The anaerobic digestion segment dominated with over three-fifths of the total revenue in 2022 and is forecast to expand at a CAGR of 5.8%.

WILMINGTON, DE, UNITED STATES, November 5, 2025 /EINPresswire.com/ -- The global biomethane market is witnessing rapid growth, driven by supportive government policies, financial incentives, diverse applications, expanding R&D efforts, efficient waste management practices, energy security concerns, and the environmental benefits of biomethane.

According to a report published by Allied Market Research, titled “Biomethane Market by Feedstock (Organic Household, Animal Manure, Energy Crops, Agricultural Waste, Sewage Sludge, and Industrial Food Processing Waste), Production Method (Anaerobic Digestion, Gasification, and Fermentation), and Application (Power Generation, Automotive, and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032,” the market was valued at $3.1 billion in 2022 and is expected to reach $5.5 billion by 2032, growing at a CAGR of 5.7% during the forecast period.

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Biomethane, also known as renewable natural gas (RNG), is produced either through gasification of solid biomass or by purifying biogas to remove CO2 and other impurities. It is widely used for power generation, vehicle fuel, and heating applications.

Market Dynamics:-

Drivers

- Environmental benefits and contribution to carbon reduction
- Enhanced energy security and effective waste management
- Versatile end-use applications supported by favorable policies
- Financial incentives and technological advancements

Restraints:

- High capital investment and technological complexity
- Limited feedstock availability

Opportunities:

- Diversification of the energy mix
- Scalability and flexibility in production
- Growing adoption within the circular economy framework

Segment Highlights:-

• Feedstock:

- The energy crop segment accounted for over one-third of the market in 2022 and is projected to register the fastest CAGR of 6.0% through 2032. The high energy content and ease of microbial digestion make energy crops ideal for biomethane production.

• Production Method:

- The anaerobic digestion segment dominated with over three-fifths of the total revenue in 2022 and is forecast to expand at a CAGR of 5.8%. Continuous improvements in digestion technologies and supportive policies are driving this segment’s growth.

• Application:

- The automotive segment held the largest market share—around two-thirds in 2022—and is expected to maintain its lead with a CAGR of 5.9%. Biomethane’s low-carbon profile and ability to reduce emissions of NOx, SOx, and particulate matter make it a cleaner alternative to traditional fuels.

Regional Analysis:

- The Asia-Pacific (APAC) region accounted for approximately 40% of global revenue in 2022 and is anticipated to continue leading the market with the highest CAGR of 6.0% by 2032.

- China and India are spearheading regional growth through active initiatives in biomethane production from agricultural residues, manure, and food waste as part of their renewable energy expansion strategies.

Key Market Players

- AB HOLDING SpA
- ETW Energietechnik GmbH
- CNG Services Ltd.
- PlanET Biogas Global GmbH
- Orbital Gas Systems
- Gazasia Ltd.
- Future Biogas Ltd.
- Ecofinity
- VERBIO Vereinigte BioEnergie AG
- EnviTec Biogas AG

These companies are focusing on new product launches, partnerships, expansions, joint ventures, and strategic collaborations to strengthen their global presence and enhance market competitiveness.

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About Us

Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

David Correa
Allied Market Research
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