The global bio-LNG market size was estimated at USD 1.37 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 41.1% from 2024 to 2030. As more organic waste streams become available, such as agricultural and forestry residues and food waste, there is an increasing supply of feedstock for bio-LNG production. This has helped to drive down cost of production and increase viability of bio-LNG as a fuel source. The U.S. emerged as the largest market in North America in 2022. The U.S. government has implemented several programs to encourage production and use of renewable fuels, including bio-LNG. For example, Renewable Fuel Standard (RFS) requires a certain quantity of renewable fuels to be blended into transportation fuels each year. Similarly, several states have implemented renewable fuel standards or incentives, further driving demand for bio-LNG.
Increasing market for bio-LNG is also being driven by transportation sector. As more companies look to reduce their carbon emissions, bio-LNG is becoming an attractive alternative to diesel and gasoline. It can be used in a variety of transportation applications, including heavy-duty trucks, buses, and even ships. Several major shipping companies have already started using bio-LNG as fuel for their vessels, further driving demand for bio-LNG.
Application Insights
In terms of revenue, the transportation fuel segment led bio-LNG market in 2023, accounting for a revenue share of 55.55%. Demand for bio-LNG has been growing in transportation fuel and power generation segments, owing to low pollution caused by fuel. Bio-LNG is a low-carbon fuel that emits significantly less greenhouse gases (GHGs) than diesel or gasoline. It can reduce GHG emissions by up to 90% compared to diesel, which makes it an attractive option for companies and governments seeking to reduce their carbon footprint.
Source Type Insights
In terms of revenue, organic household waste segment led the market for bio-LNG in 2023, accounting for a share of 40.40%.Growth of this segment can be attributed to incentives and tax rebates offered by governments of different countries to promote adoption of renewable energy and conversion of organic waste to energy.
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Regional Insights
Europe accounted for largest regional revenue share of 61.41% in 2023. Countries such as Germany, UK, Spain, and France are expected to witness high growth rates in industry, owing to rising product demand from transportation and power generation application sectors, boosting market growth during forecast period.
North America occupied a significant revenue share in 2022, with the U.S. being a major contributor to regional market growth. Surge in usage of alternative fuels for energy generation to reduce greenhouse gas emissions is expected to drive growth of North American market for bio-LNG in coming years.
Key Companies & Market Share Insights
Bio-LNG market is highly competitive and moderately consolidated due to presence of a few large players. Dominant trend in bio-LNG market includes collaborations, mergers & acquisitions, and geographical expansions, which facilitates competition in market.
Key Bio-LNG Companies:
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