U.S. Biogas Market Latest Innovations And Challenges By 2030

U.S. Biogas Market Summary

The U.S. biogas market size was estimated at USD 6.08 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 2.7% from 2024 to 2030. The increasing demand for biogas in multiple applications, such as cooking gas, electricity generation, vehicle fuel, heating, and others, is anticipated to positively influence the growth of the industry over the forecast period. Furthermore, the continued adoption of advanced technologies and innovation aimed at enhancing the production of raw materials for biogas generation is likely to drive the overall expansion of the biogas market in the United States.

In addition to technological advancements, other critical factors fueling the growth of the biogas market include favorable regulatory frameworks, political and environmental support, customer awareness, as well as agricultural and economic backing. Support from U.S. federal bodies such as the Department of Agriculture (USDA) and the Department of Energy (DOE), which have implemented detailed guidelines to promote biogas usage in alignment with national renewable energy goals, further bolsters the industry. The heightened demand for eco-friendly fuels, the presence of strict environmental mandates, and rising investments in the construction and enhancement of biogas refineries are also driving market expansion.

Key Market Trends & Insights

• The municipal segment held a dominant position in the market, accounting for 87% of the revenue share in 2023. Within municipal sources, feedstock such as solid waste—including food waste, glass, yard trimmings, non-recyclable paper, woody biomass, rags, and sludge from wastewater—plays a significant role in biogas production. The abundant availability and consistent generation of this type of waste material have made it the primary contributor to biogas feedstock in the United States, leading to its major share in the market.
• In terms of application, the vehicle fuel segment led the market by capturing a revenue share of 35% in 2023. This growth is primarily attributed to rising awareness about the harmful environmental effects of greenhouse gas emissions in the transportation sector. Furthermore, the enforcement of stringent emission regulations by government agencies has encouraged the use of biogas as an alternative, sustainable fuel source for vehicles, supporting its increasing adoption in this area.
• The heat segment is anticipated to grow at the fastest pace throughout the forecast period. The rapid expansion of this segment is due to the widespread use of biogas in both industrial and domestic settings. It is commonly employed for generating thermal energy and in water heating systems. This utility is becoming more popular as organizations and households seek cost-effective and renewable options to meet their energy needs, thereby contributing to market growth.

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Market Size & Forecast

• 2023 Market Size: USD 6.08 billion
• 2030 Projected Market Size: USD 7.34 billion
• CAGR (2024 - 2030): 2.7%

Key Companies & Market Share Insights

The market is moderately competitive. The threat of new entrants is low owing to the high capital requirements since building and operating an efficient biogas requires substantial investment. Additionally, regulatory compliance and expertise in waste management & biogas technologies is essential making it challenging for newcomers to establish a foothold in the market.

Key Players

• Air Liquide
• Bright Renewables
• PlanET Biogas
• TotalEnergies
• Xebec Adsorption Inc.

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Conclusion

In conclusion, the U.S. biogas market is poised for moderate yet stable growth due to increasing demand across key applications like fuel, electricity, and heating. Supportive government policies, growing environmental concerns, and technological progress are further shaping the market landscape. Municipal waste remains the largest feedstock contributor, while vehicle fuel applications continue to lead in revenue share. The heat segment, however, is set to experience the most rapid growth due to its increasing utility in both industrial and residential sectors. Together, these factors indicate a promising future for biogas as a viable component of the nation’s clean energy transition.