APAC Biomass Market Research Report By Feedstock (Food Crop, Non-Food Crop, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae, Others), By Technology (Combined Heat and Power (CHP), Anaerobic Digestion and Feedstockification, Co-Firing, Landfill Feedstock), By Product (Biodiesel, Biomethanol, BioFeedstock, Others), By End Use (Industrial, Commercial, Residential) and By Regional (China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC)- Forecast to 2035.

APAC Biomass Market Overview

The APAC Biomass Market Size was estimated at 23.57 (USD Billion) in 2023. The APAC Biomass Industry is expected to grow from 24.15(USD Billion) in 2024 to 40.61 (USD Billion) by 2035. The APAC Biomass Market CAGR (growth rate) is expected to be around 4.839% during the forecast period (2025 - 2035).

Key APAC Biomass Market Trends Highlighted

The APAC Biomass Market is undergoing substantial development, which is being driven by the demand for cleaner energy sources and the growing demand for energy. In order to mitigate greenhouse gas emissions and improve energy security, governments throughout the region are proactively advocating for biomass as an integral component of their energy policies. This initiative is consistent with the commitments made during international climate agreements, in which APAC countries are establishing objectives to establish low-carbon economies. In addition, the industrial sector's expansion is a significant market driver, as it is actively seeking sustainable solutions for energy production and waste disposal. The APAC Biomass Market offers a plethora of opportunities, particularly in countries that are profuse in forestry resources and agricultural residues.

India, China, and Indonesia are concentrating on the conversion of agricultural refuse into energy, which provides a dual benefit of waste reduction and renewable energy generation. The potential of biomass can be further exploited, and efficiency can be enhanced through ongoing investment in sophisticated technologies, including gasification, anaerobic digestion, and biofuels. Local communities are able to generate energy while sustaining rural employment, as evidenced by the recent trend of a greater emphasis on small-scale biomass systems. This is also becoming more prevalent, as the integration of biomass with other energy sources, such as solar and wind, is a more dependable energy balance.

Furthermore, the push for sustainable waste management systems is gathering momentum, with a focus on circular economy principles that bolster biomass utilization in the region. The APAC Biomass Market is poised for rapid expansion in the near future as these trends continue to develop.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Biomass Market Drivers

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  Increasing Government Support for Renewable Energy

  
  

Governments across the Asia-Pacific (APAC) region are increasingly endorsing policies aimed at promoting renewable energy sources, including biomass. For instance, as per recent government initiatives, countries like India and Japan are investing heavily in Biomass energy projects to reduce dependence on fossil fuels and to meet climate targets. In India, the Ministry of New and Renewable Energy has set a target to generate 175 GW of renewable energy by 2022, with biomass accounting for a significant portion of that target.

Furthermore, the Asian Development Bank (ADB) is also committing substantial funding to renewable energy projects in the region, underscoring the commitment from various APAC governments towards fostering the APAC Biomass Market industry. This policy backing not only enhances financial viability but also encourages Research and Development in biomass technologies, thereby fueling market growth and prospects.

Rising Energy Demand in APAC

The Asia-Pacific region is witnessing a sharp rise in energy demand driven by rapid urbanization and industrialization. According to the International Energy Agency, energy demand in the APAC region is projected to increase by nearly 30 percent by 2040, with considerable contributions from emerging economies such as China and India. This surge necessitates the exploration of alternative energy resources like biomass to ensure energy security. As energy consumers seek sustainable and diverse energy sources, the APAC Biomass Market industry stands to benefit significantly.

In addition, with companies like Mitsubishi Corporation actively pursuing biomass energy solutions, the increased competition within the market contributes to innovation and improvements in biomass energy technologies.

Growing Environmental Awareness and Sustainability Initiatives

There is a growing trend in the APAC region regarding environmental awareness and sustainable practices, which has a positive influence on the adoption of biomass energy. Recent surveys indicate that approximately 70% of consumers in countries such as Australia and South Korea are in favor of renewable energy sources to combat climate change. This trend pushes governments and industries alike to turn towards greener alternatives, rendering biomass a preferred option.

Companies such as Enviva and Drax are collaborating with local organizations in APAC to promote sustainable biomass practices. As awareness and demand for cleaner, more sustainable energy options grow, the APAC Biomass Market industry is poised for growth, facilitated by increased investments and technological advancements.

Advancements in Biomass Technology and Energy Conversion

Recent technological advancements in biomass energy conversion processes are revolutionizing the APAC Biomass Market industry. Emerging technologies, such as advanced gasification and anaerobic digestion, are enhancing the efficiency of biomass energy production. For example, the development of integrated biorefineries is enabling the conversion of biomass into multiple forms of energy and bio-based products, further increasing market potential. The collaboration with leading universities and research institutions across APAC, such as the National University of Singapore, underscores significant progress in Research and Development efforts focused on biomass technologies.

These breakthroughs not only enhance the economic feasibility of biomass energy but also position the APAC Biomass Market industry for sustained growth and innovation.

APAC Biomass Market Segment Insights

Biomass Market Feedstock Insights

The Feedstock segment of the APAC Biomass Market is pivotal for the region's push toward sustainable energy solutions. This segment encompasses various sources, including Food Crops, Non-Food Crops, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae, and other materials. Each of these components contributes uniquely to the overall biomass production landscape, catering to diverse energy needs and applications. Food Crops are essential as they derive from agriculture, providing raw materials that can be transformed into biofuels and biochemicals, thereby promoting energy self-sufficiency and mitigating food waste.

Non-food crops, on the other hand, are increasingly recognized for their role in producing biomass energy without competing for food resources, enhancing sustainability practices within farming. The Wood segment, rich in raw materials from forestry, remains significant due to its abundance and the established infrastructure for harvesting and processing, driving further investments. Agricultural Residue, encompassing waste from farming activities, presents a crucial opportunity for waste valorization into energy sources, reducing environmental pollution while providing farmers with additional income streams.

Furthermore, Municipal Solid Waste (MSW) plays a vital role as a potential feedstock as urban areas in the APAC region continue to increase in population and waste generation, highlighting the importance of innovative waste management solutions that convert waste into valuable energy resources. Microalgae are gaining attention as a promising feedstock due to their rapid growth rates and ability to absorb carbon dioxide, representing a sustainable avenue for biofuel production. Other sources under this segment further diversify the feedstock availability, ensuring that the APAC Biomass Market maintains resilience and adaptability in response to changing energy demands and technological developments.

Increasing government initiatives support the overall market focused on renewable energy sources, along with consumer trends favoring sustainability, thereby paving the way for a more robust and environmentally friendly biomass industry in the region. Overall, the Feedstock segment stands as a foundation for the growth and evolution of biomass energy solutions within the APAC market, contributing to energy security, economic development, and environmental preservation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biomass Market Technology Insights

The Technology segment of the APAC Biomass Market showcases diverse methodologies that play a crucial role in renewable energy generation and waste management. Combined Heat and Power (CHP) systems are significant for their dual-output capability of generating electricity and useful heat from biomass, making them efficient and appealing for industrial applications. Anaerobic Digestion and Feedstockification are pivotal in converting organic materials into biogas and biofuels, promoting waste reduction and energy recovery. Co-firing is essential as it integrates biomass with fossil fuels in existing power plants, improving overall sustainability and reducing greenhouse gas emissions.

Additionally, Landfill Feedstock usage highlights the potential of utilizing waste materials, transforming them into valuable resources while contributing to waste management solutions. These innovative technologies respond to regional energy demands and environmental challenges, enhancing the APAC Biomass Market's growth potential. The increasing emphasis on renewable energy, along with supportive government policies and initiatives across various APAC countries, further solidifies the importance of these technologies in achieving energy sustainability and addressing climate change.

Biomass Market Product Insights

The APAC Biomass Market is showcasing a robust growth trajectory in its Product segment, which plays a crucial role in the region’s energy transition. As governments across APAC emphasize renewable energy sources, the focus on sustainable biofuels such as Biodiesel and Biomethanol has increased significantly. These biofuels are vital in reducing greenhouse gas emissions and fostering energy security, appealing to both consumers and industries looking for cleaner energy alternatives. In particular, Biodiesel is gaining traction due to its compatibility with existing diesel engines, making it a practical choice for transportation companies seeking to lower their carbon footprint.

Additionally, Biomethanol serves as a versatile energy source for various applications, including power generation and transportation, further enhancing its significance in the APAC market. BioFeedstock, another key component, supports the overall biomass production, acting as a fundamental resource for biofuel manufacturing. Together, these elements constitute an integral part of the APAC Biomass Market, addressing rising energy demands while promoting sustainable practices throughout the region. Moreover, the increasing focus on developing innovative technologies to optimize biomass conversion processes presents promising opportunities for stakeholders in this evolving market.

Biomass Market End-Use Insights

The APAC Biomass Market showcases a diverse array of end-use applications, significantly contributing to its overall growth and dynamics. Within this market, the Industrial sector plays a crucial role, leveraging biomass as a renewable energy source to reduce dependence on fossil fuels while enhancing sustainability. The Commercial segment demonstrates increasing interest as businesses strive for greener operational practices, integrating biomass for heating and energy production. In the Residential sector, consumers are increasingly adopting biomass heating systems, driven by the desire for eco-friendly alternatives and government incentives in various APAC nations.

Together, these segments highlight the multifaceted nature of biomass utilization, aligning with government initiatives centered on renewable energy adoption and emissions reduction. Overall, the APAC Biomass Market segmentation reflects a growing commitment towards sustainable energy practices, marking a paradigm shift within the regional energy landscape. This evolution is propelled by technological advancements and supportive policies aiming to enhance the efficiency and accessibility of biomass solutions across all end-use categories. By focusing on the potential of these applications, stakeholders can capitalize on the opportunities presented by the APAC Biomass Market while contributing to environmental sustainability.

Biomass Market Regional Insights

The Regional segment of the APAC Biomass Market plays a crucial role in harnessing renewable energy across multiple nations, each contributing uniquely to the overall growth and evolution of the industry. China commands a substantial share, driven by robust government initiatives aimed at reducing carbon emissions and increasing energy security. Close behind, India is experiencing growth fueled by rising energy demands and agricultural waste management strategies, underscoring the significance of biomass in addressing energy shortfalls. Japan showcases a strong emphasis on bioenergy following recent energy policy shifts, highlighting its commitment to sustainable practices.

South Korea has also been proactive in integrating biomass into its energy mix, using it to support its transition to a low-carbon economy. Malaysia and Thailand are leveraging their abundant biomass feedstock, particularly from palm oil and agricultural residues, to position themselves as key players in the market. Indonesia benefits from its vast forestry resources, driving innovations in biomass conversion technologies. The Rest of APAC includes diverse markets with varying potentials, each presenting unique opportunities for biomass energy development.

Overall, the APAC Biomass Market is characterized by a blend of strong governmental policies, growing public awareness, and an increasing need for sustainable energy solutions, making the region a vital area for biomass implementation and growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Biomass Market Key Players and Competitive Insights

The APAC Biomass Market has emerged as a significant sector within the renewable energy landscape, driven by the increasing demand for sustainable energy sources and the urgent need to mitigate climate change impacts. The competition in this market is characterized by various players who are leveraging technological advancements, strategic partnerships, and government initiatives to enhance their market presence and drive innovation. Various factors, such as resource availability, manufacturing capabilities, and distribution networks, play a crucial role in shaping competitive dynamics. As more countries within the Asia-Pacific region commit to reducing their carbon footprints and transitioning towards greener energy alternatives, the biomass market is set to witness heightened competitiveness among existing and new entrants in the industry.

NIPPON PAPER INDUSTRIES has been a prominent player in the APAC Biomass Market, showcasing its strengths in leveraging its existing infrastructure and expertise in paper production to transition into sustainable biomass solutions. The company has established a significant market presence throughout the region and has made substantial investments in research and development to enhance its biomass production technologies. By focusing on high-quality biomass sourcing and efficient processing methods, NIPPON PAPER INDUSTRIES has been able to gain a competitive edge in the market. The company's strong brand reputation, extensive distribution networks, and commitment to sustainability contribute to its ongoing success in the biomass sector within the APAC region, allowing it to respond effectively to increasing demand for renewable energy sources.

Babcock and Wilcox is another key player in the APAC Biomass Market, known for its innovative solutions in the energy sector. The company specializes in providing advanced biomass energy technology and services, offering a range of products, including combustion systems, emissions control systems, and engineering solutions tailored to biomass applications. Babcock and Wilcox have a well-established market presence in the APAC region, supported by successful projects and collaborations with various stakeholders in the industry. The strengths of the company lie in its deep technical expertise and experience in handling complex biomass energy projects. Furthermore, Babcock and Wilcox have pursued strategic mergers and acquisitions to bolster its capabilities and expand its product offerings tailored towards the region’s specific requirements, thus enhancing its competitive stance in the rapidly evolving biomass market of Asia-Pacific.

Key Companies in the APAC Biomass Market Include

• NIPPON PAPER INDUSTRIES


• Babcock and Wilcox


• AGL Energy


• Zeal Environmental Technologies


• Oji Holdings Corporation


• UPMKymmene Corporation


• Enviva


• Mitsubishi Corporation


• A biomass energy


• Adani Green Energy


• Green Plains


• Drax Group


• PLT Energy


• China Energy Investment Corporation


• Scandinavian Biogas Fuels International

APAC Biomass Market Industry Developments

The APAC Biomass Market has seen significant developments in recent months, with companies such as NIPPON PAPER INDUSTRIES expanding their renewable energy initiatives, including investments in biomass facilities to enhance production capabilities. In October 2023, Babcock and Wilcox announced the expansion of its biomass energy solutions to meet increasing demand in the region, while AGL Energy reported new contracts to provide biomass energy, reinforcing its commitment to sustainable alternatives. Additionally, Zeal Environmental Technologies secured funding for projects aimed at improving biomass processing technologies in Australia, emphasizing a shift towards more efficient energy generation.

In terms of mergers and acquisitions, Oji Holdings Corporation announced its intent to acquire a biomass plant in Indonesia in September 2023, marking a strategic move to enhance its portfolio in renewable energy. Drax Group is also actively seeking partnerships in the region to strengthen its biomass supply chain. The overall market valuation of companies like Adani Green Energy and Enviva continues to grow, driven by increasing governmental support for renewable energy in countries like Japan and Australia, ultimately impacting the biomass sector positively in the APAC region. Recent policy changes across these nations have created a more favorable environment for biomass investments and development.

Biomass Market Segmentation Insights

Biomass Market Feedstock Outlook

• Food Crop


• Non-Food Crop


• Wood


• Agricultural Residue


• Municipal Solid Waste (MSW)


• Microalgae


• Others

Biomass Market Technology Outlook

• Combined Heat and Power (CHP)


• Anaerobic Digestion and Feedstockification


• Co-Firing


• Landfill Feedstock

Biomass Market Product Outlook

• Biodiesel


• Biomethanol


• BioFeedstock


• Others

Biomass Market End-Use Outlook

• Industrial


• Commercial


• Residential

Biomass Market Regional Outlook

• China


• India


• Japan


• South Korea


• Malaysia


• Thailand


• Indonesia


• Rest of APAC

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	23.57(USD Billion)
MARKET SIZE 2024	24.15(USD Billion)
MARKET SIZE 2035	40.61(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.839% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	NIPPON PAPER INDUSTRIES, Babcock and Wilcox, AGL Energy, Zeal Environmental Technologies, Oji Holdings Corporation, UPMKymmene Corporation, Enviva, Mitsubishi Corporation, A biomass energy, Adani Green Energy, Green Plains, Drax Group, PLT Energy, China Energy Investment Corporation, Scandinavian Biogas Fuels International
SEGMENTS COVERED	Feedstock, Technology, Product, End Use, Regional
KEY MARKET OPPORTUNITIES	Renewable energy policies support, Increasing waste-to-energy initiatives, Agricultural residue utilization, Growing demand for biofuels, Technological advancements in biomass processing
KEY MARKET DYNAMICS	Government regulations, Growing energy demand, Sustainable waste management, Rising investment in renewables, Technological advancements in biomass processing
COUNTRIES COVERED	China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC