Biomass Power Market Forecasts to 2034 - Global Analysis By Feedstock, Conversion Technology, Plant Capacity, Fuel Form, End User, and By Geography

According to Stratistics MRC, the Global Biomass Power Market is accounted for $67.5 billion in 2026 and is expected to reach $110.0 billion by 2034 growing at a CAGR of 6.3% during the forecast period. Biomass power refers to electricity generated from organic materials, including wood and forestry residues, agricultural residues, energy crops, animal manure, and municipal biogenic waste. The market encompasses direct combustion, gasification, anaerobic digestion and biogas power, co-firing, and pyrolysis-based power generation technologies. Biomass power plants use solid biomass, biogas, and liquid biofuels to generate electricity for utilities, industrial facilities, commercial establishments, and agricultural communities. Growing demand for renewable electricity, waste valorization, dispatchable power generation, and diversified energy sources is supporting investment in biomass power infrastructure.

Market Dynamics:

Driver:

Growing demand for renewable electricity and dispatchable power generation

Increasing demand for renewable electricity and reliable power generation is a major driver of the biomass power market. Unlike weather-dependent renewable sources, biomass power plants can provide controllable electricity generation when sufficient feedstock and operating capacity are available. This characteristic supports grid stability and complements the expansion of wind and solar power. Moreover, biomass power facilities can utilize forestry residues, agricultural by-products, and organic waste, creating opportunities to convert locally available resources into useful energy. Government renewable energy targets, decarbonization strategies, and investments in energy security are encouraging the development and modernization of biomass power plants. Industrial facilities are also exploring biomass-based energy to diversify fuel sources and improve resource utilization.

Restraint:

Feedstock supply constraints and high operating costs

The biomass power market faces challenges associated with feedstock availability, transportation, storage, and operating expenses. Biomass resources are geographically dispersed, and their availability can fluctuate with agricultural production, forestry activity, weather conditions, and seasonal collection patterns. Low-density feedstocks may require extensive transportation and preprocessing, increasing delivered fuel costs. Additionally, moisture content, particle size, and variations in fuel quality can affect combustion efficiency, plant performance, and emissions management. Biomass power projects also require substantial investment in boilers, fuel-handling systems, emissions-control equipment, and grid connections. Competition for organic materials from biofuels, biomaterials, and other energy applications can further influence feedstock prices and project economics.

Opportunity:

Expansion of agricultural residue utilization and waste-to-energy projects

The growing availability of agricultural residues and organic waste creates opportunities for biomass power developers. Rice husks, straw, bagasse, forestry residues, and other biomass resources can provide feedstock for power generation when collection systems and conversion technologies are economically viable. Municipal biogenic waste and organic industrial residues also offer opportunities to combine waste management with energy recovery. Moreover, gasification and anaerobic digestion can support the development of projects suited to different feedstock characteristics and plant capacities. Industrial decarbonization, rural electrification, and distributed energy generation create additional demand opportunities. Investments in biomass collection, preprocessing, storage, and logistics can strengthen supply chains and improve the commercial viability of biomass power projects.

Threat:

Competition for sustainable feedstocks and changing regulatory frameworks

Competition for biomass resources represents a significant threat to the long-term expansion of the biomass power market. Wood residues, agricultural by-products, and organic waste are also used in biofuels, biomaterials, heating, and other industrial applications. Increasing competition can raise procurement costs and restrict access to suitable feedstocks. Additionally, the environmental benefits of biomass power depend on feedstock origin, harvesting practices, transportation, combustion efficiency, and lifecycle emissions. Changes in sustainability criteria, renewable energy incentives, emissions regulations, and permitting requirements can affect project economics. Concerns regarding forest carbon stocks, land-use impacts, and air pollution may also influence public acceptance and investment decisions. Developers must therefore maintain reliable feedstock supplies and demonstrate compliance with applicable sustainability and environmental requirements.

Covid-19 Impact:

The COVID-19 pandemic affected the biomass power market through disruptions to industrial activity, transportation, construction schedules, and biomass supply chains. Restrictions on movement and reduced availability of workers affected feedstock collection, equipment deliveries, and maintenance activities in some markets. Delays in project execution and uncertainty in electricity demand also influenced investment decisions. However, the pandemic highlighted the importance of energy security, diversified supply chains, and resilient domestic energy resources. Following the pandemic, renewable energy investment, industrial decarbonization, and waste-to-energy initiatives have supported opportunities for biomass power development. Market recovery has varied by region according to policy support, feedstock economics, power demand, and the availability of financing for new and upgraded facilities.

The Municipal Biogenic Waste segment is expected to account for a significant share during the forecast period

The Municipal Biogenic Waste segment is expected to represent a major share of the biomass power market, supported by increasing interest in waste valorization and the recovery of energy from organic municipal waste. Biogenic fractions of municipal solid waste, including food scraps, paper, and other biodegradable materials, can provide feedstock for suitable energy recovery systems. Utilizing these materials can help reduce the volume of organic waste sent to landfills while generating electricity. Waste-to-energy infrastructure is particularly relevant in densely populated areas where municipal authorities face growing waste management requirements. Moreover, established waste collection networks and integrated waste treatment facilities can support feedstock availability. The segment's development depends on waste composition, source separation, plant technology, environmental standards, and local waste management policies.

