Renewable Natural Gas Market Size, Share and Trends 2025 to 2034

Leading energy conglomerates and private equity firms are actively investing in the RNG space, recognizing its potential for decarbonization and long-term energy sustainability. Companies such as ExxonMobil, BP PLC, Chevron, and Clean Energy Fuels Corporation are driving innovation, particularly through investments in anaerobic digestion and waste-to-energy technologies, and positioning RNG as a strategic pillar for lowering greenhouse gas emissions.

A vibrant startup ecosystem is emerging in the RNG sector, with firms like ReNew Power, Capstone Power Solutions, Cowboy Clean Fuels, and ZunRoof at the forefront of innovation. These startups are securing significant venture capital funding and government incentives aimed at scaling up sustainable technologies, enhancing energy access, and accelerating the transition to cleaner fuels.

In 2024, the compressed renewable natural gas (C-RNG) segment led the market with a 65% share. This is mainly due to its ability to supply renewable fuel for fleets. The compressor renewable natural gas segment has the capacity to reduce greenhouse gas emissions and dependence on fossil fuels. This product offers benefits like lower emissions, compatibility with existing natural gas infrastructure, and reduced operational costs. The use of compressed renewable natural gas is high in vehicle fuel, especially for heavy-duty trucks and buses, to reduce environmental impacts and increase cost effectiveness.

The liquefied renewable natural gas (L-RNG) segment is expected to grow at the fastest CAGR during the projection period because it offers a viable, large-scale, and transportable alternative to traditional natural gas. Liquefied renewable natural gas allows RNG to be used as a high-density transportation fuel for heavy-duty vehicles. This product facilitates easier transportation, storage, and use in various applications such as power generation, vehicle fuel, and industrial processes. The demand for cleaner energy sources has increased due to government support and advancements in production technologies, driving the adoption of liquefied renewable natural gases.

The landfill gas segment led the market with a 40% share in 2024 due to its ability to provide a consistent and abundant feedstock for renewable natural gas production. Billions of tons of municipal solid waste disposed of in landfills create plentiful sources of organic material for producing renewable natural gases. The well-established and long-standing infrastructure of the landfill gas recovery system offers advantages as a cost-effective way to produce RNG. The capacity of landfill gases to supply a significant source of low-carbon energy, establish a stable revenue stream to support RNG project development, and generate environmental co-benefits like methane reduction drives the segment’s growth.

The agricultural waste segment is expected to grow at a notable CAGR in the upcoming period due to the abundance of agricultural waste and residues. The segment is experiencing significant growth because of the easy availability of waste, technological advancements in its conversion, and supportive government policies. Increased awareness about climate change and progress in anaerobic digestion technologies also contribute. The agricultural waste segment helps reduce greenhouse gas emissions and offers renewable energy sources.

The anaerobic digestion segment dominated the market, holding the largest share of 55% in 2024 due to its vital role in decarbonization and waste management. Anaerobic digestion technologies are capable of operating at various scales, from small farm-based digesters to large municipal facilities. These technologies process different types of organic waste streams such as agricultural waste, municipal solid waste, and food waste. This process produces biogas, a renewable energy source that can be upgraded to renewable natural gas, helping to reduce carbon emissions and dependence on fossil fuels. Government initiatives are actively promoting anaerobic digestion, encouraging investments and adoption.

The gasification segment is expected to grow the fastest between 2025 and 2034, driven by its ability to convert various food stocks into syngas, which is a valuable energy source. The primary feedstocks, including coal, biomass, and waste, used in gasification provide a sustainable alternative to fossil fuels. Gasification technology is mainly employed in electricity generation, chemical production, and fuel creation. The outputs from gasification help produce valuable chemicals like methanol, synthetic natural gas, and ammonia. First-step gasification enables the production of low-carbon fuels, which helps reduce greenhouse gas emissions.

In 2024, the transportation / mobility segment dominated the market with a 50% share, driven by increased focus on decarbonizing heavy-duty transport. Renewable natural gas has the potential to reduce greenhouse gas emissions and dependence on fossil fuels. The adoption of renewable natural gas (RNG) has grown in transportation and mobility applications, thanks to increased adoption of RNG-powered fleets, strict emission regulations, and government initiatives. Policies like the federal Renewable Fuel Standards (RFS) and California’s Low Carbon Fuel Standard (LCFS) have created significant financial incentives for transportation companies to promote the use of renewable natural gases.

The power generation & utilities segment is expected to grow at the fastest CAGR during the forecast period, driven by decarbonization goals. This sector has increased its adoption of renewable natural gas production with low carbon emissions and leads the long-term trend of securing contracts to develop the market and attract sustainable investments. The rising demand for clean energy and grid stability also contributes to this growth. Additionally, growing peak demand management of electricity and the use of RNG in industrial processes further fuel the segment.

Asia Pacific is expected to grow the fastest in the global market, driven by rising energy demand and environmental concerns. The governments in Asia are promoting the use of renewable natural gas in industries such as power generation, consumer electronics, and automotive. Rapid economic growth and increasing energy needs are fueling the adoption of renewable natural gases. Additionally, growing awareness of air pollution and greenhouse gas emissions is pushing countries toward cleaner energy sources. Supportive government policies and strong investments in renewable natural gas infrastructure help sustain this growth. Indian Oil and Natural Gas Corporation plans to acquire 2.5-3 gigawatt renewable energy projects by 2030.

• On October 16, 2025, the 5th meeting of the India-Australia Energy Dialogue was held in New Delhi by India and Australia. The meeting was co-chaired by Shri Maniahr Lal, Honorable Minister for Power and Housing & Urban Affairs, Government of India, and Mr. CHirs Bowen MP, Honorable Minister for Climate Change and Energy, Commonwealth Government of Australia.

Rapid Industrialization and Government Polices Fuel China’s RNG Adoption

China leads the regional market thanks to its extensive use of agricultural residue and government-supported RNG projects. The country has increased its focus on rural clean energy adoption. Investment in agriculture modernization and biogas plants is driving this growth. Rapid industrialization is also boosting the adoption of renewable natural gases in transportation, industrial processes, and power generation to reduce greenhouse gas emissions and dependence on fossil fuels. With continued government support, rising demand for clean energy, and plenty of feedstock, China's market is expected to expand further.

Europe is expected to see significant growth in the global market due to the region’s focus on waste management and emission reduction targets. Europe has experienced a rapid increase in demand for clean energy. Strong agriculture and livestock projects are driving the adoption of renewable natural gases. Government support and policies in countries like Germany, France, and the UK, such as the renewable fuel standard and low carbon fuel standard, are encouraging the production and adoption of renewable natural gases. Additionally, the region’s emphasis on reducing emissions from fossil fuels and enhancing energy security contributes to the fast adoption of RNG.

Extensive Infrastructure To Fuel Adoption of RNG in the UK

The UK leads the regional market thanks to its strong infrastructure and key role in natural gas and LNG imports. The UK is boosting renewable energy use by adopting renewable natural gas. It has also increased LNG imports to strengthen its market position. Furthermore, extensive infrastructure, including LNG terminals and a robust natural gas grid, supports the country’s market.