Bio-CNG Market Size, Share & Growth Forecast (2026-2031)

The Bio-CNG Market is projected to increase from USD 6.71 billion in 2026 to USD 13.5 billion by 2031, growing at a CAGR of 15.0% over the forecast period.

The main sources are agricultural residues, animal manure, municipal solid waste, food waste and sewage sludge, the most important feedstock varying by region: in India, agricultural residues and manure are the most important feedstocks, whereas in North America and Europe landfill gas, food waste and manure are significant. The largest application is transport fuel, followed by the use of injection into CNG and NG grids, and industrial heating and power generation, by application.

Europe remains a key market, supported by early adoption of renewable gas mandates, carbon pricing mechanisms, and public procurement initiatives promoting gas-powered buses and trucks. Asia-Pacific is a high growth market, where the blending requirement and policies of the agriculture sector in India has also contributed to a rise in production and in certain procurement regions, due to the reduced cost of delivered Bio-CNG as compared to CNG, the gap has come down to less than ten per cent.

The increased infrastructure for CNG, the shift towards cleaner public transportation and corporate & municipal decarbonisation initiatives are strengthening demand. Issues pertain to feedstock aggregation, plant capital costs, interconnections with the grid and pipelines, and reliance on policy support and carbon pricing mechanisms.

Market Dynamics

Market Drivers

• The growing carbon reduction regulations and net zero initiatives in developed and emerging nations are driving persistent demand for low-carbon fuels to replace fossil-based CNG.

• Fleet, transit and gas utility switching costs are reduced through compatibility with current CNG vehicles and infrastructure.

• Agricultural-waste feed stocks are being promoted by government programs and plant development and blending requirements are increasing production, particularly in India.

• The increasing CNG refueling stations and the demand for cleaner public transportation systems are expanding the market address.

Market Restraints & Opportunities

• Investments risks due to high capital cost of digesters, upgrading and compression equipment, feedstock collection and logistics, and reliance on subsidies, carbon pricing and offtake agreements delay project development.

• However, as membrane and other technologies to upgrade the system become more affordable, carbon-credit and renewable-certificate income, digestate sales, and demand from heavy-duty fleets are providing significant opportunities for system producers and technology suppliers.

Key Developments

May 2026: VA TECH WABAG LIMITED and PEAK Sustainability Ventures announced the development of their first Bio-CNG plant in Ghaziabad, Uttar Pradesh.

Bio-CNG Market Segmentation

The market is segmented by feedstock, application, end user, and geography.

By Feedstock

• Agricultural Residues and Manure

Agricultural residues and animal manure are significant feed stocks, particularly in India, where there is a huge amount of crop residue and this helps to curb the issue of residue burning in the field.

Verbio SE is a biomethane producer based on agricultural residues and is growing in Europe and India.

Praj Industries Ltd. is a supplier of Bioenergy technology and Bio-CNG plant solutions.

By Application

• Transport Fuel

The most important area is transport fuel, where Bio-CNG can be used as a substitute for diesel and fossil CNG in vehicles without modifications, including buses, trucks, taxis and municipal vehicles.

Clean Energy Fuels Corp. is a North America-based provider of natural gas and renewable natural gas fueling networks to fleet customers.

Gasum Oy is a producer and provider of gas from renewable sources, namely biogas and biomethane, for transport in the Nordic region.

By End User

• Gas Utilities and Industry

Buyers in the form of city gas distributors, gas utilities and industrial users are increasing.

GAIL (India) Ltd and Indian Oil Corporation Ltd are entering into Bio-CNG supply and integration with gas network.

Air Liquide S.A. provides biogas upgrading technology and biomethane technology.

Regional Analysis

• North America

North America has a growing renewable natural gas industry built on landfill, dairy and wastewater projects, supported by low-carbon fuel credits and renewable fuel standards that reward transport use.

• Europe

Europe held about 38.6% of the market in 2025, led by Germany, Sweden, Italy and France, with mature supply chains, public CNG refueling networks and strong renewable-gas policy.

• Asia-Pacific

Asia-Pacific is a leading growth region, driven by India's national program for agricultural-waste-based production and city gas blending, and by municipal waste and rural biogas initiatives in China and Southeast Asia.

• Middle East and Africa

The Middle East and Africa are early-stage, with interest focused on municipal waste-to-energy projects and fleet fuel pilots.

• South America

South America offers growing potential from sugarcane, livestock and landfill resources, with Brazil advancing biomethane policy and projects.

List of Companies

Verbio SE

Air Liquide S.A.

Gasum Oy

Clean Energy Fuels Corp.

Reliance Bio Energy

Indian Oil Corporation Ltd.

GAIL (India) Ltd.

Adani TotalEnergies Biomass Ltd.

Praj Industries Ltd.

EverEnviro Resource Management

Competitive Landscape

Verbio SE

Verbio produces biomethane and biofuels from agricultural residues, operating integrated biogas-to-CNG infrastructure in Europe and expanding into India.

Air Liquide S.A.

Air Liquide supplies biogas purification and upgrading technology and distributes biomethane for mobility and industry as part of its renewable gas strategy.

Indian Oil Corporation Ltd.

IndianOil is developing Bio-CNG supply, offtake and retail outlets under India's national program, alongside peers such as GAIL, BPCL and Adani TotalEnergies Biomass.

Analyst View

The Bio-CNG market is growing at a double-digit pace because it offers a drop-in, low-carbon replacement for fossil CNG that works with existing vehicles and infrastructure. Estimates differ widely by scope, so figures should be read against definition. Europe is the most mature market, India the most dynamic, and North America a major renewable natural gas producer. The key success factors are secure feedstock aggregation, low-cost upgrading and compression, and long-term offtake with fleets and gas distributors. Integrated players that combine feedstock, upgrading technology and fuel distribution are best positioned.

Bio-CNG Market Scope: