Biogas Market (2015-2023) – Increasing Demand, Growth Analysis and Future Outlook
Global Biogas Market: Snapshot
Biogas is a combination of various gases that are generated through anaerobic digestion, fermentation, or other processes. It is primarily generated using waste products from the agricultural industry, sewage or edible waste, plant and industrial waste, and municipal garbage collection. Biogas commonly holds valuable applications as a fuel source intended for space heating, powering vehicles, cooking, and heat and electricity production.
The popularity ratings of biogas among environment conscious consumers has soared over the years owing to it being a renewable source of energy with only a minor carbon footprint. The overall value and share of the global biogas market within renewable energies is forecast to increase significantly owing to improvements in production technologies as well as possibilities of newer generation techniques that would eventually enable the players to generate biogas at a more efficient level and on a broader regional scale. Currently however, the global biogas market suffers from the lack of sophisticated and efficient technologies and shows high potential for incorporating upgrades.
The global biogas market is scheduled to expand at a considerable CAGR of 6.56% in terms of volume, within a forecast period from 2015 to 2023. The market recorded 22,488.0 kilo ton of oil equivalent in 2014, which is likely rise up to 39,845.58 KTOE by the end of 2023.
Biogas Research and Investments Very High in North America
On the basis of regions, the global biogas market can be divided into Europe, North America, Asia Pacific, and the Rest of the World. North America and Europe have so far been the key regions in the global biogas market. In 2014, Germany had led the overall production rates of biogas in Europe, thanks to the nation’s special interest in the large scale use of biogas and the consequent installation of a large number of now operational biogas plants. Countries such as Sweden, the U.K., and France are also adopting the biogas and other ecofriendly fuel sources swiftly to reduce their overall carbon emissions. Both North America and Europe are likely to continue showing high levels of promise of growth in the coming years due to increasingly stringent carbon emission regulations aimed at curbing pollution.
Meanwhile, Asia Pacific nations are likely to emerge as focal points for many key biogas market players over the coming years, due to the large amounts of agricultural waste and municipal waste generated. A key factor that may impede the biogas market’s growth in this region is the heavy initial investments required for the installation of large scale plants, as well as the complexities involved in waste segregation to separate potential biogas fuels from other waste products.
Electricity and Heat Considered Foremost Biogas Applications
The global biogas market so far has its leading applications in the segment of electricity and heat. This collective segment took up over 50% of the in 2014 in terms of value. It is also forecast to show a healthy growth rate in the upcoming years on account of a rising demand for clean energy globally. This includes the introduction of favorable regulatory policies towards greener fuels while reducing the overall global dependence on fossil fuels. Additional factors leading to the growth of the global biogas market and the applications of biogas in electricity and heat generation is the currently volatile nature of pricing and availability of crude oil. In the near future, the number of natural gas vehicles plying on the roads would likely increase, thereby boosting the segment’s market share.
The leading players in the global biogas market so far, have included Cryonorm BV, Vanzetti Engineering S.r.l., Swedish Biogas, Air Liquide Advanced Business & Technologies, Scandinavian Biogas Fuels, EnviTec Biogas AG, Wärtsilä Corp., Cryostar SAS, Gasrec Ltd., and Biofrigas Sweden AB.