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2025-2034 Bioenergy Market Evolution: Disruptions, Innovations, and Untapped Opportunities
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Is the Expected CAGR for the Bioenergy Market Through 2025?
The size of the bioenergy market has seen significant growth in the past few years. The projected expansion from $296.09 billion in 2024 to $323.44 billion in 2025, with a compound annual growth rate (CAGR) of 9.2%, manifests this growth. The growth observed in the historical stage may be credited to concerns about dependency on fossil fuel, efforts to ensure energy security, increased environmental awareness, usage of agricultural residue and an industry inclination towards renewable energy.
What's the Projected Size of the Global Bioenergy Market by 2029?
In the forthcoming years, the bioenergy market is projected to experience strong expansion, growing to $473.49 billion in 2029 with a CAGR of 10.0%. Factors contributing to this growth during the forecast period include market development in emerging regions, initiatives to convert urban waste into energy, global agricultural shifts, the extended use of bioenergy in industries, and advancements in the conversion of biomass. Key trends for this period feature a shift towards biorefineries, collaborative efforts between private and public entities, the rise of decentralized energy production, the adoption of biofuels in the transportation sector, along with policy support and incentives.
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Top Growth Drivers in the Bioenergy Industry: What's Accelerating the Market?
The anticipated growth in the bioenergy market is likely to be pushed higher due to rising demands for energy solutions that curb carbon emissions. The act of releasing carbon dioxide into the atmosphere by burning fossil fuels, a significant contributor to the greenhouse effect, is mainly driven by human-related activities. Accordingly, in an effort to bring down the levels of such emissions, nations around the world are increasingly implementing measures to cut down carbon emissions. As such, bioenergy plays a vital role in meeting these objectives by diminishing carbon emissions and harnessing natural sources. For example, data released by the World Resources Institute (based in the US) in February 2024 revealed that in 2023, there was a record installation of 31 gigawatts (GW) of solar energy capacity in the US. This was a significant 55% rise from installations seen in 2022. Consequently, this heightened demand for energy solutions that support carbon reduction initiatives serves as a substantial growth driver for the bioenergy market.
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What Trends Will Shape the Bioenergy Market Through 2029 and Beyond?
The blossoming of bioenergy conversion technologies is a prominent trend that is gaining momentum in the bioenergy market. To maintain their market standing, leading firms are pushing the boundaries of innovation and development in the bioenergy sector. As an example, BASF SE, a chemical company based in Germany, introduced biomass balance plastic additives to the market in September 2023. These innovations promote the replacement of fossil fuels with renewable feedstocks, enabling customers to minimize their carbon emissions, conserve precious fossil fuels, and maximize their utilization of renewable sources. Though these products serve the same performance and quality customers are accustomed to, they offer the additional advantage of being an eco-friendly swap-in solution and playing an active role in environmental conservation.
What Are the Main Segments in the Bioenergy Market?
The bioenergy market covered in this report is segmented -
1) By Type: Biomass And Renewable Municipal Waste, Biogas, Liquid Biofuels
2) By Technology: Gasification, Fast Pyrolysis, Fermentation, Other Technologies
3) By Application: Power Generation, Heat Generation, Transportation, Other Applications
Subsegments:
1) By Biomass And Renewable Municipal Waste: Wood And Agricultural Residues, Organic Waste, Algae
2) By Biogas: Anaerobic Digestion, Landfill Gas, Wastewater Treatment Biogas
3) By Liquid Biofuels: Bioethanol, Biodiesel, Bio-jet Fuel
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Which Top Companies are Driving Growth in the Bioenergy Market?
Major companies operating in the bioenergy market are Babcock and Wilcox Enterprises Inc., Orsted A/S, Hitachi Zosen Corporation, Pacific Bioenergy Corp., Enerkem Inc., MVV Energie AG, Enexor Energy LLC, Lignetics Inc., Green Plains Inc., Enviva Partners LP, POET LLC, Drax Group PLC, Ameresco Inc., Archer Daniels Midland Company, EnviTec Biogas AG, CropEnergies AG, Abengoa Bioenergy US Holding LLC, Novozymes A/S, Alto Ingredients Inc., Valero Energy Corporation, BP Biofuels North America LLC, Cargill Inc., DuPont Industrial Biosciences USA LLC, Gevo Inc., LanzaTech Inc., Amyris Inc., Butamax Advanced Biofuels LLC, Genomatica Inc., NexSteppe Inc., Renmatix Inc., Virent Inc., Algenol Biofuels Inc.
Which Regions Will Dominate the Bioenergy Market Through 2029?
North America was the largest region in the bioenergy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bioenergy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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