Green Gas Market Size, Share, Trends, Growth & Forecast 2034

Green Gas Industry Perspective:

The global green gas market size was worth around USD 1.83 billion in 2024 and is predicted to grow to around USD 3.34 billion by 2034 with a compound annual growth rate (CAGR) of roughly 6.20% between 2025 and 2034.

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Key Insights:

• As per the analysis shared by our research analyst, the global green gas market is estimated to grow annually at a CAGR of around 6.20% over the forecast period (2025-2034)
• In terms of revenue, the global green gas market size was valued at around USD 1.83 billion in 2024 and is projected to reach USD 3.34 billion, by 2034.
• The market is projected to grow at a significant rate due to the environmental impact of excessive natural gas usage.
• Based on the type, the biomethane segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the power generation segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Green Gas Market: Overview

Green gas, also known as renewable gas, is man-made and produced from renewable energy sources. Unlike natural gas, green gas is considered less harmful to the environment and acts as a form of clean energy with applications across industries. According to market research, Europe has been at the forefront of introducing and applying green gas to the gas infrastructure worldwide. Green gas is produced by transforming organic waste with the help of bacteria into usable gasses such as green hydrogen, biomethane, synthetic gas (syngas), landfill gas, and power-to-gas (P2G) methane. Some of the major applications of green gas are registered in growing industries such as transportation, power generation, and heating. During the forecast period, demand for green gas is expected to grow due to the rising power requirement worldwide.

Additionally, increasing emphasis on reducing dependency on natural gas may further influence developments in the green gas sectors. Governments worldwide are working on developing new opportunities for green gas companies to thrive further helping the industry expand. However, the high cost of green gas production along with limited access to essential infrastructure may further inhibit market expansion in the long run.

Green Gas Market: Growth Drivers

Environmental impact of excessive natural gas usage to drive demand for renewable gas

The global green gas market is expected to be driven by the rising impact of severe environmental pollution caused by excessive use of natural gas. The availability of non-renewable energy sources is rapidly declining worldwide. According to official estimates, the world currently has between 50 to 100 years of natural gas reserves remaining. In addition to this, natural gas usage also leads to serious environmental impacts. Excessive use of natural gas is one of the primary reasons for global warming.

As per the Massachusetts Institute of Technology (MIT) Climate Portal, methane leaks associated with the use of natural gas account for around 10% of climate change. The growing awareness about the depleting reserves of natural gas and its irreversible damage to the environment will promote higher investments in green gas. Renewable gas is produced using organic waste and does not rely on non-renewable sources. Moreover, green gasses have proven to deliver similar performance and applications to natural gas further helping the industry grow.

Increasing focus on developing cleaner energy for the automotive industry to propel market revenue

According to the latest trends in the industry, demand for renewable gas especially targeting the automotive industry has been growing steadily in the last few years. The increasing use of compressed natural gas and liquefied natural gas for powering automotive has become a cause of concern worldwide. It has led to higher demand for greener alternatives such as green gas production.

In September 2024, Lumax Auto Technologies Limited (LATL), a leading supplier of automotive systems and components, announced that it had acquired a majority stake in Greenfuel Energy Solutions Private Limited. The move marks LATL’s entry into the green fuel segment and is expected to help the company expand its operations.

Furthermore, intensifying government mandates to reduce carbon dioxide (CO2) emissions from the automotive and transportation industry will be critical to the overall growth rate observed in the global green gas market during the forecast period.

Green Gas Market: Restraints

High cost of production and limited infrastructure availability affect market revenue

The global green gas industry is expected to be restricted due to the high cost of production associated with renewable energy. Green gas production is an energy and resource-intensive process. It also requires an extensive amount of energy for conducting the electrolysis process which is a critical step in the production of green gas. For instance, setting up a large-scale green gas plant can cost over USD 2 million. Additionally, limited access to the essential infrastructure required for the production of green gas in large volumes can further impede the market growth rate in the future.

