Global Biomass Power Generation Market Size By Type (Solid Biofuels, Biogas), By Application (Residential, Industrial), By Region, And Segment Forecasts, 2023 to 2032

The Global Biomass Power Generation Market was valued at USD 67.5 billion in 2023 and is projected to exceed USD 125.3 billion by 2031, growing at a CAGR of 8.2% during the forecast period (2023–2031). Biomass power generation leverages organic materials such as agricultural waste, wood chips, and other biodegradable materials to produce energy, providing a renewable and sustainable alternative to fossil fuels. Increasing awareness of environmental impact, government policies promoting renewable energy, and advancements in biomass technology are key factors driving market growth.

Drivers

Environmental Concerns and Climate Initiatives: Biomass power generation aligns with global goals to reduce carbon emissions and mitigate climate change, attracting significant government and private sector support.

Government Incentives and Subsidies: Many governments are offering incentives, tax credits, and subsidies to boost biomass power projects, encouraging energy producers to adopt renewable solutions.

Advancements in Biomass Conversion Technologies: Improvements in biomass processing and combustion technologies are making biomass energy more efficient and scalable.

Restraints

High Initial Investment and Maintenance Costs: The setup of biomass power plants involves considerable capital investment, and ongoing maintenance costs can be high, particularly for small and medium enterprises.

Feedstock Supply and Seasonal Variability: Dependence on biomass feedstock can pose challenges due to seasonal fluctuations and logistical issues in sourcing and transporting feedstock to power plants.

Opportunity

Expansion in Emerging Markets: Developing regions with abundant biomass resources, particularly in Asia-Pacific and Latin America, are positioned to benefit significantly from biomass power projects as governments focus on sustainable energy.

Technological Innovations in Bioenergy: Innovations such as improved bio-digesters, gasification, and integration of artificial intelligence for process optimization are expected to reduce costs and increase output, presenting vast opportunities.

Market by System Type Insights

Among the system types, the Biogas-Fired Power Generation segment led the market in 2023. Biogas systems offer an efficient way to convert organic waste into energy, providing a cost-effective and environmentally friendly alternative to conventional energy sources. The segment is anticipated to continue leading as advancements in biogas technology improve efficiency and scalability.

Market by End-use Insights

The Industrial Sector emerged as the largest end-use segment in 2023, accounting for more than 45% of the market share. Industrial applications benefit from biomass power generation due to its ability to support large-scale operations and reduce dependency on conventional energy sources, particularly in sectors like paper, chemicals, and bio-refining.

Market by Regional Insights

Geographically, Europe held the largest share of the global biomass power generation market in 2023, driven by strong regulatory frameworks, subsidies, and high adoption of renewable energy in countries such as Germany, Sweden, and Denmark. The Asia-Pacific region is expected to witness the highest growth rate during the forecast period, supported by increasing investments in renewable energy and the availability of ample biomass resources.

Competitive Scenario

Key players in the Global Biomass Power Generation Market include Engie SA, Veolia Environnement S.A., Babcock & Wilcox Enterprises, Inc., Drax Group plc, General Electric Company, and Ørsted A/S. These companies focus on technological advancements, mergers and acquisitions, and expanding their presence in emerging markets to strengthen their market position. Recent developments include Drax Group's investment in biomass conversion projects and Veolia's expansion into bioenergy through partnerships.

Scope of Work – Global Biomass Power Generation Market

Key Market Developments

Drax Group plc (2023): Invested in a new biomass power plant in the United Kingdom, focusing on increasing sustainable energy production.

Veolia Environnement (2024): Partnered with local governments in Latin America to develop biomass-based waste-to-energy plants.

Engie SA (2025): Announced a $500 million investment to upgrade biomass power infrastructure across Europe, improving plant efficiency and reducing emissions.

FAQs

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

The Global Biomass Power Generation Market was valued at USD 67.5 billion in 2023.

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

The major growth drivers include government incentives, environmental sustainability efforts, and advancements in biomass technologies.

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

Europe held the largest market share in 2023, while the Asia-Pacific region is projected to experience the highest growth rate.

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

The Industrial Sector was the largest end-use segment in 2023, driven by applications across various industries.

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

Major players include Engie SA, Veolia Environnement S.A., Babcock & Wilcox Enterprises, Inc., Drax Group plc, and Ørsted A/S.

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