Global Biogas Market Set to Exceed €93 Billion by 2036 as Europe Accelerates Renewable Energy Transition
The global biogas industry is expected to surpass €93 billion by 2036, driven by stricter climate policies, expanding biomethane production and growing investment in renewable energy infrastructure. Europe is expected to remain one of the leading markets as governments seek to reduce methane emissions and strengthen energy security.
The global biogas sector is forecast to grow rapidly over the next decade, reaching an estimated market value of more than €93 billion by 2036, reflecting increasing demand for low-carbon energy solutions and circular economy technologies.
The expansion is being fuelled by stronger renewable energy policies, decarbonisation targets and initiatives aimed at reducing methane emissions from agriculture, waste management and industrial activities.
Europe strengthens its leadership in renewable gases
Europe continues to play a central role in the development of the biogas and biomethane industries, supported by ambitious climate legislation and efforts to diversify energy supplies.
Governments across the European Union are increasing investment in renewable gas infrastructure as part of broader strategies to reduce dependence on fossil fuels while improving energy resilience.
Biomethane is becoming an increasingly important component of Europe's energy mix because it can be integrated into existing natural gas networks while significantly lowering greenhouse gas emissions.
Growing investment across the value chain
The market's expansion is encouraging investment in new anaerobic digestion facilities, upgrading technologies and gas distribution infrastructure.
Energy companies, utilities and agricultural businesses are increasingly collaborating to transform organic waste, agricultural residues and food by-products into renewable energy, creating additional revenue streams while supporting waste reduction objectives.
The sector is also benefiting from advances in digital monitoring systems, process optimisation and more efficient gas purification technologies.
Methane reduction becomes a strategic priority
Efforts to curb methane emissions have become a major driver of investment in biogas production.
Governments and regulators increasingly view the capture and conversion of methane into renewable energy as a cost-effective strategy for reducing greenhouse gas emissions while generating low-carbon fuels for electricity generation, heating and transportation.
This dual environmental and economic benefit is strengthening the business case for expanding biogas infrastructure worldwide.
Industrial demand continues to expand
Beyond electricity generation, renewable gases are finding new applications across industrial manufacturing, heavy transport and district heating systems.
Companies seeking to reduce their carbon footprint are increasingly adopting biomethane as an alternative to conventional fossil fuels, supporting corporate sustainability targets and compliance with evolving environmental regulations.
This diversification of end-use applications is expected to sustain long-term market growth.
Europe's circular economy creates new opportunities
The expansion of biogas production aligns closely with Europe's circular economy strategy by converting organic waste into valuable energy and agricultural by-products.
As investment accelerates, the sector is expected to generate new business opportunities across engineering, infrastructure development, environmental services and clean technology, reinforcing Europe's position as a global leader in renewable energy innovation.
