Anaerobic Digestion Market to Reach USD 27.72 Billion by 2032 with 9.4% CAGR

The global anaerobic digestion market size was USD 12.35 billion in 2022 and is expected to reach USD 27.72 billion in 2032, and register a CAGR of 9.4% during the forecast period.

Sep 22, 2023 - 14:57
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Anaerobic Digestion Market to Reach USD 27.72 Billion by 2032 with 9.4% CAGR

Market Summary:

The global anaerobic digestion market size was USD 12.35 billion in 2022 and is expected to reach USD 27.72 billion in 2032, and register a CAGR of 9.4% during the forecast period. Demand for Renewable Energy sources and the requirement for environment-friendly waste management are major factors driving market revenue growth. In the absence of Oxygen, anaerobic digestion breaks down organic materials such as food scraps, animal manure, and sewage sludge, resulting in biogas and nutrient-rich digestate as byproducts.

Anaerobic digestion technology is becoming more widely used in a variety of end-use industries, including energy, food & beverage, and agriculture, as a result of rising demand for renewable energy sources. The technique makes it possible to create biogas, which may be used to generate power or as a fuel for vehicles, lowering reliance on fossil fuels and reducing greenhouse gas emissions. In addition, using digestate as a fertilizer enhances soil health, decreasing demand for artificial fertilizers and lowering the impact of agriculture on the environment.

Another significant factor driving revenue growth of the anaerobic digestion market is the requirement to manage garbage in an environmentally responsible manner. As a result of the process, less methane and harmful greenhouse gas is released into the atmosphere and sustainable energy is produced. The need for anaerobic digestion technology is being driven by governments and organizations' rising emphasis on reaching zero waste goals and lowering carbon footprints.

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Some Key Highlights from the Report

In 2022, the agricultural waste sector commanded the largest share of revenue. This can be attributed to the dependable availability of agricultural waste as a feedstock source, the growing demand for renewable energy resources, and the imperative to curb greenhouse gas emissions. These factors constitute the primary drivers behind the revenue growth observed in this particular segment.

Similarly, in 2022, the power generation segment held the highest revenue share. This can be ascribed to the escalating need for renewable energy sources, heightened concerns regarding greenhouse gas emissions, and the imperative to reduce dependence on fossil fuels. These factors serve as the principal catalysts for the revenue expansion witnessed in this segment.

The European market is expected to maintain a substantial share of revenue throughout the projected period due to its strong commitment to sustainability and renewable energy. The region has set ambitious targets to reduce greenhouse gas emissions and promote the adoption of renewable energy sources. The United Kingdom, France, and Germany are poised to emerge as crucial anaerobic digestion markets owing to their robust support for renewable energy and favorable legislation for financing anaerobic digestion projects. Additionally, the European food and beverage sector, a significant contributor to the regional economy, is increasingly adopting anaerobic digestion technology to process organic waste and generate renewable energy.


Some of the notable players featured in the global anaerobic digestion market include Biogest AG, EnviTec Biogas AG, Xergi A/S, PlanET Biogas Global GmbH, Clarke Energy, Schmack Biogas GmbH, Engie SA, Ameresco, Inc., Agrinz Technologies GmbH, and Bright Biomethane.

Engie SA, a major player in renewable energy, made a strategic acquisition on December 5 of this year by acquiring Renvico, a prominent provider of renewable energy in Italy. This acquisition was undertaken to enhance Engie's portfolio of clean energy solutions and bolster its market presence in the renewable energy sector.

Anaerobic Digestion Market: Notable Innovations

Certainly, here are some notable innovations in the anaerobic digestion market:

·         Enhanced Biogas Production: Innovations in biogas production methods, such as improved microbial cultures and fermentation techniques, are increasing the efficiency of anaerobic digestion processes, leading to higher biogas yields.

·         Biodegradable Waste Sorting: Advanced waste sorting technologies are helping in the efficient separation of biodegradable waste materials from non-biodegradable ones, optimizing feedstock quality and enhancing the overall digestion process.

·         Co-Digestion of Multiple Feedstocks: Anaerobic digestion systems are increasingly designed to handle a variety of organic feedstocks, including food waste, agricultural residues, and sewage sludge, to maximize energy and biogas production.

·         Digestate Valorization: Innovative methods for processing and utilizing digestate, the residual material from anaerobic digestion, are emerging. This includes turning digestate into valuable products like organic fertilizers and soil amendments.

·         Pre-Treatment Technologies: Advances in pre-treatment technologies, such as mechanical and thermal pre-treatment, are improving the breakdown of complex organic materials, making them more accessible for digestion and enhancing biogas production.

·         Smart Monitoring and Control: The integration of smart sensors and control systems is enabling real-time monitoring and optimization of anaerobic digestion processes, leading to better performance and reduced operational costs.

·         Hybrid Digestion Systems: Some innovations involve combining anaerobic digestion with other technologies like gasification or pyrolysis to extract more energy from organic waste streams and improve overall resource recovery.

·         Decentralized Digestion: Innovations are allowing for smaller, decentralized anaerobic digestion systems that can be deployed closer to the source of organic waste, reducing transportation costs and increasing sustainability.


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Key Players:

The global anaerobic digestion market exhibits a degree of fragmentation, with numerous significant players contributing to the majority of market revenue. These major players are implementing diverse strategies, including engagement in mergers and acquisitions, establishment of strategic agreements and contracts, as well as the development, testing, and introduction of more efficient products. Some of the prominent companies featured in the global anaerobic digestion market report encompass:

·         Biogest AG

·         EnviTec Biogas AG

·         Xergi A/S

·         PlanET Biogas Global GmbH

·         Clarke Energy

·         Schmack Biogas GmbH

·         Engie SA

·         Ameresco, Inc.

·         Agrinz Technologies GmbH

·         Bright Biomethane


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