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Ambitious Carbon Reduction Targets Drive The Bioenergy Market : The Driving Engine Behind Bioenergy Market Evolution in 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Bioenergy Market Size Growth Forecast: What to Expect by 2025?
In recent times, the size of the bioenergy market has seen significant growth. It is projected to rise from $296.09 billion in 2024 to $320.81 billion in 2025, registering a compound annual growth rate (CAGR) of 8.3%. Factors contributing to the growth witnessed during the historical period include concerns about dependency on fossil fuel, measures taken for energy security, increased environmental consciousness, the use of agricultural waste, and the trend of industry shifting towards renewable energy.
How Will the Bioenergy Market Size Evolve and Grow by 2029?
In the forthcoming years, the bioenergy market is projected to experience robust growth, with an estimated worth of $465.22 billion by 2029, at a compound annual growth rate (CAGR) of 9.7%. Factors contributing to this predicted growth in the estimated timeline include the market's expansion in developing regions, initiatives to convert urban waste to energy, global agricultural trends, expansion in industrial applications, and advancements in biomass conversion. The forecast period is anticipated to witness major trends such as the transition to biorefineries, public-private partnerships, decentralized energy production, use of biofuels in transportation, and the influence of policy support and incentives.
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What Drivers Are Propelling the Growth of Bioenergy Market Forward?
The growth of the bioenergy market is expected to be fueled by the increasing need for energy targets aimed at reducing carbon emissions. Human-induced greenhouse gas emissions, specifically carbon dioxide from fossil fuel combustion, contribute to the greenhouse effect, thereby affecting the climate. To combat this, nations are implementing a variety of measures to reduce carbon emissions. Bioenergy assists in fulfilling these goals by cutting carbon emissions and utilizing natural resources. For example, as per the World Resources Institute, a US-based organization, the U.S. set a record in 2023 by installing 31 gigawatts (GW) of solar energy capacity, a 55% increase from the installations in 2022 reported in February 2024. Hence, the escalating demand for energy targets aimed at reducing carbon emissions propels the bioenergy market.
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Which Emerging Trends Are Transforming the Bioenergy Market in 2025?
The escalation of bioenergy conversion technologies is a primary trend that is increasingly being recognized in the bioenergy market. Leading companies in the bioenergy sector are progressing with the introduction of new technologies, investigation and innovation within bioenergy to maintain their market standing. For example, in September 2023, BASF SE, a chemical firm based in Germany, unveiled biomass balance plastic additives. These items promote the replacement of traditional fossil fuels with renewable feedstock, aiding customers in diminishing their carbon footprint, preserving fossil fuels, and increasing their reliance on renewable feedstock. These products are designed to retain the same performance and quality standards that customers expect, but with the additional advantage of being an eco-friendly substitute that positively impacts the preservation of the environment.
What Are the Key Segments in the Bioenergy Market?
The bioenergymarket 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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Who Are the Key Players Shaping the Bioenergy Market's Competitive Landscape?
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.
What Geographic Markets Are Powering Growth in the Bioenergy Market?
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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