Biomass Global Market Report 2026

Biomass refers to organic material obtained from plants, animals, and other living organisms that can be utilized as an energy source. It is renewable and can be transformed into biofuels, electricity, and heat through processes such as combustion, gasification, and anaerobic digestion. It plays an important role in reducing reliance on fossil fuels and decreasing greenhouse gas emissions.

The main product types of biomass include solid biomass, liquid biofuels, and biogas. Solid biomass consists of organic materials such as wood, crop residues, and other plant based matter that can be used directly as fuel for heating or power generation. Technologies involved include direct combustion, gasification, anaerobic digestion, and pyrolysis. The organization sizes include residential, commercial, industrial, and utilities, and they are used by several end users including residential, commercial, industrial, and others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have had a mixed impact on the biomass market by increasing costs for imported biomass processing equipment, biofuel conversion systems, and specialized machinery, while also affecting cross-border trade of wood pellets and biofuels. The impact is most visible in industrial and utility-scale power generation segments and in regions reliant on imports, particularly Europe and parts of Asia-Pacific. Higher tariffs have encouraged local sourcing of biomass feedstock and domestic manufacturing of equipment. In some cases, this has positively supported regional supply chains and strengthened local biomass production ecosystems.

The biomass market research report is one of a series of new reports from The Business Research Company that provides biomass market statistics, including biomass industry global market size, regional shares, competitors with an biomass market share, detailed biomass market segments, market trends and opportunities, and any further data you may need to thrive in the biomass industry. The biomass market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The biomass market size has grown strongly in recent years. It will grow from $67.52 billion in 2025 to $72.58 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to increasing adoption of biomass for rural electrification, growing demand for renewable heat solutions, rising utilization of agricultural residues for energy, expanding use of biomass in industrial boilers, and increasing policy support for bioenergy deployment.

The biomass market size is expected to see strong growth in the next few years. It will grow to $95.90 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to growing demand for low-carbon energy sources, rising investment in advanced biomass conversion facilities, increasing adoption of biomass in district heating systems, expanding use of bioenergy for carbon-neutral industrial processes, and increasing focus on waste-to-energy integration. Major trends in the forecast period include technology advancements in biomass gasification systems, innovations in advanced combustion and co-firing solutions, developments in high-efficiency bioenergy conversion technologies, research and development in algae-based biomass production, and advancements in automated biomass supply chain and logistics systems.

The growing need for clean energy is expected to drive the growth of the biomass market in the coming years. Clean energy refers to power generated from renewable or low-emission sources that reduce environmental impact and limit greenhouse gas emissions. This rising demand for clean energy is driven by increasing awareness of environmental sustainability, as clean energy helps lower greenhouse gas emissions and address climate change. Biomass supports clean energy by converting organic materials such as agricultural residues, wood, and waste into renewable energy, making it an effective option for reducing reliance on fossil fuels. It enables sustainable energy generation by providing a stable, carbon-neutral energy source that improves environmental performance and strengthens energy security. For instance, in June 2024, according to the International Energy Agency, a France-based intergovernmental organization, global investment in clean energy reached $80 billion in 2024, up from $67 billion in 2023. Therefore, the increasing need for clean energy is driving the growth of the biomass market.

Major companies operating in the biomass power generation market are concentrating on the development of advanced facilities, such as high-efficiency gasification systems, to increase energy output, improve fuel flexibility, and reduce emissions and overall environmental impact. High-efficiency gasification systems are advanced technologies that convert biomass into syngas with minimal waste and high thermal efficiency, making them suitable for reliable power generation. For instance, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, launched the Chofu Biomass Power Plant. This dedicated biomass power plant features a high-efficiency gasification system that enables the use of a wide range of biomass fuels, including wood pellets and agricultural residues. The plant is equipped with automated fuel handling and combustion control systems, allowing stable and efficient power generation with limited manual intervention. It also integrates advanced emissions control and waste heat recovery technologies, maximizing energy utilization while minimizing the environmental footprint for local energy operators.

In September 2024, NewEnergyBlue, a U.S.-based clean technology company, acquired the biomass conversion technology and international patent portfolio of Inbicon A/S for an undisclosed sum. Through this acquisition, NewEnergyBlue seeks to strengthen its technological capabilities in converting agricultural waste into low-carbon biofuels and biochemicals while expanding its global licensing reach and operational presence. Inbicon A/S is a biomass conversion technology company that specializes in transforming plant-based residues into valuable biofuels and biochemicals.

Major companies operating in the biomass market are TotalEnergies SE, Archer-Daniels-Midland Company (ADM), Veolia Environnement S.A., Neste Oyj, UPM Biofuels, Drax Group plc, ANDRITZ Group, Wartsila Corporation, Valmet Oyj, Green Plains Inc., Enviva Inc., Babcock & Wilcox Enterprises Inc., Hitachi Zosen Inova AG, EnviTec Biogas AG, Clean Energy Fuels Corp., Praj Industries Limited, AS Graanul Invest, Anaergia Inc., ReEnergy Holdings LLC, Greenlane Renewables Inc., WELTEC BIOPOWER GmbH, IES Biogas S.r.l., GoodFuels B.V., Xergi A/S

Europe was the largest region in the biomass market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biomass market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the biomass market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biomass market consists of sales of agricultural residues, energy crops, animal manure, algae biomass, forestry residues, food waste, and biogas, biochar. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Biomass Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses biomass market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for biomass ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The biomass market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product Type: Solid Biomass; Liquid Biofuels; Biogas
• 2) By Technology: Direct Combustion; Gasification; Anaerobic Digestion; Pyrolysis
• 3) By Source: Agricultural Biomass; Forest Biomass; Waste Biomass
• 4) By Application: Power Generation; Heat Generation; Transportation Fuel (Biofuels); Other Applications
• 5) By End-User: Residential; Commercial; Industrial; Utilities
• Subsegments:
• 1) By Solid Biomass: Wood Chips; Wood Pellets; Agricultural Residues; Energy Crops; Animal Waste
• 2) By Liquid Biofuels: Bioethanol; Biodiesel; Renewable Diesel; Hydrotreated Vegetable Oil; Fischer Tropsch Diesel
• 3) By Biogas: Landfill Gas; Sewage Gas; Anaerobic Digestion Gas; Industrial Waste Gas; Agricultural Waste Gas
• Companies Mentioned: TotalEnergies SE; Archer-Daniels-Midland Company (ADM); Veolia Environnement S.A.; Neste Oyj; UPM Biofuels; Drax Group plc; ANDRITZ Group; Wartsila Corporation; Valmet Oyj; Green Plains Inc.; Enviva Inc.; Babcock & Wilcox Enterprises Inc.; Hitachi Zosen Inova AG; EnviTec Biogas AG; Clean Energy Fuels Corp.; Praj Industries Limited; AS Graanul Invest; Anaergia Inc.; ReEnergy Holdings LLC; Greenlane Renewables Inc.; WELTEC BIOPOWER GmbH; IES Biogas S.r.l.; GoodFuels B.V.; Xergi A/S
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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