Biogas Generator Market

On the basis of feedstock type the market is classified as Agricultural Residues, Animal Manure, Food Waste, Municipal Solid Waste, others. Feedstock Type Insights Agricultural Residues: Agricultural residues holds a major share in the Biogas Generator Market as it is abundant and cheap source for the market. Crop stalks, leaves and husks are the main Agricultural Residues on which biogas production is done and they are easily available in the agriculture regions.

The conversion of agricultural residues into biogas provides a sustainable solution for waste management and renewable energy source.Animal Manure: Animal Manure is another feedstock which serves as a major source for biogas generators. With the increase in the scale of livestock production more manure from cows, pigs, poultry and others are produced. Manure contains large amount of organic matter which can be converted easily to biogas through the process of anaerobic digestion. Use of animal manure for biogas production not only reduces the waste but also provides a valuable source of energy.

The Biogas Generator Market is segmented by installed capacity into four categories such as less than 100 kW, 100 kW to 500 kW, 500 kW to 1 MW, 1 MW to 5 MW and above 5 MW. Among these segments, 100 kW to 500 kW segment has grabbed the highest market share in 2023 holding around 35% of market. This segment is expected to dominate the market throughout the forecast period due to growing adoption of the biogas generators in small and medium businesses and industries.

The above 5 MW segment is expected to grow with the highest growth rate during the forecast period owing to the growing demand for the large scale power plants of the biogas.By 2032, the Biogas Generator Market revenue of the installed capacity is expected to reach USD 12.5 billion with a CAGR of 8.2% from 2023 to 2032.

The Application segment of the Biogas Generator Market holds immense significance, contributing substantially to its overall revenue. Power Generation, Heat Generation, Combined Heat and Power Generation (CHP), and Fuel Production (Biomethane) are the primary applications driving market growth. In 2024, the Power Generation segment held the largest market share, at around 45%, due to the increasing adoption of biogas generators for electricity production in various industries and remote areas.

The Heat Generation segment is anticipated to exhibit steady growth, with a projected market share of approximately 30% by 2028, driven by the rising demand for biogas generators in residential and commercial heating applications.Furthermore, the Combined Heat and Power Generation (CHP) segment is gaining traction, capturing a market share of nearly 20% in 2023. The Fuel Production (Biomethane) segment is expected to witness significant growth over the forecast period, owing to the increasing demand for renewable transportation fuels and the growing popularity of biogas upgrading technologies.

The biogas generator market is segmented by technology into anaerobic digestion, gasification, and pyrolysis. Anaerobic digestion is the most widely used technology, accounting for over 60% of the market in 2023. This technology involves the breakdown of organic matter in the absence of oxygen, producing biogas. Gasification is another important technology, which involves the conversion of organic matter into a combustible gas through a thermochemical process.

Pyrolysis is a less common technology, which involves the thermal decomposition of organic matter in the absence of oxygen, producing a solid char and a liquid bio-oil.The market for biogas generators is expected to grow significantly in the coming years, driven by the increasing demand for renewable energy sources and the need to reduce greenhouse gas emissions.

The Biogas Generator Market segmentation by End User can be divided into Industrial, Commercial, Residential, and Utilities. Industrial segment holds the largest market share due to the growing demand for biogas generators in various industries such as food processing, paper and pulp, and textiles. This segment is expected to continue its dominance throughout the forecast period.

Commercial segment is expected to witness significant growth owing to the increasing adoption of biogas generators in commercial buildings such as offices, hospitals, and hotels.Residential segment is also expected to experience steady growth as more and more homeowners are becoming aware of the benefits of biogas generators. Utilities segment is expected to grow at a moderate pace as utilities are increasingly exploring the use of biogas generators to supplement their renewable energy portfolio.