Built to provide research that’s more actionable and strategically valuable, The Business Research Company’s 2026 market reports include market attractiveness analysis, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, broader supply chain intelligence, emerging startup tracking, and in-depth product insights.
Biomass Power Generation Market Forecast: What Value Will The Market Reach By 2030?
The biomass power generation market size has seen substantial growth in recent years. It is anticipated to expand from $63.97 billion in 2025 to $68.48 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 7.1%. The expansion observed in the historical period can be attributed to factors such as the availability of low cost biomass feedstock, the early adoption of biomass combustion plants, government incentives for renewable power, increasing waste to energy initiatives, and the growth in rural electrification programs.
The biomass power generation market is projected to experience substantial expansion over the upcoming years, reaching a valuation of $89.18 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 6.8%. This anticipated growth during the forecast period is primarily driven by factors such as the proliferation of biomass gasification projects, a heightened emphasis on generating carbon-neutral electricity, the progressive adoption of smart biomass plant monitoring, increased investment in waste to energy technologies, and an uptick in demand for industrial biomass chp. Key developments foreseen within this period encompass the expanded utilization of renewable biomass feedstock, an increase in the deployment of biomass chp systems, advancements in advanced biomass combustion technologies, broader application of agricultural and urban waste for power, and a surge in investment directed towards decentralized biomass power plants.
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Biomass Power Generation Market Opportunity Drivers: What’s Unlocking New Revenue Potential?
Government-led efforts aimed at fostering biomass power generation are anticipated to fuel expansion within the biomass power generation market. These initiatives encompass structured actions, programs, or policies implemented by governments to tackle particular challenges, meet objectives, or cater to public requirements. Key nations’ governments extend monetary support, including grants, subsidies, and tax credits, to promote the creation and running of biomass power facilities. Such incentives alleviate financial pressure on investors, thereby enhancing the economic feasibility of biomass projects. For instance, Natural Resources Canada, a Canada-based governmental department, reported in August 2025 that Canada’s clean energy GDP is anticipated to reach $107 billion by 2030, bolstered by roughly $58 billion in annual sector investments. Consequently, government initiatives in biomass power generation act as a primary driver for the biomass power generation market.
Biomass Power Generation Market Segment Landscape And Growth Outlook
The biomass power generation market covered in this report is segmented –
1) By Feedstock: Woody Biomass, Agriculture And Forest Residues, Biogas And Energy Crops, Urban Residues, Landfill Gas (LFG) Feedstock
2) By Technology: Anaerobic Digestion, Combustion, Gasification, Co-firing And CHP, Landfill Gas (LFG)
3) By End-User: Commercial, Industrial, Residential
Subsegments:
1) By Woody Biomass: Wood Chips, Wood Pellets, Sawdust, Wood Logs, Bark
2) By Agriculture And Forest Residues: Crop Residues, Forest Residues, Agricultural Waste
3) By Biogas And Energy Crops: Biogas, Energy Crops
4) By Urban Residues: Municipal Solid Waste (MSW), Yard Waste, Paper Waste, Food Waste
5) By Landfill Gas (LFG) Feedstock: Methane from Landfill Gas
Biomass Power Generation Market Innovation Trends Shaping Future Development
Leading firms within the biomass power generation market are increasingly pursuing strategic alliances to enhance their competitive standing. Such collaborations in this energy sector offer substantial advantages, fostering both the achievement and long-term viability of biomass power generation initiatives. For example, in April 2023, Marubeni Corporation, a Japan-based trading entity, formed a partnership with Taisei Corporation, a Japan-based real estate development enterprise. Through this alliance, both companies commenced construction of the Ishikari Area Biomass Power Plant in Ishikari City, Hokkaido, which is anticipated to generate 9,950 kW of electricity. Additionally, in December 2023, Air Burners, a US-based firm expert in producing air curtain burner systems for biomass waste disposal, collaborated with Rolls-Royce, a UK-based luxury automobile manufacturer, and Volvo, a Swedish-based automotive corporation. This strategic collaboration involving Volvo and Rolls Royce led Air Burners to develop BioCharger, a portable device capable of converting biomass waste into energy. Its purpose is to efficiently transform biomass waste into power, offering off-grid energy solutions for diverse uses.
Biomass Power Generation Market Competitive Landscape: Who Leads The Industry?
Major companies operating in the biomass power generation market are E.ON SE, ENGIE SA, Siemens AG, General Electric Company, Veolia Environnement SA, Mitsubishi Heavy Industries Ltd., ALSTOM Holdings, Dalkia by EDF Group, Drax Group PLC, Rockwell Automation Inc., MVV Energie AG, John Wood Group, Valmet Corporation, Alfa Laval, Aker Solutions, MEIDENSHA CORPORATION, Ameresco Inc., Ramboll Group A/S, Babcock & Wilcox Enterprises Inc., EnviTec Biogas AG, Vattenfall AB, WELTEC BIOPOWER GmbH, KASAG Swiss AG, Beltran Technologies Inc., Volue
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Biomass Power Generation Market Global Footprint: Which Region Leads The Market?
Europe was the largest region in the biomass power generation market in 2025. The regions covered in the biomass power generation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
