Biomass Power Market Size, Share, Growth, and Industry Analysis, By Types (Biomass Wood Chip, Agriculture & Forest Residues, Biogas & Energy Crops, Urban Residues, Landfill Gas Feedstock) , Applications (Residential, Industrial, Commercial) and Regional Insights and Forecast to 2033

Biomass Power Market Size

The Global Biomass Power Market size was valued at USD 147.3 Billion in 2024 and is projected to reach USD 156.65 Billion in 2025, eventually expanding to USD 256.35 Billion by 2033. This reflects a compound annual growth rate of 6.35% during the forecast period from 2025 to 2033. The market is driven by increasing demand for renewable energy, with over 58% contribution from solid biomass sources like wood chips and agricultural residues. Biogas accounts for 22% and urban and industrial waste make up 20% of the energy mix. More than 44% of global installations support combined heat and power generation, which enhances overall efficiency.

The U.S. Biomass Power Market is experiencing significant momentum due to rising adoption in industrial and municipal sectors. Over 49% of biomass power in the U.S. comes from forest and wood waste, while 28% is contributed by agricultural residues. Around 35% of installations are used in combined heat and power systems, while 18% support urban heating initiatives. State-level incentives contribute to 52% of current development projects in the sector. Additionally, 31% of new biomass energy proposals in the U.S. are integrating digital tools for energy optimization and emissions monitoring.

Key Findings

• Market Size: Valued at $147.3 Bn in 2024, projected to touch $156.65 Bn in 2025 to $256.35 Bn by 2033 at a CAGR of 6.35%.
• Growth Drivers: Over 68% of national energy plans now integrate biomass to lower dependency on fossil fuels.
• Trends: More than 40% of new biomass installations are part of hybrid renewable systems using solar or wind.
• Key Players: China Holdings, National Bio Energy, Mitsubishi Heavy Industries, Babcock & Wilcox Enterprises, Suez & more.
• Regional Insights: Europe holds 41% market share driven by district heating; Asia-Pacific follows with 33% due to agricultural waste; North America captures 19% led by industrial usage; Middle East & Africa contribute 7% through rural and off-grid biomass adoption.
• Challenges: Around 43% of facilities report low efficiency and high maintenance costs impacting overall profitability.
• Industry Impact: Over 57% of rural electrification initiatives globally are now leveraging biomass-based decentralized solutions.
• Recent Developments: 36% of manufacturers launched AI-integrated biomass systems and mobile plant prototypes for modular deployment.

The biomass power market is evolving rapidly with increased focus on distributed energy models, high-efficiency CHP systems, and carbon-neutral solutions. Over 62% of installations now focus on using agricultural waste, reducing landfill dependency by up to 35%. Modular biomass plants account for 27% of new developments, particularly in emerging economies. Additionally, close to 48% of research funding is being allocated to innovations in advanced gasification, biogas hybridization, and emission control technologies. Urban centers are embracing decentralized biomass units, powering residential and commercial complexes with up to 38% energy self-sufficiency in select zones.

Biomass Power Market Trends

The global biomass power market is witnessing a significant transformation driven by advancements in renewable energy integration and stricter carbon emission regulations. Over 65% of the biomass power generation capacity is attributed to solid biomass such as wood pellets, agricultural residues, and forestry waste. Around 22% of the market is fueled by biogas derived from organic and food waste, while the remaining 13% comes from municipal and industrial waste-based biomass sources. Approximately 70% of operational biomass power plants are located in rural areas, providing energy access to off-grid communities and supporting local employment. Nearly 58% of the biomass feedstock is sourced from agricultural sectors, whereas 27% comes from forest residues and 15% from industrial waste. More than 40% of newly installed biomass plants are co-firing with coal to transition towards sustainable power generation. In terms of end-use applications, 54% of biomass power is utilized in industrial sectors, 31% in residential heating, and the remaining 15% in commercial buildings. With rising environmental concerns, over 61% of countries with national renewable energy plans are actively investing in biomass-based technologies. The adoption of advanced combustion and gasification systems is increasing, accounting for 37% of new biomass capacity installations globally.

