Biomass Power Generation Market Size, Share & Trends Analysis Report By Product (Solid Biomass, Biogas, Municipal Solid Waste, and Liquid Biomass), By Applications (Residential, Business, industry, agriculture, transportation, other), By Connectivity, By End Use, By Region, and Segment Forecasts

BIOMASS POWER GENERATION MARKET OVERVIEW

The global biomass power generation market size was valued at USD 52434.46 million in 2025 and is projected to grow from USD 55564.8 million in 2026 to USD 66122.39 million by 2035, at a CAGR of 5.97% from 2026 to 2035.

The Biomass Power Generation Market has become a new generation that focuses on using materials that can be easily reclaimed – Agricultural residues, wood, energy crops, and so on to generate power. There is an increasing demand for energy that is available on the global market and is more sustainable and biomass power generation is a proper solution to the issue of global warming and less usage of fossil fuels. Market expansion is further propelled by; the government's embrace of renewable energy, technological advancement, and the increasing environmental consciousness. The biomass power generation market has had more investment and creativity in recent years, so within the foreseeable distance, it will have great development.

The United States remains one of the world's largest producers of biomass-based electricity, supported by abundant forest residues, agricultural waste, municipal solid waste, and landfill gas resources. At the end of 2024, the U.S. operated approximately 5 GW of utility-scale biomass generating capacity, producing more than 21 billion kWh of electricity annually. States such as California, Florida, Maine, Georgia, and Virginia continue to lead biomass generation due to strong forestry and agricultural industries. Biomass also supports grid reliability by providing dispatchable renewable power, while combined heat and power (CHP) facilities improve energy efficiency across industrial manufacturing and pulp and paper operations.

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KEY FINDINGS

• Market Size and Growth: The Biomass Power Generation Market size was USD 49480.47 Million in 2024, is projected to grow to USD 52088.17 Million by 2025 and exceed USD 58882.01 Million by 2033, with a CAGR of 5.97%.

• Key Market Driver: Global demand for cleaner alternatives has surged—more than 800 biomass-fired plants were operating worldwide by the end of 2023, many of them converting agricultural waste into usable electricity.

• Major Market Restraint: Feedstock inconsistency remains a major issue—roughly 22% of plants in Southeast Asia reported seasonal shortages of raw biomass, causing supply chain hiccups and operational delays.

• Emerging Trends: Co-firing technology is seeing a quiet boom—Japan and the U.S. tested dual-fuel biomass blending in over 50 plants last year, showing a 12% gain in energy efficiency compared to conventional setups.

• Regional Leadership: Europe still leads the charge—Germany, the U.K., and Sweden collectively produced over 80 TWh of biomass-based electricity in 2023 alone, with supportive government policies driving deployment.

• Competitive Landscape: It’s a moderately consolidated space—about 40 key companies control over 70% of installed global capacity, with names like Drax Group, Ørsted, and Babcock & Wilcox consistently pushing boundaries.

• Market Segmentation: Thermal biomass technology dominates, accounting for nearly 63% of installed generation capacity, while anaerobic digestion is picking up speed in rural and off-grid areas.

• Recent Development: In early 2024, India commissioned its largest biomass cogeneration plant in Punjab with a 75 MW capacity—projected to utilize 600,000 tons of crop residue annually and reduce stubble burning significantly.

COVID-19 IMPACT

"Biomass Power Generation Industry Had a Negative Effect Due to the COVID-19 Pandemic:"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. This increase in CAGR as a result of sudden market growth is due to the market and its demand coming back to normal after the period of the pandemic.

The Biomass Power Generation Market was highly affected by COVID-19 and the key factors were mainly related to the lockdown measures that disrupted the supply chains and the automated processes to a certain extent at a lower performance level. Most of the biomass facilities were either shut down or running at sub-optimal capacity because of the absence of a workforce and restricted transportation. However, the global recession caused a reduction in the amount of funds available for investment into projects aimed at creating renewable sources of energy effectively halting the development of biomass technology. Consequently, the total market during this period stalled in terms of growth which made it even harder to transition into cleaner energy sources.

LATEST TREND

"Biomass co-firing enhances market growth by promoting cleaner energy solutions"

In the Biomass Power Generation Market, a number of recent trends are emerging, such as the adoption of improved biomass technology, biomass blending with other renewable energy resources, and increased focus on waste to energy. A key trend in this respect is the growing attention given to the use of biomass as supplementary fuel in power plants firing fossil fuels. This trend is due to the fact it helps to mitigate the adverse environmental impact of power generation while enabling the full exploitation of the existing facilities. Such practices increase energy efficiency and aid in the gradual shift to cleaner and more sustainable sources of energy in the market in line with the current efforts to control greenhouse gas emissions. Therefore, it is clear that utilities are embarking on co-firing as a measure to meet the established environmental regulations and the pervasive demand among consumers for cleaner energy.

