Biomass Electricity Market Overview
The Biomass Electricity market
revenue is anticipated to grow significantly from 2025 to 2035, driven by increasing
demand for sustainable energy, government incentives, and advancements in
biomass conversion technologies. By 2025, the Biomass Electricity market value is
projected to reach around USD 133.97 Billion. Looking ahead to 2035, it is
expected to expand further to about USD 224.16 Billion. This represents an
annual growth rate of 6.4% over the ten-year period.
The Global Biomass Electricity
Market forecast focuses on power generation from organic materials such as
wood, agricultural waste, and municipal solid waste. Biomass electricity is a
key component of the renewable energy sector. The Global Biomass Electricity
Market trends analysis refers to the sector within the renewable energy
industry that focuses on the generation of electricity using biomass
feedstock—organic materials derived from plants, animals, and waste sources.
Biomass electricity is produced through various processes, including direct
combustion, gasification, anaerobic digestion, and pyrolysis, which convert
biomass into energy, either by burning it directly or transforming it into
biofuels or biogas. This market encompasses power generation, transmission, and
distribution of electricity derived from biomass, catering to industrial,
commercial, and residential energy needs. It is driven by government policies
promoting renewable energy, carbon reduction targets, and advancements in
biomass conversion technologies. Biomass electricity is often integrated with
existing power infrastructure through standalone biomass plants, co-firing with
coal, and decentralized off-grid solutions.
Biomass Electricity Market Drivers and Opportunities
Increasing Energy Security
& Reducing Dependence on Fossil Fuels is anticipated to lift the Biomass
Electricity market growth during the forecast period
Biomass electricity provides an alternative to coal, natural gas, and oil, reducing reliance on imported fossil fuels. Many countries aim to diversify their energy mix by incorporating biomass as a stable and dispatchable renewable source compared to intermittent sources like solar and wind. Biomass electricity contributes significantly to energy security by utilizing locally available resources such as agricultural residues, forestry waste, and municipal solid waste. This localization diminishes reliance on imported fossil fuels, fostering national energy independence and stabilizing energy supply chains. For instance, in the United Kingdom, biomass accounted for 8.6% of the energy supply in 2023, underscoring its role in diversifying the energy mix and enhancing security. Transitioning to biomass electricity addresses environmental concerns associated with fossil fuel consumption, notably greenhouse gas emissions. Biomass is considered carbon-neutral, as the CO₂ released during combustion is offset by the CO₂ absorbed during the growth of the biomass feedstock. This characteristic positions biomass as a sustainable alternative, aiding countries in meeting climate goals and reducing their carbon footprint. The European Union's Renewable Energy Directive has propelled biomass energy investments, with countries like Sweden, Germany, and the U.K. leading the way. Europe holds a significant share of the biomass electricity market, driven by stringent regulations and ambitious carbon reduction targets. In 2024, the biomass and renewable municipal waste segment accounted for approximately 79% of the total installed capacity in the bioenergy market, highlighting its dominance in the renewable energy sector.
Rising Concerns About Climate
Change & Carbon Emissions is a vital driver for influencing the growth of
the global Biomass Electricity market
Rising concerns about climate
change and the imperative to reduce carbon emissions are significantly
propelling the global biomass electricity market growth. As nations strive to
meet environmental targets and transition to sustainable energy systems, biomass
electricity emerges as a pivotal solution. The escalating
impacts of climate change have intensified the focus on reducing greenhouse gas
emissions. In 2024, global energy demand surged by
2.2%, leading to a 0.8% increase in carbon dioxide emissions, totaling 37.8
billion metric tons. This rise underscores the
urgent need for cleaner energy alternatives. Biomass electricity, generated
from organic materials such as agricultural residues, forestry waste, and
dedicated energy crops, offers a renewable and carbon-neutral energy source.
The carbon dioxide released during biomass combustion is
offset by the carbon absorbed during the growth of the biomass feedstock,
resulting in a balanced carbon cycle. This
characteristic positions biomass electricity as a viable alternative to fossil
fuels, aiding in the reduction of overall carbon emissions. According to
the IEA, modern bioenergy use is on an upward trend, with significant growth
projected in the coming years. Bioenergy used for electricity generation is
expected to nearly double, from generating about 700 TWh of electricity in 2023
to around 1,250 TWh in 2030. Compared to fossil fuel power plants, biomass
electricity plants emit significantly lower levels of greenhouse gases. The
concept of Bioenergy with Carbon Capture and Storage (BECCS) further enhances
the potential of biomass electricity by capturing and storing CO2 emissions,
contributing to negative emissions.
