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Global Biomethane Market Projected to Hit $32.6 Billion by 2035

The global biomethane sector is transitioning into a phase of large-scale commercialization, with market valuations expected to more than double over the next decade. Driven by aggressive decarbonization mandates and circular economy initiatives, the industry is forecast to reach $32.6 billion by 2035, growing at a 7.8% annual rate.

Global Biomethane Market Projected to Hit $32.6 Billion by 2035

Investment in renewable gas infrastructure is accelerating as utilities and industrial sectors seek reliable alternatives to fossil-based natural gas. According to Future Market Insights, the market will climb from its current $15.4 billion valuation to exceed $22 billion by 2030. This growth is underpinned by a global push to integrate biomethane into electricity generation, transportation, and industrial heating systems, effectively turning waste streams into energy assets.

Agricultural waste currently leads the feedstock segment, accounting for 32.4% of demand, while power generation remains the primary application, capturing 46.2% of total revenue. Technological maturity in anaerobic digestion has cemented its role as the dominant production method, representing 57.4% of the market. While high capital requirements for grid injection and storage infrastructure present hurdles, regional leaders like China, currently growing at a 10.5% CAGR, are aggressively expanding capacity to meet energy security goals.

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