The global biogas market size is set to surpass US$ 32 billion by 2026. According to a study produced by ARC, The industry also reflects the CAGR of 5.8% during 2019-2026. The report provides analysis of global Biogas market for the period 2014-2026, wherein 2019 to 2026 is the forecast period and 2018 is considered as the base year.
Biogas is a biofuel naturally formed from the breakdown of organic waste. It is generally used for direct combustion or heating, generating electricity, combined heat and power (CHP) generation, and other applications such as, purification and exporting of natural gas and natural gas liquids.
Biogas is majorly adopted because of its properties, including low-cost, high combustion and environment friendly.
This clean renewable source of energy is created from waste matter of agricultural waste, landfills and other wastes, including waste from food production and water and wastewater treatment, among others.
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Asia Pacific dominated the global biogas market in 2018, due to increasing infrastructure and household in the region, along with huge rise in agricultural production, which led to rise in both crop and animal waste.
Due to presence of key biogas production players, coupled with major initiatives taken by Europe Biogas Association to support biogas production across European countries, Europe accounted for a substantial share of the biogas market in 2018, and is estimated to be the fastest growing market for biogas.
North America is also projected to account for a significant market share, owing to presence of high technology biogas players, focusing on R&D activities to ensure efficient production of biogas to suffice the demands from the industry.
The Latin America biogas market is primarily driven by the increasing demand for combined heat and power (CHP) and electricity generation from the emerging countries of the region, owing to their fast infrastructure and household expansion.
The Middle East & Africa biogas market is characterized by the increasing focus on government to invest in biogas plants and production, with the objective of reducing carbon emissions and moving towards renewable sources of energy.
Electricity can be majorly generated through deployment of biogas. Biogas leads to lower greenhouse emissions, thereby, generating clean energy. With rise in urbanization and emergence of households, there is a rising demand for electricity across the globe.
Biogas is utilized to suffice the energy requirement, in a low-cost and effective manner. Furthermore, rising environmental concerns are persuading electric utility companies to focus on generating electricity through renewable sources.
Most US companies are trying to generate 100% electricity using biogas and other renewable sources by the end of 2022. These factors are anticipated to fuel the growth of the electricity segment during the forecast period.
CHP segment is anticipated to experience the highest CAGR over the forecast period. Biogas acts as a low-cost and efficient alternative for conventional heating fuel, which helps in benefitting the segment.
Agricultural waste segment accounted for major share of the market due to growing production of agriculture across the globe. Emerging nations are investing on agricultural lands to increase agricultural production as well as exports.
This is accountable for generating substantial organic waste, through animals as well as crop, which, in turn, is anticipated to fuel the growth of this segment. Landfill segment is expected to experience the highest growth during the forecast period.
Vehicle fuel segment is also expected to grow substantially during the forecast period, owing to the major focus of automotive companies to reduce carbon emissions through cost-effective alternative.