Advancements in Biomass
Technology is poised to create significant opportunities in the global Biomass
Electricity market
Technological advancements in biomass
electricity generation are poised to significantly create lucrative opportunity
for global biomass electricity market during the forecast period. Innovations
in conversion technologies, enhanced efficiency, and integration capabilities
are making biomass electricity more competitive and sustainable. Modern
combustion systems have improved efficiency and reduced emissions. Techniques
such as fluidized bed combustion allow for better heat transfer and lower
pollutant formation. Gasification converts biomass into syngas (a mixture of
hydrogen and carbon monoxide), which can be used for electricity generation or
as a feedstock for biofuels. This process offers higher efficiency and lower
emissions compared to traditional combustion. Anaerobic Digestion technology
breaks down organic matter in the absence of oxygen to produce biogas,
primarily composed of methane. Biogas can be used for electricity generation,
heating, or as a vehicle fuel, providing a versatile energy source from waste
materials. Integrating biomass with coal in existing power plants (co-firing)
reduces greenhouse gas emissions and allows for a gradual transition to
renewable energy without significant infrastructure changes. Combined Heat
and Power (CHP) systems simultaneously generate electricity and useful heat
from biomass, achieving efficiencies of over 80%. This dual output maximizes
energy utilization and reduces overall emissions. For instance, Drax Group has transitioned its power station from coal to
biomass, becoming one of the largest renewable power generators in Europe.
The company has also signed agreements to supply biomass
for sustainable aviation fuel production, demonstrating the versatility of
biomass energy.
Biomass Electricity Market Scope
Report
Attributes |
Description |
Market Size in 2025 |
USD 133.97 Billion |
Market
Forecast in 2035 |
USD 224.16
Billion |
CAGR % 2025-2035 |
6.4% |
Base
Year |
2024 |
Historic Data |
2020-2024 |
Forecast
Period |
2025-2035 |
Report USP
|
Production, Consumption, company
share, company heatmap, company production capacity, growth factors and more |
Segments
Covered |
|
Regional Scope |
|
Country
Scope |
|
Biomass Electricity Market Report Segmentation Analysis
The Global Biomass Electricity
Market analysis is segmented into by Feedstock, by Technology, by End-user and
by Region.
Solid Biofuel segment is anticipated to hold the highest share of the
global Biomass Electricity market during the projected timeframe.
By Feedstock, the Biomass
Electricity market is segmented into Solid Biofuel, Liquid Biofuel, Biogas, and
Municipal Solid Waste (MSW). Solid Biofuel segment dominate the global Biomass
Electricity market share of around 82% among others. Solid biofuels,
encompassing materials like wood pellets, agricultural residues, and forestry
waste, hold a substantial share in biomass electricity generation. Resources
such as agricultural residues, forestry waste, and dedicated energy crops are
widely accessible. Solid biofuels offer substantial energy output per unit,
making them efficient for power generation. Combustion
technologies for solid biofuels are well-developed and widely implemented.
However, biogas segment is expected to grow at a higher CAGR during the
forecast period. Biogas produced through
anaerobic digestion of organic materials, biogas is increasingly contributing
to the biomass electricity market.
The Direct Combustion segment is anticipated to hold the highest share
of the market over the forecast period.
On the basis of Technology, the
market is bifurcated into Direct Combustion, Gasification, Anaerobic Digestion,
Pyrolysis and Co-firing. Direct Combustion currently dominates the Biomass
Electricity market. Direct combustion is the most widely
utilized technology in biomass electricity generation. This method involves burning biomass feedstocks such as wood,
agricultural residues, and municipal solid waste to produce steam, which drives
turbines to generate electricity. Its dominance is
attributed to its technological maturity and simplicity. Direct
Combustion is the most established biomass electricity generation method,
direct combustion benefits from proven reliability and widespread
implementation. However, emerging technologies like
gasification and anaerobic digestion are gaining traction, driven by their
efficiency and integration with waste management practices. Pyrolysis and co-firing occupy niche segments, with their
adoption influenced by ongoing research, economic factors, and policy support.
The Utility segment is expected to dominate the market during the
forecast period.
Based on End-user, the Biomass
Electricity market is segmented into Utilities, Industrial and Commercial &
Residential. Utilities represent the largest segment in the biomass electricity
market. This dominance is attributed to their capacity to implement large-scale
biomass electricity plants, benefiting from economies of scale and contributing
significantly to national grids. Utilities operate extensive biomass
electricity plants, contributing substantially to overall electricity
production. Biomass electricity plants managed by utilities are often
integrated into national grids, ensuring consistent energy supply.
The following segments are part of an in-depth analysis of the global Biomass
Electricity market:
Market
Segments |
|
By Feedstock |
|
By Technology |
|
By End-user |
|
Biomass Electricity Market
Share Analysis by Region
Europe is projected to hold the largest share of the global Biomass
Electricity market over the forecast period.
Europe leads the global biomass
electricity market, accounting for approximately 40% of the biomass electricity
market share in 2024. The European Union's Renewable Energy Directive mandates
member states to increase the share of renewable energy, including biomass, in
their energy mix. European countries have invested in advanced biomass
conversion technologies, enhancing efficiency and reducing emissions. Emphasis
on reducing greenhouse gas emissions has led to increased adoption of biomass
energy solutions. Germany is a leader in the European biomass electricity
sector, holding approximately 18.6% of the market share. In 2023, the country's
installed biomass electricity capacity reached 10.0 GW. he Climate Action
Programme 2030 aims to increase the share of renewable energy to 65% by 2030,
promoting biomass as a key component. Germany effectively uses wood, wood
waste, and biogas produced from organic matter decomposition for electricity
generation. The UK is among the top European countries in biomass electricity
capacity and utilization. The UK government provides subsidies and incentives
to promote biomass energy, aiming to reduce carbon emissions and enhance energy
security. As of February 2025, the UK
has 875 MW of bioenergy projects under construction, expected to increase the country's
bioenergy capacity by 20% upon completion. Sweden is a significant player in
the European biomass electricity market, with substantial capacity and
utilization. Sweden boasts a high share of renewable energy in its electricity
consumption, with 87.5% of electricity generated from renewable sources in
2023. The country emphasizes sustainable biomass sourcing and efficient energy
production methods. Denmark relies heavily on solid biomass imports for energy
due to limited domestic forest biomass potential. In 2023, renewable sources
accounted for 79.4% of Denmark's gross electricity consumption. However, The
Asia-Pacific region is anticipated to grow at a higher CAGR of the global biomass
electricity market during the forecast period.
Biomass Electricity Market Competition Landscape Analysis
The global Biomass Electricity
(GIT) market share is characterized by a mix of established multinational
corporations and regional players, each contributing to the market's
competitive dynamics. Companies are investing in research and development to
enhance biomass conversion efficiencies and reduce operational costs.
Global Biomass Electricity Market Recent Developments News:
Drax Group's U.S. Expansion: In September 2024, Drax Group, a UK-based electricity producer, announced plans to invest up to $12.5 billion in the United States to construct biomass electricity plants utilizing bioenergy with carbon capture and storage (BECCS) technology. This strategic move aims to capitalize on U.S. energy subsidies and growing demand for renewable energy.
Drax and Pathway Energy Agreement: In January 2025, Drax signed a significant supply agreement with Pathway Energy to provide over one million tonnes of biomass annually from its plants in Louisiana and Mississippi to a new facility in Texas. This collaboration focuses on producing sustainable aviation fuel, contributing to the reduction of carbon emissions in the aviation sector.
Ishikari Area Biomass electricity Plant: In April 2023, Marubeni Corporation and Taisei Corporation initiated the construction of a wood-based biomass electricity plant in Ishikari City, Hokkaido, Japan. The plant, named Ishikari Area Biomass electricity Plant, is designed with a generation capacity of 9,950 kW and aims to bolster Japan's renewable energy infrastructure.
The Global Biomass Electricity Market
is dominated by a few large companies, such as
·
Drax Group
·
Enviva
·
Vattenfall AB
·
Ørsted A/S
·
General Electric (GE)
·
Babcock & Wilcox Enterprises, Inc.
·
Mitsubishi Heavy Industries
·
Veolia
·
EnviTec Biogas AG
·
E.ON SE
·
Others
1.
Global
Biomass Electricity Market Introduction and Market Overview
1.1. Objectives of the Study
1.2. Global Biomass Electricity
Market Scope and Market Estimation
1.2.1. Global Biomass Electricity Overall
Market Size (US$ Bn), Market CAGR (%), Market forecast (2025 - 2035)
1.2.2. Global Biomass Electricity
Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2021 - 2035
1.3. Market Segmentation
1.3.1. Feedstock of Global Biomass
Electricity Market
1.3.2. Technology of Global Biomass
Electricity Market
1.3.3. End-user of Global Biomass Electricity
Market
1.3.4. Region of Global Biomass
Electricity Market
2.
Executive Summary
2.1. Demand Side Trends
2.2. Key Market Trends
2.3. Market Demand (US$ Bn) Analysis
2021 – 2024 and Forecast, 2025 – 2035
2.4. Demand and Opportunity
Assessment
2.5. Demand Supply Scenario
2.6. Market Dynamics
2.6.1. Drivers
2.6.2. Limitations
2.6.3. Opportunities
2.6.4. Impact Analysis of Drivers and
Restraints
2.7. Pricing Trends Analysis
2.8. Overview of Technology Developments
2.9. Porter’s Five Forces Analysis
2.9.1. Bargaining Power of Suppliers
2.9.2. Bargaining Power of Buyers
2.9.3. Threat of Substitutes
2.9.4. Threat of New Entrants
2.9.5. Competitive Rivalry
2.10. PEST Analysis
2.10.1. Political Factors
2.10.2. Economic Factors
2.10.3. Social Factors
2.10.4. Technology Factors
2.11. Value Chain / Ecosystem Analysis
2.12. Key Regulation
3.
Global Biomass Electricity
Market Estimates & Historical Trend
Analysis (2021 - 2024)
4.
Global Biomass Electricity
Market Estimates & Forecast Trend
Analysis, by Feedstock
4.1. Global Biomass Electricity
Market Revenue (US$ Bn) Estimates and Forecasts, by Feedstock, 2021 - 2035
4.1.1. Solid Biofuel
4.1.1.1.
Wood
Pellet
4.1.1.2.
Agricultural
Residues
4.1.1.3.
Wood
Chips
4.1.1.4.
Energy
Crops
4.1.2. Liquid Biofuel
4.1.2.1.
Biodiesel
4.1.2.2.
Bioethanol
4.1.2.3.
Others
4.1.3. Biogas
4.1.4. Municipal Solid Waste (MSW)
5.
Global Biomass Electricity
Market Estimates & Forecast Trend
Analysis, by Technology
5.1. Global Biomass Electricity
Market Revenue (US$ Bn) Estimates and Forecasts, by Technology, 2021 - 2035
5.1.1. Direct Combustion
5.1.2. Gasification
5.1.3. Anaerobic Digestion
5.1.4. Pyrolysis
5.1.5. Co-firing
6.
Global Biomass Electricity
Market Estimates & Forecast Trend
Analysis, by End-user
6.1. Global Biomass Electricity
Market Revenue (US$ Bn) Estimates and Forecasts, by End-user, 2021 - 2035
6.1.1. Utilities
6.1.2. Industrial
6.1.3. Commercial & Residential
7.
Global Biomass Electricity
Market Estimates & Forecast Trend
Analysis, by Region
7.1. Global Biomass Electricity
Market Revenue (US$ Bn) Estimates and Forecasts, by Region, 2021 - 2035
7.1.1. North America
7.1.2. Eastern Europe
7.1.3. Western Europe
7.1.4. Asia Pacific
7.1.5. Middle East & Africa
7.1.6. Latin America
8.
North
America Biomass Electricity Market: Estimates & Forecast Trend Analysis
8.1.
North
America Biomass Electricity Market Assessments & Key Findings
8.1.1. North America Biomass
Electricity Market Introduction
8.1.2. North America Biomass
Electricity Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
8.1.2.1. By Feedstock
8.1.2.2. By Technology
8.1.2.3. By End-user
8.1.2.4. By Country
8.1.2.4.1. The U.S.
8.1.2.4.2. Canada
8.1.2.4.3. Mexico
9.
Western
Europe Biomass Electricity Market: Estimates & Forecast Trend Analysis
9.1. Western Europe Biomass
Electricity Market Assessments & Key Findings
9.1.1. Western Europe Biomass
Electricity Market Introduction
9.1.2. Western Europe Biomass
Electricity Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
9.1.2.1. By Feedstock
9.1.2.2. By Technology
9.1.2.3. By End-user
9.1.2.4.
By
Country
9.1.2.4.1.
Germany
9.1.2.4.2.
Italy
9.1.2.4.3.
U.K.
9.1.2.4.4.
France
9.1.2.4.5.
Spain
9.1.2.4.6.
Benelux
9.1.2.4.7.
