Global Biomethane Market Forecast to Reach USD 29.18 Billion by 2034 Amidst Rising Demand for Renewables
The global biomethane market is projected to reach USD 29.18 billion by 2034, growing at a 13.55% CAGR from 2025. Europe leads the market, driven by robust infrastructure and policies. Key growth factors include rising demand for renewable energy, technological advancements, and supportive government initiatives. AI is increasingly optimizing production processes and maintenance. Municipal waste and construction are currently dominant segments, with wastewater sludge and industrial applications showing the fastest growth potential.
The global biomethane market is set for significant expansion, forecast to grow from USD 10.56 billion in 2026 to USD 29.18 billion by 2034, exhibiting a compound annual growth rate of 13.55% over the 2025-2034 period. In 2025, the market was valued at USD 9.30 billion. Biomethane, a renewable energy alternative derived from organic waste through anaerobic digestion and gas upgrading, offers substantial environmental benefits by reducing carbon emissions and reliance on fossil fuels. It finds versatile applications across power generation, heating, industrial energy, transportation, and construction. Europe currently dominates the market, holding a 45.16% share in 2025, attributed to its mature waste-to-energy infrastructure and supportive environmental policies. The UK and North America, particularly the U.S., are also experiencing rapid growth due to increasing investments in waste processing and strong demand for renewable natural gas.Technological advancements, especially in AI-driven systems, are playing a crucial role in optimizing biomethane production. AI enables real-time monitoring and control of anaerobic digestion, feedstock quality, and gas composition, leading to maximized methane yield and enhanced process stability. AI also facilitates predictive maintenance, reducing downtime and operational risks. Segmentation insights reveal municipal waste as the dominant source segment in 2025, valued for its steady feedstock supply, while wastewater sludge is projected for the fastest growth. In terms of end-use, the construction segment dominated in 2025 due to its demand for cleaner energy, with the industrial segment anticipated to grow the fastest as industries prioritize decarbonization goals. The report highlights potential for biomethane production to increase significantly, contributing to targets like REPowerEU's 35 bcm goal by 2030.
