The global green gas market was valued at USD 1.83 billion in 2024 and is projected to reach USD 3.34 billion by 2034, growing at a CAGR of 6.20% (2025β2034).
Growth is fueled by the environmental drawbacks of natural gas, rising demand for clean power generation, and government support for renewable energy adoption.
Market value: USD 1.83B (2024) β USD 3.34B (2034)
CAGR (2025β2034): 6.20%
Biomethane segment dominates (highest growth rate).
Power generation accounts for 45.05% share (2024).
Europe leads with strong infrastructure & policies.
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Green gas, or renewable gas, is produced from organic waste and renewable sources. Unlike fossil-based natural gas, it delivers lower emissions, supports energy security, and integrates into existing gas infrastructure.
Key types include:
Biomethane
Green Hydrogen
Synthetic Gas (Syngas)
Landfill Gas
Power-to-Gas (P2G) Methane
Applications span across power generation, transportation, residential heating, and industrial use.
Excssive natural gas consumption worsens climate change.
Methane leaks contribute to 10% of climate change impacts (MIT Climate Portal).
Green gas reduces dependency on non-renewable resources while ensuring similar performance.
Growing shift from CNG/LNG to greener fuels.
September 2024: Lumax Auto Technologies acquired majority stake in Greenfuel Energy Solutions, entering the green fuel sector.
Stringent government COβ emission mandates accelerate adoption in transportation.
Green gas, especially biomethane, is increasingly used for power generation.
Growing need for stable, clean, and renewable energy in both developed & emerging economies.
High production cost (large-scale green gas plants can exceed USD 2M).
Energy-intensive electrolysis process increases operational costs.
Limited infrastructure availability restricts scalability.
Europe achieved 7% of its final energy demand from green gas by 2023.
June 2025: Honeywell partnered with NTPC Green Energy Limited (India) to advance sustainable aviation fuel (SAF) production.
Subsidies, legal frameworks, and public-private collaborations will further boost growth.
Renewable gas adoption in aviation, shipping, and heavy transport offers untapped opportunities.
Industrial users seeking carbon reduction are shifting toward green fuel integration.
Lack of a standardized legal framework in many countries.
Raw material supply issuesβinconsistent organic waste availability impacts production capacity.
Global socio-political and economic instability may hinder investments.
By Type
Biomethane (fastest-growing)
Hydrogen
Syngas
Others
By Application
Power Generation (largest, 45.05% share in 2024)
Transportation (fastest-growing)
Industrial
Residential
Commercial
Others
Europe β Market Leader
Germany drives growth with strong infrastructure & biomethane facilities (1,510 plants by 2023).
Supportive policies, subsidies, and sales quotas accelerate adoption.
North America β Second Largest
Focus on renewable natural gas (RNG).
September 2024: JBS USA partnered with GreenGasUSA for RNG production in processing facilities.
Asia-Pacific β Emerging Growth Hub
Rising energy demand, strong government initiatives (e.g., Indiaβs green hydrogen push).
Growing adoption in transportation & industrial power generation.
Leading companies shaping the industry:
ThyssenKrupp Nucera
Linde plc
Air Liquide
TotalEnergies
EnviTec Biogas AG
Bmp greengas GmbH
Nel ASA
Iberdrola
Avaada Group
Monolith Inc.
Matrix Gas & Renewables
EverWind Fuels
Concord Blue
These players are expanding via R&D investments, partnerships, and government-backed renewable energy projects
The green gas market is gaining momentum as the world looks beyond fossil fuels. With strong demand in power generation, transportation, and industrial sectors, and government-led sustainability pushes, the sector is poised for sustained growth at 6.20% CAGR.
However, scaling up production while reducing costs and overcoming infrastructure challenges will determine how fast green gas becomes a mainstream energy solution.