Biomass Market to Witness Steady Growth Driven by Renewable Energy Demand and Decarbonization Goals

According to a new report published by Allied Market Research, the global biomass market size was valued at $59.0 billion in 2023 and is projected to reach $121.0 billion by 2033, growing at a CAGR of 7.5% from 2024 to 2033. The market expansion is primarily driven by increasing demand for renewable energy, rising concerns over carbon emissions, and growing utilization of biomass across power generation, heating, and biofuel applications.

Download PDF Brochure: https://www.alliedmarketresearch.com/request-sample/A08328

Overview of the Biomass Market

Biomass refers to organic materials derived from plants, animals, and waste that are used as a renewable source of energy. Common biomass sources include agricultural residues, forestry waste, energy crops, organic municipal waste, and animal by-products. Biomass can be converted into energy through various processes such as combustion, gasification, and anaerobic digestion.

The biomass market plays a vital role in the global energy transition by providing a sustainable alternative to fossil fuels. As governments and industries strive to achieve climate targets, biomass energy is increasingly being integrated into national energy mixes due to its ability to reduce greenhouse gas emissions and support circular economy practices.

Key Growth Drivers

One of the primary growth drivers of the biomass market is the global push toward renewable and low-carbon energy sources. Biomass offers a reliable and dispatchable form of renewable energy, making it an attractive option for balancing intermittent sources such as wind and solar power.

Rising demand for electricity and heat across residential, commercial, and industrial sectors further fuels market growth. Biomass-based power plants and heating systems provide stable energy output while utilizing locally available feedstocks, thereby enhancing energy security.

Government policies and incentives supporting renewable energy deployment significantly contribute to biomass market growth. Feed-in tariffs, renewable portfolio standards, tax credits, and subsidies for bioenergy projects are encouraging investments worldwide.

Additionally, growing awareness regarding waste-to-energy solutions is boosting the utilization of agricultural waste, forestry residues, and municipal solid waste for biomass energy production, reducing landfill usage and improving waste management efficiency.

Market Restraints

Despite its strong growth potential, the biomass market faces several challenges. High capital investment required for biomass power plants and processing facilities can limit adoption, particularly in developing regions.

Feedstock availability and logistics also pose constraints. Biomass resources are geographically dispersed, and transportation costs can significantly impact project economics. Seasonal availability of biomass feedstocks further complicates supply chain management.

Environmental concerns related to deforestation and land-use changes present another restraint. Unsustainable biomass sourcing practices can negate environmental benefits, leading to regulatory scrutiny and public opposition.

Moreover, competition from other renewable energy sources such as solar and wind, which continue to experience declining costs, may restrain the growth of the biomass market in certain regions.

Emerging Opportunities

Technological advancements are creating new opportunities in the biomass market. Improved gasification and anaerobic digestion technologies are enhancing energy conversion efficiency and expanding the range of usable feedstocks.

The growing adoption of Combined Heat and Power (CHP) systems presents a significant opportunity. CHP systems maximize energy efficiency by simultaneously producing electricity and usable heat, making them highly suitable for industrial and district heating applications.

Rising demand for biofuels in transportation sectors offers another growth avenue. Biomass-derived biofuels help reduce dependence on petroleum-based fuels and support emission reduction targets.

Furthermore, increasing investments in carbon-neutral and negative-emission technologies, such as bioenergy with carbon capture and storage (BECCS), are expected to open new revenue streams for the biomass market.

Procure This Report (300 Pages PDF with Insights, Charts, Tables, and Figures): https://www.alliedmarketresearch.com/biomass-market/purchase-options

Biomass Market Segmentation

By Type

Based on type, the biomass market is segmented into solid, liquid, and gaseous biomass.
The solid biomass segment dominates the market, driven by widespread use of wood pellets, agricultural residues, and forestry waste for power and heat generation.
Liquid biomass, including bioethanol and biodiesel, is gaining traction due to rising biofuel demand, while gaseous biomass such as biogas is witnessing steady growth.

By Technology

By technology, the market is classified into combustion, gasification, anaerobic digestion, and others.
Combustion technology holds the largest share due to its maturity and extensive deployment in power and heat production.
Gasification and anaerobic digestion are expected to grow at a faster pace, supported by technological advancements and increasing focus on efficient and cleaner biomass conversion methods.

