Biomass Power Generation Market Size Valued at USD 210.0 Bn by 2034

Overview

New York, NY – March 27, 2025 – The Biomass Power Generation Market is experiencing notable growth, driven by increasing demand for renewable energy sources. Projected to expand from USD 125.3 billion in 2024 to USD 210.0 billion by 2034, this market thrives at a compound annual growth rate (CAGR) of 5.3%.

The surge in the popularity of biomass for power generation can be attributed to its ability to reduce dependence on fossil fuels and decrease greenhouse gas emissions. As more businesses and governments push for sustainable energy solutions, opportunities in this market are expanding.

Technological advancements in biomass energy conversion are enhancing its efficiency and appeal, making biomass a more competitive option in the global energy mix. The market’s expansion is further supported by favorable government policies and incentives aimed at promoting renewable energy, highlighting the vast potential for growth and investment in this sector.

Key Takeaways

• The global Biomass Power Generation Market is projected to grow from USD 125.3 billion in 2024 to USD 210.0 billion by 2034, at a (CAGR) of 5.3% from 2025 to 2034.
• Woody Biomass held a dominant market position, accounting for over 48.3% of the global biomass power generation market.
• Combustion Technology led the market in 2024, capturing more than 56.3% of the global biomass power generation market.
• Solid fuels, such as wood chips, pellets, and agricultural residues, dominated the market in 2024, holding a 69.4% share.
• The Asia-Pacific (APAC) region was the largest market for biomass power generation in 2024, accounting for approximately 37.5% of the global market, valued at USD 46.9 billion.

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Report Scope

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Key Market Segments

By Feedstock

• In 2024, Woody Biomass maintained a strong presence in the biomass power generation market, securing over 48.3% of the global share. Derived from wood and related materials like sawdust, chips, and bark, this biomass type is preferred for its high energy potential and ready availability. The ongoing preference for woody biomass is driven by its efficient energy production and the sustainable harvesting of forest residues.

By Technology

• In 2024, Combustion technology will dominate the biomass power generation market, accounting for more than 56.3% of the global market share. This method, which burns organic materials like wood and agricultural residues to produce heat and subsequently electricity, is favored for its simplicity and effectiveness. The established infrastructure for combustion also makes it a dependable option for energy production.

By Fuel

• In 2024, Solid Fuel was predominant in the biomass power generation market, claiming more than 69.4% of the global share. Solid fuels, including wood chips, pellets, and agricultural residues, are chosen for their high energy content, affordability, and availability. These fuels are particularly advantageous in large power plants where their combustion supports steady and efficient electricity generation.

Regional Analysis

• The Asia-Pacific (APAC) region held a major portion of the global biomass power generation market, accounting for about 37.5% with a market value of USD 46.9 billion. This significant market share is due to the region’s large population, rapid industrialization, and increasing demand for sustainable energy solutions.
• Leading the way in biomass adoption are countries like China, India, Japan, and South Korea, motivated by the urgency to cut carbon emissions and enhance energy security. As the largest emitter of greenhouse gases globally, China has heavily invested in renewable energies, including biomass. By 2024, China’s biomass power capacity surpassed 20 GW, supported by government initiatives such as subsidies for biomass plants and the utilization of agricultural residues as feedstock.
• India leverages its extensive agricultural industry to utilize crop residues, forestry waste, and other organic materials for power generation. Despite having smaller biomass capacities, Japan and South Korea are advancing in technologies like biomass cogeneration and are committed to reaching ambitious renewable energy goals.

Top Use Cases

• Residential Heating: Biomass power generation is increasingly used for residential heating purposes, utilizing biomass boilers to burn wood pellets, chips, or logs. This method provides a cost-effective, renewable heating solution that significantly reduces carbon emissions compared to traditional fossil fuels.
• Electricity Generation: Many power plants convert biomass into electricity by burning organic materials like wood, agricultural waste, and biodegradable industrial waste. This not only helps in managing waste but also produces clean energy, contributing to the reduction of greenhouse gas emissions.
• Combined Heat and Power (CHP): Biomass is utilized in CHP systems to generate both electricity and thermal energy simultaneously. This efficient use of energy is particularly beneficial for industrial settings, where both heat and power are in constant demand, enhancing energy efficiency and reducing operational costs.
• Rural Energy Supply: In remote and rural areas, biomass power can be a game-changer, providing a reliable source of energy where traditional power grids are unavailable. Biomass systems can use locally sourced materials, reducing energy costs and promoting local economic development.
• Biogas Production: Biomass is instrumental in biogas production through the anaerobic digestion of organic materials. The biogas produced can be used as a fuel for cooking and lighting, offering a sustainable energy solution, especially in underserved communities.

Recent Developments

1. ACCIONA

• ACCIONA is advancing biomass energy with its 49.9 MW biomass plant in Spain, using agricultural waste. The plant supplies renewable energy to 400,000 people, reducing CO₂ emissions by 340,000 tons annually. ACCIONA also explores hybrid biomass-solar projects to enhance efficiency.

2. Ameresco, Vattenfall AB

• Ameresco partnered with Vattenfall to convert a coal plant in the Netherlands to biomass, reducing emissions by 1.5 million tons/year. The project supports the EU’s green transition. Vattenfall also explores sustainable biomass sourcing to ensure carbon neutrality.

3. Babcock & Wilcox Enterprises, Inc

• B&W launched its B&W Renewable segment, focusing on biomass and waste-to-energy solutions. Their Bubbling Fluidised Bed technology improves efficiency in biomass plants. A recent contract in Europe aims to convert coal plants to biomass, supporting decarbonization.

4. Belgian Eco Energy (BEE)

• BEE is developing a 215 MW biomass power plant in Belgium, using wood residues. The project aligns with EU renewable targets, providing baseload green energy. BEE emphasizes sustainable sourcing to avoid deforestation concerns.

5. D.E.S.I Power

• D.E.S.I Power focuses on decentralized biomass plants in rural India, using agricultural waste. Recent projects include small-scale biogas and biomass gasification for off-grid communities, enhancing energy access, and reducing emissions.

Conclusion

The Biomass Power Generation market holds significant potential for sustained growth and development. With an ongoing shift toward renewable energy sources worldwide, biomass stands out as a crucial player in achieving energy sustainability. The market is set to grow robustly, supported by advancements in technology that enhance the efficiency and effectiveness of biomass-based power generation. Furthermore, supportive government policies and the global push for cleaner energy sources are likely to continue driving investment and innovation in this sector.

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