According to this latest publication from Meticulous Research®, the global anaerobic digestion systems market is projected to reach $25.4 billion by 2030, at a CAGR of 9.8% from 2023 to 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.

The global anaerobic digestion systems market is segmented based on offering, feedstock type, capacity, application, and end user. The study also evaluates industry competitors and analyzes the market at the region/country level.

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Based on offering, the global anaerobic digestion systems market is broadly segmented into hardware, software, and services. The hardware segment is further sub-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 segment is further sub-segmented into designing & installation services and operations & maintenance services. In 2023, the hardware 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 growing demand for renewable energy sources and sustainable waste management practices, the increasing use of digesters, generators, compressors, gas storage tanks, pumps, pipes, and other equipment necessary for the anaerobic digestion process. The hardware segment is also projected to register the highest CAGR during the forecast period.

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 2023, 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.

Based on capacity, the global anaerobic digestion systems market is broadly segmented into small-scale, medium-scale, and large-scale. In 2023, 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. The medium-scale segment is also projected to register the highest CAGR during the forecast period.

Based on application, the global anaerobic digestion systems market is broadly segmented into power generation, fuel, agricultural & industrial waste management, and other applications. In 2023, 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.

Based on sector, the global anaerobic digestion systems market is broadly segmented into automotive, energy & utilities, commercial & residential, agriculture, and industrial. In 2023, 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, 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.

Based on geography, the global anaerobic digestion systems market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, 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.

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Key Players:

The key players operating in the anaerobic digestion systems market 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.).

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