Renewable Natural Gas Market Size, Share, Growth, And Industry Analysis, By Source (Agricultural RNG Resource, Sewage & Wastewater RNG Resource, And Landfill RNG Resource), By Application (Electricity Generation, Vehicle Fuel, Gas Grid, And Others), Regional Insights and Forecast From 2025 To 2033

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RENEWABLE NATURAL GAS MARKET OVERVIEW

The global renewable natural gas market size is forecasted to reach USD 216.51 billion by 2033 from USD 361.15 billion in 2024, registering a CAGR of 45.6% during the forecast period from 2025 To 2033.

Renewable natural gas is a combination gained by a few materials breakdown such as plant material, green waste, agrarian, city squander, and sewage waste. It is the source of sustainable power and can be packed in the same way as gaseous petrol to utilize it as car fuel. It can be created by anaerobic absorption from gasification, where anaerobic is a regularly utilized technique. Whereas creature feedstock or plants, even mechanical waste is broken into anaerobic environmental factors and filtered. 

Renewable natural gases are widely adopted due to their efficiency and clean-burning. Natural gas production and the growing advancements in natural gas extraction resulted in the substantial growth of the market. Additionally, the rising environmental consideration for controlling the emission of carbon and low prices of natural gas compared to other alternatives leads to the increased demand for natural gases and oils.

RENEWABLE NATURAL GAS MARKET SHARE, FACTS, AND FIGURES

Regional Breakdown

• North America holds a 40% market share approximately USD 2.94 billion in 2024 with a CAGR of 44.8%, growth factor supported by favorable government policies, growing adoption of RNG as a vehicle fuel, and investments in renewable energy infrastructure.

• Asia-Pacific accounts for 25% of the market, equating to USD 1.84 billion in 2024, growing at a CAGR of 46.5%, growth factor rising energy demand, increasing urbanization, and advancements in biogas upgrading technologies in countries like China, India, and Japan.

• Europe represents 30% of the market, or about USD 2.20 billion in 2024, with a CAGR of 46.0%, growth factor strong policy frameworks promoting renewable energy, particularly in Germany, France, and the UK, along with the decarbonization of the gas grid.

• Rest of the World (RoW) contributes 5%, equating to approximately USD 0.37 billion in 2024, growth factor emerging RNG projects in Latin America and Africa, driven by waste management initiatives and renewable energy goals.

Product Application Breakdown

• Electricity Generation dominates the market with 45% of sales, amounting to about USD 3.31 billion in 2024, growing at a CAGR of 45.8%, growth factor increased adoption of RNG to produce renewable electricity for grids and local consumption.

• Vehicle Fuel holds around 30% of the market, or about USD 2.20 billion in 2024, growing at a CAGR of 46.2%, growth factor rapid transition to RNG as a low-carbon fuel alternative for heavy-duty and public transportation vehicles.

• Gas Grid Supply represents 20% of the market, equating to USD 1.47 billion in 2024, with a CAGR of 45.4%, growth factor rising integration of RNG into existing gas grids to replace fossil-based natural gas.

• Other Applications account for 5%, equating to approximately USD 0.37 billion in 2024, growing at a CAGR of 44.9%, growth factor Includes uses in industrial processes and emerging bio-methane markets.

This detailed breakdown underscores the rapid growth trajectory of the renewable natural gas (RNG) market, driven by advancements in waste-to-energy technologies, supportive government initiatives, and increasing global emphasis on sustainability. RNG is becoming a critical component in the transition to cleaner energy sources. 

COVID-19 IMPACT

Increased Power Consumption Boosted Market Progress

The governments of various countries try to control the spread of the virus by isolating the patient in portable isolation centers. The pandemic resulted in a series of lockdowns globally, which caused commercial and industrial facilities to halt the manufacturing and supply of the product. On the contrary, it boosted the demand for electricity, which benefitted the gas plants' power. The surplus demand for electricity helped expand the renewable natural gas market share. Rising decarbonization with the greenhouse gases impact climate, and decrement in the electricity cost slightly boosted the market growth.  

LATEST TRENDS

Increasing Demand for Energy to Drive Trend in Market

The energy demand is on the constant rise due to the steady growth of the population and industrialization. The rising standard of living of people in emerging countries is forecasted to bolster product demand. Additionally, the popularity of new and renewable energy sources is likely to fuel renewable natural gas market growth.

• Growing Number of Operational Projects: According to data from the American Biogas Council, 120 new RNG facilities became operational in the past two years—an increase from 85 facilities in the preceding two-year period.

• Expanded Policy Support: The U.S. Environmental Protection Agency reports that at least 15 states introduced or expanded RNG-supportive legislation in 2023, doubling the count from 2020.

• Increased Adoption in Transportation: The Coalition for Renewable Natural Gas notes that 25% of public transit agencies now blend RNG into their fuel mix, compared to only 10% in 2019.

