PUBLISHER: IMARC | PRODUCT CODE: 1957108
PUBLISHER: IMARC | PRODUCT CODE: 1957108
The Japan biomass market size reached USD 6.0 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 10.9 Billion by 2034, exhibiting a growth rate (CAGR) of 6.86% during 2026-2034. At present, the increasing number of biomass facilities is promoting investments in biomass supply chains, encompassing harvesting, transportation, and processing infrastructure. Besides this, the presence of abundant forestry resources, which aids in providing a reliable and renewable supply of raw materials for energy production, is contributing to the expansion of the Japan biomass market share.
Expansion of biomass plants
The expansion of biomass plants is fueling the market growth. As biomass power plants are being built and existing ones are upgraded, the demand for biomass fuel, such as wood pellets, agricultural residues, and waste materials, is rising steadily. The data released from Global Energy Monitor's Global Bioenergy Power Tracker (GBPT) in September 2024 indicated that Japan is set to have 3.8 gigawatts (GW) of woody biomass capacity spread across 59 units by 2026. Biomass plants aid in contributing to Japan's energy mix by offering a stable and dispatchable source of electricity, which supports grid reliability. The growing number of biomass facilities is encouraging investments in biomass supply chains, including harvesting, transportation, and processing infrastructure. This broadening is also creating local employment opportunities and promoting the use of domestic resources, especially in rural areas. The development of new biomass plants aligns with national policies targeted at lowering greenhouse gas emissions and enhancing the contribution of renewables in the energy industry. By utilizing low-carbon renewable inputs, these plants are supporting Japan's environmental and energy security goals. In addition, the expansion of biomass plants helps minimize the amount of organic waste sent to landfills, making the system more sustainable.
Presence of abundant forestry resources
The presence of abundant forestry resources is impelling the Japan biomass market growth. Japan has extensive forested areas, and a significant portion of these forests remains underutilized. As per industry reports, forests accounted for 67% of Japan's land space, as of November 2024. The availability of wood residues, forest thinnings, sawdust, and other biomass materials is supporting the development of local biomass energy projects. These resources are collected and processed into pellets, chips, and other fuel forms, which are then used for heating, electricity generation, and combined heat and power systems. The local sourcing of biomass reduces dependency on imported fuels and enhances energy security. It also encourages forest maintenance, which helps prevent overgrowth and reduces the risk of wildfires. Rural communities are benefiting through job creation and income opportunities in forestry, transportation, and biomass processing. The employment of forestry resources for energy aligns with Japan's environmental goals by minimizing greenhouse gas emissions and promoting sustainable land use. Biomass systems facilitated by abundant forestry also enable decentralized energy generation, which is valuable for remote and off-grid regions.
The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.