PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877463
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1877463
Biomass Power Generation Market size was valued at US$ 95,678.87 Million in 2024, expanding at a CAGR of 4.1% from 2025 to 2032.
Biomass power generation refers to the method of generating electricity and heat from organic materials, including agricultural residues, forestry by-products, wood pellets, animal manure, and municipal solid waste. This process harnesses natural biological resources that capture chemical energy through photosynthesis, which can subsequently be released through combustion, gasification, anaerobic digestion, or pyrolysis. As a renewable and sustainable energy source, biomass power generation plays a significant role in decreasing reliance on fossil fuels, reducing greenhouse gas emissions, and facilitating effective waste management. It is extensively utilized in residential and commercial heating, industrial combined heat and power (CHP) systems, and utility-scale power plants, thereby serving as a vital element in the global transition towards clean energy.
Biomass Power Generation Market- Market Dynamics
Increase in demand for clean sources of the renewable energy is expected to propel the market growth
Growing concerns about climate change, rising greenhouse gas emissions, and the depletion of fossil fuels are driving global efforts towards sustainable energy solutions. Biomass power generation presents a reliable and renewable option, reducing carbon footprints while ensuring energy security. Clean energy sources include solar, wind, hydropower, geothermal, and biomass. In 2024, clean electricity surpassed 40% of global generation for the first time, with hydropower, nuclear, wind, solar, and other renewable sources playing a significant role in this milestone. Furthermore, improvements in combustion, gasification, and anaerobic digestion are boosting efficiency and lowering operational costs, thus opening new avenues for the market. However, substantial initial investment costs may impede market expansion.
Biomass Power Generation Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 4.1% over the forecast period (2025-2032)
Based on Technology segmentation, Combustion was predicted to show maximum market share in the year 2024
Based on Feedstock segmentation, Agricultural Waste was the leading Feedstock in 2024
Based on Fuel segmentation, Solid was the leading Fuel in 2024
Based on End-User segmentation, Residential & Commercial was the leading End-User in 2024
On the basis of region, Asia Pacific was the leading revenue generator in 2024
The Global Biomass Power Generation Market is segmented on the basis of Technology, Feedstock, Fuel, End-User, and Region.
The market is categorized into six segments based on technology: Combustion, Gasification, Anaerobic Digestion, Pyrolysis, Co-firing, LFG, and Others. Combustion is at the forefront of market growth, as it represents the most established and widely utilized method for converting biomass into energy. This process entails the direct incineration of biomass feedstocks such as wood, agricultural residues, and energy crops to generate steam, which in turn powers turbines for electricity production. Its well-established technology, cost efficiency, and extensive implementation in both developed and developing nations position it as the leading segment. Additionally, the availability of a variety of biomass feedstock's and favorable government policies that advocate for renewable energy further enhance the significance of combustion in propelling the growth of the biomass power generation market.
The market is categorized into four segments based on Feedstock: Agricultural Waste, Forest Waste, Animal Waste, and Municipal Waste. Agricultural Waste leads the market expansion, as it offers a readily accessible and economical feedstock for energy generation. Byproducts such as crop stalks, husks, shells, and straws are produced in large quantities during farming operations and can be effectively transformed into electricity and heat. The significant availability of these byproducts in agricultural sectors, along with governmental incentives for waste-to-energy initiatives, propels their utilization. Furthermore, employing agricultural waste for energy production not only advances renewable energy objectives but also tackles waste management issues and mitigates environmental pollution, establishing it as a key factor in market growth.
The market is categorized into three segments according to fuel: Solid, Liquid, and Gaseous. Solid fuel leads in market growth. It is the most commonly utilized and commercially feasible type of feedstock for energy generation. Resources like wood, agricultural residues, pellets, and forestry by-products are widely employed in combustion and co-firing technologies. The accessibility, reduced processing expenses, and established infrastructure for solid biomass render it the favored option compared to liquid and gaseous biomass forms.
The market is segmented into three main categories according to End-User: Industrial, Residential & Commercial, and Utilities. The Residential & Commercial sector leads in market growth, propelled by the increasing demand for decentralized and sustainable energy solutions. Biomass heating systems, boilers, and combined heat and power (CHP) units are being more widely implemented in residences, offices, and commercial spaces to decrease dependence on fossil fuels and minimize carbon emissions. The affordability of biomass heating, government incentives for renewable energy, and heightened awareness of environmental sustainability are significant factors enhancing its adoption.
Biomass Power Generation Market- Geographical Insights
The Asia Pacific region leads in market growth, primarily due to the rising investments in biomass power generation initiatives. The rapid pace of industrialization, increasing energy demands, and favorable policies such as subsidies, renewable portfolio standards, and carbon reduction goals further bolster the region's dominance. China has achieved a new milestone with an annual net addition of 429GW to the grid, reflecting a 21% year-on-year increase. Notably, the combined capacity of wind and solar power constituted 83% of this total, amounting to 356.5GW, significantly overshadowing the 4% share represented by the combined capacity of hydropower and nuclear energy, as reported by the National Energy Administration. Europe ranks second in market share, driven by robust government mandates promoting renewable energy adoption and targets for reducing carbon emissions.
The biomass power generation sector is characterized by intense competition, as companies strive to enhance their generation capacities, ensure a stable supply of long-term biomass feedstock, and invest in cutting-edge conversion technologies such as combustion, gasification, and anaerobic digestion. Prominent players are also prioritizing strategic alliances, mergers and acquisitions, and government-supported renewable energy initiatives to bolster their market position. This competitive environment places global energy corporations, regional biomass producers, and specialized renewable energy firms in direct competition, with a significant focus on sustainability, cost-effectiveness, and scalability.
A recent report from the Renewable Energy Association indicates that maintaining current biomass generation can yield savings of up to £900 million for the GB Capacity Market by the conclusion of this decade. Biomass energy contributes as much as 5.5 GW of dependable power, assisting in the management of variable, weather-dependent renewable sources, thereby lowering Capacity Market expenses.
On October 16, 2024, Mitsubishi Power, a brand specializing in power solutions under Mitsubishi Heavy Industries, Ltd. (MHI), has finalized the construction of a 50-megawatt (MW) class woody biomass-fired power plant located in the city of Hyuga, Miyazaki Prefecture, successfully delivering the facility within the stipulated contract timeframe.