USD 15.6 billion
Renewable Natural Gas Market Size, Share, and Growth Analysis
Renewable Natural Gas Market By Feed Stock (Landfill, Wastewater Treatment), By Application (Vehicles Fuel, Power Generation), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG55F2041 |
Region:
Global |
Published Date: February, 2025
Pages:
182
|Tables:
64
|Figures:
75
Format -
Renewable Natural Gas Market Insights
Renewable Natural Gas Market size was valued at USD 15.6 billion in 2023 and is poised to grow from USD 20.28 billion in 2024 to USD 165.43 billion by 2032, growing at a CAGR of 30.0% during the forecast period (2025-2032).
This market shift is fueled by increasing concerns over greenhouse gas emissions, limited fossil fuel reserves, and the urgency to mitigate climate change impacts.
Key market insights highlight the growing adoption of RNG across various sectors, including transportation, residential, industrial, and commercial. As countries strive to meet renewable energy targets and reduce carbon footprints, RNG has gained attention for its ability to replace traditional natural gas and reduce methane emissions from landfills and agricultural processes. Regulatory support, incentives, and carbon pricing mechanisms are driving investments in RNG production facilities and distribution networks.
The market landscape comprises a mix of established energy companies, waste management firms, and startups focused on RNG production, distribution, and utilization. Partnerships, collaborations, and investments are common strategies to bolster market presence and advance RNG technologies. As consumers demand cleaner energy alternatives, the RNG market is poised for expansion, offering economic and environmental benefits that align with the global shift towards a more sustainable energy future.
US Renewable Natural Gas Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Landfill RNG Resource
Fastest Growth
Landfill RNG Resource
Growth Rate
30.0% CAGR
Global Renewable Natural Gas Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Renewable Natural Gas Market Segments Analysis
Global Renewable Natural Gas Market is segmented by Feed Stock, Application and region. Based on Feed Stock, the market is segmented into Landfill, Wastewater Treatment, Agricultural Waste and Others. Based on Application, the market is segmented into Vehicles Fuel, Power Generation, Pipeline Injection and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Renewable Natural Gas Market Analysis By Source
The Landfill RNG Resource segment stands out as the prevailing force in the global renewable natural gas (RNG) market. This prominence can be attributed to the significant methane emissions originating from landfills, which represent a substantial contributor to the accumulation of greenhouse gases in the atmosphere. The recognition of this ecological concern has prompted innovative approaches to address it.
Renewable Natural Gas Market Analysis By Application
The Vehicle Fuel category has emerged as the frontrunner, commanding a substantial portion of the market share. This concerted effort to transition towards cleaner and more sustainable fuels has propelled the adoption of Renewable Natural Gas (RNG) as a viable alternative to power vehicles. Notably, this adoption is particularly pronounced in heavy-duty applications, such as buses and trucks, where RNG has demonstrated its potential to significantly curtail emissions.
Running closely behind, the Gas Grid segment occupies a notable share in the market landscape. The utilization of RNG within the gas grid encompasses a diverse array of applications spanning residential, commercial, and industrial sectors. By substituting conventional fossil fuels with RNG, these applications contribute to a sustainable and eco-friendly energy landscape.
Global Renewable Natural Gas Market By Application
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Renewable Natural Gas Market Regional Insights
The global market for renewable natural gas (RNG) reflects a mosaic of regional insights shaped by a blend of geographical, economic, policy, and technological factors. Within this landscape, North America has notably risen as a prominent player in the RNG sector. Both the United States and Canada have witnessed significant strides in RNG development, bolstered by their robust natural gas infrastructure, conducive policy frameworks, and growing commitment to decarbonization. Government incentives like the U.S. Renewable Fuel Standard (RFS) and Canada's provincial initiatives have been instrumental in propelling RNG production. The abundance of agricultural and waste resources in these nations serves as a robust feedstock base for RNG generation, with landfills emerging as a substantial contributor.
Moving towards Europe, the continent stands as a frontrunner in the adoption of renewable energy and has embraced a notable surge in RNG initiatives. The European Union's Renewable Energy Directive sets the stage for renewable energy assimilation, urging member states to diversify their energy portfolios. Nations such as Germany, France, and Sweden have paved the way in RNG production, predominantly sourced from agricultural waste and sewage. The strategic integration of RNG into existing natural gas networks is pivotal in advancing Europe's shift towards a carbon-light energy ecosystem.
Meanwhile, the Asia-Pacific region is undergoing a burgeoning interest in RNG, driven by the pressing need to address air quality concerns and curtail greenhouse gas emissions. Countries like China, Japan, and South Korea are actively exploring RNG as a means to transition away from fossil fuels and enhance air quality standards. However, despite the burgeoning curiosity, the market is still at an early stage of development, grappling with challenges linked to feedstock availability, infrastructure readiness, and regulatory backing.
