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How Much Is The Market Size Of The Biomass Market Expected To Expand By 2030?
The biomass market size has grown strongly in recent years. It will grow from $67.52 billion in 2025 to $72.58 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to increasing adoption of biomass for rural electrification, growing demand for renewable heat solutions, rising utilization of agricultural residues for energy, expanding use of biomass in industrial boilers, and increasing policy support for bioenergy deployment.
The biomass market size is expected to see strong growth in the next few years. It will grow to $95.90 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to growing demand for low-carbon energy sources, rising investment in advanced biomass conversion facilities, increasing adoption of biomass in district heating systems, expanding use of bioenergy for carbon-neutral industrial processes, and increasing focus on waste-to-energy integration. Major trends in the forecast period include technology advancements in biomass gasification systems, innovations in advanced combustion and co-firing solutions, developments in high-efficiency bioenergy conversion technologies, research and development in algae-based biomass production, and advancements in automated biomass supply chain and logistics systems.
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Which Drivers Are Shaping The Development Of The Biomass Market?
The rising need for clean energy is expected to propel the growth of the biomass market going forward. Clean energy refers to energy generated from renewable or low-emission sources that minimize environmental impact and reduce greenhouse gas emissions. The demand for clean energy is increasing due to growing awareness of environmental sustainability, as it helps reduce greenhouse gas emissions and combat climate change. Biomass enhances clean energy by converting organic materials such as agricultural residues, wood, and waste into renewable power, making it ideal for reducing dependence on fossil fuels. It supports sustainable energy production by providing a consistent, carbon-neutral energy source, improving environmental outcomes and energy security. For instance, in June 2024, according to the International Energy Agency, a France-based intergovernmental organization, the worldwide investment in clean energy reached $80 billion in 2024, an increase from $67 billion in 2023. Therefore, the rising need for clean energy is driving the growth of the biomass market.
Who Are The Most Influential Companies In The Biomass Market?
Major companies operating in the biomass market are TotalEnergies SE, Archer-Daniels-Midland Company (ADM), Veolia Environnement S.A., Neste Oyj, UPM Biofuels, Drax Group plc, ANDRITZ Group, Wärtsilä Corporation, Valmet Oyj, Green Plains Inc., Enviva Inc., Babcock & Wilcox Enterprises Inc., Hitachi Zosen Inova AG, EnviTec Biogas AG, Clean Energy Fuels Corp., Praj Industries Limited, AS Graanul Invest, Anaergia Inc., ReEnergy Holdings LLC, Greenlane Renewables Inc., WELTEC BIOPOWER GmbH, IES Biogas S.r.l., GoodFuels B.V., Xergi A/S
What Key Trends Are Defining The Biomass Market Today?
Major companies operating in the biomass power generation market are focusing on developing advanced facilities, such as high-efficiency gasification systems, to boost energy output, enhance fuel flexibility, and reduce emissions and environmental impact. High-efficiency gasification systems refer to advanced technologies that convert biomass into syngas with minimal waste and high thermal efficiency, suitable for stable power generation. For instance, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, launched the Chofu Biomass Power Plant. It is a dedicated biomass power plant featuring a high-efficiency gasification system that allows for the use of diverse biomass fuels, including wood pellets and agricultural residues. The plant includes automated fuel handling and combustion control systems, enabling stable and efficient power generation without extensive manual intervention. It also incorporates advanced emissions control and waste heat recovery technologies, maximizing energy use and minimizing the environmental footprint for local energy operators.
How Do Different Segments Define The Biomass Market Landscape?
The biomass market covered in this report is segmented -
1) By Product Type: Solid Biomass, Liquid Biofuels, Biogas
2) By Technology: Direct Combustion, Gasification, Anaerobic Digestion, Pyrolysis
3) By Source: Agricultural Biomass, Forest Biomass, Waste Biomass
4) By Application: Power Generation, Heat Generation, Transportation Fuel (Biofuels), Other Applications
5) By End-User: Residential, Commercial, Industrial, Utilities
Subsegments:
1) By Solid Biomass: Wood Chips, Wood Pellets, Agricultural Residues, Energy Crops, Animal Waste
2) By Liquid Biofuels: Bioethanol, Biodiesel, Renewable Diesel, Hydrotreated Vegetable Oil, Fischer Tropsch Diesel
3) By Biogas: Landfill Gas, Sewage Gas, Anaerobic Digestion Gas, Industrial Waste Gas, Agricultural Waste Gas
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How Does Growth In The Biomass Market Differ Across Major Regions?
Europe was the largest region in the biomass market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biomass market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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