The Biogas Market is projected to grow at the rate of 14.4% CAGR by 2027. Factors driving the market growth include rising investments, government initiatives concerning biogas production, and various countries worldwide focusing on reducing the rising level of carbon emissions. The average rate of increase in the earth’s temperature is reduced by utilizing renewable sources, such as biogas, and can also help minimize the growing carbon footprint. Biogas is als0 having domestic applications such as cooking, industrial applications, such as producing heat & electricity, and in the commercial area for greenhouse purposes.
But, the biogas market is limited by the requirement of huge capital expenditure incurred in plant installation and commissioning. Biogas is a reactive blend of gases generated in the absence of oxygen from the decomposition of natural waste. Biogas can be generated from several natural wastes, including plant material, agricultural waste, municipal waste, manure, sewage, or food waste. Biogas helps alleviate global waste levels, which produces harmful methane gas and does not rely on fossil fuels while fulfilling the energy requirements.
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The biogas market is segmented into Organic Waste, Sewage Sludge, Energy Crops, and Others in terms of substrate. High energy density, lower investment costs, and rapid biogas production are the few significant factors promoting the deployment of energy crops-based biogas plants, which makes this segment a leading segment in the market share. A mix of maize and manure are the generally used substrates for agricultural biogas plants. Rising financial support, including feed-in tariffs and subsidy schemes majorly for electricity generation from biogas, will further augment the market outlook.
Further, the biogas market is segmented based on an application which is again divided into Vehicle Fuel, Electricity, Heat, and Others. Among them, the electricity category holds the maximum share in the market. This is because many countries are changing their coal-based power plants to gas-based because of high levels of carbon emissions. This, in turn, is projected to foster the demand for biologically sourced gas in the electricity sector. Moreover, electricity demand is continuously increasing as rising household incomes, electrification of transport, rising demand for digitally connected devices and air conditioning where the biogas demand is also increasing for electricity generation.
According to the geographical market, the European region is expected to have a substantial share in the market. This is due to the extensive presence of biogas facilities in the continent, the increasing adoption of biogas for electricity and heat production, growing awareness of biogas’ utilization, and rising environmental concerns in countries in the region.
