Report Overview:
The global biomass power market is on a steady growth path, expected to rise from USD 140.4 billion in 2024 to USD 237.6 billion by 2034, growing at a CAGR of 5.4%. Biomass power is produced by using natural waste materials such as wood chips, crop leftovers, and even household waste to generate electricity. This is done through methods like burning, gasification, or digestion, which turn organic matter into energy. The market involves everything from collecting raw materials to delivering electricity, and it plays an essential role in both renewable energy expansion and waste reduction worldwide.
The push for clean energy and better waste handling systems is giving biomass power strong momentum. Government incentives, including feed in tariffs and support for low carbon energy, are making it easier to invest in biomass projects. In 2024, combustion technology dominated the market with 72.4% share, and solid biofuels like wood pellets made up 67.3% of the fuel used. Industrial sectors were the biggest users, taking up 54.7% of the market. Europe led the way with USD 64.3 billion in market value, thanks to its strong climate goals and reliable energy infrastructure.
Key Takeaways
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The global biomass power market will grow from USD 140.4 billion (2024) to USD 237.6 billion (2034).
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Combustion technology held the largest share in 2024 at 72.4%.
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Solid biofuels like wood chips and pellets made up 67.3% of feedstock use.
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Industrial applications led the market with a 54.7% share.
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Europe topped the regional market, valued at USD 64.3 billion in 2024.
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Key Market Segments:
By Technology
- Combustion
- Gasification
- Anaerobic Digestion
By Feedstock
- Solid Biofuel
- Liquid Biofuel
- Biogas
By End Use
- Industrial
- Commercial
- Residential
DORT Analysis
Drivers
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Governments worldwide are supporting biomass energy with favorable policies, making it easier to invest in these projects.
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The growing demand for cleaner, renewable energy is pushing industries to shift away from fossil fuels.
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Availability of cheap and abundant organic waste in rural and farming areas ensures a steady fuel supply.
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Biomass helps solve two big problems—managing waste and producing clean energy at the same time.
Opportunities
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Retrofitting old coal plants to run on biomass can cut emissions and make use of existing infrastructure.
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Developing countries in Asia-Pacific and Latin America offer untapped markets with rich biomass resources.
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Technological advancements like gasification and digestion are opening up new, more efficient energy pathways.
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Collaborating with agriculture and waste industries can improve feedstock availability and reduce costs.
Restraints
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Building biomass power plants requires large upfront investment, which may discourage small players.
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Feedstock supply can be inconsistent due to seasonal changes and storage challenges.
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Competing renewable options like solar and wind are often cheaper and easier to manage.
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Environmental concerns about land use and carbon output from biomass transport may lead to regulation issues.
Trends
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While combustion is still the most used method, cleaner technologies like gasification are catching up fast.
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Solid biofuels remain the most common feedstock due to their reliability and availability.
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Industrial sectors continue to be the biggest users of biomass power due to their large energy needs.
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Europe maintains its lead in the market thanks to strong green policies and existing infrastructure.
By Technology Analysis
In 2024, Combustion held a 72.4% share in the Biomass Power Market technology.
In 2024, Combustion held a dominant market position in By Technology segment of the Biomass Power Market, with a 72.4% share. This dominance is attributed to the wide-scale adoption of direct combustion systems due to their technical simplicity, cost-effectiveness, and long-standing operational reliability.
Combustion technology remains the most established method for converting biomass into energy, especially for utility-scale and industrial applications. It enables efficient energy recovery from a wide variety of biomass feedstocks, including wood chips, agricultural waste, and municipal solid waste.
The widespread infrastructure support and regulatory familiarity with combustion systems further reinforced their market leadership in 2024. In rural areas and regions with abundant biomass resources, combustion-based plants are preferred due to lower capital requirements compared to more advanced technologies.
Additionally, the ability to retrofit existing coal-fired power stations with biomass combustion systems contributed to its strong market penetration. With ongoing governmental support for renewable energy projects and emission-reduction commitments, combustion technology continued to receive policy and financial incentives, helping it maintain its significant share in the market.
By Feedstock Analysis
Solid Biofuel contributed a 67.3% share by feedstock in the Biomass Power Market.
In 2024, Solid Biofuel held a dominant market position in the By Feedstock segment of the Biomass Power Market, with a 72.4% share. This strong market hold is primarily driven by the high availability, lower processing costs, and energy efficiency associated with solid biomass forms such as wood chips, pellets, sawdust, and agricultural residues. Solid biofuels are easy to transport, store, and combust, making them highly suitable for both small- and large-scale biomass power plants.
The dominance of solid biofuel also stems from its established supply chains in regions rich in forestry and agriculture. Power producers continue to prefer solid feedstocks due to their consistent energy yield and ease of handling in conventional combustion-based systems. Moreover, solid biofuel’s compatibility with existing infrastructure further supports its market position, especially in retrofitted coal-fired facilities where solid fuel input remains structurally optimal.
Government policies promoting renewable energy and rural waste-to-energy initiatives have also enhanced the uptake of solid biofuels. Many countries are encouraging the collection and use of agricultural residues that would otherwise be burned in open fields, adding both environmental and economic value.
By End Use Analysis
The industrial segment led end-use with a 54.7% share in the Biomass Power Market.
In 2024, Industrial held a dominant market position in the By End Use segment of the Biomass Power Market, with a 54.7% share. This leadership is largely due to the increasing adoption of biomass power in industrial facilities seeking sustainable and cost-effective energy solutions. Industries with high thermal energy requirements, such as pulp and paper, cement, food processing, and chemicals, are increasingly integrating biomass-based systems to reduce reliance on fossil fuels and lower their carbon footprint.
The ability of biomass power to deliver both electricity and process heat through cogeneration makes it particularly attractive for industrial use. Many manufacturing units are also utilizing in-house biomass waste, like husks, shells, and residues, as a fuel source, enhancing energy efficiency and reducing operational costs. The 54.7% share highlights the strong alignment between biomass energy and industrial sustainability goals.
Additionally, regulatory pressures and energy security concerns are prompting industries to diversify their energy mix, with biomass emerging as a stable, locally sourced alternative. Governments offering tax benefits and renewable energy credits have further incentivized industrial players to invest in biomass power systems
Market Key Players:
- Mitsubishi Heavy Industries, Ltd.
- Suez
- Xcel Energy Inc.
- Ramboll Group A/S
- Babcock & Wilcox Enterprises, Inc.
- Ørsted A/S
- Ameresco
- General Electric
- Veolia
- Vattenfall