Biomass Power Market To Achieve USD 237.6 Bn by 2034

Overview

New York, NY – June 24, 2025 – The Global Biomass Power Market is poised for significant growth, projected to reach USD 237.6 billion by 2034, up from USD 140.4 billion in 2024, with a steady CAGR of 5.4% during the 2025–2034 forecast period.

In 2024, Combustion Technology commanded a 72.4% share of the Biomass Power Market’s technology segment. Its dominance stems from the widespread use of direct combustion systems, valued for their simplicity, cost-effectiveness, and proven reliability. Solid Biofuel led the Biomass Power Market’s feedstock segment in 2024, capturing a 67.3% share.

This dominance is driven by the high availability, low processing costs, and energy efficiency of solid biomass, such as wood pellets, chips. The Industrial sector dominated the Biomass Power Market’s end-use segment in 2024, holding a 54.7% share. This leadership reflects the growing reliance on biomass power among industries seeking sustainable, cost-effective energy solutions.

Key Takeaways

• Global Biomass Power Market is expected to be worth around USD 237.6 billion by 2034, up from USD 140.4 billion in 2024, and grow at a CAGR of 5.4% from 2025 to 2034.
• In 2024, Combustion technology dominated the Biomass Power Market with a 72.4% global share.
• Solid Biofuel led the feedstock segment in the Biomass Power Market, capturing 67.3% share.
• Industrial end-use held a strong position in the Biomass Power Market with a 54.7% share globally.
• The Biomass Power market value in Europe reached a total of USD 64.3 billion.

How Growth is Impacting the Economy

• The Biomass Power Market’s growth significantly boosts economies worldwide by creating jobs in biomass production, plant operations, and supply chain logistics, particularly in rural areas rich in agricultural and forestry resources. Investments in biomass infrastructure, especially in Europe and the Asia Pacific, stimulate local economies through construction and maintenance activities. The shift from coal to biomass reduces reliance on fossil fuels, enhancing energy security and stabilizing energy costs.
• Additionally, biomass utilization of agricultural residues and waste supports waste management, reducing environmental costs. Government incentives and renewable energy targets further drive economic activity, fostering innovation in energy technologies and attracting foreign investments, contributing to sustainable economic development.

➤ Curious about the content? Explore a sample copy of this report – https://market.us/report/global-biomass-power-market/request-sample/

Strategies for Businesses

• Businesses in the Biomass Power Market should focus on strategic partnerships with local feedstock suppliers to ensure cost-effective and sustainable sourcing. Investing in advanced combustion and gasification technologies can enhance efficiency and reduce emissions, aligning with regulatory standards. Companies should leverage government subsidies and renewable energy credits to offset capital costs.
• Expanding into emerging markets like Asia Pacific and Latin America, where biomass potential is untapped, offers growth opportunities. Additionally, adopting circular economy practices, such as using industrial waste as feedstock, can improve profitability while supporting sustainability goals, positioning businesses as leaders in the renewable energy sector.

Report Scope

➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=150090

Key Market Segments

By Technology Analysis

• In 2024, Combustion Technology commanded a 72.4% share of the Biomass Power Market’s technology segment. Its dominance stems from the widespread use of direct combustion systems, valued for their simplicity, cost-effectiveness, and proven reliability. Combustion remains the go-to method for converting biomass into energy, particularly for large-scale industrial and utility applications. It efficiently processes diverse feedstocks like wood chips, agricultural residues, and municipal solid waste. 
• The technology’s market leadership is bolstered by extensive infrastructure support and regulatory familiarity, especially in rural areas with abundant biomass resources where combustion plants require lower upfront investment than advanced alternatives. The ability to retrofit coal-fired power stations with biomass combustion systems has further driven its adoption. Supported by government incentives and renewable energy policies aimed at reducing emissions, combustion technology continues to hold a strong position in the market.

