Austin, TX, USA, Aug. 19, 2025 (GLOBE NEWSWIRE) — Custom Market Insights has published a new research report titled “Green Gas Market Size, Trends and Insights By Type (Biomethane, Biopropane, Hydrogen), By End User (Transportation, Power, Buildings), By Source (Industrial Waste, Agricultural Waste, Sewage Sludge, Energy Crops, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2025 – 2034“ in its research database.
“According to the latest research study, the demand of the global Green Gas Market size & share was valued at approximately USD 1.54 Billion in 2024 and is expected to reach USD 1.83 Billion in 2025 and is expected to reach a value of around USD 2.81 Billion by 2034, at a compound annual growth rate (CAGR) of about 6.20% during the forecast period 2025 to 2034.”
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Green Gas Market Overview
The market for green gases is booming as companies and governments across the globe look for ways to hit climate goals and cut carbon emissions. Biomethane and green hydrogen, also known as green gas, are becoming increasingly important in the global energy transition, providing sustainable alternatives to fossil fuels in a range of end-use sectors.
Biomethane is a low-carbon fuel increasingly gaining traction within transportation, most notably among heavy-duty vehicles, with major automotive manufacturers like Scania and Volvo investing in biomethane-powered trucks to lower CO₂ emissions. Utilities are also embracing green gas, incorporating green hydrogen into natural gas networks to decarbonize power generation.
For instance, recently, the Germany through its “H2-ready” gas turbine initiative, allowed gradual conversion from traditional natural gas to hydrogen. The residential space is also embracing biomethane, and many energy giants, such as British Gas and ENGIE, have started to push cleaner biomethane-based heating solutions over traditional gas boiler models.
This broad-based need across sectors is generating billions in green gas infrastructure and production capacity investment, making the market well-positioned for strategic growth during the forecast period.
The higher availability of suitable feedstock is a perennial, longer-term issue for the availability of feedstock for the green gas market in general and specifically biomethane production, for which feedstock is predominantly comprised of organic wastes including municipal solid waste, animal manures, sewage sludge, and food waste.
Waste collection and segregation are carried out differently in various parts of the world, with sustainable agricultural waste management systems in Europe compared to major developing nations, where the scaling of waste collection infrastructure is a persistent problem.
Likewise, the production of green hydrogen relies on renewable electricity from solar and wind resources, which are not available all the time and not everywhere, creating supply limitations. In addition, liquefied biomethane and hydrogen prevent several logistical problems, requiring specialized infrastructure that further raises costs and makes transport difficult.
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In regions with underdeveloped access to feedstock availability and transportation networks, supply chain constraints considerably impede market growth.
However, in the face of these challenges, the growth of green hydrogen initiatives and the establishment of a hydrogen economy offer significant potential to the green gas industry. Germany, Japan, Australia, and many others are all actively investing in green hydrogen with plans to build world-leading electrolysis plants and hydrogen transport infrastructure.
There is the Hydrogen Energy Supply Chain (HESC) project in Australia, one of the examples of an initiative with similar aspirations to create a hydrogen supply network tailored to connect hydrogen producers as well as importers with the market. Shell and BP are also investing in green hydrogen with the use of electrolysis technology on a larger scale.
In addition, hydrogen-powered transportation and fuel cell applications are proving their worth, and developments in hydrogen storage and distribution should hold up this market growth potential. The European Union (EU) is instrumental in this growth, providing billions in funding through instruments such as Horizon Europe and the European Green Deal to develop biogas, biomethane, and hydrogen infrastructure.
The likes of Air Liquide and ENGIE are seizing these opportunities to implement large-scale biomethane and hydrogen projects with long-term contracts to always provide sufficient volumes of green gas to cover demand.
Based on end-users, the global green gas market is segmented by transportation, power, buildings, and others. The power segment has the maximum market share in the Global Green Gas Market, as low-carbon energy demand, grid decarbonization, and supportive policy incentives for renewable gas integration support its growth.
It has resulted in an upsurge of biomethane and hydrogen-based power generation projects as the world emphasizes moving away from carbon-intensive electricity generation. Countries are switching from coal and natural gas to renewable gases to meet their net-zero goals.
The Green Gas system market is segmented across Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. The industry investments and the strong policy support and infrastructure make Europe the global leader in green gas markets.
The area has an advanced waste management system that provides a stable stream of organic feedstock for biomethane production. In the countries with effective support for the biomethane market, such as Sweden and Denmark, the biomethane share in total gas consumption is now high, while its application in the transportation sector, heating, and power generation has also grown rapidly.
Europe is the strongest market due to its fastidious legal establishment, ready market infrastructure, and strong industry collaboration. The world is rushing to develop sustainable energy sources, and Europe will follow suit by leading the green gas market as technology and systems around biomethane and hydrogen continue to advance.
With investments in green gas infrastructure on the rise and process innovation still driving down production costs, the world is on the path to a low carbon future.
Report Scope
| Feature of the Report | Details |
| Market Size in 2025 | USD 1.83 Billion |
| Projected Market Size in 2034 | USD 2.81 Billion |
| Market Size in 2024 | USD 1.54 Billion |
| CAGR Growth Rate | 6.20% CAGR |
| Base Year |