategic partnerships, and collaborations, all of which are playing an important role in accelerating overall market growth.

Key Players

• Air Liquide
• Engie
• Nature Energy Biogas A/S
• Gasum
• Terega Solutions
• Waga Energy
• TotalEnergies
• Chevron
• Kinder Morgan
• Archea Energy
• Envitec Biogas AG
• Future Biogas Ltd.
• E.ON SE
• Verbio Vereinigte Bioenergie AG
• South Hills RNG

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Conclusion

The global biomethane market is poised for robust growth through 2030, driven by rising demand for renewable energy, increasing urban waste generation, and supportive government policies promoting sustainable energy solutions. Europe’s leadership, coupled with advancements in waste-to-energy technologies and expanding applications across construction, transportation, and power generation, positions biomethane as a key contributor to the global energy transition over the forecast period.