GREEN GAS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 -2032)

Global Green Gas Market Size and Forecast – 2025-2032  

The Global Green Gas Market is estimated to be valued at USD 1.86 Bn in 2025 and is expected to reach USD 2.87 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2025 to 2032.

Key Takeaways of the Green Gas Market:

• The biomethane segment is projected to account for 43.6% of the market share in 2025, driven by the increasing demand for sustainable energy solution.
• The industrial waste segment is expected to contribute 32.7% of the market share in 2025, driven by the rising emphasis on efficient waste management practices and the significant potential for energy recovery from industrial byproducts.
• The power generation segment is anticipated to account for 33.7% of the market share in 2025, fueled by the growing demand for clean, renewable electricity and the transition towards sustainable energy sources.
• Asia Pacific is set to lead the global green gas market in 2025 with a 34.6% share, driven by strong environmental regulations, growing investments in renewable energy, and the increasing adoption of green gas technologies by industries. North America, with a 12.5% share in 2025, will be the fastest-growing region, fueled by aggressive government policies promoting sustainability, rising demand for cleaner energy solutions, and the rapid expansion of biogas production infrastructure.

Market Overview:

The green gas market is experiencing a positive trend, driven by the growing adoption of renewable natural gas and hydrogen as alternative fuels. The increasing focus on decarbonization and the transition towards a low-carbon economy are key factors propelling the demand for green gases. Additionally, advancements in technology, such as carbon capture and storage (CCS) and power-to-gas systems, are expected to further boost the market growth in the coming years.

Currents Events and their Impact

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Green Gas Market Segmental Analysis

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Green Gas Market Insights, By Type – Biomethane is driving the green gas market as a renewable, eco-friendly energy source that reduces carbon emissions and supports sustainability

Biomethane segment is expected to contribute 43.6% share of the market in 2025, owing to its eco-friendly nature and versatility in various applications. Biomethane is produced through the process of anaerobic digestion, which involves the breakdown of organic matter by microorganisms in the absence of oxygen. This process occurs naturally in landfills and can be harnessed to produce a renewable and sustainable energy source.

One of the primary factors driving the growth of the biomethane segment is the increasing demand for clean and renewable energy sources. As concerns about climate change and environmental sustainability continue to rise, governments and businesses are seeking ways to reduce their carbon footprint and transition to cleaner energy sources. Biomethane offers a viable solution, as it can be used as a substitute for natural gas in various applications including power generation, heating, and transportation.

Green Gas Market Insights, By Source - The industrial waste segment leads the green gas market by converting waste into energy, driving sustainable energy solutions

Industrial waste segment is projected to contribute 32.7% share of the market in 2025, due to the increasing focus on waste management and the potential for energy recovery. Industrial processes generate significant amounts of waste, including organic materials, wastewater, and solid waste. These waste streams often contain valuable resources that can be recovered and converted into energy through various technologies, such as anaerobic digestion and gasification.

One of the key factors driving the growth of the industrial waste segment is the increasing regulatory pressure on industries to reduce their environmental impact and improve waste management practices. Governments around the world are implementing stricter regulations and incentives to encourage industries to adopt sustainable waste management solutions. By converting industrial waste into green gas, companies can not only comply with regulations but also reduce their waste disposal costs and generate additional revenue streams.

Green Gas Market Insights, By Application - The power generation segment leads by driving the transition to a low-carbon energy future

Power generation segment is expected to contribute 33.7% share of the market in 2025, driven by the increasing demand for clean and renewable electricity. Green gas, particularly biomethane and hydrogen, offers a viable alternative to fossil fuels for power generation, helping reduce greenhouse gas emissions and combat climate change.

One of the primary factors driving the growth of the power generation segment is the increasing government support and policies promoting the adoption of renewable energy. Many countries have set ambitious targets for renewable energy deployment and are offering incentives, such as feed-in tariffs and tax credits, to encourage the development of green gas-based power generation projects. These policies are creating a favorable environment for investment and growth in this segment.

Regional Insights

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Asia Pacific Green Gas Market Analysis and Trends

The Asia Pacific region is projected to lead the market with a 34.6% share in 2025. The region is witnessing rapid industrialization and urbanization, leading to a growing demand for cleaner energy alternatives. Countries like China, India, Japan, and South Korea are heavily investing in renewable energy infrastructure and are actively integrating green gas technologies to reduce reliance on fossil fuels.

