Biomass Market
Report ID: SQMIG55F2090
Report ID: SQMIG55F2090
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Report ID:
SQMIG55F2090 |
Region:
Global |
Published Date: January, 2026
Pages:
184
|Tables:
151
|Figures:
73
Global Biomass Market size was valued at USD 143.78 Billion in 2024 and is poised to grow from USD 153.7 Billion in 2025 to USD 262.12 Billion by 2033, growing at a CAGR of 6.9% during the forecast period (2026–2033).
Biomass market growth is driven by factors such as renewable energy demand, supportive legislation, and pressure to reduce carbon emissions. A demand for investments in waste-to-energy technologies and rural electrification also contribute to growth opportunities. Government and private entities are advancing towards more efficient and sustainable biomass conversion technologies, especially in new emerging markets transitioning to less harmful energy sources.
The biomass market is experiencing several key trends such as the emergence of advanced combustion and gasification technologies and increasing commercial applications of agricultural and forestry residue to produce biomass. Furthermore, migration toward more decentralized biomass power generation, as well as increasing adoption of biomass in co-firing applications in existing coal plants are also emerging as the key biomass market trends. Additionally, a shift toward second generation biofuels to increase efficiency and minimize environmental implications also drives the market expansion and boosts the biomass market revenue.
The market has severe limitations which reduce the biomass market penetration. Factors such as high capital costs associated with new or refurbished infrastructure, inconsistent quality with feedstock, and supply chain logistics pose a significant challenge by increasing the cost and reducing the operational efficiency. Regulatory fragmentation, environmental concerns surrounding deforestation and emissions, and competition from cheaper and more scalable renewables like solar and wind further restrict market growth.
How is Artificial Intelligence revolutionizing the biomass market growth?
Artificial Intelligence is revolutionizing the biomass market through feeding supply chains, advanced forecasting of resource availability, and improving conversion effectiveness. AI-enabled systems allow near real-time monitoring and predictive maintenance of biomass plant inputs, leading to reductions in downtime and ultimately lowering operational costs.
With AI, we can develop smart grid interfaces to distribution systems, furthering efficiency in energy delivery. AI is helping biomass become a more commercially viable sector with enhanced decision-making and the automation of essential processes associated with biomass energy generation.
Market snapshot - 2026-2033
Global Market Size
USD 133.97 Billion
Largest Segment
Solid Biofuel
Fastest Growth
Liquid Biofuel
Growth Rate
6.3% CAGR
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Global Biomass Market is segmented by Product Type, Source, Technology, End User, Feedstock and region. Based on Product Type, the market is segmented into Biofuels, Biomass Power, Biogas, Biochar, Biomethanol, Biodiesel and Others. Based on Source, the market is segmented into Agricultural Biomass, Forest Biomass and Waste Biomass. Based on Technology, the market is segmented into Direct Combustion, Landfill Gas, Gasification, Co-Firing, Anaerobic Digestion and Pyrolysis. Based on End User, the market is segmented into Residential, Commercial and Industrial. Based on Feedstock, the market is segmented into Solid Biofuel, Liquid Biofuel and Biogas. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the global biomass market outlook, direct combustion is the most dominant biomass sector primarily due to its simplicity, low cost, and its already established role in power plants. Direct combustion technology can use many kinds of biomass fuels, it typically uses little prior processing, and provides a constant and reliable energy form. As promoters have relied on direct combustion technology for a long time, combustion has an established infrastructure making it the choice of recursive power generation producers that use biomass.
As per global biomass market forecast, the gasification segment is projected to register the fastest growth during the forecast period. Gasification technology is based on converting solid biomass to a combustible gas through several thermochemical reactions. The resulting inventive gas has a calorific value from 1,000 to 1,200 kcal/Nm3. An important advantage of gasification as a biochemical conversion technology is the speed of processing; the product is obtained directly and rapidly.
The solid biofuel segment was found to be the largest segment with a biomass market share of 85.8% in recent years and is expected to exhibit the highest growth over the forecast period. Solid biofuel was the leading feedstock segment due to the easy availability and lower cost of solid biofuels, leading to greater uptake over biogas and liquid biofuels for power generation applications. Solid biofuels are solid, organic, non-fossil-derived materials that are of biological origin. They are used to produce either electricity or heat in different applications. Solid biofuels include wood pellets, animal waste, fuelwood, vegetable material, and wood residues.
As per global biomass market analysis, liquid biofuel is expected to grow at the highest rate throughout the forecast period. The term "liquid biofuel" encompasses liquid fuels from natural resources created from biomass or waste. These fuels can be used to blend, as well as an alternative for liquid fossil fuels for transportation and power generation applications.
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Europe is driving the biomass market largely due to considerable policy support, aggressive renewable energy targets, and significant support for clean technology. The use of biomass for heating and power is being adopted widely throughout the region, in conjunction with policies to regulate sustainability and develop incentives. This combination of biomass for heating and power along with sustainability has put Europe in a leading position for biomass innovation and use.
As per biomass market regional forecast, the biomass market in Germany has developed strong foundations based on supportive renewable energy policies, existing uses of agricultural and forestry residues, and an emphasis on sustainability at the national level. Germany directly supports biomass development through programs and innovation encouragement and has led the field in biogas, wood pellets, and waste-to-energy systems. Germany's seriousness regarding clean energy development has contributed to it becoming a leader in biomass within Europe.
Italy's biomass market is supported by strong consumption of biogas and solid biofuels, encouraged by sizable government incentives through national recovery plans. In Italy, agricultural and forestry residues represent the bulk of the feedstock. In addition, collaboration between research institutes and companies encourages consumption, develops technology, and stimulates rural development, ensuring Italy's role as an important player in the biomass market in Europe.
As per biomass industry analysis, strong government support is stimulating the UK biomass market, in the form of incentives for electricity and heat generation. Biomass is an important component of the UK renewable strategy, with solid biofuels dominating the mix. There is increasing focus on carbon capture and storage, and the UK has the potential to lead the way for sustainable biomass.
Asia-Pacific is the fastest growing region because of increasing energy demand, plentiful agricultural residue, and government incentives for clean energy. Countries such as China, India, and other Southeast Asian countries are investing in biomass projects to get off their dependence on fossil fuels, as well as deal with waste sustainably, while also sustaining rural economies.
Growing incentives and rising renewable electricity demand have contributed to the growth of the biomass sector in Japan. The biomass supply chain primarily uses wood pellets from imports and palm kernel shells from importers, while home-grown “energy forests” continue to expand as well as biogasses from food waste. The evolution of torrefied pellets and an improved understanding of lifecycle emissions will impact more areas of biomass development in the future.
As per biomass market regional outlook, South Korea's biomass market has grown quickly with rich governmental subsidies and being the second largest source of renewable energy; reliance on imported wood pellets (90% from South East Asia) has also raised alarms on deforestation and environmental contamination.
North America is leading the biomass market worldwide due to a strong interest in functional foods, dietary supplements, and personal care products. The North American region’s developed agriculture, solid regulatory backing, and the presence of top nutraceutical and cosmetic brands promote constant innovation and implementation, making it a leader in biomass worldwide.
The U.S. biomass market is bolstered by ample federal support, including tax incentives and renewable fuel standards that include blending mandates. The feedstock mix currently is heavily wood and agricultural residues. Although the competition is heating up with solar and wind, advancements in biogas, renewable diesel, and BECCS will continue developments into the future.
According to the biomass market regional outlook, it is evident that there is ample forestry and agricultural residues to support Canada's biomass market, where wood waste is the primary feedstock with a growing number of biogas options. Biofuels and renewable power development in Canada is supported by respective federal and provincial policies and advancements made by companies such as Enerkem, Iogen, and Capital Power. Specifically, there is ongoing work in developing heat, CHP, and cellulosic biofuels in Canada.
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Rising Investments in Renewable Power Generation Capacity
Rising Environmental Concerns Backed by Favorable Policies and Regulations
Competition from Alternative Energy Sources
Feedstock Supply Chain Challenges
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The biomass industry is moderately competitive, with leading companies mostly concentrating on technology advancements, diversity of feedstock, and alliances. The key companies are investing in biomass power plants, biofuels, waste-to-energy and other projects.
As per biomass market strategies, new entrants are emerging focused on gasification and biogas technologies. Regional competitors are very important in biomass, especially in Asia and Europe. The market continues to see the most interest in vertical integration, sustainability credentials, and developing carbon negative technologies
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, key drivers of the biomass market growth include the increased investments in renewable energy, government supportive policies, and increased environmental awareness. Important trends related to the biomass market include the growth of BECCS, decentralized biomass systems, and growth of second-generation biofuels. The biomass market has some constraints, notably high up-front costs, inconsistent supply of feedstocks, and regulatory uncertainties in the market. There are regional correlations in the global biomass market. The dominant regional supply of biomass stocks has been supplied in Europe with the endowed policy framework. The fastest growing region is Asia-Pacific, where energy demand and supply of agricultural waste for feedstocks seems available. North America tends to grow slower, although there are evidence of biomass growth through technological advances relating to carbon.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 143.78 Billion |
| Market size value in 2033 | USD 262.12 Billion |
| Growth Rate | 6.9% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Biomass Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biomass Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biomass Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Biomass Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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