Global Biomass for Electricity Generation Market Size By Type (Boilers, Burners), By Application (Residential, Industrial), By Region, And Segment Forecasts, 2023 to 2032

The Global Biomass for Electricity Generation Market is expected to experience significant growth, driven by rising demand for renewable energy sources and advancements in biomass conversion technologies. The increasing focus on reducing greenhouse gas emissions and government incentives supporting clean energy initiatives are bolstering the adoption of biomass for electricity generation. Biomass, sourced from organic materials, offers a sustainable and eco-friendly option for power generation, aligning with global goals for decarbonization and energy security.

Drivers

Growing Demand for Renewable Energy: With increasing awareness of environmental issues, there is a strong push toward renewable energy sources. Biomass provides a consistent and reliable source of energy, reducing reliance on fossil fuels.

Government Policies and Subsidies: Numerous government policies and subsidies worldwide support biomass energy projects, creating favorable conditions for market expansion.

Technological Advancements in Biomass Conversion: Innovations in biomass processing, such as gasification and anaerobic digestion, are enhancing efficiency and making biomass a competitive energy source.

Restraints

High Initial Investment: The capital cost of establishing biomass power plants is relatively high, impacting affordability, especially in developing economies.

Supply Chain Challenges: The supply and transportation of biomass materials can be challenging, impacting the scalability of projects in some regions.

Opportunity

Expansion in Emerging Markets: The rise in electricity demand in emerging markets presents a significant opportunity for biomass, particularly in countries with abundant agricultural waste resources.

Integration with Carbon Capture Technologies: Biomass plants combined with carbon capture technologies could result in net-negative emissions, opening new avenues for sustainable energy.

Market by System Type Insights

The Direct Combustion System segment leads in market share, attributed to its simplicity and wide adoption. However, Gasification and Anaerobic Digestion Systems are projected to grow rapidly due to their efficiency and lower emissions. Gasification, in particular, is gaining traction for its flexibility in feedstock and efficient electricity generation process.

Market by End-use Insights

Among end-use segments, Industrial Power Generation holds the largest market share, driven by high energy demands in sectors such as manufacturing and chemical processing. The Utility Power Generation segment is also experiencing growth as more utility companies incorporate biomass plants into their energy portfolios to meet renewable energy targets.

Market by Regional Insights

Europe dominates the Biomass for Electricity Generation market, supported by robust government policies, high adoption of renewable energy sources, and extensive infrastructure for biomass supply. Meanwhile, Asia-Pacific is expected to exhibit the fastest growth rate due to rising energy demands, abundant biomass resources, and supportive government policies, particularly in countries like China, India, and Japan.

Competitive Scenario

Key players in the Global Biomass for Electricity Generation Market include Veolia Environment SA, Drax Group, Enviva Partners LP, General Electric, Siemens AG, and Mitsubishi Heavy Industries. These companies focus on technological innovations, strategic partnerships, and expanding their biomass facilities to strengthen their market position. Recent developments include the expansion of biomass plants in Asia and advancements in gasification technology to improve efficiency and reduce emissions.

Scope of Work – Global Biomass for Electricity Generation Market

Key Market Developments

March 2023: Veolia announced the expansion of its biomass facility in the United Kingdom to increase renewable electricity output by 30%.

January 2024: Drax Group partnered with Mitsubishi Heavy Industries to integrate carbon capture technology into its biomass plants, aiming to achieve net-negative emissions.

October 2023: Enviva Partners LP opened a new biomass production plant in Japan, catering to the growing demand for biomass in Asia-Pacific.

FAQs

What is the current market size of the Global Biomass for Electricity Generation Market?

The market size was valued at USD 105 billion in 2023.

What is the major growth driver of the Global Biomass for Electricity Generation Market?

The major growth driver is the increasing demand for renewable energy sources and supportive government policies.

Which is the largest region during the forecast period in the Global Biomass for Electricity Generation Market?

Europe currently holds the largest market share, supported by strong policies for renewable energy.

Which segment accounted for the largest market share in the Global Biomass for Electricity Generation Market?

The Direct Combustion System segment accounted for the largest market share due to its wide adoption and efficiency.

Who are the key market players in the Global Biomass for Electricity Generation Market?

Key players include Veolia Environment SA, Drax Group, Enviva Partners LP, General Electric, Siemens AG, and Mitsubishi Heavy Industries.