Global Green Gas Market Size Likely to Grow at a CAGR of 6.20% By 2034

Green Gas Market Size 

Global Green Gas Market size was valued at USD 1.83 Billion in 2025 and is expected to reach USD 2.81 Billion by 2034, at a CAGR of 6.20% during the Forecast period 2025 – 2034.

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.

In regions where access to feedstock availability and transportation networks is underdeveloped, these supply chain constraints impede market growth considerably.

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 the low-carbon energy demand, grid decarbonization, and supportive policy incentives for renewable gas integration support the growth of this segment.

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

CMI has comprehensively analyzed the Global Green Gas market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an in-depth scenario of the market. Segment-wise market size and market share during the forecast period are duly addressed to portray the probable picture of this Global Green Gas industry.

The competitive landscape includes key innovators, after-market service providers, market giants, and niche players. These are studied and analyzed extensively concerning their strengths, weaknesses, and value addition prospects. In addition, this report covers key player profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends, and dynamics in partnerships.

List of the prominent players in the Green Gas Market:

• Air Products and Chemicals Inc.
• ENGIE
• Air Liquide
• Linde PLC
• Siemens Energy
• Nel ASA
• Plug Power Inc.
• ITM Power PLC
• Green Hydrogen Systems
• PowerCell Sweden AB
• Reliance Industries
• Adani Green Energy
• Adani Total Gas
• Larsen & Toubro (L&T)
• Adani Enterprises
• NTPC
• Indian Oil Corporation (IOC)
• Oil and Natural Gas Corporation (ONGC)
• GAIL
• Bharat Petroleum Corporation (BPCL)
• Others

The Green Gas Market is segmented as follows:

By Type

• Biomethane
• Biopropane
• Hydrogen

By End User

• Transportation
• Power
• Buildings

By Source

• Industrial Waste
• Agricultural Waste
• Sewage Sludge
• Energy Crops
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America