Anaerobic Digestion Systems Market by Offering (Hardware [Digesters Tanks], Software, Services), Feedstock, Capacity, Application (Power Generation, Fuel, Agricultural & Industrial Waste Management), Sector, and Geography - Global Forecast to 2030

The Anaerobic Digestion Systems Market is projected to reach $25.4 billion by 2030, at a CAGR of 9.8% during the forecast period 2024–2030. The growth of this market is driven by the increasing demand for renewable energy sources, stringent government regulations for environmental protection, the growing need for safe waste disposal, and increasing awareness regarding the benefits of anaerobic digestion systems. However, the availability of other renewable energy sources restrains the growth of this market.

The increasing adoption of organic feedstock for biogas generation and the integration of advanced technologies into anaerobic digestion systems are expected to create market growth opportunities. However, the operational issues with anaerobic digestion systems are major challenges for the players operating in this market. The increasing use of co-digestion is a prominent trend in the anaerobic digestion systems market.

Increasing Demand for Renewable Energy Sources is Expected to Drive Market Growth

Renewable energy sources offer a sustainable alternative to traditional fossil fuels. It is environmentally friendly, emits fewer greenhouse gases, and has a lower environmental impact than non-renewable sources. Renewable energy technologies have become more cost-competitive, making them a viable option for businesses and households. Anaerobic digestion systems generate biogas, a renewable energy source, from organic waste materials such as food waste, animal manure, and wastewater. Biogas is used for various applications, including electricity generation, heating, and transportation fuel. In addition to producing renewable energy, anaerobic digestion offers environmental benefits, such as reducing greenhouse gas emissions and diverting waste from landfills.

In addition, advancements in anaerobic digestion technology have made the process more efficient and cost-effective, making it a more attractive option for businesses and municipalities looking to reduce their environmental impact while generating revenue from renewable energy production. The benefits offered by anaerobic digestion systems and the growing need for sustainable and renewable energy sources support the market’s growth.

Developing countries are also turning to renewable energy sources to provide electricity to rural areas and reduce their carbon footprint. Several governments worldwide are recognizing the potential of anaerobic digestion as a tool to meet renewable energy targets and reduce carbon emissions and have introduced policies and incentives to support the development of renewable energy sources. For instance, in the U.S., the Renewable Fuel Standard (RFS) program requires transportation fuel sold to contain a minimum volume of renewable fuels each year. Under this program, by 2022, approximately 36 billion gallons of renewable fuel must be blended into domestic transportation fuels. The renewable fuel should contain advanced biofuel, which includes fuels derived from approved renewable biomass, excluding corn starch-based ethanol.

Anaerobic digestion is a key technology for producing bioenergy from organic waste. The Renewable Energy Directive 2018 sets binding targets for the use of renewable energy in the EU, including the use of bioenergy. It requires 32% of the energy consumed within the European Union to be renewable by 2030. Furthermore, it establishes rules to remove barriers, stimulate investments, and drive cost reductions in renewable energy technologies, and empowers citizens, consumers and businesses to participate in the clean energy transformation. Thus, increasing government mandates and regulations and the increasing need for alternative renewable energy sources contribute to the growth of the anaerobic digestion systems market.

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Key Findings in the Anaerobic Digestion Systems Market Study:

In 2024, the Hardware Segment is Expected to Dominate the Anaerobic Digestion Systems Market

Based on offering, the global anaerobic digestion systems market is broadly segmented into hardware, software, and services. The hardware segment is further segmented into digesters tanks, biogas handling equipment, monitoring & control equipment, feedstock pre-processing equipment, and other hardware. The software segment is further sub-segmented into simulation software, energy modeling software, and data management software. The service is further sub-segmented into designing & installation services and operations & maintenance services.

In 2024, the hardware segment is expected to account for the largest share of the global anaerobic digestion systems market. This segment is also projected to register the highest CAGR during the forecast period. The large market share of this segment is attributed to the growing demand for renewable energy sources and sustainable waste management practices and the increasing use of digesters, generators, compressors, gas storage tanks, pumps, pipes, and other equipment necessary for the anaerobic digestion process.

In 2024, the Agricultural Waste Segment is Expected to Dominate the Anaerobic Digestion Systems Market

Based on feedstock type, the global anaerobic digestion systems market is broadly segmented into agricultural waste, municipal waste, industrial waste, agricultural waste, and other feedstocks. In 2024, the agricultural waste segment is expected to account for the largest share of the global anaerobic digestion systems market. The large market share of this segment is attributed to the increasing volume of organic waste materials generated in the agriculture industry, the need to convert agriculture waste into renewable energy through anaerobic digestion, the increasing need to reduce greenhouse gas emissions and improve soil health, and the need for renewable energy sources among farmers and rural communities and reduce their dependence on fossil fuels.

However, the municipal waste segment is projected to register the highest CAGR during the forecast period due to the increasing household and commercial waste, growing regulations and incentives for the treatment of municipal waste to reduce landfills, incinerators, and greenhouse gas emissions.

In 2024, the Medium-scale Segment is Expected to Dominate the Anaerobic Digestion Systems Market

Based on capacity, the global anaerobic digestion systems market is broadly segmented into small-scale, medium-scale, and large-scale. In 2024, the medium-scale segment is expected to account for the largest share of the global anaerobic digestion systems market. The large market share of this segment is attributed to the increasing use of anaerobic digestion systems with a capacity between 500 kW–3 MW for commercial and industrial operations and the growing need to process large volumes of organic waste for biogas production for large-scale renewable energy projects. This segment is also projected to register the highest CAGR during the forecast period.