By Application

Based on application, the biomass market is segmented into power generation, heat production, biofuels, and combined heat and power (CHP).
Power generation remains the leading segment, driven by the integration of biomass power plants into national grids.
The CHP segment is expected to witness strong growth due to its high efficiency and cost-effectiveness in industrial and district energy systems.

By End Use

By end use, the market is divided into residential, commercial, and industrial segments.
The industrial segment accounts for the largest share, as industries utilize biomass for process heat, power generation, and sustainability compliance.

By Region

Region-wise, the biomass market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America represents a significant share of the global biomass market. The U.S. and Canada lead in biomass utilization, leveraging abundant agricultural residues, forest biomass, and dedicated energy crops such as switchgrass. Strong policy support and established biomass infrastructure further enhance market growth in the region.

Europe follows closely, driven by strict carbon reduction targets and extensive use of biomass for district heating and power generation. Asia-Pacific is expected to witness rapid growth due to rising energy demand and expanding renewable energy investments, while LAMEA presents emerging opportunities.

Competitive Landscape

Key players operating in the global biomass market include Fram Fuels, ANDRITZ, ENERGEX PELLET FUEL, INC., Viridis Energy Inc., RWE, German Pellets GmbH, Verdo, Drax Global, Enviva, and Bioenergy International. These companies focus on capacity expansion, technological innovation, and sustainable feedstock sourcing to strengthen their market position.

Get a Customized Research Report: https://www.alliedmarketresearch.com/request-for-customization/A08328

Market Outlook

The biomass market is poised for sustained growth as the global energy sector shifts toward renewable and low-carbon solutions. With supportive policies, technological advancements, and growing demand for sustainable energy, biomass is expected to play a crucial role in meeting future energy needs while supporting environmental goals.

Trending Reports in Energy and Power Industry:

Biomass Heating Plant Market

https://www.alliedmarketresearch.com/biomass-heating-plant-market-A32732

Biomass Market

https://www.alliedmarketresearch.com/biomass-market-A08328

Biomass Power Generation Market

https://www.alliedmarketresearch.com/biomass-power-generation-market-A08334

Wood Pellets Biomass Boilers Market

https://www.alliedmarketresearch.com/wood-pellets-biomass-boilers-market-A300158

Biopower Market

https://www.alliedmarketresearch.com/biopower-market-A09298

Biomass Gasification Market

https://www.alliedmarketresearch.com/biomass-gasification-market-A09297

Coal Gasification Market

https://www.alliedmarketresearch.com/coal-gasification-market-A10737

Waste Heat Recovery Market

https://www.alliedmarketresearch.com/waste-heat-recovery-market-A07353

Gasification Market

https://www.alliedmarketresearch.com/gasification-market

Waste to Energy Market

https://www.alliedmarketresearch.com/waste-to-energy-market

Energy Transition Market

https://www.alliedmarketresearch.com/energy-transition-market-A31819

Floating Storage Regasification Unit (FSRU) market

https://www.alliedmarketresearch.com/floating-storage-regasification-unit-market-A07866

Syngas Market

https://www.alliedmarketresearch.com/syngas-market-A07839

Green Hydrogen Market

https://www.alliedmarketresearch.com/green-hydrogen-market-A11310

Biogas Market

https://www.alliedmarketresearch.com/biogas-market-A08979

Industrial Gases Market

https://www.alliedmarketresearch.com/industrial-gases-market

Biogas Plant Market

https://www.alliedmarketresearch.com/biogas-plant-market-A07217

Wood Pellet Fuel Market

https://www.alliedmarketresearch.com/wood-pellet-fuel-market

David Correa
1209 Orange Street,
Corporation Trust Center,
Wilmington, New Castle,
Delaware 19801 USA.
Int'l: +1-503-894-6022
Toll Free: +1-800-792-5285
Fax: +1-800-792-5285
help@alliedmarketresearch.com

Web: www.alliedmarketresearch.com

Allied Market Research Blog:

https://blog.alliedmarketresearch.com

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

This release was published on openPR.