Biomass Power Market By Feedstock (Agricultural Residues, Wood and Woody Biomass, Animal Manure and Waste, Industrial Waste, Energy Crops), By Technology (Combustion, Gasification, Anaerobic Digestion, Co-firing), By Application (Power Generation, Heat Generation, Combined Heat and Power [CHP]), By End-User (Residential, Commercial, Industrial, Utilities), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Biomass Power Market was valued at USD 123.9 billion in 2023 and will surpass USD 192.4 billion by 2030; growing at a CAGR of 6.5% during 2024 - 2030.

The biomass power market has emerged as a key contributor to the global energy transition, providing sustainable and renewable energy solutions. Driven by rising environmental concerns and increasing energy demand, biomass power generation leverages organic materials to produce electricity and heat. Its role in reducing greenhouse gas emissions while utilizing waste materials has made it a pivotal component of global renewable energy strategies. The market is segmented by feedstock, technology, application, and end-user, each contributing uniquely to its growth and evolution.

Agricultural Residues Segment is Largest Owing to Abundant Availability

Agricultural residues, such as crop straws, husks, and stalks, dominate the feedstock segment of the biomass power market. The abundance of these materials, coupled with their low cost and widespread availability, makes them the preferred choice for biomass power generation. Agricultural residues are particularly significant in regions with intensive farming activities, such as Asia-Pacific and Europe.

The widespread use of agricultural residues is further driven by the opportunity to repurpose waste, reducing environmental pollution and enhancing sustainability. Governments in various countries offer subsidies and incentives to encourage the use of agricultural residues for biomass power generation, further boosting this segment’s growth. In addition, advancements in pre-treatment technologies have enhanced the efficiency of agricultural residues in energy production, consolidating their position as the largest feedstock category.

Anaerobic Digestion Technology is Fastest Growing Owing to Versatility and Waste Reduction

Anaerobic digestion is rapidly emerging as the fastest-growing technology in the biomass power market. This process not only generates biogas for energy production but also produces nutrient-rich digestate that can be used as a fertilizer. Its dual benefits make it highly attractive to industries and municipalities looking to manage organic waste sustainably.

This technology is gaining traction due to its ability to handle diverse feedstocks, including animal manure, food waste, and industrial organic by-products. The increasing focus on waste-to-energy solutions and stringent regulations on waste disposal in developed economies, particularly in Europe and North America, are driving the adoption of anaerobic digestion. Moreover, the integration of anaerobic digestion with circular economy principles has solidified its growth trajectory in the biomass power market.

Power Generation Application is Largest Owing to Rising Energy Demand

The power generation segment holds the largest share of the biomass power market, driven by the global need for reliable and renewable electricity sources. Biomass power plants are playing a critical role in diversifying energy portfolios and reducing dependence on fossil fuels. This application is particularly prominent in regions with supportive regulatory frameworks and ambitious renewable energy targets.

Power generation through biomass is a preferred choice for utilities and governments due to its ability to provide baseload power, unlike intermittent renewable sources such as wind and solar. Countries like the United States, China, and India are investing heavily in biomass power plants to meet their energy demand while achieving decarbonization goals. The ongoing modernization of existing power infrastructure and the development of new biomass plants are further strengthening this segment.

Industrial Segment is Fastest Growing Owing to Decarbonization Efforts

The industrial segment is witnessing rapid growth as manufacturers seek sustainable energy solutions to meet decarbonization targets. Biomass power offers industries an efficient way to utilize their organic waste while reducing energy costs. Key industries adopting biomass power include food and beverage, paper and pulp, and chemicals, where waste management and energy consumption are critical challenges.

Government policies promoting industrial sustainability and the availability of financial incentives for renewable energy adoption are accelerating the use of biomass power in industrial settings. In addition, industries are increasingly exploring on-site biomass power generation to enhance energy security and reduce operational costs. This trend is expected to continue as industries align with global environmental standards and commitments.

Asia-Pacific Region is Largest Owing to High Biomass Potential

Asia-Pacific is the largest market for biomass power, driven by the region’s vast availability of feedstock and increasing energy demand. Countries such as China, India, and Indonesia are investing significantly in biomass power projects as part of their renewable energy strategies. Additionally, the region’s agricultural base provides a consistent supply of residues and waste for biomass power generation.

Governments in Asia-Pacific are actively promoting biomass power through subsidies, tax incentives, and renewable energy mandates. China, for instance, has integrated biomass power into its Five-Year Plans, while India’s National Bio-Energy Mission aims to increase biomass capacity. The combination of supportive policies, low feedstock costs, and high energy needs positions Asia-Pacific as a dominant player in the biomass power market.

Competitive Landscape and Leading Companies

The biomass power market is characterized by intense competition, with companies focusing on technological innovation and strategic partnerships to enhance their market position. Leading players, including Drax Group, Enviva Biomass, Ørsted A/S, and General Electric, are investing in advanced technologies to improve biomass efficiency and reduce emissions.

In addition to product development, companies are pursuing mergers, acquisitions, and collaborations to expand their geographic footprint and diversify feedstock sources. The competitive landscape is further influenced by government policies and regulations, which shape market dynamics and create opportunities for growth. As the market evolves, key players are expected to continue leveraging innovation and sustainability to maintain their leadership positions.

List of Leading Companies:

• Drax Group
• Enviva Biomass
• Ørsted A/S
• Engie SA
• General Electric
• Babcock & Wilcox Enterprises
• Mitsubishi Heavy Industries
• Veolia Environnement
• Abengoa Bioenergy
• Vattenfall AB
• Suez Environnement
• Georgia Biomass
• Ameresco, Inc.
• E.ON SE
• Wärtsilä Corporation

Recent Developments:

• In September 2024, Drax announced plans to increase biomass pellet production in North America, aligning with its decarbonization goals.
• Enviva secured a supply agreement with a Japanese energy company to provide biomass for renewable power generation starting in 2025.
• Ørsted unveiled a new biomass co-firing initiative at its Asnæs Power Station, aiming to phase out coal entirely by 2027.
• In July 2024, Abengoa Bioenergy was acquired to expand biofuel and biomass power capabilities across Latin America and the U.S.
• General Electric launched an enhanced biomass gasification system to improve efficiency and reduce emissions in power generation projects.

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