Report Overview:

The global biomass power market is on a steady growth path, expected to rise from USD 140.4 billion in 2024 to USD 237.6 billion by 2034, growing at a CAGR of 5.4%. Biomass power is produced by using natural waste materials such as wood chips, crop leftovers, and even household waste to generate electricity. This is done through methods like burning, gasification, or digestion, which turn organic matter into energy. The market involves everything from collecting raw materials to delivering electricity, and it plays an essential role in both renewable energy expansion and waste reduction worldwide.

The push for clean energy and better waste handling systems is giving biomass power strong momentum. Government incentives, including feed in tariffs and support for low carbon energy, are making it easier to invest in biomass projects. In 2024, combustion technology dominated the market with 72.4% share, and solid biofuels like wood pellets made up 67.3% of the fuel used. Industrial sectors were the biggest users, taking up 54.7% of the market. Europe led the way with USD 64.3 billion in market value, thanks to its strong climate goals and reliable energy infrastructure.

Key Takeaways

The global biomass power market will grow from USD 140.4 billion (2024) to USD 237.6 billion (2034).

Combustion technology held the largest share in 2024 at 72.4%.

Solid biofuels like wood chips and pellets made up 67.3% of feedstock use.

Industrial applications led the market with a 54.7% share.

Europe topped the regional market, valued at USD 64.3 billion in 2024.


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Key Market Segments:
By Technology
Combustion
Gasification
Anaerobic Digestion
By Feedstock
Solid Biofuel
Liquid Biofuel
Biogas
By End Use
Industrial
Commercial
Residential
DORT Analysis
Drivers

Governments worldwide are supporting biomass energy with favorable policies, making it easier to invest in these projects.

The growing demand for cleaner, renewable energy is pushing industries to shift away from fossil fuels.

Availability of cheap and abundant organic waste in rural and farming areas ensures a steady fuel supply.

Biomass helps solve two big problems—managing waste and producing clean energy at the same time.

Opportunities

Retrofitting old coal plants to run on biomass can cut emissions and make use of existing infrastructure.

Developing countries in Asia-Pacific and Latin America offer untapped markets with rich biomass resources.

Technological advancements like gasification and digestion are opening up new, more efficient energy pathways.

Collaborating with agriculture and waste industries can improve feedstock availability and reduce costs.

Restraints

Building biomass power plants requires large upfront investment, which may discourage small players.

Feedstock supply can be inconsistent due to seasonal changes and storage challenges.

Competing renewable options like solar and wind are often cheaper and easier to manage.

Environmental concerns about land use and carbon output from biomass transport may lead to regulation issues.

Trends

While combustion is still the most used method, cleaner technologies like gasification are catching up fast.

Solid biofuels remain the most common feedstock due to their reliability and availability.

Industrial sectors continue to be the biggest users of biomass power due to their large energy needs.

Europe maintains its lead in the market thanks to strong green policies and existing infrastructure.

Market Key Players:
Mitsubishi Heavy Industries, Ltd.
Suez
Xcel Energy Inc.
Ramboll Group A/S
Babcock & Wilcox Enterprises, Inc.
Ørsted A/S
Ameresco
General Electric
Veolia
Vattenfall
Conclusion:

The biomass power market is growing at a healthy pace, almost doubling its value by 2034. This rise is backed by global efforts to cut carbon emissions, manage waste smartly, and move toward renewable energy sources. Combustion remains the go-to technology, but cleaner methods like gasification are gaining popularity.


Though challenges like high setup costs and feedstock logistics remain, the potential is strong especially with supportive policies and new technologies. Europe currently leads the market, but other regions are quickly catching up. With the right investments and innovation, biomass power is set to play a major role in the global clean energy transition.