The Biomass Power Generation industry continues to grow substantially, rising from an estimated $52.8 Billion in 2025 to over $88.3 Billion by 2033, with a projected CAGR of 6.6% during the forecast period.

MARKET SIZE AND SHARE

The global Biomass Power Generation Market is witnessing strong growth, with its size estimated at USD 52.8 billion in 2025 and expected to reach USD 88.3 billion by 2033, expanding at a CAGR of 6.6%, driven by increasing demand for renewable energy and government initiatives promoting sustainable power. The market size is expected to expand at a steady CAGR, with rising investments in biomass technologies and feedstock availability. Key regions like North America, Europe, and Asia-Pacific will dominate, accounting for a substantial market share due to supportive policies and advanced infrastructure.

By 2032, the market share of biomass power generation will rise as industries and utilities adopt cleaner energy solutions. Technological advancements, such as efficient combustion and gasification, will enhance capacity and reduce costs. Emerging economies will contribute to growth, leveraging agricultural waste and forest residues. The competitive landscape will intensify with major players focusing on innovation and partnerships to capture a larger share of this expanding renewable energy sector.

INDUSTRY OVERVIEW AND STRATEGY

The Biomass Power Generation Market utilizes organic materials like wood, agricultural residues, and waste to produce renewable energy. It plays a crucial role in reducing carbon emissions and diversifying energy sources. Governments worldwide support biomass through subsidies and mandates, driving market growth. Key applications include electricity generation, heating, and combined heat and power (CHP) systems. The market is expanding due to rising energy demand, waste management needs, and the shift toward sustainable power solutions.

Strategic approaches in the Biomass Power Generation Market focus on technological advancements, feedstock optimization, and cost reduction. Companies invest in efficient conversion technologies like gasification and anaerobic digestion. Partnerships with agricultural and forestry sectors ensure steady biomass supply. Market players also emphasize policy advocacy and regional expansion to capitalize on growing demand. Sustainability certifications and carbon credit mechanisms further enhance competitiveness, positioning biomass as a key player in the global renewable energy transition.

REGIONAL TRENDS AND GROWTH

The Biomass Power Generation Market shows distinct regional trends, with Europe leading due to strong renewable energy policies and carbon reduction targets. North America follows, driven by government incentives and abundant biomass resources. Asia-Pacific is rapidly growing, fueled by increasing energy demand and agricultural waste utilization. Emerging economies in Latin America and Africa are adopting biomass power to address energy access and waste management challenges, though infrastructure limitations hinder faster expansion in these regions.

Key growth drivers include rising renewable energy demand, supportive government policies, and advancements in conversion technologies. However, high initial costs and feedstock supply chain issues act as restraints. Opportunities lie in decentralized power generation and waste-to-energy projects, while challenges include competition from other renewables and inconsistent biomass availability. Future growth will depend on technological innovation, sustainable feedstock sourcing, and stronger policy frameworks to overcome barriers and enhance market scalability.

BIOMASS POWER GENERATION MARKET SEGMENTATION ANALYSIS

BY TYPE:

The Biomass Power Generation Market is segmented by type into Solid Biomass, Biogas, Liquid Biomass, and Municipal Waste. Solid biomass, including wood pellets and agricultural residues, dominates due to its widespread availability and established combustion technologies. It is widely used in heat and electricity generation, particularly in Europe and North America, where sustainable forestry practices support supply chains. Biogas, derived from organic waste and anaerobic digestion, is gaining traction due to its dual role in waste management and renewable energy production, especially in countries with strong agricultural sectors like Germany and China. Liquid biomass, such as biofuels, is primarily used in transportation but has limited power generation applications. Municipal waste is increasingly utilized in urban areas with waste-to-energy (WTE) plants, driven by stricter landfill regulations and circular economy policies.

The dominance of solid biomass is reinforced by government incentives for co-firing in coal plants and its reliability as a baseload renewable energy source. Meanwhile, biogas benefits from advancements in anaerobic digestion technology and the growing demand for decentralized energy systems. Liquid biomass faces competition from other biofuels but remains relevant in niche applications. Municipal waste-based power generation is expanding due to urbanization and stricter environmental policies, particularly in Europe and Japan, where landfill diversion is a priority.

BY FEEDSTOCK:

The market is categorized by feedstock into Agricultural Waste, Wood & Woody Biomass, Solid Waste, and Others. Wood & woody biomass leads the segment due to its high energy density and compatibility with existing power plants, making it a preferred choice in regions with abundant forest resources like Scandinavia and Canada. Agricultural waste, including crop residues and bagasse, is significant in countries with large agro-industries, such as Brazil and India, where sugar mills and rice husk-based power plants are common. Solid waste, including industrial and municipal waste, is gaining importance in urban energy solutions, particularly in regions with high waste generation and limited landfill space.

The dominance of woody biomass is supported by sustainable forestry certifications and carbon-neutral policies, ensuring long-term supply stability. Agricultural waste benefits from low-cost availability and government incentives for rural electrification projects. Solid waste is driven by increasing urbanization and the adoption of waste-to-energy technologies, particularly in Europe and China, where landfill restrictions are stringent. Emerging feedstocks, such as algae and energy crops, are being explored but remain limited by scalability and economic feasibility.

BY TECHNOLOGY:

The market is segmented by technology into Combustion, Gasification, Anaerobic Digestion, Pyrolysis, Landfill Gas (LFG), and Co-firing. Combustion is the most dominant due to its maturity, high efficiency, and compatibility with existing coal-fired power plants, making it a cost-effective solution for large-scale biomass energy. Gasification is growing due to its ability to produce syngas for combined heat and power (CHP) applications, with increasing adoption in industries requiring high-temperature processes. Anaerobic digestion is prominent in organic waste-rich regions, particularly for biogas production in Europe and Asia. Pyrolysis remains niche but holds potential for bio-oil and biochar production. Landfill gas (LFG) is significant in regions with high landfill usage, such as the U.S., where methane capture is incentivized. Co-firing is widely adopted as a transitional technology in coal-dependent countries.

Combustion remains the leader due to its reliability and ease of integration into existing infrastructure. Gasification is gaining traction due to higher efficiency and lower emissions, supported by R&D investments. Anaerobic digestion benefits from circular economy policies and organic waste management mandates. LFG is driven by methane reduction targets, while co-firing is sustained by coal phase-out strategies in countries like the UK and Japan. Pyrolysis is still in the experimental phase but could grow with advancements in biofuel refining.

BY APPLICATION:

The market is divided by application into Residential, Commercial, Industrial, and Utilities. The utilities segment dominates due to large-scale biomass power plants supplying grid electricity, particularly in countries with renewable energy mandates like the U.S. and Germany. Industrial applications, including pulp & paper, food processing, and cement industries, are significant due to the demand for process heat and combined heat and power (CHP) systems. Commercial use is growing in district heating systems and institutional buildings, especially in Northern Europe. Residential adoption remains limited but is increasing in rural areas with decentralized biomass systems.

Utilities lead due to government feed-in tariffs and renewable portfolio standards (RPS), ensuring stable demand. Industrial applications thrive in sectors with high thermal energy needs, where biomass offers cost savings over fossil fuels. Commercial adoption is rising with green building certifications and carbon-neutral initiatives. Residential use is constrained by infrastructure but supported by off-grid energy programs in developing regions.

RECENT DEVELOPMENTS

• In Jan 2024 – Drax Group announced a £3 billion investment to expand its biomass power plants in the UK, focusing on carbon capture and storage (BECCS) technology.
• In Mar 2024 – Enviva Partners filed for bankruptcy due to financial struggles but plans restructuring to stabilize its wood pellet supply chain for biomass energy.
• In Jun 2024 – Ørsted entered the biomass sector with a $500M acquisition of a European biomass plant, shifting from wind to diversified renewables.
• In Sep 2024 – Mitsubishi Power launched a high-efficiency biomass gasification system, reducing emissions by 30% compared to conventional plants.
• In Dec 2024 – Ameresco secured a $200M contract to develop a 50MW biomass facility in California, using agricultural waste for clean energy production.

KEY PLAYERS ANALYSIS

• Drax Group
• Enviva Partners
• Ørsted
• Mitsubishi Power
• Ameresco
• Veolia
• Vattenfall
• ON
• RWE
• Babcock & Wilcox
• General Electric (GE)
• Siemens Energy
• Valmet
• Thermax
• Nexterra Systems
• MVV Energie
• Fortum
• DONG Energy (Ørsted)
• Sumitomo SHI FW
• Hitachi Zosen