Preliminary research of Fairfield Market Research indicates a promising growth outlook for global biomethane market during the course of next few years.
Biomethane Market Receives Tailwinds from Aggravating Concerns Around Global Energy Security
Biomethane's enormous potential for use in the transportation and energy sectors drives the global biomethane market. Green gas biomethane can be utilized as a fuel for automobiles when it has been purified. It can be fed into main gas networks to produce green energy. The need to minimize greenhouse gas emissions and adopt clean energy has intensified due to growing global warming concerns. The American company VIA Metropolitan Transit announced the issuance of US$82 Mn in bonds in 2017 to pay for 270 buses fueled by natural gas. Over the projected period, biomethane demand is anticipated to be driven by concerns about global energy security brought on by the rising need for electricity and heat generation. Furthermore, the rise in applications for transportation fuel and the rising demand from the power generation industry is driving the worldwide market.
Due to growing worries about fossil fuels, it is anticipated that the biomethane market will offer potential growth prospects during the projection period. Expanding biomethane use in the automobile sector creates business opportunities for market participants. As people become more knowledgeable about environmentally friendly and clean fuels, biomethane is becoming more and more popular. Researchers and market participants in the biomethane industry should work together to meet customer demand to take possible steps to expand production. Manufacturing businesses must aim to boost their efforts to overcome obstacles in the biomethane industry.
Biomethane Market: COVID-19 Impact
The outbreak of the infectious disease coronavirus disease, brought on by the recently discovered coronavirus, caused chaos and panic around the world and put an end to all regular daily activities like going to work, meetings, gatherings, traveling between countries, and even stepping foot outside the house. Timber harvesting and residues are essential to the biogas sector. As a result of the epidemic, key countries have been obliged to impose regional or national mobility restrictions, which poses a serious problem for the sector. Biogas and biomethane have nevertheless continued to be used to provide power and heat. The large expense involved in setting up a production unit is one of the key obstacles that could limit the biomethane market ability to expand. It also costs a lot of money to set up biogas distribution and transmission systems. The epidemic is predicted to present difficulties for the market, but these difficulties are predicted to pass quickly.
Growing Environmental Concerns, and Soaring Preference for Renewable Energy from Waste to Drive Biomethane Market Expansion
One of the main drivers fueling revenue growth in the global market is increased demand for such gas due to growing environmental concerns. The increased usage of this gas further stimulates the market for various uses, including power generation, heating, and use as an alternative fuel in the automobile sector. Additionally, this plant generates income by converting garbage into electricity. This environmentally benign gas stimulates the biomethane market by lowering greenhouse gas emissions and increasing energy demand.
Ascending Demand for Green and Clean Fuel in Automotive Industry to Create Lucrative Opportunities for Biomethane Market
Traditional energy production activities are gradually being diversified to include renewable energy sources to fulfill the energy needs of developing nations worldwide. The recent Climate Change Summit in Paris has encouraged several nations to adopt more renewable energy and cleaner fuels. According to projections, the automobile sector will account for a sizable amount of the world's demand for biomethane, thereby pushing the biomethane market up. Given that the automobile industry is a major source of greenhouse gas emissions, using biomethane as a vehicle fuel is anticipated to benefit the environment through reduced emissions immediately. Biomethane can be used in place of natural gas because the two substances' characteristics are comparable. Therefore, biomethane can be added to a fuel mix for vehicles by being fed into natural gas systems.
Huge Capital Expenses for Facility Installation, and Highly Combustible Nature of the Gas to Restrain Biomethane Market Growth in Long Run
Capital requirements are the main barrier to the production of renewable natural gas. The sector must set up a production unit, trash collection system, gas transportation system, and distribution lines. Furthermore, the government must support numerous projects and contribute a set amount of funds to each project. The low effectiveness of the systems utilized in biogas generation and the presence of pollutants in the finished product are additional problems limiting the biomethane market growth.
With Wider Accessibility, Organic Household Waste Category Dominant in Biomethane Market
The organic household waste category held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. Agricultural waste, municipal trash, sewage waste, and biowaste are the several categories of organic residue and waste. Because this raw material is widely accessible, the organic residue & waste sector commands the biggest biomethane market share. The primary raw resources that are widely accessible everywhere, according to the sub-split of organic residue & wastes, are agriculture waste and biowaste. As an illustration, China produces roughly 4.8 billion tonnes of agricultural waste. India produces almost 350 million tonnes annually, followed by France with 60 million tonnes, Canada with 81 million tonnes, and the Brazilian agro-industrial system with 291 million tonnes. Besides, the energy crop category is anticipated to grow significantly. Many energy crops include rice straws, maize, cassava tubers, corn byproducts, and potatoes. The management of crop residue and the reduction of stubble burning are global concerns.
Power Generation Category Leads Biomethane Market as Need for Electric Grid Networks Remains High
The power generation category held the largest revenue market share. It is anticipated that it will continue to rule the market during the forecast period due to a greater need for electric grid networks at home sites for various purposes, including cooking and water heating. In addition, there have been more building construction projects in the residential sector due to the segment's growth-inducing snowball of urbanization. Additionally, for greater efficiency, many anaerobic digesters are converting from using Biogas for power generation to more modernized biogas units. The need for power is increasing due to the growing population, which also helps the electricity generation sector. In addition, the growing demand for renewable natural gas as car fuel is expected to spur growth in the automotive sector. RNG is environmentally friendly and lowers carbon dioxide emissions. RNG is also compatible with car engines, which helps to advance this biomethane market further.
Europe Ranks Top in Global Biomethane Market
Over the forecast period, it is anticipated that the Europe biomethane market will account for the largest revenue share. Growing environmental consciousness, technical advancements, and increased demand for biogas power generation applications are some of the area's major drivers of market expansion. In addition, the region's significant market share results from industry growth, development, and quick urbanization. During the forecast period, the European market is anticipated to increase due to rising investments in biogas technology and rising support from regional governments. Government rules favoring biomethane production generate attractive income streams for manufacturers engaged in the European biomethane industry.
North America market is anticipated to experience stable revenue growth throughout the forecast period due to the region's emerging potential for energy production from wastewater treatment plants (WWTPs). According to estimates from the National Association of Clean Water Agencies and the Water Environment Federation, the energy generated from WWTPs in the US could meet more than 12% of the nation's electrical requirements. The region's industry outlook will improve in the next years due to the growing deployment of anaerobic digester systems that generate Biogas. In terms of biomethane market revenue share in the area, the United States, and Canada contribute the most. This region's revenue growth is primarily driven by multiple significant market participants, expanding automotive industry demand for biomethane, and supportive governmental regulations for biomethane production.
Global Biomethane Market: Competitive Landscape
In June 2021, Future Biogas Limited made plans to construct its portfolio of 25 new biogas plants by 2028. These plants will also be able to store and capture carbon emissions, allowing them to provide green gas to the grid. Additionally, 20 bolt-on CCS installations are planned to be constructed. Future Biogas plans to offer the carbon offsets produced by long-term geological CO2 storage to companies that want to reduce their emissions. Similarly, in September 2020, New biogas plant construction began in South Korea by Weltec Biopower. A built-in gas boiler at this facility will convert Biogas into heat. The 7 MW plant, which has a capacity of 93,000 tonnes of food waste per year, is anticipated to be implemented in the spring of 2021.
A few of the players in the biomethane market are CNG Services Ltd., Planet Biogas Global GmbH, VERBIO, Future Biogas Ltd., Magne Gas, Gasrec, Gazasia Ltd., Biogas Products Ltd., SGN, Schmack Carbotech GmbH, EnviTec Biogas AG, SoCalGas, ETW Enerietechnik GmbH, ORBITAL, and JV Energen.
Global Biomethane Market is Segmented as Below:
By Production Method
Key Elements Included In The Study: Global Biomethane Market
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