Anaerobic Digestion Market Value to Witness 17.7% Expansion Through 2026, Foresees a New Study of Fairfield Market Research

October 2021

Continual progression in technological innovations has led to the development of cost-effective, efficient, and more scalable processes. A recent report of Fairfield Market Research has estimated that the global anaerobic digestion market will expand at a staggering 17.7% CAGR over the forecast timeline, i.e., 2021 – 2026. There has been a substantial increase in waste generation by households, municipalities, and industries globally. The anaerobic digestion (AD) technology can effectively manage voluminous waste by converting the same to renewable energy and other useful by-products such as fertilizers. This will majorly drive the growth of anaerobic digestion market, poised to attain the revenue worth US$18.5 Bn by the end of 2026.

There has been a steady increase in demand for renewable energy resources recently. Anaerobic digestion technology allows for the generation of renewable energy through the various organic waste materials, including food waste, agricultural waste, and sewage sludge. Moreover, several governments are promoting the use of renewable energy sources, and effective waste management practices through favourable policies, initiatives, and regulations. This has led to the implementation of feed-in tariffs, tax incentives, subsidies, and renewable energy targets by various countries around the world. This will accelerate the progression of anaerobic digestion market.

Key Research Insights

• The global anaerobic digestion market was valued at US$7 Bn in 2020
  
  
• Leading AD market players include Veolia, ENGIE, Xergi, and ADBA member companies
  
  
• The global AD market is projected to expand at a 17.7% CAGR
  
  
• Europe to remain a regional frontrunner in the AD market
  
  
• The global AD market to achieve a capacity of 20GW by 2025, and up to 75GW by 2040

Corporate Sustainability Initiatives, and Establishment of Additional AD Plants to Foster Expansion Prospects

Numerous corporations and governments are now setting sustainability targets and are seeking ways to reduce their environmental impact. AD technology allows for the meeting of these targets by reducing greenhouse gas emissions, minimizing waste, and in generating renewable energy. In the coming years, there is expected to be a significant increase in the development of AD plants across the world, particularly in Europe and the Asia Pacific, which in turn is expected to immensely boost the growth trajectory of the global anaerobic digestion market.

Europe to Remain a Frontrunner in Global Anaerobic Digestion Market

Accounting for most of the global installed capacity, Europe is expected to remain the largest market for anaerobic digestion. To promote the adoption of AD technology, several countries have implemented policies and incentives such as the UK’s Renewable Heat Incentive (RHI), and Germany’s Renewable Energy Act (EEG). North America is also expected to account for a significant share of the global anaerobic market, with the US being the largest market in this region. However, the Asia Pacific is expected to experience the fastest CAGR over the forecast period, with China being the largest market in this region, owing to the increasing demand for renewable energy and waste management solutions.

Global Anaerobic Digestion Market – Key Competitors

Siemens AG, Veolia, 2G Energy AG, Vanguard Renewables, HoSt Holding B.V., Clearfleau Group Limited, GE, Clarke Energy, Voith GmbH & Co. KGaA, and WELTEC BIOPOWER, all collectively account for the majority revenue share of the global anaerobic digestion market and are extensively detailed under our comprehensive competitive profiling and strategic analysis.