Bio-Energy Market To Achieve USD 289 Bn by 2034

Overview

New York, NY – March 25, 2025 – The Bio-Energy Market is on an impressive growth trajectory, expected to expand from USD 140.2 billion in 2024 to around USD 289 billion by 2034, achieving a steady CAGR of 7.5% during the forecast period from 2025 to 2034.

This surge is driven by heightened demand for renewable energy sources as industries and consumers alike seek sustainable energy alternatives. The popularity of bio-energy is climbing, fueled by its potential to reduce environmental impacts and offer renewable solutions by converting biological materials into energy.

This sector is ripe with opportunities, particularly as technological advancements and government support accelerate. Innovations in bio-energy utilization and increased investments are set to widen market scope and introduce new avenues for expansion, underlining its growing role in a sustainable energy future.

Key Takeaways

• The global Bio-Energy Market was valued at USD 140.2 Billion in 2024.
• The global Bio-Energy Market is projected to grow at a CAGR of 7.5% and is estimated to reach USD 289.0 Billion by 2034.
• Among types, solid biomass accounted for the largest market share of 52.2%.
• Among feedstock, wood waste accounted for the majority of the market share at 38.4%.
• By technology, gasification accounted for the largest market share of 38.5%.
• By application, power generation accounted for the majority of the market share at 49.2%.
• Europe is estimated as the largest market for Bio-Energy with a share of 39.9% of the market share.

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Report Scope

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Key Market Segments

Type Analysis

• The bioenergy market is categorized by type into solid biomass, biogas, renewable waste, and other segments. In 2024, solid biomass captured a dominant 52.2% revenue share, driven by its widespread availability, adaptability, and affordability as a renewable energy source. Comprising materials like wood pellets, agricultural residues, and organic waste, solid biomass serves as a highly efficient feedstock for producing electricity, heat, and biofuels.

Feedstock Analysis

• The market is further segmented by feedstock into agricultural waste, wood waste, solid waste, and other categories. Wood waste led in 2024 with a commanding 38.4% market share, owing to its abundance, cost-effectiveness, and efficient energy conversion. Sourced from timber production, sawmills, and furniture manufacturing, wood waste stands out as a readily available, renewable resource ideal for bioenergy generation.

Technology Analysis

• By technology, the market splits into gasification, fast pyrolysis, fermentation, and other methods. Gasification took the lead in 2024 with a significant 35.5% market share, thanks to its efficiency and flexibility in processing diverse feedstocks like biomass, agricultural residues, and waste materials into valuable energy outputs. This process yields syngas a clean, high-energy gas suited for electricity, heating, or biofuel production making gasification a top choice for large-scale energy projects.

Application Analysis

• The market is divided by application into power generation, heat generation, transportation, and other uses. Power generation dominated in 2024 with a robust 49.2% market share, fueled by rising global demand for renewable energy to replace fossil fuels and cut carbon emissions. Biomass and biogas, utilized in power plants, offer a dependable and scalable electricity source, meeting energy demands while advancing sustainability objectives.

Regional Analysis

• Europe leads the global bioenergy market, holding a 39.9% share, thanks to robust government policies, cutting-edge technology, and a rich variety of biomass resources. The European Union has rolled out initiatives like the Renewable Energy Directive and the European Green Deal to drive bioenergy production and meet climate goals. Nations such as Sweden, Finland, and Germany bolster this growth with subsidies and incentives, cementing Europe’s position as a major force in the sector.
• Europe has pushed beyond conventional biomass sources like firewood, advancing into sophisticated systems such as biogas, biomass gasification, and biofuels. Germany and Denmark, in particular, have poured significant investment into these technologies, optimizing biomass use for efficiency and environmental benefits. This continuous innovation keeps Europe at the forefront of the global bioenergy landscape, blending sustainability with competitiveness.
• The region’s bioenergy market also thrives on a plentiful and varied supply of biomass feedstocks, including wood, agricultural leftovers, and waste materials. As bioenergy demand rises, Europe is poised to lean more on agricultural biomass and waste streams, reducing dependence on wood. This transition not only boosts sustainability but also supports rural economies by tapping into local resources. Europe’s focus on responsibly sourced biomass ensures bioenergy remains a green and viable energy option.

Top Use Cases

• Electricity Generation: In Brazil, bioenergy from sugarcane bagasse, black liquor, and wood processing residues is utilized to generate electricity. Bioenergy contributed to 8.2% of Brazil’s total electricity generation, showcasing its pivotal role as a renewable energy source.
• Transportation Fuel: Brazil has also effectively integrated biofuels into its transportation sector. Ethanol, produced from sugarcane, replaced 45% of gasoline consumption. This integration extends to all vehicles, including motorbikes and trucks, highlighting biofuels’ versatility and capacity to significantly reduce CO2 emissions.
• Advanced Biofuel Technologies: Innovative projects in Europe demonstrate the potential of advanced biofuels. For instance, enzymatic hydrolysis processes in Germany convert biomass to ethanol, supporting the transition towards sustainable biofuel production at a commercial scale.
• Biogas for Clean Cooking: Kenya’s National Cooking Transition Strategy focuses on expanding access to clean cooking by 2028, utilizing bioethanol and biogas, which helps reduce the traditional use of biomass and enhances household air quality.
• Industrial Applications: The industrial sector is increasingly adopting bioenergy for various processes. For example, in the pulp and paper industry, as well as in food and tobacco production, bioenergy use is set to rise significantly by 2030, supporting sustainable operations and reducing reliance on non-renewable energy sources.

Recent Developments

• In March 2025, St1 Biokraft, a top biomethane producer in the Nordic region, purchased Södra Hallands Kraft Biogas AB, including its facility in Hov, Sweden. This acquisition boosts St1 Biokraft’s production capacity by 25 GWh and supports its goal of achieving 3 TWh of production by 2030.
• In September 2024, Gensol Engineering teamed up with Matrix Gas & Renewables to win a ₹164 crore contract for India’s first bio-hydrogen project. The initiative will transform 25 tons of bio-waste into 1 ton of hydrogen each day, aligning with India’s National Green Hydrogen Mission, with completion expected within 18 months.
• In January 2025, VTTI established VIDA Bioenergy, a wholly-owned subsidiary focused on turning biomass into renewable energy. Under CEO Lars Boetje’s leadership, VIDA Bioenergy will operate independently to deliver clean energy solutions like biomethane, biogenic CO2, and organic fertilizer, aiding decarbonization in buildings, heavy transport, and industrial heat. This step reflects VTTI’s dedication to sustainability and bioenergy innovation.
• In November 2024, Nufarm entered into strategic R&D collaborations to grow its bioenergy platform, emphasizing sustainable oils and biofuels. By enhancing Biomass Oil trait technology, Nufarm aims to develop high-biomass crops for biofuels and other consumer products.

Conclusion

The Bio-Energy Market stands as a cornerstone in the transition towards a sustainable energy future. With its proven potential to significantly cut down carbon emissions while providing robust energy solutions across various sectors, bio-energy is not just an alternative but a necessity in the global energy landscape. As we look ahead, the expansion of bio-energy is imperative, driven by technological advancements, supportive policies, and growing environmental awareness. This growth promises not only environmental benefits but also economic opportunities, making bio-energy a key player in achieving global sustainability goals.

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