Biogas Market Size, Share, Growth, Trends And Forecasts 2016 To 2024

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The global biogas market is anticipated to grow at a significant rate over the forecast period. The market is driven by increasing greenhouse gas emissions and their destructive impact on the global environment. Governments across the world are investing heavily in the production of renewable energy sources to curb the carbon emissions and ensure a stable and secure supply of energy. Increasing awareness among global population regarding the hazardous impact of Greenhouse Gas (GHG) emissions on the environment is presumed to encourage the growing installation of biomass production plants across the globe.

One of the primary drivers of the industry is the fact that biogas is a renewable source of energy. It can only be depleted when the world stops producing waste. In addition to this, production of biofuel helps to eliminate the problem of landfill and dump sites, which is anticipated to provide a positive impact on the demand for biogas over the next eight years. Moreover, the production of this biofuel is expected to eradicate various environmental problems related to waste as a majority of organic materials incorporate the ability to be used to form biomass for further production. Government initiatives, such as Biomass Power & Cogeneration Programme by the Ministry of New & Renewable Energy India, are expected to attract significant investment in this industry.

The industry incorporates significant opportunities for future growth as biofuel is envisioned to emerge as a renewable substitute for conventional fuels such as petrol and diesel. In addition to a renewable source of energy, biofuel is carbon neutral and does not add to the greenhouse emissions, which is expected to drive the demand for biogas as a renewable substitute for conventional fuels. Also, the raw materials used in biomass are underexploited, which offers significant scope for future development of this technology. Agricultural producing countries, such India and Indonesia, are presumed to incorporate considerable opportunities for industry growth as the implementation of biogas production and application of biofuel is anticipated to provide additional sources of income for the farmers.

However, high installation cost involved in the setting up of a biogas plant and pipelines for transport is expected to challenge the industry growth over the forecast period. The technology for generating power from biomass is still primitive, and there exists a high need for research and development to enhance the production efficiency. Moreover, the location of these plants is presumed to impact the industry growth negatively, in the recent future. A huge fraction of plants exists in remote locations, thereby making it difficult to utilize maximum electrical output in the places with higher demand. Also, the renewable energy source is relatively unstable and prone to explosions, as methane produces a chemically unstable compound on reaction with atmospheric oxygen.

Another challenge to the industry is the low bankability of renewable power plant. In countries, such as Austria, banks have completely withdrawn from the biofuel business and prefer to invest in non-commodity linked renewable sources of energy such as wind energy and photovoltaic systems.

The global biogas market can be segmented by application into electricity and heat generation, vehicle fuel, and others. Other application includes supply to a natural gas pipeline and domestic use. Electricity and heat generation segment is expected to lead the overall global share over the forecast period. Demand for upgraded biofuel is presumed to increase in the recent future owing to the low cost of fuel and compliance with stringent vehicle emission regulations.

Europe is envisioned to emerge as a predominant region over the forecast period. Countries such as Germany, Austria and Denmark have strong legal framework regarding renewable energy sources. Economic efficiency for the biomass plant is crucial for the long-term development of the industry. Asia Pacific is anticipated to witness significant growth over the next eight years, due to the high rate of agricultural production in the emerging economies, including India, Thailand and Indonesia. North America is presumed to grow at a considerable rate over the forecast period owing to increasing adoption of alternative and renewable energy sources. The U.S. Department of Agriculture (USDA), and Department Of Energy (DOE) have specified guidelines to enhance the use of biogas, to address the U.S. renewable energy goals. The regional government operates programs and provides financial incentives to encourage investment in biomass systems.

In April 2016, EnviTec Service signed an agreement with Energielenker GmbH to partner in its proprietary solutions for renewable and decentralized energy supplies, and power generating plants active throughout Germany.

The key players in the industry include EnviTec, Vanzetti Engineering, Swedish Biogas International AB, Air Liquide Advanced Business & Technologies, Wärtsilä Corporation, Gasrec., Cryostar SAS, Cryonorm BV, and Biofrigas Sweden AB.

Read more: http://www.grandviewresearch.com/industry-analysis/biogas-market

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