Global Renewable Natural Gas Market By Region
- Largest
- Fastest
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Renewable Natural Gas Market Dynamics
Renewable Natural Gas Market Drivers
Government Policies and Incentives
- Supportive regulatory frameworks, incentives, and mandates, such as the Renewable Fuel Standard (RFS) in the U.S. and renewable energy targets in various countries, drive the adoption of RNG.
Decarbonization Goals
- Industries, utilities, and transportation sectors are aligning with decarbonization goals, driving the demand for cleaner and renewable energy alternatives, including RNG.
Waste Management Initiatives
- The need for effective waste management, coupled with the potential to capture methane emissions from landfills and wastewater treatment plants, contributes to RNG's growth.
Renewable Natural Gas Market Restraints
Infrastructure Limitations
- Insufficient infrastructure for RNG production, distribution, and utilization hinders its adoption, especially in regions lacking well-established natural gas networks.
Feedstock Availability
- RNG production heavily depends on organic waste sources, which might be limited in certain regions, impacting the scalability of RNG projects.
Cost Challenges
- The initial investment costs for RNG production facilities and infrastructure can be high, making it less competitive compared to conventional fossil fuels in some markets.
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Renewable Natural Gas Market Competitive Landscape
The competitive landscape of the global renewable natural gas (RNG) market is dynamic, characterized by the presence of various players ranging from energy companies, waste management firms, technology providers, to government entities. Key industry players are strategically focusing on expanding their RNG production capacities, improving technology efficiency, and establishing strong distribution networks. Collaboration and partnerships between different stakeholders, including waste generators, utilities, and transportation companies, are becoming crucial for the development of RNG projects and infrastructure.
Top Players in Renewable Natural Gas Market
- Clean Energy Fuels Corp. (United States)
- Montauk Renewables, Inc. (United States)
- VERBIO Vereinigte BioEnergie AG (Germany)
- Eni S.p.A. (Italy)
- TotalEnergies SE (France)
- BP plc (United Kingdom)
- Engie SA (France)
- Orsted A/S (Denmark)
- Technip Energies N.V. (France)
- VARO Energy (Switzerland)
- Gazprom PJSC (Russia)
- FortisBC Energy Inc. (Canada)
- Dominion Energy, Inc. (United States)
- Ameresco, Inc. (United States)
- Waga Energy (France)
- California Bioenergy LLC (United States)
- Asia Biogas (Thailand)
- AltEnergo (Ukraine)
- Sempra Energy (United States)
- Cheniere Energy, Inc. (United States)
Renewable Natural Gas Market Recent Developments
- In March 2024, Infravia Capital Partners incorporated Heygaz Biomethane (Heygaz), a Pan-European renewable natural gas platform, to address the European renewable natural gas market opportunity and to leverage on the increasing needs of a broad range of industries and transportation customers for carbon-neutral gas as a decarbonisation tool.
- In March 2024, StormFisher Hydrogen, a developer of low carbon fuel facilities, sealed an investment deal worth $30 million from ARC Financial Corp. The divestment of its organic waste-to-energy division has positioned StormFisher to double down on its focus on producing renewable electricity-derived fuels, commonly referred to as e-fuels.
- In February 2024, Clean Energy Fuels opened two new fueling stations that offer heavy-duty truck and other fleet vehicles renewable natural gas (RNG). The sites are located in North Fort Worth, near Alliance and DFW airports, and in South Dallas close to dozens of distribution centers.
Renewable Natural Gas Key Market Trends
- Integration with Existing Infrastructure: Integrating RNG into existing natural gas grids allows for seamless distribution and utilization across residential, commercial, and industrial sectors.
- Transportation Sector Adoption: RNG is gaining traction as a sustainable alternative for vehicle fuel, particularly in heavy-duty applications, addressing emissions reduction in the transportation sector.
- Renewable Energy Certificates (RECs): The use of RECs or carbon credits associated with RNG production incentivizes investments in renewable energy projects, driving market growth.
Renewable Natural Gas Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global renewable natural gas market analysis, the global renewable natural gas (RNG) market exhibits a promising trajectory driven by robust growth drivers, though tempered by certain challenges. The market's dominance by the Landfill RNG Resource segment underscores the importance of harnessing methane emissions from landfills for sustainable energy production. The application landscape is marked by the prominence of Vehicle Fuel, fueled by the shift towards cleaner transportation alternatives. The integration of RNG into the Gas Grid segment contributes significantly to decarbonizing gas supplies across various sectors.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 15.6 billion |
| Market size value in 2032 | USD 165.43 billion |
| Growth Rate | 30.0% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Renewable Natural Gas Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Renewable Natural Gas Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Renewable Natural Gas Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Renewable Natural Gas Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Renewable Natural Gas Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Renewable Natural Gas Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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