Global organic biogas market expected to reach $32bn by 2023
The global organic biogas market was worth more than $19.5 billion (€17.2bn) in 2015 and is forecast to exceed $32 billion by 2023, growing at more than 6% CAGR from 2016 to 2023, a new report says.
According to market analyst Global Market Insights (GMI), in terms of volume, organic biogas market demand was more than 22 kilotonnes in 2015 and is likely to surpass 36 kilotonnes by 2023, increasing 6.2% annually over the forecast period.
Europe is the dominant region in the market and registered over 7,500MW capacity installed in 2015, with Germany, Italy, and Switzerland as the key contributors.
Increasing environmental concern coupled with stringent government regulations pertaining to air pollution and waste management was among the key factors to drive regional growth.
Growth in industrialisation accompanied by increasing renewable energy usage trend in India and China are expected to drive the Asia Pacific organic biogas market over the forecast period.
US market size is also expected to witness significant growth owing to strict regulations related to greenhouse gas emissions.
Feedstock types in the market, according to GMI, consist of agri-food industry waste, green waste, wastewater treatment sludge, grease, manure and liquid manure, cultures, and by-products.
Agri-food industries waste and grease are expected to witness high demand owing to the presence of methane, which is turned into water and carbon dioxide during biogas ignition, helping to reduce the adverse effect on the environment.
Heat and electricity was the largest market segment in 2015, owing to growth in green technology trend and increase in resource depletion.
Growing demand from municipalities, farmers, and industrial processors are expected to boost growth in next 6 years.
Growth in the automotive industry and attempt to reduce dependency on conventional resources are anticipated to foster the vehicle fuels segment, as Malaysia, Thailand, India, China, Sweden, and Germany are promoting biogas in vehicles.
Eco-concern balanced by costs
The increasing preference for renewable energy over conventional energy, coupled with favourable regulatory policies, is likely to positively influence the organic biogas market, the report forecasts.
Governments worldwide and various environmentalists are promoting biogas as a cleaner alternative to conventional fuels, and numerous biogas plants are expected to be installed in next few years.
Rise in environmental concerns and the fluctuating climate have encouraged people to save the atmosphere and personal health by opting eco-friendly resources.
Impulsive crude oil prices, demand and supply issues, and diminishing fossil fuel resources are among the key factors to drive biogas growth, while high installation and initial costs are anticipated to hamper demand.