Anaerobic Digestion Market Size, Share and Trends Analysis, By Type (Passive Systems, Low-Rate Systems, and High-Rate Systems), By Equipment Type, By Product Type (Biogas and Digestate), By Feedstock (Inhouse and Outsource), By Process, By Application, and By Region, Forecast 2025-2032

Anaerobic Digestion Market Overview and Key Insights:

The anaerobic digestion market size reached USD 17.28 Billion in 2024 and is expected to register a revenue CAGR of 11.5% during the forecast period. Anaerobic digestion is a biochemical process in which a consortium of bacteria degrades organic waste into a gaseous mixture of methane and carbon dioxide (biogas) in the absence of oxygen.

Market Drivers:

Rising demand for renewable energy is a key driver of revenue growth in the anaerobic digestion market. Biogas development has been unequal over the world, as it is dependent not just on feedstock availability, but also on policies that promote its production and usage. Europe, the People’s Republic of China, and the United States account for 90% of global production.

According to the International Energy Agency (IEA), Europe is the leading producer of biogas. Germany is by far the largest market, accounting for two-thirds of Europe’s biogas plant capacity. In China, laws have encouraged the development of household-scale digesters in rural areas with the goal of boosting access to modern energy and clean cooking fuels; these digesters now account for around 70% of installed biogas capacity. Furthermore, in late 2019, the Chinese National Development and Reform Commission produced a guidance document focused on biogas industrialization and upgrading to biomethane, which supports the use of biomethane in the transportation sector.

On April 2025, Balmoral Tanks, a global leader in digester tanks for anaerobic digestion (AD) plants, has expanded its production capabilities into the United States, launching a U.S. business and constructing an operations site in Northeast Ohio in the summer of 2025.  This plant will only sell epoxy-coated steel tanks under the efusion brand, which represents Balmoral Tanks’ patented in-house steel panel epoxy coating.

Market Opportunity:

Technological advancements in biogas upgrading and process optimization acts as opportunities for anaerobic digestion market. New biogas upgrading technologies, such as photosynthetic CO2 fixation by microalgae, result in a maximum CO2 content of 2–6% in improved CH4. Microbial electrolysis cell technology is a sustainable and effective method for biogas upgrading that requires little energy. Furthermore, a focus has been placed on a developing technique, cryogenic distillation, with the goal of determining the impact of oxygen and nitrogen concentration in the biogas stream on process performance.

On January 2025, the Aix-Marseille-Provence Metropolis has assigned Waga Energy to upgrade biogas at the Arbois Landfill in Aix-en-Provence. Waga Energy will construct a renewable natural gas production unit on the site, with a photovoltaic power plant to power it. Waga Energy will fund and build a purification unit at the site, utilizing its patented WAGABOX technology to convert landfill gas into RNG, a renewable alternative to fossil-based natural gas.

Recent Trends:

Emerging trends include High-solids anaerobic digestion (HSAD), Co-digestion, and two-stage anaerobic digestion.

With exponential population expansion, economic development, and rapid urbanization, the growing output of municipal solid garbage has emerged as a critical waste management challenge. Because of the inherent complexity and variety of organic solid wastes, process design must be fine-tuned to maximize waste utilization while minimizing environmental effect. High-solids anaerobic digestion (HS-AD) has received much interest as a viable anaerobic digestion (AD) technique for sustainable waste treatment and resource recovery.

Dranco, VALORGA, KOMPOGAS, BEKON, Biocel, and BIOFerm are some of the most often used commercial HS-AD systems. BEKON technology is more cost-effective in terms of machinery and operational costs because it eliminates the need for pumps and agitators, as well as bulk trash preparation.

Restraints & Challenges:

Despite being an established technology, AD still faces numerous obstacles that prevent its widespread adoption. Feedstock variability, low process efficiency, and low product quality are all significant challenges.

The great variety in feedstock physical and chemical qualities makes it difficult to select the appropriate technique. Too much or too little moisture content complicates digester feeding and impairs bacterial development in the system. Primary possible feedstocks include cellulose, hemicellulose, and lignin-based materials such as animal dung and agricultural leftovers. However, high lignin content lowers the substrate’s biodegradability due to its resistant character, resulting in a slower hydrolysis step.

Additional obstacles in scaling anaerobic digestion operations include overcoming the high expenses associated with establishing and operating the facilities, as well as the risk for methane emissions from pipe breaks as organic waste is accumulated prior to treatment. Furthermore, there are also worries about using feedstock from industrial dairy and swine farms that are unable to efficiently manage waste, which may stimulate the construction of facilities that do not operate sustainably.

Product Type Segment Insights and Analysis:

Based on the product type, the anaerobic digestion market is segmented into Biogas and Digestate. Digestate is further sub-segmented into liquid digestate and solid digestate.

Biogas segment contributed the largest market share in 2024. Bioenergy production from garbage is one of the most promising renewable energy sources. Many developing countries can profit from this, as they work to address the massive amounts of neglected rubbish in landfills. Research advances have shown that anaerobic digestion of two or more substrates delivers better biogas outputs than their single substrate counterparts. The increasing replacement of fossil fuels, such as natural gas, with biogas would significantly help the climate balance. Biomass is possibly the world’s most underrated natural and limitless resource. Waste incineration and landfill are examples of the global linear economic system, which contradicts the notion of sustainability.

