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Biomass Market Poised To Hit $95.9 Billion By 2030 With A 7.2% CAGR
Recent years have seen substantial growth in the biomass market size. It is anticipated to expand from $67.52 billion in 2025 to $72.58 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 7.5%. The historical expansion can be linked to factors such as the increasing adoption of biomass for rural electrification, a growing demand for renewable heat solutions, the rising utilization of agricultural residues for energy, an expanding use of biomass in industrial boilers, and enhanced policy support for bioenergy deployment.
The biomass market is poised for substantial expansion over the coming years, projected to reach $95.90 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 7.2%. This projected growth is driven by several factors, including the increasing demand for low-carbon energy, greater investment in advanced biomass conversion facilities, wider incorporation of biomass into district heating systems, the expanding application of bioenergy in carbon-neutral industrial processes, and a heightened emphasis on integrating waste-to-energy solutions. Key developments expected during this period encompass technological progress in biomass gasification systems, novel advanced combustion and co-firing solutions, enhancements in high-efficiency bioenergy conversion technologies, increased research into algae-based biomass production, and improvements in automated biomass supply chain and logistics systems.
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Biomass Market Industry Drivers: What’s Behind The Revenue Growth?
The increasing demand for clean energy is projected to drive the expansion of the biomass market in the future. Clean energy refers to power generated from renewable or low-emission sources that minimize environmental impact and reduce greenhouse gas emissions. The need for clean energy is growing due to rising awareness of environmental sustainability, as it helps cut greenhouse gas emissions and combat climate change. Biomass enhances clean energy by converting organic materials such as agricultural residues, wood, and waste into renewable power, making it an excellent option for reducing dependence on fossil fuels. It supports sustainable energy production by providing a consistent, carbon-neutral energy source, improving environmental outcomes and energy security. For instance, in June 2024, the International Energy Agency, a France-based intergovernmental organization, reported that worldwide investment in clean energy reached $80 billion in 2024, an increase from $67 billion in 2023. Consequently, the heightened need for clean energy is fueling the growth of the biomass market.
Biomass Market Segment Analysis Spotlighting Growth Areas
The biomass market covered in this report is segmented –
1) By Product Type: Solid Biomass, Liquid Biofuels, Biogas
2) By Technology: Direct Combustion, Gasification, Anaerobic Digestion, Pyrolysis
3) By Source: Agricultural Biomass, Forest Biomass, Waste Biomass
4) By Application: Power Generation, Heat Generation, Transportation Fuel (Biofuels), Other Applications
5) By End-User: Residential, Commercial, Industrial, Utilities
Subsegments:
1) By Solid Biomass: Wood Chips, Wood Pellets, Agricultural Residues, Energy Crops, Animal Waste
2) By Liquid Biofuels: Bioethanol, Biodiesel, Renewable Diesel, Hydrotreated Vegetable Oil, Fischer Tropsch Diesel
3) By Biogas: Landfill Gas, Sewage Gas, Anaerobic Digestion Gas, Industrial Waste Gas, Agricultural Waste Gas
#Biomass Market Growth Trends: What’s Shaping The Future Outlook?
Key companies operating in the biomass power generation sector are concentrating on establishing advanced facilities, such as high-efficiency gasification systems, to elevate energy output, enhance fuel flexibility, and decrease emissions and environmental impact. High-efficiency gasification systems refer to advanced technologies capable of converting biomass into syngas with minimal waste and superior thermal efficiency, making them suitable for stable power generation. For instance, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, launched the Chofu Biomass Power Plant. This is a dedicated biomass power plant featuring a high-efficiency gasification system that facilitates the use of diverse biomass fuels, including wood pellets and agricultural residues. The plant incorporates automated systems for fuel handling and combustion control, ensuring stable and efficient power generation without significant manual intervention. It also integrates advanced technologies for emissions control and waste heat recovery, thereby maximizing energy utilization and minimizing the environmental footprint for local energy operators.
Biomass Market Key Participants And Competitive Landscape
Major companies operating in the biomass market are TotalEnergies SE, Archer-Daniels-Midland Company (ADM), Veolia Environnement S.A., Neste Oyj, UPM Biofuels, Drax Group plc, ANDRITZ Group, Wärtsilä Corporation, Valmet Oyj, Green Plains Inc., Enviva Inc., Babcock & Wilcox Enterprises Inc., Hitachi Zosen Inova AG, EnviTec Biogas AG, Clean Energy Fuels Corp., Praj Industries Limited, AS Graanul Invest, Anaergia Inc., ReEnergy Holdings LLC, Greenlane Renewables Inc., WELTEC BIOPOWER GmbH, IES Biogas S.r.l., GoodFuels B.V., Xergi A/S
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Biomass Market Geographic Analysis: Where Is Demand Accelerating Fastest?
Europe was the largest region in the biomass market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biomass 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.