The region is also home to some of the world's largest and most innovative green gas projects. Companies such as PetroChina, Tokyo Gas, Adani Total Gas, and Korean Gas Corporation (KOGAS) are actively expanding their green gas portfolios through collaborations, joint ventures, and R&D investments.

North America Green Gas Market Analysis and Trends

The North America region is expected to exhibit the fastest growth in the market contributing 12.5% share in 2025. The region’s accelerating shift towards clean energy, driven by strong regulatory frameworks and decarbonization targets, is fueling the demand for green gas solutions. In particular, the U.S. and Canada are witnessing a surge in renewable natural gas (RNG) projects, with increasing adoption in sectors such as transportation, utilities, and industrial manufacturing.

For example, companies such as Clean Energy Fuels, Air Products, Dominion Energy, and Enbridge are making substantial investments in green gas projects, including RNG pipelines, biomethane plants, and hydrogen fueling stations.

Global Green Gas Market Outlook for Key Countries:

Germany Green Gas Market Trends

Germany green gas market is driven by the country's ambitious renewable energy targets and its commitment to reducing greenhouse gas emissions. The government has implemented various policies and incentives, such as feed-in tariffs and subsidies, to promote the production and use of biogas and biomethane. Germany has a well-developed biogas industry, with a significant number of biogas plants in operation. Major players in the German market include E.ON, RWE, and EnBW, which have invested in biogas production and distribution infrastructure.

China Green Gas Market Trends

China green gas market is experiencing rapid growth due to the country's increasing focus on renewable energy and environmental sustainability. The Chinese government has implemented policies to promote the production and use of biogas, particularly in rural areas. China has a vast agricultural sector, which provides abundant feedstock for biogas production. The country has also invested in the development of large-scale biogas projects and has encouraged the use of biomethane in the transportation sector. Notable players in the Chinese market include China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec).

U.S. Green Gas Market Trends

The U.S. green gas market has a significant potential for green gas production, given its abundant agricultural and organic waste resources. The country has witnessed a growing interest in renewable natural gas (RNG) derived from landfills, wastewater treatment plants, and agricultural waste. The Renewable Fuel Standard (RFS) program has been a key driver for the development of this market in the U.S. Major players in the U.S. green gas market include Waste Management, Clean Energy Fuels, and Ameresco, which have invested in RNG production and distribution infrastructure.

India Green Gas Market Trends

India green gas market is driven by the country's increasing energy demand and its commitment to reducing greenhouse gas emissions. The Indian government has implemented policies to promote the use of compressed natural gas (CNG) in the transportation sector and has encouraged the production of biogas from agricultural and municipal waste. The country has a vast potential for biogas production, given its large agricultural sector and growing urban population. Notable players in the India green gas market include Indian Oil Corporation, GAIL (India) Limited, and Adani Gas, which are involved in the distribution and marketing of CNG and the development of biogas projects.

LNG Import and Consumption Trends in Key Markets (2024–2025)

• Global LNG import and consumption trends in 2024–2025 reveal a pronounced divergence between Europe and Asia Pacific, shaped by evolving policy directions, market dynamics, and energy security priorities. Europe experienced a dramatic 18–19% drop in LNG imports in 2024—equivalent to nearly 30 billion cubic meters—bringing volumes to their lowest since 2021 as gas consumption fell to an 11-year low.
• This contraction was primarily driven by increased renewable energy deployment, demand reduction policies, and high storage levels, which collectively reduced the region’s immediate need for LNG. Notably, almost half of Europe’s LNG imports in 2024 were sourced from the U.S., though these volumes also declined by 18%. In contrast, Europe’s imports of Russian LNG paradoxically increased by 18%, despite EU policy objectives to reduce reliance on Russian fossil fuels.

Market Players, Key Development, and Competitive Intelligence

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Company Insights:

• Air Products and Chemicals, Inc. is a global leader in the green gas market, focusing on clean hydrogen production to support the energy transition. In partnership with ACWA Power and NEOM, Air Products is developing the world's largest green hydrogen facility. Scheduled to be operational by 2026, it aims to produce up to 600 tons of carbon-free hydrogen daily using 4 GW of renewable energy sources.
• In June 2024, Air Products signed a 15-year deal to supply 70,000 tons of green hydrogen annually to TotalEnergies' European refineries starting in 2030, aiming to reduce CO₂ emissions by approximately 700,000 tons each year.
• TotalEnergies is actively engaged in the green gas market, focusing on green hydrogen, biogas, and synthetic fuels to support global decarbonization efforts. TotalEnergies aims to replace 500,000 tons of grey hydrogen with green hydrogen in its European refineries by 2030. It has already secured 200,000 tons through local production and imports.

Top Strategies Followed by Global Green Gas Market Players

• Established players in the global green gas market—such as Air Products and Chemicals, Inc., TotalEnergies, and Shell—are investing significantly in R&D to develop high-performance and sustainable green gas solutions.
  • For example, TotalEnergies is working with Air Liquide to develop a 250 MW electrolyzer in the Netherlands for green hydrogen production and has also formed a coalition to promote e-NG (electro-methane), a synthetic green gas made from renewable hydrogen and CO₂.

• Mid-level players: Mid-tier players like Verbio AG, Clean Energy Fuels Corp., and Bright Biomethane are focusing on producing reliable and affordable renewable natural gas (RNG) and biogas for mass-market applications.
  • For example, Verbio operates biorefineries in Germany and the U.S., converting agricultural residues into compressed biomethane (BioCNG) for transportation.

• Small-scale players in the global green gas market are targeting niche markets with unique features and innovative products. These companies are leveraging their agility and flexibility to develop customized solutions that can meet the specific needs of their customers. Smaller companies such as Nordsol (Netherlands), Electrochaea (Germany), and Greenlane Renewables (Canada) are focusing on specialized, often tech-driven, green gas applications.
  • For example, Electrochaea has developed a proprietary biomethanation process using engineered archaea to convert CO₂ and hydrogen into grid-ready methane, a solution well-suited for decentralized energy storage.

Market Report Scope

Green Gas Market Report Coverage

Green Gas Market Dynamics

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Green Gas Market Driver - Increasing Government Regulations Promoting Renewable Energy

Governments worldwide are increasingly implementing stringent regulations and policies to promote the adoption of renewable energy sources, including green gas. These measures aim to reduce greenhouse gas emissions, combat climate change, and enhance energy security. Many countries have set ambitious targets for renewable energy production and are offering various incentives, such as tax breaks, subsidies, and grants, to encourage the development and deployment of green gas projects. For instance, the European Union has established the Renewable Energy Directive, which sets binding targets for member states to achieve a certain percentage of their energy consumption from renewable sources.

For example, the EU has set a binding target for at least 32% of energy consumption to come from renewable sources by 2030, with an additional push under the "Fit for 55" package to raise it to 42.5% by 2030. The directive specifically supports biogas and biomethane injection into natural gas grids and promotes cross-border trade of renewable gases.

Green Gas Market Opportunity - Technological Advancements in Gas Production and Storage

The global green gas market presents a significant opportunity driven by technological advancements in gas production and storage. Innovations in anaerobic digestion processes, such as the development of high-efficiency digesters and the optimization of feedstock pretreatment methods, have the potential to enhance the yield and quality of biomethane production. Similarly, breakthroughs in gasification technologies can improve the conversion efficiency of biomass and waste into syngas, which can be further processed into green hydrogen or other valuable products. Moreover, advancements in carbon capture and storage (CCS) technologies can enable the capture of carbon dioxide during the green gas production process, reducing the carbon footprint and contributing to the decarbonization of the energy sector.

For example, in Denmark, Nature Energy has implemented mechanical-biological pretreatment units that enhance feedstock breakdown and improve gas output by up to 20%. This enables the use of diverse organic materials, including agricultural residue and food industry byproducts, for biomethane generation.

