As per MRFR analysis, the US Biomass Market Size was estimated at 8.84 (USD Billion) in 2023. The US Biomass Market Industry is expected to grow from 9.1 (USD Billion) in 2024 to 15.5 (USD Billion) by 2035. The US Biomass Market CAGR (growth rate) is expected to be around 4.961% during the forecast period (2025 - 2035).
The US Biomass Market is experiencing notable trends driven by the increasing emphasis on renewable energy and efforts to combat climate change. One of the key market drivers is the push for energy independence and sustainability, encouraging the development of biomass as a reliable resource. Government policies, grants, and incentives aimed at promoting clean energy technologies are bolstering investments in biomass energy production.
Additionally, advancements in technology are making biomass conversion processes more efficient, thus enhancing its appeal compared to traditional fossil fuels. Opportunities for growth in the US Biomass Market lie in the recycling of agricultural waste and forest residues for energy production. This practice not only helps in waste management but also contributes to carbon reduction by utilizing materials that would otherwise decompose and release greenhouse gases.
Furthermore, there is a growing interest in the production of biofuels and bioproducts from biomass, which can serve both energy and material needs, creating a circular economy model. Recent trends also indicate an increasing collaboration between the public and private sectors to foster innovation in biomass technologies.
This includes the establishment of research initiatives aimed at improving feedstock availability and processing techniques, as well as developing new market applications for biomass products. Moreover, consumer awareness regarding sustainable energy solutions is rising, leading to increased acceptance and demand for biomass-derived energy.
Overall, these trends signal a vibrant and evolving landscape for biomass in the US energy market, with potential benefits for environmental sustainability and economic growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Biomass Market Industry is experiencing significant growth driven by increasing support for renewable energy initiatives at both federal and state levels. For instance, the U.S. Energy Information Administration (EIA) reported that renewable energy sources accounted for approximately 20% of the total U.S. energy consumption in 2020, and this figure is projected to rise as the government seeks to reduce greenhouse gas emissions and transition to a more sustainable energy landscape.
The U.S. Department of Energy (DOE) is actively promoting the use of biomass as a renewable energy source through various programs. These initiatives help facilitate innovations in biomass technologies, enhance energy efficiency, and ensure compliance with renewable portfolio standards, driving further usage of biomass in the energy sector.
Additionally, public policy changes are increasingly favoring biomass production, with targeted incentives for both producers and consumers, which can significantly influence market growth and investment in the US Biomass Market.
The growing emphasis on sustainable fuel alternatives in the United States is a major driver for the US Biomass Market Industry. The U.S. Department of Agriculture (USDA) indicates that biomass can play a pivotal role in reducing dependency on fossil fuels. Recent statistics reveal that biofuels produced from biomass can reduce greenhouse gas emissions by up to 86% compared to conventional fuels.
This immense potential has prompted various companies and municipalities to explore biomass as a feasible and eco-friendly alternative. Increased consumer awareness regarding environmental issues, coupled with government incentives for using biofuels, supports the growth of the biomass market, as stakeholders seek to meet stricter emissions regulations while catering to consumer preferences for renewable energy sources.
Technological innovations in biomass conversion processes are significantly contributing to the expansion of the US Biomass Market Industry. Recent breakthroughs in Research and Development (R&D) in bioenergy technologies have led to more efficient and cost-effective methods for converting biomass into fuel. For example, the National Renewable Energy Laboratory (NREL) has developed advanced enzymatic processes that can improve biofuel yields from lignocellulosic biomass.
These advancements are critical as they allow producers to maximize output while minimizing production costs and environmental impact. Enhanced conversion technologies have also made biomass a more attractive option for investors and companies aiming to transition to greener energy practices.
The positive implications of these innovations are encouraging further investment and development in the American biomass sector.
The Feedstock segment within the US Biomass Market plays a crucial role in providing raw materials for energy production and other applications. This segment encompasses various sources, including Food Crop, Non-Food Crop, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae, and Others, each with unique characteristics and contributions to the biomass landscape.
Food Crops, such as corn and sugarcane, are primarily utilized for biofuel production, offering high energy yields. Non-Food Crops, on the other hand, contribute to sustainability and are often cultivated on marginal lands, thus minimizing competition with food production.
Wood, as a traditional source of biomass, remains significant due to its availability and combustion efficiency, commonly used in power plants and heating applications. Agricultural Residue, including crop leftovers and by-products, presents an opportunity for waste reduction and resource maximization, while MSW serves to divert waste from landfills.
Transforming waste into usable energy and contributing to circular economy principles. Microalgae, known for their rapid growth and high lipid content, provide a promising pathway for biofuel innovation and carbon sequestration. This diversity within the Feedstock segment showcases the vast potential of the US Biomass Market.
Emphasizing the importance of efficient resource utilization, waste management, and renewable energy production while addressing environmental challenges and assisting in reducing greenhouse gases. Growing awareness surrounding sustainability, alongside government incentives and policies promoting renewable energy, are further bolstering the Feedstock segment's market growth.
Ensuring its pivotal role in transitioning towards a greener economy, thus establishing a solid foundation for future advancements in biomass technologies and practices. Overall, with continued investment and research into innovative Feedstock solutions, the prospects for this segment remain promising as it adapts to meet the evolving demands of the US energy landscape and contributes to broader sustainability goals.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Technology segment of the US Biomass Market encompasses various innovative processes that utilize biomass to generate energy and reduce waste. One notable area is Combined Heat and Power (CHP), which maximizes energy efficiency by simultaneously producing electricity and useful thermal energy, thus driving down overall energy costs.
Anaerobic Digestion and Feedstockification represent crucial technologies that effectively convert organic matter into biogas and bioproducts, contributing significantly to waste management and renewable energy production. Co-Firing, which involves using biomass alongside fossil fuels in power plants, helps in reducing greenhouse gas emissions and enhances the sustainability profile of energy generation.
Additionally, Landfill Feedstock plays a vital role in harnessing energy from waste, minimizing environmental impacts while providing a renewable energy source. The US government and various industry stakeholders emphasize these technologies as essential components in transitioning to a more sustainable energy landscape.
The diverse applications and benefits inherent in this segment illustrate its importance in the broader scope of the US Biomass Market, signaling strong growth potential as the country seeks to meet its renewable energy goals.
The Product segment of the US Biomass Market encompasses a variety of renewable energy sources, primarily including Biodiesel, Biomethanol, BioFeedstock, and others. Biodiesel is significant in the market due to its use as a cleaner alternative to diesel fuel, contributing to reduced greenhouse gas emissions.
Alongside this, Biomethanol serves as a versatile product for energy and chemical applications, showcasing its importance in the transition towards sustainable practices. BioFeedstock plays a critical role in providing raw materials for various bio-based products, including chemicals and plastics, further emphasizing its value in the circular economy.
The 'Others' category typically comprises emerging products and innovations that align with the growing demand for sustainable solutions. The continuous development and adoption of these biomass products are driven by rising energy demands and environmental policies aiming for lower carbon footprints across the United States.
The US Biomass Market segmentation reflects the diverse applications of biomass products, indicating a robust landscape for investment and technological advancements in the coming years.
The US Biomass Market has displayed a dynamic landscape within the End Use segment, encompassing diverse applications across Industrial, Commercial, and Residential sectors. Each of these segments plays a pivotal role in shaping the overall market dynamics.
In the Industrial sphere, biomass serves as a critical source of renewable energy, often utilized in manufacturing processes and power generation, contributing significantly to the reduction of carbon emissions. The Commercial sector increasingly adopts biomass solutions as a sustainable alternative to conventional fuels, driven by the rising demand for eco-friendly energy sources and government incentives aimed at reducing dependence on fossil fuels.
Meanwhile, the Residential segment is witnessing a growing trend toward biomass heating systems, particularly in rural areas where access to traditional energy sources may be limited. This development aligns with the broader objectives of energy independence and sustainability in the US.
Overall, the US Biomass Market segmentation underscores the versatility and importance of biomass as a renewable resource, essential for meeting energy needs while addressing environmental concerns. Insights into the market also reveal significant growth in consumer awareness regarding the benefits of biomass, fostering continued investment and innovation across all segments.
The competitive landscape of the US Biomass Market is marked by a diverse range of players, each contributing to a growing sector driven by sustainable energy needs and governmental support for renewable resources. The market dynamics are characterized by advancements in technology, shifts in regulatory frameworks, and increasing awareness of environmental impact, all of which influence the competitiveness among stakeholders.
As companies seek to enhance their market share, they are focusing on innovative solutions, strategic partnerships, and expansion of their operational footprints. The rise in demand for biomass energy forms, including wood pellets, organic waste, and biofuels, has prompted players to leverage their strengths for efficiency and sustainability.
The interdependence between local policies related to renewable energy and the larger environmental agenda further complicates the competitive landscape in the US Biomass Market.
Clearway Energy has established a significant presence in the US Biomass Market, exemplifying a strong commitment to renewable energy initiatives. The company focuses on developing and operating energy projects that harness biomass as a sustainable energy source, bolstered by robust financial backing and a portfolio of strategically located assets.
With an emphasis on clean energy solutions, Clearway Energy leverages its expertise to maximize operational efficiency and minimize environmental impact. Furthermore, the company has performed well in building relationships with local communities, which reinforces its market position and enhances public support.
By focusing on technological advancements and infrastructure improvements, Clearway Energy continues to strengthen its standing as a competitive player in the expanding biomass landscape.
Renewable Biofuels, heavily active in the US Biomass Market, specializes in the production and distribution of biofuels derived from various organic materials. The company is renowned for its innovative biofuel solutions, which contribute to reducing greenhouse gas emissions and dependence on fossil fuels.
It enjoys a favorable market presence supported by a comprehensive range of offerings, including biodiesel and renewable diesel products designed for various applications. Renewable Biofuels has benefited from strategic mergers and acquisitions that have expanded its operational capabilities and market reach within the U.S., allowing it to tap into new customer bases and geographical areas.
The company's strengths lie in its commitment to sustainability, technical expertise in biofuel production, and collaborative efforts with stakeholders across the supply chain, all of which reinforce its competitive foothold in the growing US Biomass Market.
Recent developments in the US Biomass Market have shown a growing focus on sustainability and renewable energy sources. Companies like Clearway Energy and Dominion Energy have been prominently involved in enhancing their biomass production capabilities, as the demand for cleaner energy grows.
In October 2023, Ameresco announced its collaboration with various local governments to implement biomass energy projects, reflecting a shift towards more community-based renewable energy initiatives. Additionally, Green Plains Renewable Energy has been expanding its operations to include advanced biofuels, contributing to significant market growth amid federal support for renewable energy technologies.
In terms of mergers and acquisitions, Enviva has been noted for its strategic acquisition of a biomass pellet manufacturing facility in March 2023, further enhancing its production capacity and market reach. The increased interest from investors and stakeholders in the biomass sector has boosted company valuations, particularly for firms like Waste Management and POET, as they explore innovative waste-to-energy solutions.
Over the last two to three years, the US Biomass Market has witnessed substantial growth, driven by government incentives and increasing environmental awareness, marking May 2021 as a notable month when significant regulations were introduced to support biomass energy initiatives.
| Report Attribute/Metric | Details |
| Market Size 2018 | 8.84(USD Billion) |
| Market Size 2024 | 9.1(USD Billion) |
| Market Size 2035 | 15.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.961% (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 | Clearway Energy, Renewable Biofuels, Sierra Energy, Ameresco, Duke Energy, Green Plains Renewable Energy, Dominion Energy, Waste Management, Biomass Energy Resources, NextEra Energy, POET, Enviva, Rentech, Mercer International, Ametek |
| Segments Covered | Feedstock, Technology, Product, End Use |
| Key Market Opportunities | Waste-to-energy conversion projects, Increased biofuel production capacity, Agricultural residue utilization technologies, Sustainable biomass supply chains, Enhanced government incentives for biomass. |
| Key Market Dynamics | regulatory frameworks, feedstock availability, technology advancements, environmental concerns, market competition |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
By 2024, the US Biomass Market is anticipated to be valued at 9.1 billion USD.
The US Biomass Market is expected to reach a value of 15.5 billion USD by the year 2035.
The expected CAGR for the US Biomass Market from 2025 to 2035 is 4.961%.
In 2024, the Food Crop segment is valued at 2.5 billion USD, making it the highest segment in the US Biomass Market.
The Wood feedstock segment is projected to be valued at 3.2 billion USD by the year 2035.
Key players in the US Biomass Market include companies such as Clearway Energy, Renewable Biofuels, and Duke Energy.
The Municipal Solid Waste (MSW) segment is anticipated to reach a value of 3.2 billion USD by 2035.
Challenges in the US Biomass Market include regulatory hurdles and competition from other renewable energy sources.
The US Biomass Market is expected to see significant growth across multiple regions, driven by increasing demand for renewable energy.
The agricultural residue segment is valued at 1.5 billion USD in 2024 and expected to grow to 2.5 billion USD by 2035, indicating a strong opportunity for growth.
The US Biomass Market is expected to be valued at 9.5 USD Billion in 2024.
The market is anticipated to reach a value of 16.0 USD Billion by 2035.
The market is projected to grow at a CAGR of 4.853% during the period from 2025 to 2035.
Key players in the market include Clearway Energy, Pacific Gas and Electric, Agartha Bioenergy, and Enviva among others.
The Food Crop feedstock segment is valued at 2.5 USD Billion in 2024.
The Wood feedstock segment is expected to be valued at 5.2 USD Billion by 2035.
Growth opportunities in the market stem from advancements in biomass technologies and increasing demand for renewable energy sources.
The market may encounter challenges such as regulatory hurdles and competition from other renewable energy sources.
The Municipal Solid Waste (MSW) feedstock segment is projected to be valued at 2.17 USD Billion by 2035.
The Agricultural Residue feedstock is expected to grow from 1.1 USD Billion in 2024 to 1.9 USD Billion by 2035.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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