According to new research by Transparency Market Research, advancements in the production of biogas and presence of robust natural gas grids in several countries are likely to boost the biogas blending market value.
Companies in the market benefit from mature technology for biogas production and purification. Rapid expansion of distribution networks for biogas is expected to boost the revenue growth of companies in the market. The biogas blending market size stood at $ 77.3 Bn in 2022. The market is forecast to expand at a CAGR of 18.0% from 2023 to 2031 to reach $ 342.8 Bn by 2031.
Presence of existing natural gas grids in several countries is likely to broaden the biogas blending market outlook. Introduction of improved methods for biogas blending in the past few years has accelerated the industry development. Biogas is likely to gain traction as an alternative to natural gas for a number of applications, such as electricity generation, cooking fuel, and heating.
Governments are supporting efforts to enhance the production capacity of biogas, which is estimated to make the price of biogas competitive with that of natural gas, which would offer significant business opportunities to companies. Surge in price of natural gas in the past few decades has thus positively impacted the biogas blending market development.
Key Findings of Study
- Rise in Utilization of Gas Grids in Biogas Distribution to Bolster Market Value: Efforts by companies to adopt the existing gas network or grid for biogas distribution are likely to incentivize biogas blending worldwide. An interconnected natural gas pipeline across several nations is likely to bolster the market. Governments are intensively promoting the decarbonization of natural gas networks, which is likely to enhance the utilization of gas infrastructure in biogas-blended natural gas distribution. Surge in number of biogas plants in developing countries in the past few years has boosted the market.
- High Awareness About Benefits of Biogas Blending Among Residential Consumers: End-users are adopting blended natural gas due to positive environmental impact the gas has in the transition to renewable energy. For instance, biogas-based fuels are viewed as renewable alternatives to fossil fuels used in the transport sector. Furthermore, experts estimate that switching to biogas can reduce GHGs in the sector by as much as 80% compared to gasoline and diesel. The residential sector held a significant market share in 2022 among all end-users. Surge in demand for biogas blending in the residential sector is therefore likely to propel the market.
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