On March 2025, EnviTec Biogas has achieved a key milestone in the United States market. The biogas specialist is strengthening its cooperation with SJI Renewable Energy Ventures and local suppliers after commissioning the country’s largest anaerobic digestion plant to date through its U.S. affiliate. Beyond this milestone, EnviTec Biogas is the sole vendor in the US market that offers high-quality, locally produced concrete tanks. This is made possible through a sustainable cooperation with Collins Precast LLC, a major manufacturer of precast concrete components and buildings in the Upper Midwest.

Equipment Type Segment Insights and Analysis:

Based on the equipment type, the anaerobic digestion market is segmented into pH control equipment, anaerobic digestion tank, anaerobic digestion pump, anaerobic digestion biogas holder, and others.

Anaerobic digestion tank segment contributed the largest market share in 2024. These tanks are specialized vessels used to degrade organic waste in the absence of oxygen. Anaerobic digestion tank base liners are often made of strong materials like high-density polyethylene (HDPE), polyvinyl chloride (PVC), or reinforced polyethylene (RPE). These materials are resistant to chemicals, corrosion, and abrasion, ensuring excellent containment and durability.

Their capacity to confine digestate, guard against corrosion, retain biogas, and ensure longevity makes them essential for effective and sustainable anaerobic digestion systems. Anaerobic digestion plants use these specialist liners to emphasize environmental protection, optimize biogas production, and contribute to sustainable energy generation while guaranteeing the integrity and lifespan of their infrastructure.

On February 2025, Future Biogas and AstraZeneca have announced that the UK’s first unsubsidized biomethane facility devoted to fueling the life sciences sector is now online. Located on Gonerby Moor, Lincolnshire, the plant will provide clean heat for all of AstraZeneca’s R&D and manufacturing in the UK, promoting sustainable drug manufacture. The plant, which will run 24 hours a day, will produce enough biomethane to heat over 8,000 households per year, increasing the UK’s green energy capability. This represents another step toward the Company’s goal of creating a cleaner, more sustainable future for people, society, and the environment.

Application Segment Insights and Analysis:

Based on the application, the Anaerobic Digestion market is segmented into power generation, transportation fuel, fertilizer production, and others.

Power generation segment contributed the largest market share in 2024. According to the US Environment Protection Agency (EPA), as of June 2024, 400 manure-based anaerobic digestion systems in the United States were gathering biogas from animal waste degradation to reduce methane emissions. In 2023, manure-based anaerobic digesters generated roughly 3.29 million megawatt-hours (MWh). Furthermore, by 2023, manure-based anaerobic digesters will have reduced GHG emissions by 14.8 million metric tonnes of CO2 equivalent (MMTCO2e).

On January 2025, Anaergia Inc., through its subsidiary Anaergia S.r.l., has entered into a definitive agreement with Techbau S.p.A., a leading Italian firm specializing in large-scale engineering and construction projects, to develop five additional biomethane production plants in Italy.  Anaergia S.r.l. will provide cutting-edge technology for the biomethane manufacturing process, while Techbau will serve as the general contractor, handling the facilities’ engineering, procurement, and construction.

Geographical Outlook:

Anaerobic digestion market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

Europe Anaerobic Digestion Market:

Europe is registered to have highest market share in anaerobic digestion market in 2024. This is mainly driven by rise in organic waste generation and increasing focus on reducing greenhouse gas emissions. According to the most recent numbers from the European Biogas Association (EBA), the number of anaerobic digestion (AD) facilities producing biomethane gas in Europe increased by 30%. As of April 2023, 1,322 AD plants were producing renewable gas, an increase from 1,023 in 2021. France, Denmark, and Germany experienced the most significant growth in 2021, while Germany, the United Kingdom, Denmark, France, the Netherlands, and Italy were the leading biomethane producers.

On June 2023, Partners Group, a major global private markets business, has agreed to acquire a premier biogas and biomethane energy platform in Germany (“the Platform”) from Energiedenker Group. The Platform manages a 60 MW portfolio of 35 biogas facilities and ten biomethane plants in northeastern Germany. The Platform has robust infrastructure and benefits from a substantial asset base with high entry hurdles, observable cash flows, and long-term contracts.

Asia Pacific Anaerobic Digestion Market:

Asia Pacific is expected to register the fastest growth rate during the forecasted period, driven by rising demand for renewable energy and rise in organic waste generation. As the climate problem worsens, attention is focused on a potent but generally neglected greenhouse gas: methane. Organic waste contributes to methane emissions, with around 1.3 billion tonnes of food wasted each year and 2.6 million tons of organic garbage produced per day globally.

The Intergovernmental Panel on Climate Change (IPCC) emphasizes the importance of lowering greenhouse gas emissions by 45% by 2030 to keep global warming below 1.5°C. The Global Alliance for Incinerator Alternatives (GAIA) Asia Pacific is organizing a regional campaign to engage local governments, with the goal of recovering at least 70% of organic waste from municipal waste streams by 2030. The initiative has already received commitments from 50 local governments, all of which are dedicated to building the necessary policies, infrastructure, and institutional processes.

In February 2025, Anaergia Inc. announced that its subsidiary, Anaergia Singapore Pte Ltd., has signed a letter of intent (LOI) to supply technology and equipment to JGC Holdings Corporation for a renewable natural gas (RNG) project. The Company’s equipment under the LOI will feature Anaergia’s feedstock pretreatment solution, anaerobic digestion with a unique digester design for high throughput and efficiency, and a digestate management system. The facility is planned to receive more than 56,000 tons of cow manure and 5,000 tons of food waste per year.

North America Anaerobic Digestion Market:

North America is expected to register the considerable growth rate during the forecasted period. According to new statistics from the Coalition for Renewable Natural Gas, more than 433 biogas facilities are operational in North America. While technology breakthroughs and rising demand for low-carbon energy solutions have contributed to the recent spike, the RNG Coalition says boosting policy support remains a top industry focus, with plans for 500 facilities by 2025, 1,000 by 2030, and 5,000 by 2040.

In March 2023, Bioenergy Devco, the North American business of BTS Bioenergy, LLC, has secured a USD 30 million investment from Annapolis-based HASI, a major investor in climate solutions.  Bioenergy Devco is a global leader in the design, engineering, construction, financing, and operation of anaerobic digestion plants that recycle organic waste and generate renewable natural gas.  The funding, secured by Bioenergy Devco’s Maryland Bioenergy Center – Jessup facility in Jessup, Maryland, will help to develop anaerobic digestion facilities across the United States, bringing sustainable organic waste recycling, greenhouse gas emissions reductions, and a sustainable energy resource to more communities in North America.

Competition Analysis:

The anaerobic digestion market is characterized by a fragmented structure, with several players competing across various segments and regions. list of major players included in the anaerobic digestion market report are:

• Renergon International AG
• Anaergia
• Xylem Inc.
• PlanET Biogas Group
• DVO, Inc.
• Fluence Corporation Limited 
• EnviTec Biogas AG
• AEV Energy GmbH
• Sulzer Ltd
• EBARA CORPORATION
• BTS Bioenergy
• Balmoral Tanks Ltd
• Celignis Limited
• Lipp GmbH
• BIOGEST

Strategic Developments in Anaerobic Digestion Market:

• In March 2025, Anaergia Inc., through its subsidiary, Anaergia S.r.l., has signed contracts with businesses owned by QGM S.á.r.l. to build two new biomethane manufacturing plants in Italy. Anaergia S.r.l. will serve as the engineering, procurement, and construction contractor for both projects, supplying cutting-edge technology to enable biomethane production at the new facilities in Copparo and Derovere, northern Italy. Each plant will treat over 50,000 metric tons of organic waste each year, producing more than 4,000,000 m3/h of methane.
• In April 2024, Air Liquide continues to grow its biomethane capacity, also known as Renewable Natural Gas (RNG) in the United States, with the building of two new production facilities. These facilities, located in Center Township, Pennsylvania, and Holland Township, Michigan, will handle dairy farm waste. These production units will produce biogas from manure feedstock in an anaerobic digester, with a total output capacity of 74 GWh, and return the digested waste to the farms, encouraging circular economy in waste management.
• In June 2023, Viridi Energy, a leading renewable natural gas platform, has teamed up with American Organic Energy to create one of the largest food waste-to-renewable natural gas projects in the United States. The initiative is designed to convert 210,000 tons of waste each year – the same amount of food waste as Dallas, Texas – into sustainable energy and agriculture goods.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights Of The Anaerobic Digestion Market Report:

The Anaerobic Digestion market report offers a detailed analysis of market size, including historical revenue (in USD Billion) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Type Outlook (Revenue, USD Billion; 2022-2032)
  • Passive Systems
  • Low-Rate Systems
    • Complete Mix Digesters
    • Plug Flow Digesters
    • Covered Lagoon
  • High-Rate Systems
    • Anaerobic Contact Digesters
    • Fixed Film Digesters
    • Suspended Media Digesters
    • Sequencing Batch Reactor Digester

• Equipment Type Outlook (Revenue, USD Billion; 2022-2032)
  • pH Control Equipment
  • Anaerobic Digestion Tank
  • Anaerobic Digestion Pump
  • Anaerobic Digestion Biogas Holder
  • Others

• Product Type Outlook (Revenue, USD Billion; 2022-2032)
  • Biogas
  • Digestate
    • Liquid Digestate
    • Solid Digestate

• Application Outlook (Revenue, USD Billion; 2022-2032)
  • Agricultural Waste
  • Municipal Waste
  • Industrial Waste
  • Others

• Process Outlook (Revenue, USD Billion; 2022-2032)
  • Wet
  • Dry

• Application Outlook (Revenue, USD Billion; 2022-2032)
  • Power Generation
  • Transportation Fuel
  • Fertilizer Production
  • Others

• Regional Outlook (Revenue, USD Billion; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

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