Biomass Power Market Size & Share, By Feedstock (Solid, Liquid Biofuels), Technology (Combustion, Gasification, Anaerobic Digestion) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Biomass Power Market size is predicted to grow from USD 141.57 billion in 2024 to USD 258.35 billion by 2034, reflecting a CAGR of over 6.2% from 2025 through 2034. The industry revenue is forecasted to reach USD 149.6 billion in 2025.

• Base Year Value (2024): USD 141.57 billion
• CAGR (2025-2034): 6.2%
• Forecast Year Value (2034): USD 258.35 billion
• Historical Data Period: 2021-2034
• Largest Region: North America
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Biomass Power Market is experiencing significant growth, driven primarily by the increasing demand for renewable energy sources. As governments and organizations worldwide pursue commitments to reduce greenhouse gas emissions, biomass energy offers an attractive alternative to fossil fuels. This transition is further encouraged by favorable regulatory frameworks and policies that promote renewable energy development, providing incentives for businesses to invest in biomass technologies.

Technological advancements have also played a pivotal role in shaping the biomass power landscape. Improved conversion processes, such as gasification and anaerobic digestion, have enhanced energy efficiency and output, making biomass a more viable option for energy production. The diversification of raw materials, including agricultural residues, forestry by-products, and dedicated energy crops, expands the potential feedstock pool, facilitating growth in biomass power generation.

Additionally, the rising awareness regarding energy security and the need to reduce dependency on fossil fuel imports has propelled interest in domestic biomass resources. Urbanization and population growth are further contributing to this trend, leading to an increase in waste generation that can be utilized for biomass energy production. Furthermore, the integration of biomass energy with other renewable resources, such as solar and wind, creates opportunities for hybrid systems that optimize energy production and ensure a stable supply.

Report Scope

Report Coverage	Details
Segments Covered	Feedstock, Technology
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Mitsubishi Power., Suez, Xcel Energy, Ramboll Group A/S, Babcock & Wilcox Enterprises,, Ørsted A/S, Ameresco Inc, General Electric, Veolia, Vattenfall AB

Industry Restraints:

Despite the promising opportunities, the Biomass Power Market faces several key restraints that could hinder its growth. One of the primary challenges is the availability and reliability of feedstock. As biomass generation relies heavily on agricultural and forestry residues, competition for these materials can lead to fluctuations in supply and pricing. This volatility may deter investors and complicate long-term planning for biomass energy projects.

Furthermore, the high upfront capital costs associated with biomass power plants present a significant barrier to entry. While operational costs may be lower in the long run, the initial investment and longer payback periods can dissuade stakeholders, particularly in regions where alternative energy sources may be more financially attractive.

Regulatory uncertainties also pose a challenge, as inconsistent policies and lack of supportive frameworks can lead to a lack of clarity around market conditions. This situation can result in hesitance among investors and developers, slowing down project implementation and overall market growth. Additionally, environmental concerns regarding land-use changes for biomass cultivation and potential impacts on biodiversity can lead to social resistance, complicating the expansion of biomass energy initiatives.

Regional Forecast:

North America

The Biomass Power Market in North America is robust, with the United States leading in biomass energy production. The U.S. benefits from a diverse supply of biomass resources, including agricultural residues, wood pellets, and energy crops. California and the Pacific Northwest are particularly influential, driven by strong state policies promoting renewable energy. Canada also has significant potential, especially in provinces like British Columbia and Quebec, where forestry residues and waste biomass are primary sources of power generation. Both countries are focusing on reducing greenhouse gas emissions, creating a favorable environment for biomass technologies and investments, which contributes to an overall steady growth in the market.

Asia Pacific

In the Asia Pacific region, countries like China and Japan are at the forefront of the biomass power market. China has made considerable investments in renewable energy sources, and its biomass sector is rapidly evolving, driven by government support for sustainability and energy security. China's significant agricultural sector provides a vast supply of biomass feedstock. Meanwhile, Japan's interest in biomass energy has surged post-Fukushima as the country seeks alternative energy solutions to reduce dependence on nuclear power. South Korea is also emerging as a notable player, with policies aimed at enhancing renewable energy integration. This combination of growth drivers places the Asia Pacific region among the fastest-growing markets.

Europe

The European biomass power market is well-established, with countries like Germany, the UK, and France leading in production and consumption. Germany is recognized for its ambitious renewable energy targets, with substantial investments in biomass power generation as part of its transition to green energy. The UK has also demonstrated significant growth through biomass-fired power plants, complemented by government incentives for renewable energy production. Meanwhile, France focuses on biomass as part of its diverse energy portfolio, harnessing agricultural waste and forestry residues. The region as a whole maintains a strong regulatory framework that supports biomass development, contributing to steady market growth across key countries.

Segmentation Analysis:

In terms of segmentation, the global Biomass Power market is analyzed on the basis of Feedstock, Technology.

Feedstock

The Biomass Power Market is significantly driven by various feedstock types, which play a crucial role in determining the efficiency and sustainability of biomass energy production. The major feedstock categories include agricultural residues, forestry residues, organic waste, and dedicated energy crops. Among these, agricultural residues are expected to exhibit the largest market size due to their abundance and low cost. They are often readily available in many regions, which makes them a preferred choice for biomass power plants. Additionally, organic waste is gaining traction as municipalities aim to manage waste more sustainably, thus opening new avenues for biomass conversion.

Technology

Technological advancements in biomass energy conversion are pivotal for the expansion of the market. Key technology segments include direct combustion, gasification, anaerobic digestion, and pyrolysis. Direct combustion remains the most widely used technology, particularly for large-scale power generation, as it is straightforward and well-established. However, gasification is anticipated to see the fastest growth due to its ability to convert biomass into a cleaner synthesis gas, which can subsequently be utilized for electricity generation or biofuel production. Anaerobic digestion is also garnering interest for its dual benefit of energy generation and organic waste management, particularly in urban areas where waste-to-energy solutions are increasingly necessary.

Market Applications

Biomass power can be deployed in several applications, including electricity generation, heating, and combined heat and power (CHP) systems. The electricity generation segment is projected to be the largest in terms of market size as fossil fuel alternatives become less favored. This trend is driven by environmental policies and the increasing need for renewable energy solutions. Combined heat and power systems are likely to experience the fastest growth, as they provide higher efficiency by utilizing both the heat and electricity generated from biomass feedstock, making them particularly attractive for industrial applications and district heating systems.

Geographic Insights

Geographically, the biomass power market is evolving with considerable activity across North America, Europe, and Asia-Pacific. North America holds a significant market share, largely due to robust governmental support and investment in renewable energy technologies. Meanwhile, Europe is seeing rapid growth fueled by stringent environmental regulations and a strong commitment to reducing carbon emissions. The Asia-Pacific region is anticipated to witness the fastest growth, driven by rising energy demands and increasing adoption of sustainable practices, particularly in countries like India and China, where biomass serves as a viable solution for rural electrification and energy independence.

Competitive Landscape:

The competitive landscape in the Biomass Power Market is characterized by a diverse array of players ranging from established energy companies to specialized biomass producers. This market is driven by increasing energy demands, government incentives for renewable energy, and a growing emphasis on sustainability. Companies are focusing on technological innovations to enhance efficiency in biomass conversion processes and improve energy output. The market is also marked by strategic partnerships and collaborations aimed at expanding geographical reach and accessing new resources. As more jurisdictions enforce stricter environmental regulations, companies that can demonstrate compliance and sustainable practices are likely to gain a competitive edge.

Top Market Players

1. Drax Group

2. Enviva Holdings

3. Orsted

4. Veolia

5. RWE AG

6. Siemens Gamesa Renewable Energy

7. Bioenergy Infrastructure Group

8. Green Plains Inc.

9. Fortum

10. Abengoa Bioenergy