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RENEWABLE NATURAL GAS MARKET SEGMENTATION

By Source

By Source, the market is segmented into agricultural RNG resources, sewage & wastewater, RNG resource, and landfill RNG resource. 

By Application

Based on application, the market is classified into electricity generation, vehicle fuel, gas grid, and others.  

DRIVING FACTORS

Drift Toward Cleaner Energy Sources to Drive Market Growth

The population is constantly drifting towards a cleaner energy source, and natural gas application in various fields is anticipated to propel growth in the market. Renewable natural gases can also be used in heat building, generating electricity, baking foods, heating water, powering industrial furnaces, and others to propel renewable natural gas market growth.

Rising Concern for Environment Safety to Boost Product Demand

The rising concern for reducing the emission of carbon and government subsidies for using natural gas is likely to surge the demand for renewable natural gases. The market is also expected to grow with the rising demand for light-duty vehicle. Renewable gases are environment-friendly and are extensively used in light-duty vehicles, which is expected to be an additional factor for the growth of the renewable natural gas market.

• Rising Demand for Low-Carbon Fuels: The U.S. Department of Energy estimates that 65% of municipal fleets plan to adopt RNG as part of their decarbonization strategies over the next three years.

• Agricultural Waste Management Incentives: Data from the U.S. Department of Agriculture shows that farms adopting anaerobic digestion for RNG production have grown by 35% since 2020, thanks to targeted state-level incentives.

RESTRAINING FACTORS

Fluctuating Price of Natural Gas to Impede the Market Growth

The fluctuation in natural oil and gas prices is expected to restrain the market growth. The risk of leakages while transporting and storing renewable natural gases is also expected to set back the market growth. Additionally, the high cost coupled with storing of natural gases is another factor expected to hinder the market growth. 

• Infrastructure Development Costs: The U.S. Energy Information Administration highlights that up to 40% of total project expenditures in RNG initiatives are tied to upgrading and pipeline interconnection costs, slowing expansion for smaller developers.

• Permitting and Regulatory Delays: According to the National Renewable Energy Laboratory, only 52% of proposed RNG projects receive initial permit approval within their first year, causing extended timelines for full-scale deployment.

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RENEWABLE NATURAL GAS MARKET REGIONAL INSIGHTS

North America to Dominate Due to Higher Production Rate 

North America is expected to dominate the market due to higher production and consumption of natural gases in the region. Natural gases are widely used in various applications such as industrial, electric power generation, commercial application, residential, and others, which is forecasted to surge major growth in the region. 

Europe is also anticipated to show sizeable growth due to the highest production of natural gases. Russia is the natural gases highest producer. Additionally, it also exports its own produced gases to the other countries.  

Asia Pacific is also estimated to show significant growth due to the higher demand for natural gases from emerging countries switch as India, China, and Japan. The rising population in the emerging countries is forecasted to boost the demand for natural gas and oil in the region. 

KEY INDUSTRY PLAYERS

Key Companies to Emphasize On Organic and Inorganic Growth Strategies

Key players are expected to focus on research and development of renewable natural gas to gain more customers in the global market. Many companies emphasize developing organic strategies such as product approvals, product launches, and other growth strategies.

• Archaea Energy (U.S.): According to the Coalition for Renewable Natural Gas, Archaea Energy operates 28 RNG facilities in 10 states, capturing an estimated 3.5 million metric tons of CO₂ equivalent annually.

• Montauk (U.S.): The U.S. Environmental Protection Agency’s Landfill Methane Outreach Program recognized Montauk for converting more than 20 landfill sites to RNG production in 2022, resulting in a reported reduction of 2 million metric tons of greenhouse gas emissions.

The key players are expected to take over inorganic strategies such as gaining mergers and collaborations. The prominent players are striving to gain lucrative growth opportunities in the forecast period due to the rising demand for the product in the global market. 

List of Top Renewable Natural Gas Companies

• Clean Energy Fuels (U.S.)
• Archaea Energy (U.S.)
• Montauk (U.S.)
• VERBIO (Germany)
• Vanguard Renewables (U.S.)
• J V Energen (U.S.)
• Gasrec (U.K.)
• Future Biogas (U.K.)
• REN Energy (South Africa)
• Dominion Energy
• Deqingyuan (China)
• California Bioenergy (U.S.)
• Asia Biogas (Thailand)
• AltEnergo (Ukraine)
• Waga Energy (France)
• Ameresco (U.S.)

INDUSTRY DEVELOPMENT

• September 2021- Bharat Petroleum Corporation Ltd. planned the investment of USD 13.66 billion in five years to enhance the refining efficiency, petrochemical capacity, and upstream gas and oil production and exploration to augment the infrastructure of marketing in India. 

REPORT COVERAGE

The report offers a description of the product and its applications, benefits, and side effects. The market report provides insights and situations of the key players. The new strategies adopted by the key companies are covered in this report. Major key players and their headquarters are mentioned in the report to offer market insights and represent renewable natural gas market insights. The market report provides an in-depth analysis of renewable natural gas market share, competitive landscape, and other aspects.