Biomass Power Market Size

Biomass Power Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global market for bio-energy is expected to reach a size of $ 137.81 billion in 2024, and is expected to reach $ 224.16 billion in 2032. This growth translates into a CAGR of 5.6% over the forecast period. The growing demand for alternative energy sources, mainly due to the need to reduce greenhouse gas emissions and combat climate change, is driving the growth of this market. The development of conversion techniques for biomass and the increased adoption of sustainable practices by various industries are also expected to increase the market's potential. The leading players in the bio-energy sector, such as Drax Group, Enviva, and Veolia, are focusing on developing their technology and forming strategic alliances to strengthen their positions in the market. Drax, for example, is expanding its capacity for generating bio-energy and enhancing the efficiency of its plants through technological improvements. Enviva, on the other hand, has entered into long-term supply agreements to ensure a stable supply of raw materials for its production of bio-energy. These strategic initiatives, combined with favorable government policies and the introduction of subsidies for the use of renewable energy, are expected to support the growth of the bio-energy market.

Regional Market Size

Regional Deep Dive

Biomass Energy Market is experiencing a substantial growth in various regions, driven by increasing energy demand, the shift towards the use of renewable energy sources and supportive government policies. In North America, the market is characterized by the presence of advanced technologies and the emphasis on sustainable practices. Europe is the leader in the field of regulatory frameworks, whereas Asia-Pacific is characterized by the rapid expansion of the capacity of the biomass industry, owing to the rapid urbanization and industrialization. The Middle East and Africa (MEA) are beginning to explore the use of biomass as an energy source, while Latin America is characterized by the use of agricultural resources to enhance the production of biofuels.

North America

• Biomass energy has been promoted by the U.S. Department of Energy, which has also supported research and development for converting bio-mass.
• Drax and Enviva are investing heavily in the construction of new power plants, which are mainly based on the conversion of coal-fired plants to use of woody material, thereby reducing carbon dioxide emissions.
• Changes in legislation, such as California’s Renewable Portfolio Standard, will lead to an increased use of sustainable energy, including wood, which will in turn lead to further investments in the industry.

Europe

• The European Union's Green Deal plans to make Europe the first climate-neutral continent by 2050. Biomass is a key part of the solution through sustainable energy production.
• In Europe, the use of wood has advanced to the point where Sweden and Finland have a large district heating system, where wood is the principal source of energy.
• The European Biomass Association (AEBIOM) is an active promoter of the use of biofuels, and a strong advocate of policies to support the development of the biofuels sector. Its aim is to ensure the stability and growth of the biofuels market.

Asia-Pacific

• China is expanding its capacity for producing bio-energy, and its 14th five-year plan includes a plan to increase the use of bio-energy.
• India’s National Biofuel Policy, which seeks to promote the use of biofuels for energy production, has as its objective the conversion of agricultural waste into biofuel, thereby tackling both the problem of energy and the problem of waste disposal.
• Japan's Biomass Gasification Plant is an example of the advanced technology for converting biomass into clean energy. It will be a model for similar projects in the region.

MEA

• Biomass is a source of energy which is beginning to be explored in some countries like South Africa. The government has started to support pilot projects for the feasibility of converting agricultural waste into energy.
• The African Biomass Energy Initiative (ABEI) is promoting the use of biofuels in the region. The focus is on sustainable practices and community participation in the production of biofuels.
• The regulatory frameworks are still being developed. However, there is a growing awareness of the potential of the use of bioenergy in securing energy supplies and reducing dependence on fossil fuels.

Latin America

• Brazil has a vast agricultural sector and a wealth of agro-industrial waste, particularly from sugarcane and timber. Biomass energy is an important source of energy and it is investing in bioenergy projects.
• Brazil has adopted a series of measures promoting the use of wood fuels. These measures include tax incentives for the generation of electricity from wood.
• In the United States, where coffee is grown, the use of coffee-mill waste in the production of fuel has been demonstrated.

Did You Know?

“Biomass energy can provide up to 10 per cent of the world's energy needs, which makes it an important player in the renewable energy sector.” — International Energy Agency (IEA)

Segmental Market Size

The Biomass Energy Market is currently growing at a steady rate, driven by rising energy demand and a shift towards the use of renewable energy sources. This is mainly due to the tightening of regulations and the increasing preference for sustainable energy solutions. In addition, the technological development of the conversion of bio-mass to energy makes this a more attractive energy source.

At present, the stage of development of the use of biofuels is at the point of large-scale application, as can be seen in the Drax Group, which has switched from coal to biofuel, and the U.S. Department of Energy, which is carrying out the introduction of biofuels in several states. Biomass is the main source of energy for the industry, which is why the agriculture and waste management industries are now using it for energy production. The trends of the government's requirements for the use of renewable energy and the pursuit of sustainability are accelerating the development of the industry. Anaerobic digestion and gasification are determining the future of the industry.

Future Outlook

From 2024 to 2032, the bio-power market is expected to grow at a compound annual growth rate (CAGR) of 5.55%. The rapid growth of this market is due to the increasing attention paid to the use of renewable energy sources and the urgent need to reduce greenhouse gas emissions. The role of bio-power in the energy mix is expected to be crucial in the regions where agricultural and forest waste is abundant. In 2032, bio-power is expected to account for approximately ten percent of global renewable energy generation, up from an estimated seven percent in 2024. The penetration of bio-power into the global energy market will continue to increase.

The bio-energy industry is expected to be driven by the development of new energy sources, improved conversion methods and higher energy efficiency. Gasification and anaerobic digestion processes are expected to be more efficient in the use of the energy source, which will increase the energy yield. Also, government support in the form of tax deductions and subsidies to promote the use of renewable energy will support the bio-energy industry. And the development of bio-refineries will improve the long-term economic and sustainable viability of the industry. The bio-energy industry is expected to grow and evolve, and in the face of these trends, it will be necessary for the players to be flexible to be able to take advantage of these opportunities and to cope with the regulatory environment.