Global Biomass Power Market to Reach USD 97.09 Billion by 2030 Amid Rising Renewable Energy Adoption

The Global Biomass Power Market was valued at USD 71.20 billion in 2024 and is projected to grow at a CAGR of 6.4% from 2025 to 2030, reaching an estimated USD 97.09 billion by 2030. The market is gaining steady momentum as countries worldwide intensify their transition toward renewable energy and sustainable power generation systems.

REQUESTSAMPLE:https://virtuemarketresearch.com/report/biomass-power-market/request-sample

Industry Overview

Biomass power refers to the generation of electricity and heat using organic materials such as agricultural residues, forestry waste, animal manure, and other biodegradable waste. Unlike intermittent renewable sources such as solar and wind, biomass offers dispatchable and consistent base-load power, making it an attractive option for energy security and grid stability.

With growing investments in clean energy infrastructure, biomass is increasingly being deployed across industrial, residential, and commercial sectors. Rural electrification programs, supportive regulatory policies, and advancements in biomass conversion technologies are further accelerating global market expansion.

Key Market Insights

The industrial segment accounted for over 42% of total biomass power demand in 2024, driven by high energy requirements and corporate carbon neutrality commitments.
Wood chips and forestry residues dominated the feedstock category with a 37% market share due to established supply chains and high calorific value.
Asia-Pacific led the global market, contributing 38% of total revenue in 2024.
More than 1,800 biomass plants globally operate with co-generation capabilities.
The United States surpassed 7.5 GW of biomass power generation capacity in 2024.
The European Union’s renewable energy mandates are accelerating biomass adoption across Germany, Sweden, and other member states.
Liquid biomass fuels such as bio-oil and syngas are expected to grow at a CAGR of 8.2% between 2025 and 2030.
Technological innovations have reduced biomass operational costs by nearly 15% over the past five years.

Market Drivers

1. Rising Global Focus on Renewable Energy

The global push toward decarbonization is one of the strongest drivers of the biomass power market. Under international climate frameworks like the Paris Agreement, nations are committing to reducing greenhouse gas emissions. Biomass energy offers a strategic advantage by converting organic waste into usable power while reducing methane emissions from landfills.

Countries such as China and India are integrating biomass into rural electrification initiatives, while developed economies provide subsidies, tax credits, and renewable portfolio standards to encourage bioenergy investments.

2. Technological Advancements and Efficiency Improvements

Technological innovation continues to enhance biomass energy systems. Advanced gasification, anaerobic digestion, pelletization, and torrefaction processes have improved fuel quality, reduced emissions, and lowered the Levelized Cost of Electricity (LCOE).

Modern biomass plants now incorporate automated control systems, emissions mitigation technologies, and combined heat and power (CHP) systems, significantly improving efficiency and reliability. These advancements make biomass increasingly competitive with fossil fuels and other renewable sources.

3. Growth of Circular Economy and Waste-to-Energy Initiatives

Biomass plays a vital role in advancing circular economy principles by converting agricultural, municipal, and industrial waste into energy. Waste-to-energy projects are expanding globally as governments seek sustainable alternatives to landfill disposal.

Agro-based economies are promoting the use of crop residues such as rice husks and bagasse, reducing open-field burning and providing additional income streams for farmers. Biomass plants near industrial clusters and urban centers are helping address both waste management and energy generation challenges simultaneously.

Market Challenges

1. Feedstock Supply Chain Complexity

Ensuring a reliable and cost-effective biomass feedstock supply remains a major challenge. Agricultural residues and forestry waste are often geographically dispersed and seasonal in availability. Transportation and storage costs can significantly impact project economics.

Improper storage may result in energy loss and contamination risks, further complicating supply chain management. Investments in regional aggregation systems and improved logistics infrastructure are critical for overcoming this barrier.

2. Regulatory and Environmental Concerns

Although biomass is renewable, it faces scrutiny over emissions and sustainability. Combustion-based plants can emit particulates and nitrogen oxides if not properly managed. Additionally, concerns regarding deforestation and sustainable sourcing have led to stricter certification and compliance requirements, particularly in Europe.

Uncertainty surrounding long-term subsidy frameworks and renewable policies may also discourage private investment in certain regions.

Market Opportunities

The biomass power sector presents significant long-term opportunities:

Expansion in developing economies with abundant agricultural waste resources.
Biomass co-firing in existing coal plants as a cost-effective decarbonization strategy.
Integration of biomass with carbon capture and storage (CCS) technologies, enabling negative emissions.
Growth in renewable heating and district energy systems.
Increased availability of green financing and climate-focused investment funds.
Deployment of decentralized biomass systems for rural electrification.

As countries strive for net-zero targets, bioenergy with carbon capture and storage (BECCS) is emerging as a promising climate mitigation solution.

BUYNOW:https://virtuemarketresearch.com/report/biomass-power-market/enquire

Regional Insights

Asia-Pacific Leads the Market

Asia-Pacific accounted for 38% of global biomass power revenue in 2024. Aggressive renewable energy investments in China and India are driving regional growth. India’s National Bio-Energy Mission and China’s support for rural biomass heating projects are key contributors.

Southeast Asian countries such as Thailand, Vietnam, and Indonesia are utilizing palm oil residues and rice husks for distributed power generation. The region is expected to maintain leadership through 2030 due to abundant feedstock availability and supportive regulatory frameworks.

North America and Europe

North America continues to expand biomass capacity, supported by federal tax incentives and renewable energy mandates. Europe remains a strong market due to renewable energy directives and sustainability targets across member states.

COVID-19 Impact

The COVID-19 pandemic temporarily disrupted biomass plant construction and feedstock logistics. Lockdowns led to supply chain interruptions and delayed project approvals. However, the post-pandemic recovery accelerated green energy investments.

Governments included bioenergy projects in economic recovery packages, recognizing biomass’s role in job creation and energy security. By late 2021, the market had regained momentum and resumed steady growth.

Emerging Trends

Biomass co-firing in coal plants
Integration of carbon capture technologies
Digital monitoring and predictive maintenance systems
Growth of biomass gasification and pyrolysis technologies
Increased adoption of green bonds and public-private partnerships
Improved pellet densification and fuel logistics solutions

These trends are reshaping biomass power into a more efficient, flexible, and scalable energy solution.

Key Market Players

Major companies operating in the global biomass power market include:

Drax Group
Veolia
Ørsted
Babcock & Wilcox
General Electric
Valmet
Ameresco
Mitsubishi Heavy Industries
Suez
Andritz

These players are focusing on technology innovation, strategic partnerships, and sustainable feedstock sourcing to strengthen their global footprint.

CUSTOMISATION: https://virtuemarketresearch.com/report/biomass-power-market/customization

Conclusion

The global biomass power market is positioned for sustained expansion as renewable energy adoption intensifies worldwide. While supply chain complexities and regulatory challenges persist, advancements in technology, supportive policies, and circular economy initiatives are creating strong growth momentum.

With rising energy demand, climate commitments, and increasing waste-to-energy investments, biomass power is set to remain a vital pillar in the global transition toward sustainable and resilient energy systems through 2030 and beyond.