The global biomethane market size was valued at USD 2.08 Billion in 2021 and is projected to reach USD 3.76 billion by 2030, growing at a CAGR of 6.8% during the forecast period 2022–2030.
Biomethane is a natural gas produced through anaerobic respiration or gasification of organic matter such as plant and animal waste, sewage, manure, industrial waste, and green waste, among others. Methane with a high calorific value is extracted from biogas to produce biomethane. Biomethane reduces greenhouse gas emissions and has application potential in the automotive sector's power generation. Significantly, biomethane is produced using the same infrastructure as natural gas, eliminating additional production costs.
Global demand for biomethane is driven by its vast application potential in the automotive and energy generation industries. Biomethane is a green gas, and its purified derivative has the potential to be used as a vehicle fuel. It can be injected into core gas networks to generate green energy. Growing concerns about global warming have increased the need to reduce greenhouse gas emissions and embrace clean energy. In 2017, VIA Metropolitan Transit of the United States announced the sale of USD 82 million in bonds to purchase 270 natural gas-powered buses. Concerns about global energy security, stemming from the ever-increasing demand for electricity and heat generation, are anticipated to drive market demand over the forecast period.
One of the significant drivers of biomethane is that it helps reduce greenhouse gas emissions. Bio methane's impact on the Earth's atmosphere is unquestionably one of its most significant environmental benefits. Unlike conventional energy sources, biomethane does not increase the concentration of greenhouse gases because carbon dioxide and other gases that contribute to the greenhouse effect are released during the decomposition of organic matter. In other words, biomethane is one of the most effective ways to satisfy the increased demand for energy without contributing to global warming, which endangers all living things, including humans.
When it comes to methane (CH4), the gas is colourless, odourless, and highly explosive. As it burns, it releases carbon dioxide and water vapour. It can be made naturally or synthetically. All across the world, heat and electricity are generated by using natural gas as their fundamental component. Carbon black, a chemical substance in some types of tyre rubber is a chemical compound made from methane via chemical processes. The production and transportation of biomethane need a lot of attention and care, so that's why this is a restraining factor.
The biomethane market in Europe is the largest in the world. There has been an increase in demand for biogas for power-generating applications due to environmental consciousness, technological advancements, and an increase in demand for biogas. In addition, factors responsible for the region's primary market share are growth & development in industries and rapid urbanization. The biomethane market in Europe is predicted to rise during the forecast period due to increased investments in biogas technology and increased assistance from governments in the area. Due to favourable European government regulations, manufacturers in the biomethane industry can generate a significant amount of income.
The global biomethane market share is segmented by feedstock, application, and production techniques.3.76
Animal manure, organic household waste, energy crops, agricultural waste, industrial food processing waste, sewage sludge, and other feedstocks have been used to segment the market for biomethane. Among these, agricultural waste represents a substantial market share. As biomethane production and biofuel application are anticipated to provide farmers with an additional source of income, agricultural economies, primarily India and Indonesia, are anticipated to present substantial opportunities for market expansion. The Department of Energy (DOE) and the U.S. Department of Agriculture (USDA) have detailed guidelines for advancing the use of biogas in conjunction with U.S. renewable energy objectives. Regional governments administer programmes and offer monetary incentives to support the biomethane market.
The biomethane market has been segmented by application into automotive, power generation, and others. Due to growing concerns about reducing CO2 emissions into the atmosphere, the automotive industry represents a significant portion of the market.
The biomethane market has been segmented based on production methods into fermentation and gasification. The most prevalent production method gasification process emits combustible gases such as carbon monoxide, carbon dioxide, methane, hydrogen, and various hydrocarbons that can be utilized directly in gas turbines and boilers.
Geographically, the global biomethane market share has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Europe dominates the global biomethane market as a result of the region's increasing biomethane production and consumption. The automotive industry is currently driving the expansion of the global biomethane market, as biomethane is used as a vehicle fuel to replace fossil fuels such as gasoline, avoid the rising costs associated with them, and reduce the emission of harmful greenhouse gases.
North America is the second-largest market for biogas plants due to the development of innovative waste treatment techniques. Almost all large-scale facilities have wastewater biogas plants that treat one to several hundred million gallons daily.
The Asia-Pacific region is a developing market where governments have implemented various biogas support programmes. Several modern biogas plants have been constructed in China, with their installed electricity capacity reaching 330 MW in 2015 and 350 MW in 2016. Emerging nations such as India and China are experiencing rapid industrial development and a climate conducive to agriculture; as a result, these nations have a vast supply of agricultural waste.
Due to a lack of awareness and limited availability of biogas plants, Latin America and, the Middle East & Africa have the smallest market share. With the increasing use of renewable energy in the energy mix, the biomethane market in Latin America is anticipated to experience substantial growth. In addition, numerous agricultural and domestic biogas plants have been established for rural households, and biogas is also extracted from several landfills. In partnership with the Global Environment Facility, the United Nations Industrial Development Organization (UNIDO) launched an industrial waste-generated biogas project in the South African region in 2017.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|