United Kingdom Biogas Market Size, Share, and COVID-19 Impact Analysis, By Source (Municipal, Agricultural, and Industrial), By Application (Vehicle Fuel, Electricity, Heat, Upgraded Biogas, and Cooking Gas), and UK Biogas Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Biogas Market Forecasts to 2035

• The United Kingdom Biogas Market Size Was Estimated at USD 5,689.7 Million in 2024
• The UK Biogas Market Size is Expected to Grow at a CAGR of around 2.21% from 2025 to 2035
• The UK Biogas Market Size is Expected to Reach USD 7,239.2 Million by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Biogas Market Size is anticipated to reach USD 7,239.2 Million by 2035, growing at a CAGR of 2.21% from 2025 to 2035. The UK biogas market is driven by government support for renewable energy, increasing focus on reducing greenhouse gas emissions, and the need for sustainable waste management. Rising demand for biomethane as a vehicle fuel also supports market expansion and energy diversification.

Market Overview

The UK biogas market includes a renewable, carbon-neutral energy source produced from organic waste through anaerobic digestion. Biogas is methane-rich and used for electricity generation, heating, and transport, as well as waste management, which helps reduce greenhouse gases, making biogas a sustainable energy option. The growing emphasis on renewable energy sources, driven by government initiatives to lower greenhouse gas emissions, is a major market driver. By setting goals for the use of renewable energy, the UK is increasing demand for biogas as a sustainable substitute for fossil fuels. Technological developments in anaerobic digestion, which increase the efficiency and economy of biogas production, further assist this trend. As more countries investigate the possibilities of using organic materials and agricultural waste as feedstocks for the production of biogas, market opportunities are growing. To cut down on landfill waste and produce energy, municipalities are increasingly integrating biogas-based energy systems into their waste management procedures. The demand for biogas in electricity applications has been greatly boosted by a shift in emphasis towards the use of renewable energy, especially in the electric power industry. Additionally, the growing desire to lessen reliance on fossil fuels is opening up profitable prospects for biogas in automotive fuel applications. Biogas facilities are also viewed as financially attractive investment prospects by other stakeholders, such as waste management firms and farmers. The relevance of biogas and other renewable sources in waste management is growing as governments continue to fund programs that encourage the production of energy from trash.

Report Coverage

This research report categorizes the market for the UK biogas market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom biogas market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom biogas market.

Driving Factors

The increase in greenhouse gas emissions, the UK government is encouraging the production of biogas by extracting methane from organic waste. This lessens the impact on the environment while simultaneously providing farmers with a source of income through the utilisation of manure and agricultural waste. Upgraded biogas is in high demand as a result of the increased need for renewable energy brought on by the shortage of fossil fuels. As a clean, renewable fuel for natural gas cars, it supports sustainability and energy security when converted to biomethane, which has characteristics similar to those of natural gas. Increasing demand for sustainable waste management and low-carbon fuel alternatives. These factors align with the UK’s net-zero emissions goals.

Restraining Factors

Biogas installations require a considerable amount of capital. Furthermore, land, labour, engineering, feedstock sources, and equipment all come with associated costs. Feeding stock, while relatively inexpensive, must be purchased, stored, and sorted is a difficult and expensive operation. Furthermore, factories have significant costs to produce, sell, and distribute gas at a low cost. Thus, high initial preparation and operating costs for factory establishment could inhibit market growth. These factors hamper the biogas market during the forecast period.

Market Segmentation

The United Kingdom biogas market share is classified into source and application.

• The municipal segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom biogas market is segmented by source into municipal, agricultural, and industrial. Among these, the municipal segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The market demand is anticipated to be supported during the forecast period by the increasing use of this municipal solid waste (MSW) in the generation of biogas, which reduces landfills and greenhouse emissions.

• The electricity segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom biogas market is segmented by application into vehicle fuel, electricity, heat, upgraded biogas, and cooking gas. Among these, the electricity segment held the highest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The use of biogas to generate electricity has grown dramatically as awareness of the benefits of renewable energy sources, especially in the electric power industry. More amount of energy is produced through biogas.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom biogas market and a with comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Future Biogas Limited
• Acorn Bioenergy
• GENeco
• Infinis
• EnviTec Biogas UK
• HoSt Bioenergy
• Marches Biogas
• Dark Green
• Bio Capital
• Shell
• Kanadevia Inova
• Others

Key Target Audience

• Investors
• Market players
• End-users
• Government Authorities
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom biogas market based on the below-mentioned segments:

United Kingdom Biogas Market, By Source

• Municipal
• Agricultural
• Industrial

United Kingdom Biogas Market, By Application

• Vehicle Fuel
• Electricity
• Heat
• Upgraded Biogas
• Cooking Gas