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BIOMASS POWER GENERATION MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Solid Biomass, Biogas, Municipal Solid Waste, and Liquid Biomass

• Solid Biomass: Timber, crop residues, and specially grown energy crops comprise a significant fraction of the solid biomass used in the biomass power generation business. It is abundant and has complementary developments in combustion technologies that enable the efficient utilization of the resource without influencing climate change. Today the demand for sustainable and zero-emissions energy is driving more investment into the construction of new solid biomass power plants.

• Biogas: The biomass power generation also gets input from inorganic organic materials like food waste and livestock excreta through anaerobic treatments to generate biogas. It is an energy resource that is renewable and assists in waste disposal since the waste product can be used to generate energy for electricity or fuel for automobiles. The awareness of wastage of biogas energy technologies and the supportive policies on the biogas projects make it possible to use biogas.

• Municipal Solid Waste: It has been observed that municipal solid waste can serve as a useful raw material in biomass pooled energy production in that it serves two purposes of solid refuse disposal and energy generation at the same time. Incineration and gasification are other approaches currently being worked on to convert municipal solid waste into usable energy sources without causing too much damage to the environment. Considering the fact that urban centers find it increasingly difficult to find disposal sites for solid wastes, sounds buried to generate energy from waste are attracting attention as a means to promote sustainability.

• Liquid Biomass: Liquid biomass is manufactured from edible plant oils and biofuels, and because of its convenience and flexibility its application in biomass power generation is growing. It can be used for a number of applications, such as generating electric power and transportation fuels, thus promoting a more eco-friendly energy system. Continuous deployment of more renewable sources and the quest to lessen the reliance on fossil fuels are among the factors fuelling the growth of the liquid biomass sector.

By Application

Based on application, the global market can be categorized into Residential, Industrial and Commercial

• Residential: This is the heat and power generation with clean energy application of Biomass power generation in the residential sector. Consequently, the main type of biomass systems being employed by homeowners includes pellet stoves or small biomass boilers to reduce reliance on fossil fuel and energy costs. This is with regard to environmental conservation energy security and greenhouse gas emissions.

• Industrial: Within the industrial sector biomass power generation introduces essential structures that ensure the conversion of biomass material into energy at levels sufficient to aid production or to run the operations. For instance, there is an industry of paper and pulp linear in which they also recycle waste from biomasses, to produce steam and electricity, thus becoming more energy efficient and less waste generating. In this scenario, the said operational dynamics ensure the provision of clean energy, while still meeting the challenges of corporate sustainability.

• Commercial: On the other hand, commercial sector biomass power generation is targeted towards supplying power needs for commercial processes such as heating and cooling as well as electricity used in commercial production. For example, biomass systems are currently used in hotels, universities, and hospitals to reduce energy expenses while supporting sustainability initiatives. It assists them reduce their emissions of carbon and at the same time acquiring cheap and clean energy from biomass.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges stating the market conditions:

Driving Factors

"Increasing Demand for Renewable Energy"

The awareness of global warming has led to a demand in renewable energy sources and biomass as well. Every government in the world is establishing policies and propounding measures to encourage consumers of relatively cleaner energy to adopt even cleaner energy. For this reason, biomass electricity generation is increasingly being integrated into countries’ energy plans within the framework of energy sustainability plans.

"Technological Advancements"

The development of technologies used in biomass power generation like anaerobic digestion, and gasification among others is enhancing biomass power generation. This makes it possible to use other sources of biomass more efficiently hence increasing the generation of power while at the same time decreasing the costs. As the technology advances further, biomass energy is gradually being made less difficult to harness. This is further complemented by the growing need for energy resources for which in turn assist in the development of the market.

Restraining Factor

"High capital investment and raw material costs hinder biomass power market growth"

One major hindrance that prevents the growth of the Biomass Power Generation Market is a barrier to entry caused by the large amounts of capital investment needed for infrastructure and equipment. Creating biomass power plant projects is expensive because a large portion of the capital is spent on machinery, raw material acquisition, and even licenses, which may discourage most investors. Furthermore, the changes in prices and availability of raw materials add to the financial challenges thus limiting the growth of the market as a whole.

Opportunity

"Biomass Power Generation Market growth is driven by sustainability initiatives"

The Biomass Power Generation Market has vast growth potential considering the current focus on renewable energy and sustainable development. Investment in biomass technologies can be spurred by government incentives and clean energy policies as they transform these technologies to be more commercially feasible. In addition, the improvements in the conversion technology and efficiency may enable biomass to be more competitive than the use of conventional fossil fuel sources. This practice is in tandem with the ongoing global agenda to diminish greenhouse gas emissions, as well as the move towards a circular economy, which is accelerating the uptake of biomass in numerous industries.