Analyst Opinion (Expert Opinion)

• The global green gas market is rapidly evolving, driven by the increasing need for sustainable energy solutions and the transition towards a low-carbon economy. Companies like Air Products and Chemicals, Inc. are leading the charge by investing in technologies that produce hydrogen and biogas from renewable sources, thereby reducing reliance on fossil fuels.
• Recent conferences, such as the World Hydrogen Summit (2022) and the Green Gas Conference (2023), have provided critical forums for industry leaders to discuss innovations in green gas technologies and the regulatory frameworks necessary to support market growth. These events highlight the importance of collaboration between governments, industries, and research institutions to overcome challenges related to infrastructure and scalability. As global policies increasingly favor renewable energy sources, the green gas market is poised for substantial growth, driven by technological advancements and a collective commitment to achieving carbon neutrality.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Biomethane
  • Hydrogen
  • Synthetic Natural Gas (SNG)
•  Source Insights (Revenue, USD Bn, 2020 - 2032)
  • Industrial Waste
  • Agricultural Waste
  • Sewage Sludge
  • Energy Crops
  • Others
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
  • Power Generation
  • Transportation
  • Industrial Applications
  • Residential Heating
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Gasum
  • Biomethane Technologies
  • Air Products and Chemicals, Inc.
  • ENGIE
  • TotalEnergies
  • Orsted
  • Snam S.p.A.
  • Aker Solutions
  • Praxair Technology, Inc.
  • Anaergia Inc.
  • DONG Energy
  • Greenlane Renewables
  • Linde plca
  • Veolia Environnement S.A.
  • Energiekontor AG

Sources

Primary Research Interviews:

• Head of R&D – Leading Biogas Technology Provider
• Procurement Manager – Major Utility Company (Green Gas Offtake)
• Sustainability Director – Renewable Energy Project Developer
• Policy Advisor – National Renewable Energy Regulatory Authority

Stakeholders:

• Green Gas Producers (biogas, biomethane, renewable hydrogen manufacturers)
• End-use Sectors:
  • Power Generation (utilities, independent power producers)
  • Industrial Users (chemical, fertilizer, cement, steel industries)
  • Transportation (CNG fleets, hydrogen mobility)
  • Commercial and Residential Heating
• Regulatory & Certification Bodies (national energy regulators, ISCC, REDcert)
• E-commerce Platforms and Energy Marketplaces (energy trading platforms)
• Technology Integration Players (biogas upgrading tech, hydrogen electrolyzer manufacturers, digital monitoring and trading platforms)

Databases:

• International Energy Agency (IEA) Renewables Database
• UN Comtrade Database (for international trade in green gas and related technology)
• India Import Export (EXIM) Database (for biogas plant components and technology imports/exports)
• Eurostat Energy Database

Magazines:

• Bioenergy Insight – Innovations and market trends in biogas, biomethane, and green hydrogen
• Renewable Energy World – Global renewable gas market developments
• H2 View – Hydrogen market news and technology
• Gas World – Industrial and renewable gas trends
• Energy Storage News – Role of green gas in energy storage and grid balancing

Journals:

• Renewable & Sustainable Energy Reviews – Policy, technology, and market analysis for green gas
• Biomass & Bioenergy – Feedstock, conversion, and utilization research
• International Journal of Hydrogen Energy – Hydrogen production, storage, and applications
• Energy Policy – Regulatory and market frameworks for renewable gases
• Journal of Cleaner Production – Life cycle assessment and sustainability in green gas production

Newspapers

• Financial Times – Global energy transition and green gas market performance
• The Economic Times (Energy) – India’s renewable gas initiatives and investments
• Reuters Energy – International green gas deals and policy shifts
• The Guardian (Environment) – Sustainability and public perception of green gas
• Business Standard – Corporate strategies and government policies in green gas

Associations:

• World Biogas Association
• European Biogas Association
• International Gas Union (IGU) – Renewable Gas Committee
• Hydrogen Council
• Clean Energy Council
• Global Methane Initiative

Public Domain Sources

• IEA – Global biogas, biomethane, and hydrogen statistics and forecasts
• EU Commission – Renewable Energy Directive, green gas targets, and certification
• US Department of Energy (DOE) – Renewable natural gas and hydrogen programs
• International Renewable Energy Agency (IRENA) – Market outlooks and policy recommendations
• UNEP – Climate and sustainability frameworks for renewable gas
• World Bank – Financing and project development for green gas infrastructure

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years.