Inkwood Research anticipates the Global Biogas Market to record a 4.42% CAGR during the forecasted period, 2023-2032.
“Browse 35 Market Data Tables and 35 Figures spread over 175 Pages, along with an in-depth TOC on the Global Biogas Market Forecast 2023-2032.”
Biogas consists of carbon dioxide, methane, and traces of gases and water. The organic matter breakdown produces these gases without oxygen. Biogas is produced from different sources, with crop residues and animal manure being the largest feedstock sources, especially in developing countries, where the agricultural sector plays a vital role in the economy.
Additionally, the global biogas market comprises the cumulative installed capacity of biogas facilities on a global and regional level. The biogas market’s growth can be attributed to increasing demand for energy targets, declining electricity generation costs from bioenergy facilities, and increasing investment in bioenergy.
Government Policies Favor the Global Biogas Market
One of the primary drivers contributing to the growth of the biogas market has been supportive government policies and mandates which have encouraged and incentivized the production and use of biogas from biogenic waste. Such beneficial incentives are expected to boost the market prospects of biogas during the forecast period.
Biogas is legally classified as an advanced renewable biofuel under the Renewable Fuel Standards (RFS) in the United States. Due to this classification, anaerobic digestor biogas systems are eligible for state and federal tax credits through various federal incentive programs. Under the federal RFS program, financial incentives are available for biogas as a vehicle fuel that can be much greater than the value of gas.
Agricultural Source Type Dominates the Market
Crop residues or agricultural residues are viable for power generation as they have their economic benefits. Further, agricultural residue can be primary and secondary depending on the origin. Primary residues are the solid vegetal residue left in the field after harvest, and secondary residues are the portion discarded during the processing phase, such as olive pits and nutshelling.
Further, there are many methods to utilize crop residues, such as direct combustion, gasification, and palletization, but anaerobic digestion is one of the most effective ways. Furthermore, a substantial share of residual needs to stay on the field to safeguard the soil fertility, while a percentage of residue might be used for other agricultural uses, such as straw in animal bedding and horticulture.
Europe – Leading Region
The rapid development in the region’s biogas sector can be attributed to continuous improvements and supportive government policies set by the government. Moreover, the high rate of depletion of fossil fuels in the region creates plenty of growth prospects for the biogas market. European Union has targeted utilizing more renewable energy than fossil fuels. The government’s focus on decreasing carbon emissions also presents growth opportunities for the Europe biogas market. Moreover, recent developments and investments are also expected to boost market growth.
The fixed cost for setting up a biogas plant is moderately high, which increases the intensity of competitive rivalry. As a result, the intensity of competitive rivalry is moderate. The consumer switching cost for this market is moderately low, which increases the competitive rivalry.