Green Gas Market: Opportunities

Growing initiatives toward improved awareness and government support to remain pivotal for industry growth

The global green gas market is expected to generate growth opportunities due to the rising initiatives toward generating better awareness around the several aspects of renewable gas. A major focal point for industry players will emerge in the form of ensuring widespread awareness about the benefits of green gas and the urgency to adopt sustainable solutions across industries. In addition to this, government support and initiatives will remain pivotal for the industry players in the coming years. The market requires a more stable and comprehensive legal framework encouraging the production and end-user application of green gasses.

Ongoing work on encouraging the use of novel techniques to reduce carbon emissions and create smoother pathways for green gas production, distribution, and use will ensure optimal revenue for the market players during the projection period. For instance, according to market research findings, Europe reached a total output of 7% of its final demand for green gas.

In June 2025, Honeywell announced a partnership with Hindustan NTPC Green Energy Limited. The collaboration will focus on exploring sustainable aviation fuel (SAF) in the Indian market. According to official reports SAF production will form a significant part of the NTPC’s Green Hydrogen Hub in Andhra Pradesh state. Furthermore, increased investments in research & development of more efficient green gas production procedures will facilitate higher revenue during the forecast period.

Green Gas Market: Challenges

Lack of standard legal framework and concerns over raw material supply to challenge market growth

The global green gas industry is expected to be challenged by the lack of a standard legal framework restricting expansion strategies for the industry players. Additionally, the market suffers from the risk of supply chain disruption of the raw material. Lack of quality primarily organic waste required for producing green gas can impede the overall market growth rate in the coming years.

Green Gas Market: Report Scope

Green Gas Market: Segmentation

The global green gas market is segmented based on type, application, and region.

Based on the type, the global market segments are hydrogen, biomethane, syngas, and others. In 2024, the highest growth was listed in the biomethane segment. According to industry analysis, biomethane production registered an increase of over 22.9% in 2023 as compared to 2022 with Europe and North America playing significant roles. The increasing applications of biomethane across industries will propel segmental demand in the future.

Based on the application, the global market divisions are residential, power generation, industrial, commercial, transportation, and others. In 2024, the highest revenue was registered in the power generation segment. The growing demand for reliable and clean power supply worldwide is helping the segment thrive. Power generation dominated nearly 45.05% of the final revenue in 2024 and will continue the same trend in the future. The transportation industry may emerge as the fastest-growing segment during the forecast period.

Green Gas Market: Regional Analysis

Europe to continue leading the market during the projection period

The global green gas market is expected to be led by Europe during the forecast period. Germany will emerge as the highest regional market revenue generator since the country has an existing infrastructure supporting large-scale production of green gas. In October 2024, reports emerged suggesting that the political parties in Germany are keen on backing a national green gas sales quota.

The presence of favorable government policies, lucrative incentives & subsidies, and higher awareness in the region about the benefits of green will help Europe generate more revenue during the projection period. In 2023, Europe registered the launch of more than 200 biomethane plants bringing the country’s total number of biomethane facilities to 1510 as of 2023.

North America is the second-highest contributor to growing revenue in the green gas industry. The rising focus on developing alternatives to non-renewable energy sources will propel regional expansion in the coming years. In September 2024, JBS USA, a leading global food producer, announced a strategic partnership with GreenGasUSA. The latter can now produce renewable natural gas (RNG) at several JBS beef and poultry processing facilities across the US.

Additionally, increasing the rate of research initiatives to improve green gas performance and applications will be critical to the region’s final expansion trends over the forecast duration.

Green Gas Market: Competitive Analysis

The global green gas market is led by players like:

• ThyssenKrupp Nucera
• Linde plc
• Air Liquide
• Concord Blue
• ITM Power
• EverWind Fuels
• Air Products and Chemicals Inc.
• Matrix Gas & Renewables
• TotalEnergies
• EnviTec Biogas AG
• Bmp greengas GmbH
• Nel ASA
• Iberdrola
• Avaada Group
• Monolith Inc.

The global green gas market is segmented as follows:

By Type

• Hydrogen
• Biomethane
• Syngas
• Others

By Application

• Residential
• Power Generation
• Industrial
• Commercial
• Transportation
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa