PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901544
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901544
Bioenergy market size was valued at US$ 136,897.23 Million in 2024, expanding at a CAGR of 7.6% from 2025 to 2032.
Bioenergy converts biomass (solid, liquid, gaseous) into usable energy, heat, power and transport fuels, through combustion, gasification, biochemical conversion and upgrading. Unlike basic biomass use, modern bioenergy focuses on high-efficiency power generation, low-emission fuels (advanced biofuels, biomethane), and integration with circular-economy systems. Modern bioenergy supplies over 6% of global final energy and represents nearly 55% of renewable energy use, underlining its scale. Opportunities include modular biogas/biomethane plants for distributed heat and transport, advanced biofuels for aviation, co-location with pulp/sugar mills and waste management, and high-value bio-refineries recovering chemicals and fuels.
Bioenergy Market- Market Dynamics
Rising renewable energy demand, decarbonization targets, and biomass-to-biofuel expansion to propel global bioenergy market growth
Global decarbonization commitments, surging renewable energy consumption, and the shift toward low-carbon fuels are major forces accelerating bioenergy adoption. According to the International Energy Agency (IEA, 2023), bioenergy accounts for nearly 55% of all renewable energy consumption worldwide, making it the largest renewable source in the global energy mix. Sustainable biofuel demand is rising sharply: IEA reports global biofuel production reached 157 billion liters in 2023, up from 95 billion liters in 2015, driven by strengthened ethanol and biodiesel blending mandates. Similarly, modern bioenergy uses in industry and buildings grew 3% annually between 2017 and 2022, the fastest among all renewables, supported by heat decarbonization policies in the EU, China, and the U.S.
Emerging markets such as Brazil, India, and Southeast Asia are also expanding biomass and biogas capacity through waste-to-energy programs and rural electrification efforts. This global shift toward clean energy diversification is boosting investment in biogas plants, advanced biofuels, biomass power projects, and next-generation feedstock technologies, driving sustained demand across bioenergy value chains.
The Global Bioenergy Market is segmented on the basis of Product Type, Feedstock, Technology, Application, and Region.
The market is divided into four primary categories based on Product Type: Biogas, Liquid Biofuel, Solid Biomass, and Others. Solid biomass remains the most widely consumed bioenergy source globally due to its affordability, established infrastructure, and major role in heating and power. According to the International Energy Agency (IEA), solid biofuels account for over 85% of total bioenergy supply worldwide, making it the backbone of modern and traditional bioenergy systems. However, biogas and liquid biofuels are experiencing faster long-term growth. IEA data shows biogas production increasing from 37 Mtoe in 2015 to nearly 60 Mtoe in 2022, driven by rapid expansion in Europe and emerging interest in Asia. Liquid biofuel demand, especially ethanol and biodiesel, rose from 95 billion litres in 2015 to more than 140 billion litres in 2023, supported by transport-blending mandates in the U.S., Brazil, and the EU.
The market is also segmented by Application: Transportation, Heat Generation, Power Generation, and Others. Among these, the transportation segment remains the most popular due to large-scale ethanol and biodiesel consumption. According to the IEA's Renewables 2023 report, biofuels supplied nearly 4% of global transport energy, with mandates expected to push demand above 6% by 2030. The Power Generation segment is witnessing strong growth, fueled by coal-to-biomass conversions and rising demand for dispatchable renewable energy; the U.K.'s biomass conversions alone contribute over 20 TWh annually. Meanwhile, Heat Generation remains significant in Europe, where Eurostat reports that bioenergy accounts for over 80% of renewable heat consumption, supported by district heating networks and industrial boiler applications.
Bioenergy Market- Geographical Insights
Global bioenergy deployment is shaped by regional renewable-energy policies, feedstock availability, and investment in biogas, liquid biofuels, and biomass power capacity. Europe holds the largest value share, driven by strong policy support under the EU Renewable Energy Directive (RED II), which requires renewables to reach 42.5% of final energy consumption by 2030, a target heavily supported by biomass and biofuels. Besides, Asia-Pacific is expected to grow fastest, fueled by rising energy demand, government-backed biogas and ethanol programs, and rapid capacity build-out across China, India, Japan, and Southeast Asia. According to the IEA, China alone produced over 20 billion cubic meters of biogas in 2023, reinforcing regional leadership.
Meanwhile, North America, Latin America, and the Middle East & Africa are expanding through biofuel blending mandates, agricultural-residue programs, and ongoing investments in waste-to-energy and biomass co-firing infrastructure.
Brazil Bioenergy Market- Country Insights
Brazil is the world's most advanced and mature bioenergy market, driven by unparalleled adoption of sugarcane ethanol, large-scale biomass power generation, and long-standing federal mandates. According to the International Energy Agency (IEA), bioenergy accounts for nearly 30% of Brazil's total final energy consumption, one of the highest shares globally. The country is also the second-largest ethanol producer, supplying over 30 billion litres annually, supported by its extensive sugarcane industry (UNICA). Flex-fuel technology dominates Brazil's mobility landscape, with more than 80% of light vehicles capable of running on high ethanol blends, significantly reducing fossil-fuel dependency.
Brazil's strong policy backbone, including RenovaBio, promotes decarbonization through carbon intensity targets, efficient feedstock use, and wider adoption of biomethane and second-generation biofuels. A mature agricultural base and strong domestic demand create a self-sustaining bioenergy ecosystem, enabling continuous upgrades in biogas, cogeneration, and liquid biofuel production capacity.
Growing decarbonization mandates, rising renewable-fuel demand, and rapid scale-up of biogas and advanced biofuel facilities continue to intensify competition across the global bioenergy ecosystem. Leading players include Drax Group, Neste, POET, ADM, Enviva, Enerkem, Valmet, and Veolia. These companies focus on technology differentiation through high-efficiency conversion systems, advanced feedstock pretreatment, and integrated bio-refinery designs. Common strategies include expanding multi-feedstock capabilities, securing long-term biomass and waste-stream supply chains, and strengthening O&M service models to ensure stable plant performance. Partnerships with utilities, aviation fuel offtakers, and municipal waste operators accelerate commercialization, while targeted acquisitions and regional manufacturing investments enhance feedstock access, policy alignment, and overall competitive positioning.
In October 2025, Koehler Renewable Energy signed a long-term bioenergy cooperation agreement with Iqony to jointly plan, develop, and run biomass-to-power and biogas CHP projects. The partnership aims to convert existing coal-fired plants to biomass (wood chips, biogas), leveraging Koehler's material-flow expertise and Iqony's project development capabilities.
In September 2025, Acorn Bioenergy launched its first biomethane plant in the UK, marking a major expansion of Qualitas Energy's renewables portfolio. The facility will produce low-carbon gas using organic waste, contributing to the country's decarbonization goals and creating a scalable model for further renewable-gas development.