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 2026-2033

Global Biomass Market size was valued at USD 143.78 Billion in 2024 and is poised to grow from USD 153.7 Billion in 2025 to USD 262.12 Billion by 2033, growing at a CAGR of 6.9% during the forecast period (2026-2033).

The global biomass market is experiencing robust growth, fueled by the rising demand for renewable energy, supportive legislation, and the need to reduce carbon emissions. Increasing investments in waste-to-energy technologies and rural electrification create significant opportunities. Key trends include advancements in combustion and gasification technologies, along with the utilization of agricultural and forestry residues for biomass production. The market is also shifting towards decentralized power generation and greater biomass adoption in co-firing applications within existing coal infrastructure. However, the market faces challenges such as high capital costs, inconsistent feedstock quality, and supply chain complexities. Moreover, regulatory fragmentation and environmental concerns, alongside competition from cheaper renewable sources like solar and wind, constrain overall biomass market penetration.

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 fueled by rising investments in renewable energy generation. Both governmental bodies and private organizations are increasingly focused on diversifying energy sources and implementing strategies to reduce carbon emissions. Biomass is emerging as a credible and dependable renewable energy solution, drawing significant capital for the establishment of new facilities and the enhancement of existing technologies. Furthermore, it plays a vital role in comprehensive national energy transition frameworks, as stakeholders recognize its potential to contribute to a sustainable energy future. This shift reflects a broader commitment to environmental responsibility and energy innovation.

Restraints in the Global Biomass Market

The Global Biomass market faces significant challenges as newer renewable energy sources, like solar, wind, and hydroelectric power, gain traction. These alternatives are increasingly seen as economically viable and efficient, often benefiting from stronger financial backing and support from both governmental and private entities. As advancements in technology continue to lower the production costs of solar and wind energy, biomass could be marginalized further in the renewable energy hierarchy. Additionally, public perception of these renewable options can heavily influence funding and policy decisions, potentially undermining biomass's position in the energy landscape. This shift highlights the competitive pressures within the renewable sector.

Market Trends of the Global Biomass Market

The global biomass market is increasingly witnessing a shift towards hybrid systems that combine biomass with renewable energy sources such as solar and wind. This trend is driven by the need for more stable and reliable energy solutions across various sectors, including construction, water treatment, and municipal facilities. Hybrid systems not only mitigate reliance on volatile fuel prices but also enhance overall energy efficiency by utilizing waste heat generated during biomass production. As industries seek sustainable energy alternatives, the integration of hybrid biomass systems is expected to play a pivotal role in meeting growing energy demands while promoting environmental sustainability.