Global Biomass Power Market Size By Type (Urban Residue, Biogas), By Application (Paper Industry, Forest Industry), By Region, And Segment Forecasts, 2023 to 2032

The Global Biomass Power Market is expected to grow significantly from its valuation in 2023 through 2031, driven by the global push toward renewable energy sources and sustainable power generation. Biomass power, derived from organic materials like wood, agricultural waste, and other bioproducts, is a critical component in reducing greenhouse gas emissions and achieving energy security. The rising adoption of biomass power across industrial, residential, and utility sectors further underscores the demand for clean and efficient energy solutions, positioning biomass as a cornerstone in the renewable energy portfolio.

Drivers

Rising Demand for Renewable Energy: Growing awareness of environmental issues and global climate change targets has accelerated the shift from fossil fuels to renewable energy sources, with biomass power gaining popularity for its carbon-neutral benefits.

Government Incentives and Support: Many governments offer incentives and subsidies to promote biomass power, thus boosting market growth.

Technological Advancements in Biomass Conversion: New technologies enhancing the efficiency and cost-effectiveness of biomass conversion are expanding the appeal and feasibility of biomass power.

Restraints

High Initial Setup Costs: Establishing biomass power plants requires significant investment, which can be a barrier, particularly for smaller entities.

Supply Chain Challenges: Consistent biomass supply and the logistics of transporting large volumes of feedstock can pose operational challenges.

Opportunity

Expansion in Emerging Economies: Developing regions present ample opportunities for biomass power due to their abundant natural resources and growing energy needs.

Integration with Smart Grid Technologies: The adoption of smart grids can enhance biomass power management, creating efficient, flexible energy distribution systems.

Market by System Type Insights

Based on system type, the Thermochemical Conversion segment is anticipated to dominate due to its efficiency in converting biomass into usable energy. Thermochemical processes, including combustion, pyrolysis, and gasification, allow for versatile applications across heating, electricity generation, and fuel production. Biochemical Conversion, which includes anaerobic digestion and fermentation, is also projected to witness growth, particularly in biofuel production applications.

Market by End-use Insights

The Utility Sector accounted for the largest share of the biomass power market in 2023, driven by utility companies' efforts to diversify energy sources and meet renewable energy mandates. The Industrial Segment is also poised for substantial growth as industries adopt biomass power to reduce their carbon footprint and enhance sustainability in manufacturing operations.

Market by Regional Insights

Europe led the biomass power market in 2023, primarily due to stringent regulations on carbon emissions and a strong emphasis on renewable energy adoption. The Asia-Pacific region is expected to witness the highest growth rate during the forecast period, fueled by rising energy demand, governmental support, and abundant biomass resources in countries like China and India.

Competitive Scenario

Key players in the Global Biomass Power Market include Drax Group plc, Ameresco, Inc., Veolia Environment S.A., Enviva Partners, LP, and Mitsubishi Heavy Industries. These companies are focusing on strategic expansions, partnerships, and technological advancements to strengthen their market positions. Recent developments include Drax Group’s new biomass projects aimed at carbon capture and storage, as well as Veolia's investment in expanding biomass power capacity in Europe.

Scope of Work – Global Biomass Power Market

Key Market Developments

Drax Group plc: Launched new biomass projects focusing on carbon capture in 2023, enhancing the company's renewable energy portfolio.

Ameresco, Inc.: Expanded its biomass power generation capabilities in North America in 2024, aiming to cater to the increasing renewable energy demand.

Veolia Environment S.A.: Invested in expanding biomass facilities across Europe in 2025, reinforcing its commitment to sustainable energy solutions.

FAQs

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

The market was valued at approximately USD X.X billion in 2023.

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

The major growth driver is the increasing demand for renewable energy sources to mitigate climate change impacts.

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

Europe is anticipated to remain the largest market due to its strong regulatory framework and commitment to renewable energy.

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

The Utility segment accounted for the largest market share in 2023, driven by renewable energy mandates.

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

Key players include Drax Group plc, Ameresco, Inc., Veolia Environment S.A., Enviva Partners, LP, and Mitsubishi Heavy Industries.