Global Biomass Power Market Report and Forecast 2024-2032

Global Biomass Power Market Size

The global biomass power market grew at a CAGR of around 8.0% during the forecast period of 2024-2032.

Biomass Power Market Outlook

• In 2020, bioenergy dominated renewable heat production, supplying 96% of the total, underpinning its critical role in delivering renewable thermal energy globally.

• Geothermal energy supplied 4% of renewable heat, reflecting its more limited but stable role in countries and regions where accessible geothermal resources are available. 

• Solar thermal energy supplied only 0.22%, indicating a very minor contribution to global renewable heat production despite remaining as a viable technology in specific applications, thereby supporting the growth of biomass power market.

• These figures underline the overwhelming dependence on bioenergy for renewable heat generation and the relatively smaller roles of geothermal and solar thermal energy in this sector.

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Biomass Power Market Growth

The two major drivers of the biomass power market are expected to remain growing government support and incentives for renewables, and environmental concerns about climate change. Government policies and subsidies across the globe encourage biomass energy as a substitute for fossil fuels—a cleaner alternative—thus boosting growth in the market. In addition to that, the impetus on reducing greenhouse gas emissions and hitting sustainability targets increases the adoption of biomass power. This growing focus on greener sources of energy reflects the global commitment to fighting climate change through shifting to renewable sources of energy and ultimately aid in bolstering the biomass power demand.

Industry Outlook

The demand for biomass power will grow due to increasing biomass energy generation for heating solutions.

Contributions of bioenergy to the worldwide production of renewable power from 2015 to 2020 depict an increasing trend, well explaining its important role in the renewable energy industry. From the results in 2015, it is clear that approximately 500 TWh of electricity was produced from bioenergy, with this steadily increasing in each subsequent year. In 2020, this contribution increased to more than 600 TWh, reflecting huge growth in its application for the production of electricity. This increase is due to the diversification of sources, such as biomass, biogas, and waste-to-energy technologies that have found more and more applications in different regions, pushing the global biomass power demand growth.

The share of bioenergy in the overall mix of renewable power remained relatively stable across the period, fluctuating from 7 to 9% between 2015 and 2020. That means that while other renewable sources, such as wind and solar, rapidly expanded, the growth of bioenergy was maintained as a stable source of electricity. This steady percentage thus indicates parallel growth in the field of bioenergy at par with the global expansion of renewable energy capacity.

Key Trends and Recent Developments

Gasification advancement, feedstock diversification and government initiatives are anticipated to open up new biomass power market dynamics and trends.

February 2024

Seiko Epson Corporation has announced that it is planning the construction of the company's first biomass power plant, in Iida City, in Nagano Prefecture, Japan. Epson hopes to have the plant in operation in the 2026 fiscal year (ending March 2027) and is moving to secure the land and buildings, contract construction, and file the paperwork for power generation.

Advancements in gasification

One of the trends of the biomass power market are the technological innovations in gasification, combined heat and power systems, and the advent of digital monitoring tools backed with profitability will drive the growth of the biomass power market. This makes biomass power more feasible and sustainable through great improvements in efficiency while reducing both emission and even the operational costs.

Feedstock diversification

Feedstock diversification will increase, including agricultural residues, wood pellets, and energy crops, to keep sustainability in focus, address waste reduction, and offer a more secure and reliable source of raw material supply for biomass energy production in the future.

Government initiatives

Government incentives and policies are stepping up the biomass power market. Subsidies, tax incentives, and renewable energy mandates encourage investments in biomass projects, promoting market growth and biomass power market opportunities. 

Biomass Power Market Trends

Surging Environmental Consciousness to Augment the Market Growth of Biomass Power

The market is currently being driven by the abundant availability of biomass or raw material, reduced dependency on fossil fuels, absence of harmful emissions, and increased focus on the use of clean energy. The increasing environmental consciousness is driving countries across the globe to expand their renewable energy usage, which is surging the demand for biomass power. Major countries across the globe including China, Germany, the UK, and France, have announced their plans to become carbon-neutral nations in the future, which is resulting in the implementation of favourable policies and regulations that aim to reduce the consumption of coal and promoting the use of bio-based alternatives like biomass for energy generation. Furthermore, the growing demand for biomass power solutions in the generation of bioelectricity is expected to support the market growth in the forecast period. Also, another trend in the biomass power industry is the economic viability offered by biomass power solutions is anticipated to bolster their adoption in the forecast period.

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Biomass Power Industry Segmentation

“Global Biomass Power Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

By technology, the market can be divided into:

• Combustion

• Gasification

• Anaerobic Digestion 

• Others

On the basis of feedstock, the market is segmented into:

• Solid 

• Liquid 

• Biogas

Based on end use, the market is categorised into:

• Industrial

• Transportation 

• Others

Based on region, the market is divided into:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Biomass Power Market Share

Heightened Utility in the Industrial Sector to Prove Beneficial for the Market Growth of Biomass Power

As per biomass power market analysis, the market is currently being driven by the growing demand for biomass power solutions in the industrial sector, spurred by the increasing focus of various companies on reducing their dependency on fossil fuels. In addition, the growing adoption of clean energy solutions to reduce the overall CO2 emissions is anticipated to support the demand for biomass power in the forecast period. Further, many industries are also installing biomass power plants on-site to burn the waste generated at the site, thereby minimising the cost of waste disposal as well as the energy costs.

It Is a Renewable Energy Source and Thus Promotes Waste Management.

