What is the current size of the biomass power market?

The market size of biomass power in 2027 is calculated to be USD 165.86 billion.

What is the forecasted size of the biomass power industry?

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.

How are renewable energy mandates and coal phase-out policies driving investment in biomass power?

Policy-driven renewable targets and coal retirement are accelerating investment in biomass through retrofits and new plants. Biomass is favored for its ability to maintain grid reliability while enabling compliant low-carbon generation and supporting long-term capital allocation decisions.

How do co-firing strategies and feedstock diversification affect biomass power adoption?

Co-firing lowers entry barriers by enabling gradual integration into existing coal plants, reducing transition risk. Diversified feedstock sourcing improves fuel security and operational stability, supporting more predictable long-term plant utilization and procurement planning.

Why does Solid Biofuel dominate the biomass power market?

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.

What is driving rapid growth of Gasification technology in biomass power?

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.

Why is Europe the leading region in the biomass power market?

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.

What factors are accelerating biomass power market growth in Asia Pacific?

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.

Who are the leading players in the biomass power landscape?

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).