Energy and Power

Landfill Gas Market is Expected to Reach USD 3,459.1 Million by 2031

Mar 2024

Energy and Power

As per the report published by Kings Research, the global Landfill Gas Market was valued at USD 1,624.2 million in 2023 and is projected to reach USD 3,459.1 million by 2031, growing at a CAGR of 10.06% from 2024 to 2031.

The landfill gas industry is currently experiencing a complex operating environment shaped by economic, environmental, and community-driven factors. A discernible shift is underway, departing from conventional perspectives as stakeholders embrace a pragmatic waste management approach aligned with sustainable energy imperatives. This transition encompasses a spectrum of participants, ranging from local entrepreneurs to established waste management entities, who are spearheading innovative strategies that surpass standard regulatory compliance.

A thorough examination of market dynamics reveals a nuanced landscape, highlighting that technological progress emphasizes not only cutting-edge solutions but also considerations of cost-effectiveness and practical implementation. This shift in approach reflects an industry ethos recognizing the need for scalable, adaptable solutions, particularly in regions with resource constraints.

Collaboration plays a central role in the landfill gas market, as stakeholders forge partnerships that extend beyond traditional industry boundaries. Unlike the historical emphasis on energy producers and waste management corporations, initiatives driven by local communities are shaping the trajectory of the market. This decentralized approach fosters a diverse array of customized solutions, challenging the notion that progress is exclusively driven by developed regions.

The increasing presence of the landfill gas market in emerging economies signifies more than just urbanization and environmental awareness; it signifies a dynamic, resilient approach. These regions are not merely adopters but active contributors, injecting the sector with innovative strategies that prioritize both economic viability and environmental sustainability. Ultimately, the landfill gas market is undergoing a transformation characterized by adaptability, collaboration, and localized innovation as key drivers of its future direction.

Key Insights

  • Based on application, the direct use segment held the largest market share of 35.95% in 2023
  • Based on technology, the gas collection system segment generated the highest revenue of USD 886.8 million in 2023
  • Based on sector, the utilities segment is anticipated to grow at the highest CAGR of 37.29% over 2024-2031
  • On the basis of region, North America accounted for the largest market share of 38.50% in 2023

Enbridge Acquires Seven Landfill Gas-to-RNG Facilities from Morrow Renewables

November 2023: Enbridge made a significant move in the renewable natural gas (RNG) industry by purchasing seven operating landfill gas-to-RNG facilities from Morrow Renewables. This acquisition, valued at USD 1.2 billion, was intended to establish Enbridge as a North American midstream leader in RNG volume.

Technological Advancements in Gas Capture and Utilization to Drive Landfill Gas Market Growth

Continuous innovation in landfill gas capture and utilization technologies is improving the efficiency and economics of gas extraction and conversion processes. Advanced gas collection systems, such as horizontal gas collectors and vacuum extraction systems, are enhancing the capture efficiency of methane emissions from landfills. Additionally, advancements in gas treatment technologies, such as membrane separation and catalytic oxidation, are improving the quality of landfill gas for various end uses, including electricity generation and vehicle fuel. These technological advancements not only make landfill gas projects more economically viable but also contribute to reducing methane emissions, thereby addressing environmental concerns.

Expansion of Carbon Markets to Propel Landfill Gas Market Growth

The growing emphasis on mitigating climate change has led to the expansion of carbon markets and the development of mechanisms such as carbon pricing and emissions trading schemes. Landfill gas projects, by reducing methane emissions and generating carbon offset credits, contribute to these markets and generate additional revenue streams. According to the World Bank, the value of the global carbon market reached $215 billion in 2020, with voluntary carbon offset transactions accounting for a significant portion of the market. As carbon prices rise and more companies seek to offset their emissions, landfill gas projects stand to benefit from increased demand for carbon credits, presenting a lucrative opportunity for market growth.

Integration with Circular Economy Initiatives to Offer Opportunities

Landfill gas projects can play a crucial role in the transition towards a circular economy, where waste is minimized, and resources are utilized and recycled efficiently. By capturing methane emissions from organic waste in landfills and converting them into energy or other valuable products, landfill gas projects aid in closing the resource loop and reducing reliance on finite fossil fuel resources. As governments and industries worldwide prioritize circular economy initiatives to promote sustainable consumption and production patterns, there is a growing opportunity for integrating landfill gas projects into broader waste management strategies and circular economy frameworks.

Asia-Pacific to Grow at the Highest CAGR and Account for 29.08% of the Global Revenue in 2031

Based on regional analysis, the global landfill gas market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

The Asia-Pacific region is witnessing rapid growth in the landfill gas market driven by urbanization, industrialization, and increasing waste generation rates. The region is anticipated to grow at the fastest rate, recording a CAGR of 10.75% over 2024-2031. As countries in the region grapple with mounting waste management challenges, there is a growing recognition of the potential usage of landfill gas as a renewable energy source and an opportunity to mitigate greenhouse gas emissions. Governments across Asia-Pacific are implementing policies and initiatives to promote landfill gas utilization, including feed-in tariffs, renewable energy targets, and emissions reduction programs. For instance, countries like China, Japan, and South Korea have ambitious renewable energy targets and are investing in landfill gas projects to diversify their energy mix and reduce dependence on fossil fuels. Furthermore, advancements in gas capture and utilization technologies, coupled with declining costs of renewable energy technologies, are making landfill gas projects increasingly economically viable in the region. The Asia-Pacific region's large and growing waste streams, combined with supportive policy frameworks and technological innovation, position it as a key market for the expansion of the landfill gas industry in the coming years.

Major Companies Forge Agreements to Strengthen Industry Foothold

The global landfill gas market is fragmented with key players such as Waste Management, Inc., Veolia, Republic Services, Inc., SUEZ, Covanta Holding Corporation, Wheelabrator Technologies Inc., Viridor, Waste Connections, Inc., Advanced Disposal Services, Inc., E.ON SE, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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