• Biomass is a renewable source of energy because of the fact that it is derived from organic matter, which helps provide energy security while also minimising reliance on fossil fuels.

• In comparison with coal, biomass power plants produce less greenhouse gas, thus providing a cleaner mix of energy.

• The biomass energy source utilises residues from agriculture and forestry, hence promoting waste management while reducing dependence on landfills.

• Biomass is able to provide baseload power and, hence, is a reliable source for the generation of electricity, pushing the demand of the biomass power industry.

• Most countries have incentives for renewable energy sources, of which biomass is a part, thereby accelerating the market growth.

Fluctuations in Fossil Fuel Prices and Stringent Environmental Regulations Can Decrease Its Adoption.

• Availability of feedstock and transport costs for biomass feedstock can be very expensive, thereby altering project viability.

• Biomass combustion still generates emissions. Large-scale production of biomass can lead to indirect land-use change, impacting biodiversity and food security.

• Improvements in other forms of renewable energy, for example, solar or wind, may make them cheaper with strong competition.

• Fossil fuel prices are very volatile over time and therefore change the economic competitiveness of producing power from biomass, restricting the smooth flow of biomass power market revenue.

• Tightening environmental policies related to emissions or land-use change could add to the costs and consequently constrain project development.

Innovations to Technologies and Governmental Policies Help Drive Demand for Biomass Power.

• Innovations in biomass conversion technologies such as gasification, pyrolysis can improve efficiency and reduce emissions.

• Policies, subsidies, and other incentives that are sector-friendly can stimulate the growth of the biomass power sector.

• Increasingly preoccupying agendas of renewable energy and decarbonization open up opportunities for contribution from biomass power towards the goals of sustainable energy.

• This would raise the prospects of resource efficiency and sustainability if a model of the circular economy were to have an integration of biomass power and finally boost the growth of the biomass power market.

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Biomass Power Market Regional Analysis

Europe to Account for a Significant Share in the Global Market for Biomass Power

The biomass power industry in Europe currently represents the largest market, accounting for 35% of the total production of biomass power, followed by North America. Biomass for energy is the main source of renewable energy in the European Union, accounting for a share of around 60%, which is majorly utilised in the heating and cooling sector. Forestry such as wood-processing residues, fuelwood, and logging residues, among others, represents the main source of biomass energy in the region. In the forecast period, the heightened deployment of biomass power solutions across industry verticals to meet the EU’s renewable energy targets for 2030 is anticipated to prove beneficial for the market growth in the coming years. Meanwhile, the market is also expected to witness considerable growth in regions like the Asia Pacific. This can be attributed to the increasing focus of governments across emerging countries like India and China on curbing the pollution levels and promoting the adoption of green energy sources.

Competitive Landscape

Major companies in the biomass power market have been investing in advanced technological innovations, increasing their operational capacities by growing their units, increasing their efficiency rates, and forming strategic partnerships to scale up their production capacities toward setting new records on the ground of increasing demands for renewable energies.

Vattenfall Group is another one of the independent companies established in 1909 and headquartered in Stockholm, Sweden. The company is one of the big players in the biomass power sector due to the added contribution from co-firing biomass with coal and further developments in the field of dedicated biomass power plants. Vattenfall is working on sustainable biomass solutions using wood pellets and agricultural residues to reduce carbon emissions, hence paving the way for renewable energy.

Babcock & Wilcox Enterprises Inc., a biomasse power technology company based in Akron, Ohio and was founded in 1867, comprises a team of engineers leading-edge biomass power technologies that make the production of greener and more sustainable energy possible. Babcock & Wilcox presents solutions such as its biomass boilers, gasifiers, and combustion systems, which are designed to turn a wide variety of biomass feedstocks into energy. Babcock & Wilcox focuses on improvement in the efficiency and reliability of biomass power plants through better engineering and innovative technology.

Ameresco, Inc., a Framingham, Massachusetts-based company, founded in the year 2000, designs and constructs, while also operating biomass power systems as part of the different biomass energy solutions it has on offer. The firm thus stresses more on renewable development projects and furthering energy efficiency by having sustainable, proficient biomass technologies. This means the production of renewable energy and provision of energy efficiency through anaerobic digestion and combustion systems.

Other key players profiled in the global biomass power market report are Ørsted A/S, Ramboll Group A/S, and Mitsubishi Heavy Industries, Ltd., among others.

The competitive factors in the global biomass power market:

• In this regard, the expense and availability of biomass feedstock, mainly residues from agriculture and forestry, together with municipal waste, may turn out to be the most prevalent factors in the competitiveness of the power plant.

• Improvements in biomass conversion technologies, such as gasification, pyrolysis, anaerobic digestion, may offer better efficiency and reduce cost, hence better competitiveness for firms.

• Firms that have the ability to invest in higher scales of operation are more competitive.

• Government policies, subsidies, tax incentives, and renewable energy mandates can all enhance the competitiveness of biomass power and boost the global biomass power industry revenue. 

• Those companies that are capable of meeting or beating regulatory requirements—especially where it concerns emissions and sustainability—are better placed in the market. Long-term PPAs and stable market demand for renewable energy enhance the competitiveness of all biomass power projects.

• Those that account for a positive environmental and social impact, through reduced carbon emissions and the creation of local jobs, for instance, are better placed to be more competitive in the marketplace.

Key Highlights of the Report

Biomass Power Market Report Snapshots

Biomass Power Market Size

Biomass Power Market Growth

Biomass Power Market Trends

Biomass Power Market Share

Biomass Power Companies

Biomass Power Market Regional Analysis