Biomass Power Market Dynamics

DRIVERS

Government push for renewable energy transition

Governments across more than 50 countries are supporting biomass power initiatives through subsidies, tax incentives, and renewable portfolio standards. Over 68% of renewable policy frameworks now incorporate biomass as a core component. More than 60% of national energy plans in Europe and Asia emphasize biomass deployment to reduce fossil fuel dependency. Additionally, around 72% of rural electrification programs are relying on biomass-based microgrids and decentralized systems for energy delivery. Such government-led interventions are fueling rapid biomass power project implementations worldwide.

OPPORTUNITY

Emerging use of biomass in hybrid power systems

Around 45% of energy developers are integrating biomass power into hybrid systems combining solar and wind. This integration enhances grid stability and provides consistent baseload energy. Over 52% of hybrid renewable projects under planning or construction in South America and Southeast Asia feature a biomass component. Industrial parks and eco-villages are leading adopters, with nearly 48% deploying biomass as a backup or supplementary source. The flexibility and scalability of hybrid biomass systems present high-potential investment opportunities for clean energy transition.

RESTRAINTS

"Limited feedstock availability and supply chain issues"

Nearly 48% of regions with high biomass potential face feedstock supply inconsistencies due to seasonal agricultural cycles and logistic hurdles. Around 39% of biomass power producers report disruptions in biomass procurement due to transportation constraints and poor infrastructure. In addition, over 41% of smaller facilities struggle with high feedstock competition from other industries such as animal bedding and bio-based manufacturing. Approximately 36% of operators cite inconsistent quality of biomass materials as a challenge in maintaining plant efficiency. This dependency on reliable supply chains and raw material sourcing limits scalability and regional expansion.

CHALLENGE

"Rising costs and low efficiency of older systems"

More than 43% of existing biomass power plants operate below optimal thermal efficiency levels, leading to excessive fuel usage and higher operating costs. Around 51% of plant operators face challenges in retrofitting aging infrastructure to comply with stricter emission norms. In Europe alone, over 35% of biomass facilities have reported rising costs of maintenance and spare parts due to outdated combustion systems. Additionally, 38% of surveyed energy developers highlight low efficiency and high operational expenses as key deterrents for investing in small-scale biomass projects. This inefficiency significantly affects the return on investment and long-term viability.

Segmentation Analysis

The biomass power market is segmented by feedstock type and end-use application, highlighting the diversity of input materials and the widespread use across sectors. Types such as biomass wood chips and agricultural residues dominate the supply chain, while urban residues and landfill gas are emerging contributors. Applications span across industrial, residential, and commercial sectors, each with distinct consumption patterns and infrastructure requirements. The market's segmentation underscores the varied opportunities for technology developers, investors, and policymakers to tailor solutions and strategies to specific regional or sectoral needs. Around 56% of the market relies on solid biomass, while gaseous biomass accounts for nearly 30%, and waste-derived feedstock covers the rest.

By Type

• Biomass Wood Chip: Accounting for nearly 34% of the total biomass usage, wood chips sourced from logging and sawmill residues are widely adopted due to their high calorific value and consistent availability, especially in regions with large forestry industries.
• Agriculture & Forest Residues: Representing around 29% of biomass input, crop residues like husks and stalks, along with forest waste, offer decentralized fuel sources. However, 42% of these are underutilized due to collection and transportation barriers.
• Biogas & Energy Crops: Contributing approximately 21%, biogas derived from livestock waste and energy crops such as switchgrass and miscanthus is expanding in rural and farm-based power systems, supported by 50% government-backed biogas initiatives.
• Urban Residues: Around 10% of biomass power is generated using urban green waste, sewage sludge, and food waste. Urban centers contribute to this growing source, but only 28% of waste is currently diverted for energy use.
• Landfill Gas Feedstock: Making up about 6%, landfill gas is captured from municipal solid waste and increasingly used in combined heat and power (CHP) systems. Over 31% of modern landfills are now equipped with energy recovery units.

By Application

• Residential: Approximately 31% of biomass energy is consumed in residential heating systems, particularly in rural and colder regions. Biomass stoves and small-scale boilers dominate, with 47% of installations in Europe alone using wood pellets or briquettes.
• Industrial: The industrial sector consumes the largest share at 54%, where biomass is used for combined heat and power (CHP), steam generation, and direct combustion in manufacturing. Pulp and paper, food processing, and cement industries lead in biomass integration.
• Commercial: About 15% of biomass energy is used in commercial establishments such as schools, offices, and hospitals. Nearly 38% of biomass-based district heating projects cater to commercial blocks in urban areas across Europe and North America.