By Feedstock Analysis

• Solid Biofuel led the Biomass Power Market’s feedstock segment in 2024, capturing a 67.3% share. This dominance is driven by the high availability, low processing costs, and energy efficiency of solid biomass, such as wood pellets, chips, sawdust, and agricultural residues.
• These feedstocks are easy to store, transport, and combust, making them ideal for both small- and large-scale power plants. Solid biofuels benefit from well-established supply chains, particularly in regions with robust forestry and agricultural sectors.
• Their consistent energy output and compatibility with existing combustion systems, especially in retrofitted coal plants, reinforce their market preference. Government initiatives promoting renewable energy and waste-to-energy programs further boost solid biofuel use, encouraging the conversion of agricultural residues into valuable energy sources, which supports both environmental and economic goals.

By End Use Analysis

• The Industrial sector dominated the Biomass Power Market’s end-use segment in 2024, holding a 54.7% share. This leadership reflects the growing reliance on biomass power among industries seeking sustainable, cost-effective energy solutions. High-energy-demand sectors like pulp and paper, cement, food processing, and chemicals increasingly adopt biomass systems to cut fossil fuel use and reduce carbon emissions.
• Biomass power’s ability to provide both electricity and process heat through cogeneration makes it highly appealing for industrial applications. Many facilities leverage in-house biomass waste, such as husks and residues, to enhance efficiency and lower costs. Regulatory pressures, energy security needs, and government incentives, including tax benefits and renewable energy credits, drive industrial investment in biomass power, aligning with sustainability objectives and diversifying energy sources.

Regional Analysis

• Europe led the global Biomass Power Market in 2024, capturing a 45.8% share valued at USD 64.3 billion. The region’s dominance is driven by robust renewable energy policies, widespread use of biomass-powered combined heat and power (CHP) plants, and strong government incentives promoting decarbonization. Nations like Germany, Sweden, and Finland have heavily invested in sustainable biomass infrastructure, ensuring a reliable feedstock supply and efficient power generation systems.
• North America trailed with consistent growth, fueled by supportive bioenergy regulations and a shift from coal to renewable energy sources. Asia Pacific exhibited significant progress, propelled by rising energy needs, abundant agricultural residues, and expanding rural electrification initiatives. The Middle East & Africa region is slowly emerging in the biomass sector, with small-scale projects focused on enhancing waste management and local energy production. Latin America, endowed with vast forestry and agricultural resources, is tapping into biomass potential, particularly in Brazil and Argentina, to bolster its renewable energy landscape.

Recent Developments

1. Mitsubishi Heavy Industries, Ltd. (MHI)

• MHI has been advancing biomass co-firing technologies to reduce carbon emissions in thermal power plants. The company is involved in projects converting coal-fired plants to biomass, such as the Takasago Thermal Power Station. MHI also collaborates on biomass gasification and carbon capture solutions.

2. Suez

• SUEZ is focusing on biomass energy from organic waste, operating waste-to-energy plants across Europe. The company recently expanded its biomass capacity in the UK, converting non-recyclable waste into renewable energy while reducing landfill dependence.

3. Xcel Energy Inc.

• Xcel Energy is transitioning coal plants to biomass in its renewable energy push. The company’s Harrington Station in Texas now uses biomass alongside natural gas. Xcel aims to achieve 100% carbon-free electricity, with biomass playing a key role.

4. Ramboll Group A/S

• Ramboll is providing engineering and consultancy services for large-scale biomass projects, including district heating plants in Scandinavia. The firm recently designed a biomass-fired CHP plant in Denmark, optimizing efficiency and emissions control.

5. Babcock & Wilcox Enterprises, Inc. (B&W)

• B&W has secured contracts for biomass boiler upgrades. The company’s B&W Renewable segment focuses on biomass and waste-to-energy solutions, emphasizing carbon-neutral power generation.

Conclusion

The Biomass Power Sector is growing as companies and governments push for cleaner energy solutions. Major players like Mitsubishi Heavy Industries, Xcel Energy, and Babcock & Wilcox are shifting from coal to biomass, while firms like SUEZ and Ramboll are improving waste-to-energy systems. The market is driven by stricter carbon regulations, renewable energy targets, and advancements in biomass conversion technology. Although challenges like fuel supply and costs remain, biomass power is expected to play a key role in the global transition to sustainable energy, especially in industries needing reliable, low-carbon power.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF