Biomass Market Size, Share, and Growth Analysis, By Product Type (Biofuels, Biomass Power), By Source (Agricultural Biomass, Forest Biomass), By Technology, By End User, By Feedstock, By Region - Industry Forecast 2025-2032

Global Biomass Market size was valued at USD 134.5 billion in 2023 and is poised to grow from USD 143.78 billion in 2024 to USD 245.2 billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).

The global biomass market is fueled by the increasing demand for renewable energy, legislative support, and the urgent need to lower carbon emissions. Key growth opportunities are present due to rising investments in waste-to-energy technologies and rural electrification efforts. Innovations in biomass conversion, particularly within developing markets, are driving advancements in combustion and gasification technologies, enabling greater use of agricultural and forestry residues. Additionally, the trend towards decentralized biomass power generation and co-firing with coal is on the rise. However, challenges such as high infrastructure costs, inconsistent feedstock quality, complex supply chain logistics, and regulatory fragmentation hinder market penetration, while competition from more affordable renewable sources like solar and wind further limits biomass market expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Biomass market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Biomass Market Segments Analysis

Global Biomass Market is segmented by Product Type, Source, Technology, End User, Feedstock and region. Based on Product Type, the market is segmented into Biofuels, Biomass Power, Biogas, Biochar, Biomethanol, Biodiesel and Others. Based on Source, the market is segmented into Agricultural Biomass, Forest Biomass and Waste Biomass. Based on Technology, the market is segmented into Direct Combustion, Landfill Gas, Gasification, Co-Firing, Anaerobic Digestion and Pyrolysis. Based on End User, the market is segmented into Residential, Commercial and Industrial. Based on Feedstock, the market is segmented into Solid Biofuel, Liquid Biofuel and Biogas. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Biomass Market

The growth of the global biomass market is being significantly propelled by a surge in investments aimed at enhancing renewable energy generation capabilities. Both governmental bodies and private organizations are recognizing the importance of diversifying energy sources and implementing strategies to reduce carbon emissions. Biomass has emerged as a credible and dependable renewable energy option, drawing considerable financial resources for the establishment of new facilities, modernization of existing technologies, and integration into comprehensive national energy transition initiatives. This shift towards biomass underscores its vital role in the pursuit of sustainable energy solutions and commitments to environmental stewardship.

Restraints in the Global Biomass Market

The global biomass market faces significant challenges from the rise of emerging renewable energy technologies, including solar, wind, and hydroelectric. These alternatives are becoming increasingly efficient and economically viable, often supported by more substantial funding from both government and private sectors. As advancements in technology continue to lower the costs of solar and wind energy production, biomass may struggle to maintain its competitive position. Additionally, public perception of these renewable sources can heavily influence funding availability and policy-making, further impacting the growth potential of the biomass sector. This evolving landscape presents ongoing restraint for biomass growth and adoption.

Market Trends of the Global Biomass Market

The global biomass market is increasingly witnessing a trend towards hybrid biomass systems, which amalgamate biomass with renewable sources like solar and wind to enhance energy reliability and stability. This innovative approach is gaining traction among diverse sectors such as construction, water treatment, and municipal facilities, driven by the need for sustainable energy solutions that minimize dependence on costly, fluctuating fuels. Hybrid systems not only optimize energy production but also leverage waste heat generated during biomass processes, thereby improving overall efficiency. This shift is indicative of the industry's broader commitment to sustainable practices and resilience in energy supply.