Waste Derived Biogas Market Size, Share, Growth, Trends, and Global Industry Analysis: By Feedstock (Municipal Solid Waste, Agricultural Residue & Manure, Food Waste, and Industrial Sludge), By Technology (Dry Anaerobic Digestion, Wet Anaerobic Digestion, Co-Digestion, and Upgrading Technologies), By Plant Type (Farm, Community, Industrial Park, and Landfill Recovery), By End User (Electricity & Heat, Grid-Injected Biomethane, and Vehicle Fuel), and Region Forecast 2020-2031

Waste Derived Biogas Market size was valued at US$ 42,836.4 million in 2024 and is projected to reach US$ 59,079.9 million by 2031 at a CAGR of 4.7% from 2025-2031. Waste-derived biogas is a green source of energy generated through the anaerobic digestion of organic waste—e.g., municipal solid waste (MSW), agricultural residue, food waste, and industrial wastewater—and made up mostly of methane and carbon dioxide, and available for heat, power, or upgraded to biomethane.

The demand for waste-derived biogas is changing fast with the coming together of environmental stewardship, waste reduction requirements, and clean energy objectives. Governments are reducing landfill controls, providing incentives for renewable energy, and promoting carbon neutrality—all of which are in favor of biogas development. The increasing amount of organic waste from urban and agricultural activities increasingly drives demand for effective conversion technologies. Advances in technology such as high-rate digesters and low-footprint upgrading units are making these systems increasingly attractive. Nevertheless, the industry has a few recurring problems, such as unreliable feedstock supply, lengthy permitting procedures, and massive upfront investment to build infrastructure like gas scrubbers and grid hookups.

Moreover, limited information on small waste generators, regulatory slowdowns, and competition from less expensive solar or wind power typically makes investment difficult. This said, rising demand from ESG-oriented investors and heightened awareness of the climate effects of methane are allowing the market to develop strength and long-term appeal.

Facts & Figures

• Biogas from waste can offset ~2,700 tons of CO? annually per installation in energy recovery systems
• Food waste accounts for ~50% of solid waste-related emissions globally, contributing to ~1.6 billion tons of CO?-equivalent emissions in 2016
• Anaerobic digestion of organic waste reduces methane emissions from landfills and improves air quality—especially relevant in regions like Delhi, where crop burXergi, WELTEC BIOPOWER, Envitec Biogas, DMT Environmental Technology, PlanET Biogas, Wärtsilä, MT Energie, CH4 Biogas, BioConstruct, and Q Energyning spikes PM levels to ~98 μg/m³, nearly 10× the WHO limit

Key Developments

• In May 2025, Xergi rolled out a plug-and-play modular biogas system in Canada, tailored for small-scale agricultural users looking to reduce waste and generate on-site electricity efficiently.
• In April 2025, Envitec Biogas introduced a new compact digester for urban food waste generators, equipped with automatic feed control and remote diagnostics for seamless operation.
• In February 2025, MT Energie launched a new high-rate anaerobic digester designed for brewery and food-processing wastewater, optimizing yield with minimal maintenance.
• In January 2025, PlanET Biogas installed a rooftop biogas plant in Indonesia to co-digest fruit waste and sludge, offering clean energy to local buildings while reducing landfill burden.

Waste Derived Biogas Market Segmentation

Based on the feedstock

• Municipal Solid Waste
• Agricultural Residue & Animal Manure
• Food & Beverage Waste
• Industrial & Wastewater Sludge

This subsector holds great potential for decentralized biogas production. Livestock manure and agricultural waste such as corn stover or rice husks serve as feedstock for farm-based plants, promoting sustainable waste treatment and nutrient reuse. Food waste co-digestion enhances yield of gas and stabilizes C/N ratio, and the resulting digestate is utilized as organic manure. These systems minimize methane emissions from open lagoons and enable rural electrification or farm-powered operation. Government subsidies and rural development programs are encouraging small- and medium-sized digesters in the emerging markets. Innovations such as dry digestion and containerized units are also making water usage and installation costs fall, thus decreasing the cost of agricultural biogas and making it simpler to install in far-flung regions.

Based on the technology

• Dry Anaerobic Digestion
• Wet Anaerobic Digestion
• Co-digestion Systems
• Upgrading Technologies

The biogas sector has experienced a continuous evolution of technology types, one of which serves particular feedstock and operational conditions. Wet anaerobic digestion is the most matured technology, suitable for wastes with high moisture content such as food slurry, manure, and wastewater sludge. It is characterized by regular production and relatively easy operation to handle. Compared with wet anaerobic digestion, dry anaerobic digestion suits yard waste and low-moisture municipal solid waste because it minimizes water dependency and processes bulkier material more effectively. Co-digestion systems are gaining popularity as they permit mixing various feedstocks—such as food waste and animal manure—for improved microbial balance and increased gas production. Moreover, gas upgrading techniques like membrane separation and pressure swing adsorption (PSA) are increasingly being utilized to upgrade raw biogas to biomethane for grid injection or use as vehicle fuel.

Based on the plant type

• Farm-based
• Community-scale
• Industrial Park Installations
• Landfill Gas Recovery

Types of biogas plants differ widely depending on the origin of waste and the level of energy consumption. Farm-scale biogas plants are mini to medium-sized units treating animal dung and crop waste and mainly serving the farm or surrounding communities. Group-scale plants treat a group of households or small industries and mixed food and agricultural wastes and are the centerpiece of rural energy systems. Industrial park installations treat huge amounts of concentrated waste from breweries or food processors with high energy output and frequently incorporating heat recovery technology. Landfill gas recovery plants, however, recover biogas from existing landfills and redirect unwanted methane emissions to useful energy. These are particularly worth their weight in urban waste management plans and contribute to meeting emissions standards.

Based on the end user

• Electricity & Heat (CHP)
• Grid-injected Biomethane
• Vehicle Fuel (CBM/CNG)

Grid-injected biomethane is gaining momentum as utilities look to decarbonize gas networks without changing consumer infrastructure. Upgraded biogas meets pipeline standards after purification via membrane or PSA technologies. Producers earn revenue through gas sales and green certificates. This model is scalable and ensures continuous monetization regardless of on-site electricity demand. Challenges include high upgrading and grid injection costs, but government support in Europe and growing demand from industrial gas users are driving adoption. Co-locating with waste processing centers or food industries simplifies feedstock logistics. The future of this segment looks bright as more countries adopt biomethane targets and mandate renewable content in gas supplies.