Delivering more actionable and strategically valuable research, The Business Research Company’s 2026 market reports feature market attractiveness analysis, total addressable market evaluation, company benchmarking matrices, interactive Excel dashboards, expanded supply chain intelligence, emerging startup coverage, and detailed product insights.
Biomass Market Forecast: What Market Value Is Expected By 2030?
The biomass market has observed significant expansion in recent years. Its size is projected to increase from $67.52 billion in 2025 to $72.58 billion in 2026, achieving a compound annual growth rate (CAGR) of 7.5%. This growth observed historically is attributable to the increasing adoption of biomass for rural electrification, growing demand for renewable heat solutions, rising utilization of agricultural residues for energy, expanding use of biomass in industrial boilers, and increasing policy support for bioenergy deployment.
The biomass market is projected to experience substantial expansion in the coming years, reaching $95.90 billion by 2030, driven by a compound annual growth rate (CAGR) of 7.2%. This anticipated growth throughout the forecast period stems from several factors, including the escalating demand for low-carbon energy alternatives, increased capital expenditure in sophisticated biomass conversion plants, wider deployment of biomass in district heating networks, the broadening application of bioenergy for carbon-neutral industrial operations, and a heightened emphasis on incorporating waste into energy production systems. Key trends foreseen during this period involve technological progress in biomass gasification systems, novel developments in advanced combustion and co-firing techniques, the evolution of highly efficient bioenergy conversion technologies, intensified research into algae-based biomass generation, and improvements in automated biomass supply chain and logistical frameworks.
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Biomass Market Opportunity Drivers: What Is Creating New Revenue Potential?
The increasing demand for clean energy is anticipated to drive the expansion of the biomass market in the future. Clean energy is defined as power derived from renewable or low-emission sources, designed to lessen environmental harm and lower greenhouse gas outputs. A heightened global awareness of environmental sustainability is fueling the rise in clean energy demand, given its effectiveness in mitigating greenhouse gas emissions and addressing climate change. Biomass bolsters clean energy efforts by transforming organic matter, including agricultural waste, wood, and refuse, into renewable electricity, thereby offering an excellent means to lessen reliance on fossil fuels. It contributes to sustainable energy production by offering a reliable, carbon-neutral power option, which in turn improves environmental conditions and strengthens energy security. As an illustration, the International Energy Agency, an intergovernmental organization based in France, reported in June 2024 that global investment in clean energy reached $80 billion in 2024, an increase from $67 billion in 2023. Consequently, the growing requirement for clean energy is fostering the expansion of the biomass market.
Biomass Market Segmentation Trends And Revenue Drivers
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 Innovation Trends Driving Future Development
Major companies within the biomass power generation market are concentrating on establishing sophisticated facilities, such as high-efficiency gasification systems, to improve energy production, increase fuel versatility, and lessen emissions and environmental impact. High-efficiency gasification systems represent advanced technologies that convert biomass into syngas efficiently with minimal waste, making them suitable for consistent power generation. As an illustration, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, inaugurated the Chofu Biomass Power Plant. This plant is a dedicated biomass facility equipped with a high-efficiency gasification system that enables the utilization of various biomass fuels, including wood pellets and agricultural residues. The plant incorporates automated systems for fuel handling and combustion control, facilitating stable and efficient power generation without extensive manual involvement. Furthermore, it integrates advanced technologies for emissions control and waste heat recovery, thereby maximizing energy utilization and minimizing the ecological footprint for local energy providers.
#Biomass Market Industry Leaders: Which Organizations Are Driving Competition?
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 Leading Geography: Which Region Generates The Most Revenue?
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.