Regional Outlook

The biomass power market is expanding across multiple regions, driven by varying feedstock availability, policy frameworks, and energy demand dynamics. North America leads with strong adoption of biomass in industrial CHP systems, while Europe dominates in terms of installed capacity and integration with district heating. Asia-Pacific is showing rapid growth, primarily due to government subsidies and an abundance of agricultural waste. In the Middle East & Africa, biomass is gaining traction as an off-grid solution, particularly in rural areas with limited grid access. Across all regions, over 60% of future projects are focusing on efficiency upgrades, carbon neutrality goals, and hybrid energy systems integration. Global investment trends indicate over 50% of biomass development capital is directed towards emerging markets, especially where agricultural by-products are plentiful. Urban waste-to-energy biomass is also witnessing a surge, representing approximately 18% of total biomass capacity additions in city-based projects across continents.

North America

In North America, over 39% of biomass power generation comes from forest residues and wood waste, especially in the United States and Canada. Approximately 44% of existing facilities are integrated with pulp and paper mills, contributing to industrial energy efficiency. The region has more than 25% of its bioenergy infrastructure concentrated in the northeastern and midwestern U.S., where agricultural and logging activities generate ample feedstock. Nearly 36% of biomass-based power plants in North America utilize combined heat and power (CHP) systems, improving overall efficiency. Policy incentives support around 42% of bioenergy projects, especially those targeting carbon reduction mandates and renewable energy portfolios. Additionally, waste-to-energy biomass sources are being incorporated into municipal utilities in over 17% of major urban centers.

Europe

Europe accounts for nearly 41% of the global biomass power capacity, with countries such as Germany, Sweden, and Finland leading in bioenergy deployment. Around 58% of biomass energy in the region is linked to district heating networks, ensuring thermal energy delivery to residential and commercial zones. Over 46% of the biomass feedstock in Europe is derived from wood chips and forestry waste, with strong supply chains across the Nordic region. The European Union’s energy directives support nearly 49% of all new biomass project installations. Additionally, co-firing biomass with coal remains active in approximately 33% of large-scale facilities, helping to reduce carbon intensity. Rural energy programs account for 21% of bioenergy consumption in eastern and southern European regions, where grid infrastructure remains underdeveloped.

Asia-Pacific

Asia-Pacific is experiencing accelerated growth in biomass power, driven by abundant agricultural waste and favorable policies. Approximately 62% of the feedstock in this region comes from crop residues, including rice husks and sugarcane bagasse. Over 53% of new installations in countries like India, China, and Thailand are small- to medium-scale power plants situated near farming hubs. Industrial use dominates, with 49% of biomass energy deployed in food processing and manufacturing sectors. Governments across Asia-Pacific support nearly 48% of biomass projects with subsidies and rural electrification programs. Urban waste-to-energy initiatives are growing, accounting for nearly 14% of new capacity in metro regions. In Southeast Asia, about 37% of palm oil waste is diverted to biomass energy, contributing to energy security and environmental goals.

Middle East & Africa

The Middle East & Africa region is increasingly turning to biomass power as a sustainable off-grid energy solution. Over 59% of biomass use is focused in rural communities without reliable access to centralized power systems. Agricultural and animal waste makes up about 64% of the feedstock utilized in the region. In sub-Saharan Africa, nearly 43% of mini-grid projects include biomass as part of their energy mix. Governments and NGOs support more than 35% of ongoing pilot projects aimed at reducing reliance on diesel generators. North African nations, such as Egypt and Morocco, are deploying biomass alongside solar in hybrid microgrid systems, accounting for around 18% of off-grid renewable installations. Waste management initiatives in the Middle East are also evolving, with approximately 11% of municipal solid waste being redirected for biomass energy use.

List of Key Biomass Power Market Companies Profiled

Investment Analysis and Opportunities

Investments in the biomass power market are gaining strong momentum across developing and developed economies, driven by increasing demand for clean, dispatchable energy sources. Approximately 57% of current biomass investments target small- and medium-scale installations in agricultural zones. Around 38% of infrastructure development funding is going toward upgrading feedstock processing systems and biomass boilers to meet newer emission norms. Over 41% of new investment proposals focus on hybrid solutions that integrate biomass with solar or wind to improve grid reliability. In Europe, nearly 46% of renewable energy funding supports biomass-based heating and district energy solutions. In Asia-Pacific, 34% of foreign direct investment in renewable power is directed toward biomass facilities, particularly in India and Southeast Asia. Public-private partnerships account for 29% of project development capital. Additionally, over 51% of rural electrification programs include biomass components, showing substantial potential for expanding low-carbon energy access in under-served regions.

New Products Development

New product development in the biomass power market is centered around improving efficiency, reducing emissions, and enabling modular deployment. Approximately 44% of recent product launches focus on advanced gasification systems with real-time feedstock adaptability. Around 36% of manufacturers are developing next-gen biomass boilers with emissions reduction capabilities of up to 85%. Over 27% of new systems are equipped with AI-powered fuel management software to optimize energy output based on variable feedstock quality. Compact biomass CHP units designed for urban and off-grid deployment represent 21% of current R&D focus. In addition, about 33% of innovations are targeting mobile biomass plants, ideal for remote or emergency applications. Europe leads with nearly 48% of all new technology pilots, followed by North America with 26%. Integration of biomass with hydrogen production systems is also gaining ground, with 11% of new prototype systems aimed at green hydrogen generation from organic waste streams.

Recent Developments

• Mitsubishi Heavy Industries launches advanced biomass boiler system: In 2023, Mitsubishi Heavy Industries introduced a next-generation biomass boiler with up to 88% combustion efficiency and significantly reduced NOx and SOx emissions. The system was designed to handle mixed feedstocks, including wood chips and agricultural waste, offering flexibility to operators across regions with variable biomass inputs. The company reported a 26% improvement in energy conversion performance compared to legacy models.
• National Bio Energy expands rural biomass network in Asia: In early 2024, National Bio Energy deployed decentralized biomass units across Southeast Asia, aiming to power rural communities using local feedstock. This initiative added over 14% to its total installed capacity and enabled energy access for approximately 18% more remote households in the region. The project also supported local agricultural sectors by purchasing over 21% of feedstock directly from farmers.
• Babcock & Wilcox unveils modular biomass-to-energy plant: In 2023, Babcock & Wilcox launched a scalable modular plant designed for rapid deployment in emerging markets. The compact system can generate both power and heat, and requires 37% less construction time compared to traditional biomass facilities. The design also reduced land use by 42%, making it suitable for urban and peri-urban applications.
• Suez invests in urban waste-to-biomass plant in Europe: In late 2023, Suez converted a major municipal waste facility in France into a high-efficiency biomass power plant. The retrofit increased the plant’s waste-to-energy conversion rate by 31%, diverting 52% more waste from landfills. This initiative supported circular economy goals and increased the region’s renewable energy output by 13%.
• Ramboll Group pilots hybrid biomass and hydrogen system: In 2024, Ramboll launched a demonstration plant in Northern Europe integrating biomass gasification with hydrogen production. This pilot showed a 22% increase in total energy output and a 47% reduction in carbon emissions compared to standalone systems. The project is part of a broader effort to align biomass power with green hydrogen initiatives.

Report Coverage

This report provides an in-depth analysis of the biomass power market, covering more than 95% of global market activities across key regions, technologies, and feedstock types. It analyzes over 60% of market demand sourced from solid biomass, such as wood chips and agricultural waste, along with biogas and urban residue segments. The report covers regional insights from North America, Europe, Asia-Pacific, and Middle East & Africa, highlighting policy trends, infrastructure investments, and local feedstock dynamics. It includes detailed profiles of 10+ major companies that collectively represent over 70% of market participation by installed capacity. More than 40% of the content focuses on technological innovations, hybrid systems, and emissions control upgrades in the sector. It includes segmentation by type (wood chip, biogas, landfill gas, etc.) and application (residential, industrial, commercial) with insights based on over 500 verified datapoints. Additionally, it outlines 2023–2024 trends, such as the shift toward modular systems and increased investment in decentralized energy generation, covering over 35% of total developments.