Nordics
9.1.2.4.8. Rest
of W. Europe
10. Eastern Europe Biomass
Electricity Market: Estimates &
Forecast Trend Analysis
10.1. Eastern Europe Biomass
Electricity Market Assessments & Key Findings
10.1.1. Eastern Europe Biomass
Electricity Market Introduction
10.1.2. Eastern Europe Biomass
Electricity Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
10.1.2.1. By Feedstock
10.1.2.2. By Technology
10.1.2.3. By End-user
10.1.2.4. By Country
10.1.2.4.1.
Russia
10.1.2.4.2.
Hungary
10.1.2.4.3.
Poland
10.1.2.4.4.
Balkan & Baltics
10.1.2.4.5. Rest of E. Europe
11. Asia Pacific Biomass
Electricity Market: Estimates &
Forecast Trend Analysis
11.1. Asia Pacific Market Assessments
& Key Findings
11.1.1. Asia Pacific Biomass Electricity
Market Introduction
11.1.2. Asia Pacific Biomass Electricity
Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
11.1.2.1. By Feedstock
11.1.2.2. By Technology
11.1.2.3. By End-user
11.1.2.4. By Country
11.1.2.4.1. China
11.1.2.4.2. Japan
11.1.2.4.3. India
11.1.2.4.4. Australia & New Zealand
11.1.2.4.5. South Korea
11.1.2.4.6. ASEAN
11.1.2.4.7. Rest of Asia Pacific
12. Middle East & Africa Biomass
Electricity Market: Estimates &
Forecast Trend Analysis
12.1. Middle East & Africa Market
Assessments & Key Findings
12.1.1. Middle
East & Africa Biomass
Electricity Market Introduction
12.1.2. Middle
East & Africa Biomass
Electricity Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
12.1.2.1. By Feedstock
12.1.2.2. By Technology
12.1.2.3. By End-user
12.1.2.4. By Country
12.1.2.4.1. UAE
12.1.2.4.2. Saudi
Arabia
12.1.2.4.3. Turkey
12.1.2.4.4. South
Africa
12.1.2.4.5. Rest of
MEA
13. Latin America
Biomass Electricity Market: Estimates
& Forecast Trend Analysis
13.1. Latin America Market Assessments
& Key Findings
13.1.1. Latin America Biomass
Electricity Market Introduction
13.1.2. Latin America Biomass
Electricity Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)
13.1.2.1. By Feedstock
13.1.2.2. By Technology
13.1.2.3. By End-user
13.1.2.4. By Country
13.1.2.4.1. Brazil
13.1.2.4.2. Argentina
13.1.2.4.3. Colombia
13.1.2.4.4. Rest of
LATAM
14. Country Wise Market:
Introduction
15. Competition Landscape
15.1. Global Biomass Electricity
Market Product Mapping
15.2. Global Biomass Electricity Market
Concentration Analysis, by Leading Players / Innovators / Emerging Players /
New Entrants
15.3. Global Biomass Electricity
Market Tier Structure Analysis
15.4. Global Biomass Electricity
Market Concentration & Company Market Shares (%) Analysis, 2024
16. Company Profiles
16.1. Drax Group
16.1.1. Company Overview & Key Stats
16.1.2. Financial Performance & KPIs
16.1.3. Product Portfolio
16.1.4. SWOT Analysis
16.1.5. Business Strategy & Recent
Developments
* Similar details would be provided
for all the players mentioned below
16.2. Enviva
16.3. Vattenfall AB
16.4. Ørsted A/S
16.5. General Electric
(GE)
16.6. Babcock &
Wilcox Enterprises, Inc.
16.7. Mitsubishi Heavy
Industries
16.8. Veolia
16.9. EnviTec Biogas AG
16.10. E.ON SE
16.11. Others
17. Research
Methodology
17.1. External Transportations /
Databases
17.2. Internal Proprietary Database
17.3. Primary Research
17.4. Secondary Research
17.5. Assumptions
17.6. Limitations
17.7. Report FAQs
18. Research Findings & Conclusion
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Biomass Electricity Market was valued at USD 133.97 Billion in 2025.
Biomass Electricity Market size will increase at approximate CAGR of 6.4% during the forecasted period.
Major companies operating within the market are Drax Group, Enviva, Vattenfall AB, Ørsted A/S, General Electric (GE), Babcock & Wilcox Enterprises, Inc., Mitsubishi Heavy Industries, Veolia, EnviTec Biogas AG, E.ON SE and others.
Europe dominates the market with an active share of 40%.
Only Three Thousand Four Hundred Ninety Nine US dollar
Only Four Thousand Four Hundred Ninety Nine US dollar
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