The Gasification segment is expected to witness strong growth during the forecast period

The Gasification segment is expected to offer significant growth potential as developers seek flexible ways to convert biomass into combustible gas for electricity generation. Gasification converts carbon-based feedstocks into producer gas or syngas under controlled conditions, allowing integration with suitable engines, turbines, and other energy conversion systems. The technology can accommodate selected forestry residues, agricultural by-products, and processed organic materials. Advances in gas cleaning, process control, and system integration are improving the potential for biomass gasification across industrial and distributed energy applications. Moreover, interest in decentralized power generation and the utilization of locally available feedstocks supports further development. Commercial adoption depends on reliable feedstock preparation, conversion efficiency, equipment availability, and competitive lifecycle costs.

Region with largest share:

During the forecast period, Asia Pacific is expected to hold the largest share of the Global Biomass Power Market, supported by substantial agricultural residue availability, industrial energy demand, expanding renewable energy capacity, and government initiatives promoting bioenergy. China, India, Indonesia, Thailand, and Japan provide important opportunities for biomass-based electricity generation through agricultural waste utilization, industrial biomass applications, and waste-to-energy projects. The region's extensive agricultural activity creates potential feedstock supplies, including rice husks, sugarcane bagasse, straw, and other organic residues. Additionally, biomass power can support rural and industrial energy requirements while contributing to waste management objectives. Investments in plant modernization, fuel collection, and conversion technologies continue to support the regional market.

Region with highest CAGR:

Over the forecast period, Asia Pacific is anticipated to exhibit the highest CAGR in the Global Biomass Power Market, driven by expanding electricity demand, increasing investment in renewable energy, and greater utilization of agricultural and municipal organic waste. Emerging economies are exploring biomass-based power generation to diversify electricity sources and improve the productive use of locally available residues. India and Southeast Asian countries offer opportunities for bagasse-based generation, agricultural residue utilization, and decentralized biomass power projects. China and Japan also contribute through established bioenergy infrastructure and continued investment in renewable energy technologies. Moreover, supportive policies, improvements in biomass logistics, and investment in efficient conversion systems are creating opportunities for additional capacity development across the region.

Key players in the market

Some of the key players in the Global Biomass Power Market include Drax Group plc, Enviva Inc., Orsted A/S, Mitsubishi Heavy Industries, Ltd., Valmet Oyj, ANDRITZ AG, Babcock & Wilcox Enterprises, Inc., A2A S.p.A., EnviTec Biogas AG, WELTEC BIOPOWER GmbH, 2G Energy AG, Hitachi Zosen Inova AG, Veolia Environnement S.A., Burmeister & Wain Scandinavian Contractor A/S, and Ameresco, Inc.

Key Developments:

In September 2026, Drax Group plc reported continued progress in its generation business and updated its full-year financial outlook. The company highlighted the role of its biomass generation assets in supporting the United Kingdom's electricity system and discussed the continued development of its wider energy portfolio. The update reflects the strategic importance of dispatchable biomass generation within the company's power generation operations.

In July 2026, Valmet Oyj announced a major pressure-part replacement project at Eneco's Bio Golden Raand biomass plant in Delfzijl, the Netherlands. The project includes a new secondary superheater for the circulating fluidized bed boiler and is intended to improve plant reliability and reduce the risk of unplanned downtime, supporting the long-term performance of biomass-based energy infrastructure.

In May 2026, ANDRITZ AG announced that National Power Supply Public Company Limited, part of Double A Group, had selected the company to supply a recovery boiler and evaporation plant for a new bioenergy power plant in Tha-Toom, Thailand. The project supports renewable energy generation linked to industrial processing and demonstrates continued investment in biomass-related energy infrastructure in Southeast Asia.

In September 2026, EnviTec Biogas AG reported progress in its first-half operations and continued its strategic transition toward biomethane production. The company also reported awards for approximately 16 MW of electrical capacity in Germany's biomass auction, supporting the long-term operation of part of its electricity portfolio. EnviTec outlined additional planned investments through 2029 for plant construction, refurbishment, and conversion of selected facilities to bio-LNG.

Feedstocks Covered:

• Wood and Forestry Residues
• Agricultural Residues
• Energy Crops
• Animal Manure and Organic Waste
• Municipal Biogenic Waste

Conversion Technologies Covered:

• Direct Combustion
• Gasification
• Anaerobic Digestion and Biogas Power
• Co-Firing
• Pyrolysis-Based Power Generation

Plant Capacities Covered:

• Below 5 MW
• 5-20 MW
• Above 20 MW

Fuel Forms Covered:

• Solid Biomass
• Biogas
• Liquid Biofuels

End Users Covered:

• Utilities and Independent Power Producers
• Industrial and Manufacturing Facilities
• Commercial and Institutional Facilities
• Agricultural and Rural Communities

Regions Covered:

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Belgium
  • Sweden
  • Switzerland
  • Poland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Thailand
  • Malaysia
  • Singapore
  • Vietnam
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Rest of South America
• Rest of the World (RoW)
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Qatar
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Morocco
    • Rest of Africa

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• Market share assessments for regional and country-level segments
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• Strategic recommendations for key business segments based on market estimations
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• Supply chain trends and assessment of the latest technological advancements

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