Top Trends Transforming the Biomass Electricity Market Landscape in 2025: Innovative Approaches In Biomass Electricity Generation

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Biomass Electricity Market Size Growth Forecast: What to Expect by 2025?
The size of the biomass electricity market has seen substantial growth in the recent past. An increase from $56.53 billion in 2024 to $60.39 billion in 2025 is expected, reflecting a compound annual growth rate (CAGR) of 6.8%. The expansion during this historic period can be credited to the rise of emerging markets, governmental incentives, the prevailing environment of low-interest rates, and the high environmental impact brought about by traditional power generation sources.

How Will the Biomass Electricity Market Size Evolve and Grow by 2029?
The size of the biomass electricity market is anticipated to experience robust expansion in the coming years, reaching a valuation of $75.71 billion by 2029, progressing at a CAGR of 5.8%. This anticipated expansion during the forecast period can be associated with factors such as the global increase in population and urbanization, escalating investments in renewable power production, an emphasis on decreasing reliance on foreign oil, and exploration of alternate power generation sources. Noteworthy trends during the forecast period encompass the uptake of bioenergy carbon capture and storage procedures to lower emissions, the shift from traditional boilers to enhance efficiency and curb carbon emissions, the adoption of anaerobic digestion facilities to decrease emissions, investments and innovations in new waste-to-energy technologies, a focus on delivering services via digital marketplaces, and investment in artificial intelligence technologies to upgrade biomass preprocessing.

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What Drivers Are Propelling the Growth of Biomass Electricity Market Forward?
The escalation in government aid via multiple subsidies and strategies is propelling the expansion of the biomass electricity market. The rising concerns about environmental change and increasing greenhouse gas levels in the atmosphere, due to the combustion of fossil fuels such as coal and oil, has led to the creation of new government policies promoting sustainable power generation. For instance, in India, the Ministry of new and renewable energy has initiated the National Biogas and Manure Management Programme (NBMMP) offering subsidies for the establishment of family-style biogas plants, predominantly for rural and semi-urban households. The State Nodal Departments/State Nodal Agencies, the Khadi, and Village Industries Commission (KVIC), and Biogas Development and Training Centers (BDTCs) execute this program with subsidies of up to Rs. 17,000 ($230) for the foundation of biogas plants.

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Which Emerging Trends Are Transforming the Biomass Electricity Market in 2025?
Biomass electricity market players are innovating new ways to generate electric power through the advent of new hybrid biogas power stations, which merge biogas with other types of renewable energy like solar energy. This fusion of solar energy and biogas diminishes the operation cost and the effort needed to manage farm waste products. In line with this, a novel biogas power station was inaugurated in Sagamihara, Japan in August 2023. The facility annually generates 1.9 million Nm3 biogas from pig feed waste and food waste through anaerobic digestion. The station uses a combined heat and power (CHP) system to produce electricity and heat, which is supplied to the grid and utilized in running the plant's operations.

What Are the Key Segments in the Biomass Electricity Market?
The biomass electricity market covered in this report is segmented -

1) By Feedstock: Solid Biomass, Biogas, Municipal Solid Waste, Liquid Biomass
2) By Technology: Anaerobic Digestion, Combustion, Co-Firing, Gasification, Landfill Gas
3) By End-User: Households, Industrial Sector, Government Sector, Other End Users

Subsegments:
1) By Solid Biomass: Wood Pellets, Agricultural Residues, Wood Chips, Energy Crops
2) By Biogas: Anaerobic Digestion Products, Landfill Gas, Wastewater Treatment Biogas
3) By Municipal Solid Waste: Organic Waste, Recyclable Materials, Non-recyclable Residuals
4) By Liquid Biomass: Biodiesel, Bioethanol, Other Biofuels

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Who Are the Key Players Shaping the Biomass Electricity Market's Competitive Landscape?
Major companies operating in the biomass electricity market include Drax Group, EPH, Engie, EDF, Iberdrola, Acciona SA, RWE, Ørsted A/S, CEZ, Babcock and Wilcox, GGE Power, EnviTec Biogas AG, First Biogas International AG, Shenzhen Puxin Science & Technology Co. LTD, Mingshuo Environment Technology Group Co. Ltd., Clarke Energy, Seko Industries Srl, HC Energy, Agraferm Technologies AG, LMS Energy, Drax Power Limited, EDF Energy, E. ON UK, Enercon, Nordez, Repower, Wartsila Corporation, Suez Water, Ramboll, Graanul Invest Group, NaftoGaz Group, Iogen Corporation, Renewable Energy Group, Pond Technologies, Bio-Enpower Inc, Ag-West Bio, Airscience Technologies Inc. (Biogas), Ameresco Inc., Enviva Partners LP, N-Viro International Corporation, SolaGen Incorporated, FSE Energy Inc., BioDrill, Biomass Thermal Energy Council (BTEC), Taylor Biomass Energy LLC (TBE), American Biocarbon LLC., W2E, Carbon Green, Geradora de Energia Eletrica Alegrete, Liberty Green Renewables LLC, Usina Mandu, Brasil Biomassa e Energia Renovavel, Sonangol Group

What Geographic Markets Are Powering Growth in the Biomass Electricity Market?
Western Europe was the largest region in the biomass electricity market in 2024. Asia-Pacific was the second-largest region in the global biomass market analysis. The regions covered in the biomass electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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