Segmentation By Production Method (Anaerobic Fermentation and Gasification); By Application (Automotive, Power Generation); By Feedstock (Organic Household Waste, Animal Manure, Sewage Sludge, Agricultural Waste, Industrial Food Processing Waste, Energy Crops, and Others); By End-User (Residential and Commercial) - Global Demand Analysis & Opportunity Outlook 2027
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Ease in Availability of Raw Materials
Raw material required to produce biomethane is easily available. This can be attributed to the sufficient amount of organic matter present on the Earth, irrespective of the geographical location and environmental conditions. Additionally, its utilization in various sectors reduces dependency on fossil fuels, such as coal and petroleum along with reduced dependence on uranium for nuclear power plants. These factors are anticipated to support the growth of the market.
Cost Effective
Production of biogas is a biochemical process that requires low investment. Since, biomethane is chemically identical to biogas, its production does not require any additional technology or infrastructure. This is estimated to positively impact the demand for biomethane over the forecast period.
Restraints
Risk of Explosion
Biomethane is primarily composed of methane, which is highly combustible. Therefore, the production and transportation of methane from biomethane plant requiring high level of precaution is projected to dampen the growth of the market.
Limited Generation of Electricity
Although, raw material required for biomethane production is abundant, it would not be adequate to meet the rising demand of power and energy needed in various sectors. These factors are estimated to restrain the growth of the market in upcoming years.
The market is observing a robust growth on account of increasing emissions of greenhouse gases, such as CO2 in the atmosphere. Additionally, high potential usage in automobile industries and using same infrastructural setup as natural gas which eliminates its high setup cost is expected to propel the growth of the market.
Moreover, eco-friendly properties of biomethane, makes it more suitable for its end-use applications as it does not lead to any kind of pollution. Furthermore, the use of waste material for its production aids in combating the problems, such as global warming and climate change which are estimated to drive the growth of the market.
The global biomethane market is anticipated to record a CAGR of 7.4% over the forecast period i.e. 2019-2027. The market is segmented by application into automotive and power generation, out of which, the automotive segment is anticipated to hold leading shares on account of reduction in emission of greenhouse gases, which ultimately reduces the ecological concerns, such as global warming and climate change.
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Our-in depth analysis of the global biomethane market includes the following segments:
By Production Method
By Application
By Feedstock
By End-User
By Region
On the basis of regional analysis, the global biomethane market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America and Europe region is anticipated to hold leading share during the forecast period. This can be attributed to rising demand from the automotive sector along with favorable policies and financial assistance programs for the production of biomethane. Additionally, regulations regarding environmental pollution due the emission of harmful gases are among major reasons for its adoption and production in these regions. The market in Latin America and Asia Pacific region is estimated to grow significantly during the forecast period.
The global biomethane market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
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