Challenge

"Supply chain challenges hinder biomass power generation market growth"

The Biomass Power Generation Market share encounters an obstacle, which is the concern of the steadiness and uniformity of the supply of biomass feedstock. This is due to seasonal variations in the availability of feedstock, other sectors fighting for the same feedstock, and changes in agricultural production levels. Such variations may affect the solidity and economic viability of the biomass power regime, forcing producers to constantly arm their operations. The collection, transport, and storage of biomass materials also adversely affect the supply chain and consequently the market growth.

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BIOMASS POWER GENERATION MARKET REGIONAL INSIGHTS

North America

The Market for Biomass Power Generation is mostly dominated by North America owing to its abundant natural resources, already-developed facilities, and government policies that encourage the use of renewable sources of energy. The region also enjoys an increasing emphasis on sustainability and reducing the carbon footprint which leads to more funds being channeled towards biomass projects. Of all the North American regions, the United States is the foremost contributor to the Biomass Power Generation Market Growth by investing heavily and improving biomass technologies. The United States Biomass Power Generation Market has numerous application segments from power generation stations to combined heat and power thus reaffirming its position as a leader in this sector.

Europe

Europe, owing to strict environmental regulations and dedication towards carbon emission reduction, is the most important region in the Biomass Power Generation Market. This area has put in place an array of incentives and subsidies for the use of renewable energy sources, one of which is biomass, resulting in the building of biomass power plants. Furthermore, technological advancement and the rise in the consciousness of the population towards sustainable energy have enhanced the use of biomass in Europe. Such regulatory assistance, together with technological developments, makes Europe the most dominant region in the biomass power generating market worldwide.

Asia

Asia plays a significant role in the Biomass Power Generation Market owing to fast-paced industrialization and the growing demand for renewable energy. Countries such as China and India are undertaking biomass projects more readily to minimize the use of fossil fuels and deal with environmental issues. Regionally, market expansion is further enhanced by government policies and incentives that encourage the use of renewable energy sources. Moreover, the excess agricultural residues and biomass resources available in Asia present an advantage to increasing biomass power generation capacity.

KEY INDUSTRY PLAYERS

"Strategic R&D and collaborations to drive market growth in biomass power"

Strategic Research and Development Activities, Technology Implementation, and Collaborations with Other Industry Participants are the kinds of factors that are helping the Key Industry Players in the Biomass Power Generation Market to gain momentum. The quest to improve operational efficiency and reduce costs led to the development of new technologies in biomass. These players also pursue engagement in sustainable development and policy-making and even encourage the use of biomass energy systems around the globe.

List of Top Biomass Power Generation Companies

• General Electric Co. (Massachusetts, U.S.)
• Acciona SA (Spain)
• ENGIE SA (France)
• Clarke Energy (England)
• John Wood (Scotland)

KEY INDUSTRY DEVELOPMENT

"Technological Advancements and Support To Drive Market Growth"

April 2024: Marubeni Corporation, a Japanese multinational, entered a strategic partnership to expand biomass power generation capabilities. This collaboration, aimed at enhancing energy sustainability, supports Marubeni's goal of achieving more eco-friendly power production. The development aligns with broader market trends as the biomass power sector continues to grow due to increased environmental regulations, renewable energy targets, and advancements in biomass conversion technologies. With significant governmental incentives globally, such as Australia’s substantial bioenergy funding through its Powering Australia plan, biomass power generation is projected to continue its growth trajectory through 2032.

Five Recent Developments (2023-2025)

• Drax Group (2025): Drax continued expanding sustainable pellet sourcing in the U.S., with its North American pellet plants maintaining a combined production capacity exceeding 4 million tonnes per year.
• Enviva (2024): Enviva strengthened operations across the U.S. Southeast, operating pellet manufacturing facilities with total nameplate production capacity of approximately 6.2 million metric tonnes annually.
• Veolia North America (2024): Veolia expanded landfill gas-to-energy projects in the U.S., increasing renewable electricity generation by capturing methane from municipal waste facilities.
• Ameresco (2023): Ameresco commissioned additional renewable natural gas and biomass energy projects, adding new waste-to-energy capacity for municipalities and industrial customers across several U.S. states.
• Babcock & Wilcox (2025): Babcock & Wilcox secured new contracts to modernize biomass-fired boiler systems, improving efficiency and emissions performance for utility and industrial biomass power plants in North America.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies, and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.