In 2024, the Power Generation Segment is Expected to Dominate the Anaerobic Digestion Systems Market

Based on application, the global anaerobic digestion systems market is broadly segmented into power generation, fuel, agricultural & industrial waste management, and other applications. In 2024, the power generation segment is expected to account for the largest share of the global anaerobic digestion systems market. The large market share of this segment is attributed to the increasing need to generate electricity by converting biogas produced from organic waste into electricity using anaerobic digestion systems, the growing demand for renewable energy sources, and the increasing government support for renewable energy projects.

However, the agricultural & industrial waste management segment is projected to register the highest CAGR during the forecast period due to the increasing need to manage organic waste from agricultural and industrial operations, such as food processing facilities or livestock farms, the increasing demand for renewable fuels and the need for sustainable waste management solutions, and the increasing environmental regulations and mandates to reduce greenhouse gas emissions and other environmental problems.

In 2024, the Energy & Utilities Segment is Expected to Dominate the Anaerobic Digestion Systems Market

Based on sector, the global anaerobic digestion systems market is broadly segmented into automotive, energy & utilities, commercial & residential, agriculture, and industrial. In 2024, the energy & utilities segment is expected to account for the largest share of the global anaerobic digestion systems market. The large market share of this segment is attributed to the increasing need to reduce greenhouse gas emissions, stringent environmental regulations, government incentives for renewable energy production, rising acceptance of biofuels, and the need for alternative renewable energy sources.

However, the agriculture segment is projected to register the highest CAGR during the forecast period due to the increasing government mandate to reduce agriculture waste, the growing need to process animal waste from livestock operations and process crop residues, the rising need for alternative sources of renewable energy to reduce dependency on fossil fuels, the increasing use of co-digestion systems in agricultural waste with other waste streams to increase biogas production and organic fertilizer.

Europe to be the Fastest-growing Regional Market

In 2024, Europe is expected to account for the largest share of the global anaerobic digestion systems market, followed by Asia-Pacific and North America. Europe’s major market share is mainly attributed to its developed waste management infrastructure, stringent environmental regulations, such as emissions regulations, EU Landfill Directive, EU Renewable Energy Directive, mandatory organic waste diversion targets, tax incentives, and subsidies for biogas production, and the growing volume of organic waste from the agriculture sector for anaerobic digestion. Furthermore, several European countries offer favorable feed-in tariffs and other incentives for renewable energy production, increasing the demand for anaerobic digestion systems for biogas production in the region.

However, Asia-Pacific is expected to register the highest CAGR during the forecast period. The growth of this regional market is attributed to the increasing demand for sustainable waste management solutions, the increasing waste management regulations to reduce the amount of waste going to landfills and promote recycling, and the increasing government policies and incentives in countries, including China, India, and Japan to promote the use of renewable energy and reduce greenhouse gas emissions.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the anaerobic digestion systems market in the last three to four years. The key players profiled in the anaerobic digestion systems market report are Hitachi Zosen Inova AG (Switzerland), Nature Energy (Denmark), BTS Biogas Srl/GmbH (Italy), EnviTec Biogas AG (Germany), Evoqua Water Technologies LLC (U.S.), PlanET Biogas Global GmbH (Germany), Biogen (UK) Ltd (U.K.), VWS (UK) Ltd, Agrinz Technologies GmbH (Austria), Bioenergy Devco (U.S.), AAT Abwasser- und Abfalltechnik GmbH (Austria), Agraferm GmbH (Germany), Scandinavian Biogas Fuels International AB (Sweden), BDI-BioEnergy International GmbH (Austria), ENGIE SA (France), Capstone Green Energy Corporation (U.S.), BIOQUADRAT Energie- und Wassertechnik Holding GmbH (Austria), Zero Waste Energy, LLC (U.S.), and Renewi plc (U.K.).

Scope of the report:

Anaerobic Digestion Systems Market Assessment, by Offering

• Hardware
  • Digesters Tanks
  • Biogas Handling Equipment
  • Monitoring & Control Equipment
  • Feedstock Pre-processing Equipment
  • Other Hardware
• Software
  • Simulation Software
  • Energy Modeling Software
  • Data Management Software
• Services
  • Designing & Installation Services
  • Operations & Maintenance Services

Anaerobic Digestion Systems Market Assessment, by Feedstock Type

• Agricultural Waste
• Municipal Waste
• Industrial Waste
• Sewage Waste
• Other Feedstocks

Anaerobic Digestion Systems Market Assessment, by Capacity

• Small-scale
• Medium-scale
• Large-scale

Anaerobic Digestion Systems Market Assessment, by Application

• Power Generation
• Fuel
• Agricultural & Industrial Waste Management
• Other Applications

Anaerobic Digestion Systems Market Assessment, by Sector

• Automotive
• Energy & Utilities
• Commercial & Residential
• Agriculture
• Industrial

Anaerobic Digestion Systems Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Netherlands
  • Denmark
  • Austria
  • Switzerland
  • Finland
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Australia & New Zealand
  • Malaysia
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • South Africa
  • Rest of the Middle East & Africa

Key questions answered in the report: