Biomass Power Market Size & Growth Forecast 2027–2036, By Segments (Feedstock, Technology), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape
Market Size and Growth Outlook
Biomass Power Market size stood at USD 157.9 billion in 2026 and is predicted to grow at a 5.99% CAGR from 2027 to 2036, exceeding USD 282.51 billion by 2036. The industry revenue for 2027 is estimated at USD 165.86 billion.
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Regional Market Dynamics
- Europe accounted for a 39.33% share in 2026, supported by mature renewable infrastructure, established biomass supply chains, regulatory support, and widespread integration into utility-scale power systems.
- Asia Pacific is projected to expand at a 7.23% CAGR, driven by rising electricity demand, renewable energy investment, and greater use of agricultural and forestry residues for power generation.
Segment Momentum
- Solid biofuel leads the biomass power market due to established use of wood pellets and agricultural residues, supported by existing plant infrastructure, combustion systems, and reliable fuel handling and supply networks.
- Gasification is growing fastest as it enables more efficient and flexible conversion of biomass into combustible gas, supporting improved process control and advanced system configurations compared with traditional combustion approaches.
Market Expansion Drivers
- National renewable energy targets and coal phase-out policies accelerating biomass adoption.
- Industrial biomass co-firing in coal plants reducing carbon emissions footprint.
- Expansion of diversified biomass feedstock sourcing improving supply chain resilience.
Leading Market Participants
- Leading players in the biomass power market include Mitsubishi Heavy Industries, Ltd. (Japan), Veolia Environnement S.A. (France), Ørsted A/S (Denmark), General Electric Company (United States), Babcock & Wilcox Enterprises, Inc. (United States), Vattenfall AB (Sweden), Ameresco, Inc. (United States), SUEZ S.A. (France), Xcel Energy Inc. (United States), Ramboll Group A/S (Denmark).
Global Market Forecast Snapshot
Market Outlook
- 2026 Market Size: USD 157.9 billion
- 2027 Estimated Market Size: USD 165.86 billion.
- Projected Market Size: USD 282.51 billion by 2036
- Growth Forecast: 5.99% CAGR (2027-2036)
Regional and Segment Outlook
- Leading Regional Market: Europe
- High-Growth Regional Hub: Asia Pacific
- Core Revenue Segment: Solid Biofuel (Feedstock) | Combustion (Technology)
- Emerging Opportunity Segment: Liquid Biofuel (Feedstock) | Gasification (Technology)
Market Growth Drivers and Industry Trends
National renewable energy targets and coal phase-out policies accelerating biomass adoption
Government commitments to expand renewable generation and gradually reduce dependence on coal are creating favorable conditions for alternative sources of dispatchable electricity. The biomass power market growth is being supported by policies that encourage renewable energy deployment while addressing the need for reliable generation that can complement intermittent sources such as wind and solar. Biomass can utilize organic materials as fuel while fitting into established power-generation infrastructure, making it relevant for energy systems seeking to diversify their generation mix. Coal phase-out strategies can further encourage utilities and energy producers to evaluate biomass-based generation and conversion opportunities, particularly where existing infrastructure, fuel-handling capabilities, and regional biomass resources can support the transition toward lower-carbon electricity production.
Industrial biomass co-firing in coal plants reducing carbon emissions footprint
Co-firing biomass with coal provides power producers with a practical approach to incorporating renewable fuel into existing thermal generation operations without immediately replacing the entire generating system. This approach will propel the biomass power market growth by enabling facilities to introduce biomass into established fuel and power-generation processes while reducing the carbon intensity associated with conventional coal use. Industrial co-firing can also support utilities seeking transitional solutions as energy systems evolve toward cleaner generation sources. The availability of different biomass materials allows operators to evaluate fuel blends according to plant requirements and regional resource availability, while modifications to fuel-handling and combustion systems can facilitate greater integration of biomass into existing thermal power operations.
Expansion of diversified biomass feedstock sourcing improving supply chain resilience
A broader and more diversified approach to sourcing agricultural residues, forestry materials, organic waste, and other biomass resources can strengthen the reliability of fuel availability for power producers. Diversification will boost the biomass power market demand by reducing dependence on a single feedstock category or localized supply source and enabling operators to adjust procurement strategies according to seasonal availability and regional resource conditions. Establishing multiple sourcing channels can also help power producers manage variations in feedstock quality, transportation requirements, and supply continuity. Improved collection, processing, storage, and logistics networks further support the integration of heterogeneous biomass resources into commercial power-generation operations, allowing facilities to maintain more flexible fuel procurement practices.
| Growth Driver | Impact on CAGR | Regulatory Influence | Geographic Relevance | Adoption Rate | Impact Timeline |
|---|---|---|---|---|---|
| National renewable energy targets and coal phase-out policies accelerating biomass adoption | 2.00% | High | Europe, Asia Pacific | High | Near Term |
| Industrial biomass co-firing in coal plants reducing carbon emissions footprint | 1.60% | High | Asia Pacific, North America | High | Mid Term |
| Expansion of diversified biomass feedstock sourcing improving supply chain resilience | 1.30% | Moderate | Europe, Asia Pacific | Medium | Long Term |
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Regional Demand Dynamics
Europe (Largest Region)
Europe held the largest share of the biomass power market at 39.33% in 2026, supported by strong renewable energy policies, established bioenergy infrastructure, and efforts to diversify electricity generation away from fossil fuels. Government incentives, emissions-reduction objectives, and the development of circular energy systems are encouraging the use of agricultural residues, forestry resources, and other organic feedstocks for power generation. The region’s focus on energy security and renewable integration further supports investment in biomass-based generation and associated supply infrastructure.
Asia Pacific (Fastest-Growing Region)
Asia Pacific is the fastest-growing regional market as rising energy demand, industrialization, and expanding renewable energy investment create new opportunities for biomass power generation. The region has substantial agricultural and forestry resources that can provide locally available feedstocks, while governments are increasingly seeking alternatives that can complement variable renewable sources. Development of rural energy infrastructure, waste-to-energy initiatives, and efforts to improve resource utilization are also supporting wider deployment of biomass-based power systems.
| Parameter | North America | Asia Pacific | Europe | Latin America | MEA |
|---|---|---|---|---|---|
| Innovation Hub i Scale Nascent Developing Advanced | |||||
| Cost-Sensitive Region i Scale Low Medium High | |||||
| Regulatory Environment i Scale Restrictive Neutral Supportive | |||||
| Demand Drivers i Scale Weak Moderate Strong | |||||
| Development Stage i Scale Emerging Developing Developed | |||||
| Adoption Rate i Scale Low Medium High | |||||
| New Entrants/Startups i Scale Low Medium High | |||||
| Macro Indicators i Scale Weak Stable Strong |
Key Country Insights
Germany 🇩🇪
Circular Energy UtilizationGermany is advancing biomass power applications through integrated waste-to-energy systems and sustainable resource management practices. The market is shaped by demand for efficient biomass conversion technologies, decentralized energy solutions, and alignment with broader renewable energy infrastructure development.
France 🇫🇷
Agricultural Biomass IntegrationFrance is developing biomass power projects around agricultural residues, organic waste, and local energy initiatives. Market priorities include improving resource utilization, supporting rural energy systems, and deploying conversion technologies that complement the country’s renewable energy transition.
Italy 🇮🇹
Distributed Energy GenerationItaly is applying biomass power solutions within agricultural regions, industrial facilities, and local energy networks. Adoption is supported by interest in converting organic resources into electricity while improving waste management practices and strengthening decentralized renewable generation capabilities.
Japan 🇯🇵
Waste Resource RecoveryJapan is utilizing biomass power to address energy security goals and convert organic waste streams into usable electricity. Market activity focuses on efficient feedstock utilization, local energy generation, and technologies that support sustainable power systems in urban and regional areas.
South Korea 🇰🇷
Industrial Biomass AdoptionSouth Korea is expanding biomass power applications through utility-scale generation and industrial energy systems. The market is influenced by efforts to diversify renewable energy sources, optimize biomass fuel supply chains, and integrate alternative power solutions into existing energy infrastructure.
United States 🇺🇸
Renewable Grid IntegrationThe U.S. is incorporating biomass power into renewable energy portfolios, waste management systems, and regional power generation strategies. Market priorities include improving fuel flexibility, utilizing agricultural and municipal residues, and supporting reliable low-carbon electricity generation alongside other renewable sources.
Segment Leadership and Growth Trends
Biomass Power Market Share (%), by Feedstock, 2026
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Request Free Sample ReportFeedstock Segment Analysis: Solid Biofuel (Largest Segment) vs Liquid Biofuel (Fastest-Growing Segment)
Solid biofuel dominated the biomass power market, accounting for an 81.51% share in 2026, supported by its established role as a feedstock for biomass-based electricity generation. Agricultural residues, forestry materials, wood-based resources, and other solid organic materials can be utilized in established power generation processes, providing a practical pathway for converting renewable biomass into energy. The availability of solid feedstock streams, established handling infrastructure, and demand for renewable alternatives to conventional fossil-based generation continue to support the segment's leading position.
Liquid biofuel is gaining importance as energy systems increasingly explore diverse renewable feedstocks and flexible pathways for utilizing organic resources. Liquid biofuels can be integrated into suitable energy applications and provide opportunities to convert biomass into transportable and energy-dense fuel products. Growing interest in renewable energy diversification, resource utilization, and lower-emission fuel alternatives is supporting increased attention to liquid biofuel within the broader biomass energy landscape.
Technology Segment Analysis: Combustion (Largest Segment) vs Gasification (Fastest-Growing Segment)
Combustion represented the largest technology segment in the biomass power market in 2026, reflecting its established use for converting solid biomass into useful energy through direct thermal processing. Biomass combustion technologies can accommodate established feedstock streams and integrate with power generation systems designed for continuous energy production. Their technological maturity, compatibility with solid biofuel resources, and established operating practices continue to make combustion an important pathway for biomass-based electricity generation.
Gasification is expanding as energy developers seek more flexible and efficient approaches to converting biomass into usable energy products. Gasification transforms biomass into a combustible gas that can be utilized in suitable energy conversion systems, creating opportunities for more advanced biomass utilization pathways. Increasing interest in technology efficiency, improved feedstock utilization, flexible energy generation, and the development of cleaner renewable energy systems is supporting greater adoption of biomass gasification.
| Segment | Sub-Segment | Largest Segment | Fastest Growing |
|---|---|---|---|
| Feedstock | Solid Biofuel, Liquid Biofuel, Biogas | Solid Biofuel | Liquid Biofuel |
| Technology | Combustion, Gasification, Anaerobic Digestion | Combustion | Gasification |
Competitive Landscape and Market Positioning
Key companies in the biomass power market:
1. Mitsubishi Heavy Industries Ltd. (Japan)
2. Veolia Environnement S.A. (France)
3. Ørsted A/S (Denmark)
4. General Electric Company (United States)
5. Babcock & Wilcox Enterprises Inc. (United States)
6. Vattenfall AB (Sweden)
7. Ameresco Inc. (United States)
8. SUEZ S.A. (France)
9. Xcel Energy Inc. (United States)
10. Ramboll Group A/S (Denmark)
The biomass power market is progressing through increased focus on renewable energy integration and resource optimization. Expansion of bioenergy projects is strengthening renewable supply capabilities across regions. Technological improvements are enhancing conversion efficiency and fuel utilization. Collaborative development initiatives are also supporting more sustainable energy generation models and improved operational performance.
| Company | Market Share | Company Revenue | Revenue CAGR (%) | Product Portfolio | Geographic Presence | Innovation / R&D Focus | Strategic Developments |
|---|---|---|---|---|---|---|---|
| Mitsubishi Heavy Industries Ltd. (Japan) | |||||||
| Veolia Environnement S.A. (France) | |||||||
| Ørsted A/S (Denmark) | |||||||
| General Electric Company (United States) | |||||||
| Babcock & Wilcox Enterprises Inc. (United States) | |||||||
| Vattenfall AB (Sweden) | |||||||
| Ameresco Inc. (United States) | |||||||
| SUEZ S.A. (France) | |||||||
| Xcel Energy Inc. (United States) | |||||||
| Ramboll Group A/S (Denmark). |
Industry Development/News
| Company Name | Date | Key Development |
|---|---|---|
| Erex | Dec-25 | The company announced plans to construct a 112 MW biomass power plant in Japan. This expansion of its renewable generation portfolio highlights continued investment in large-scale biomass infrastructure to support regional energy transitions and increase localized baseload renewable power capacity. |
| NewYork GreenCloud | Dec-25 | The firm acquired the Buena Vista Biomass Power facility in California, with plans to redevelop it into a carbon-negative AI data center. This project demonstrates an emerging strategic trend of integrating onsite biomass-to-pyrolysis energy systems with high-demand digital infrastructure to achieve sustainable, localized power generation. |
| Sumitomo Corporation | Dec-25 | The company commenced commercial operations at a large-scale dedicated biomass power plant in Sendai, Japan. The facility adds significant renewable capacity to the grid, reflecting ongoing strategic efforts by major energy players to bolster national renewable energy supply through utility-scale biomass projects. |
| Wasco Bhd | Nov-25 | The company announced a strategic pivot from traditional oil and gas operations into the biomass power sector. By investing in renewable energy assets, the firm aims to diversify its business model and secure long-term, stable recurring income streams through utility-scale power generation. |
| Mitsubishi Power | Oct-25 | The company completed construction of a 50 MW woody biomass-fired power plant in Miyazaki Prefecture, Japan. This project enhances regional renewable energy capacity and demonstrates the continued role of established power engineering firms in executing localized decarbonization and utility-scale biomass infrastructure initiatives. |
| Drax | Oct-25 | The company committed to an investment of up to $12.5 billion over the next decade for bioenergy with carbon capture and storage (BECCS) facilities in the United States. This significant capital allocation marks a major scale-up in low-carbon biomass technology to meet global climate and power generation objectives. |
| Oct-25 | The company entered a 10-year agreement with PacificLight and RExus Bioenergy to develop a waste-wood-to-energy facility in Singapore. The project secures renewable electricity for regional data center operations, underscoring the growing interest from technology hyperscalers in securing dedicated, sustainable biomass power sources. | |
| Seras | Oct-25 | The company completed a £2.3 million upgrade at its Tilbury Green Power fuel production facility in the United Kingdom. These enhancements to production capabilities are critical for maintaining the operational throughput and efficiency of one of the country's largest biomass power plants. |
| Vattenfall | Oct-25 | The company canceled plans to build the Netherlands’ largest forest biomass power plant. This strategic reversal reflects changing market conditions and heightened regulatory scrutiny regarding the sustainability and long-term viability of large-scale forest-based biomass generation projects in Europe. |
| Iran Ministry of Energy | Oct-25 | The government inaugurated the country’s largest concentrated biomass power plant fueled by biogas. This facility significantly expands national renewable energy infrastructure and highlights the increasing role of organic waste-to-energy projects in diversifying energy portfolios in emerging markets. |
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Biomass Power Market — Custom Segments
| Segment | Sub-Segment |
|---|---|
| Ownership Model | Utility-Owned, Independent Power Producer-Owned, Industrial & Commercial-Owned, Public Sector-Owned |
| End-Use Sector | Utility Power Generation, Industrial Power Generation, Commercial & Institutional Power Generation, District Heating & Combined Heat and Power |
| Grid Connectivity | Grid-Connected, Off-Grid, Captive Power, Hybrid Grid Systems |
Biomass Power Market — Custom TOC
| Custom Chapter | Custom Details |
|---|---|
| Feedstock Availability and Supply Chain Assessment |
|
| Biomass Project Investment Opportunity Mapping |
|
| Biomass Sustainability and Carbon Accounting Assessment |
|
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| Source | Reference |
|---|---|
| International Energy Agency (IEA) | www.iea.org |
| U.S. Energy Information Administration (EIA) | www.eia.gov |
| International Renewable Energy Agency (IRENA) | www.irena.org |
| International Electrotechnical Commission (IEC) | www.iec.ch |
| International Organization for Standardization (ISO) | www.iso.org |
| IEEE | www.ieee.org |
| CIGRE (International Council on Large Electric Systems) | www.cigre.org |
| World Energy Council (WEC) | www.worldenergy.org |
| U.S. Department of Energy (DOE) | www.energy.gov |
| International Atomic Energy Agency (IAEA) | www.iaea.org |
| American Petroleum Institute (API) | www.api.org |
| Society of Petroleum Engineers (SPE) | www.spe.org |
| Hydrogen Council | hydrogencouncil.com |
| Battery Council International (BCI) | batterycouncil.org |
| Global Wind Energy Council (GWEC) | gwec.net |
| SolarPower Europe | www.solarpowereurope.org |
| World Bioenergy Association (WBA) | worldbioenergy.org |
| International Hydropower Association (IHA) | www.hydropower.org |
| Edison Electric Institute (EEI) | www.eei.org |
| National Renewable Energy Laboratory (NREL) | www.nrel.gov |
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