Bioenergy Market Analysis

Global Bioenergy Market Overview

The Bioenergy Market was valued at USD 118.8 billion in 2022. The Bioenergy Market industry is projected to grow from USD 127.8 billion in 2023 to USD 212 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period (2023 - 2030). Bioenergy is a form of energy generated from biological sources, such as wood, plant materials, manure, and agricultural waste. It is an important part of the global energy mix and its market is expected to grow in the coming years due to various growth factors.

The increasing need to reduce global carbon emissions has been one of the major factors driving the growth of the bioenergy market. Renewable sources of energy, such as bioenergy, are seen as much more sustainable than traditional fossil fuels, helping Governments in their efforts to reduce emissions. As the use of bioenergy increases, so does its cost efficiency. Since bioenergy is derived from natural resources it costs significantly less per unit of energy generated, making it increasingly attractive compared with traditional sources such as oil, gas and coal.

The growth of the bioenergy market is also being supported by improvements in technology and the increased availability of biomass resources. In particular, new technologies such as biogas production, biomass power, and advanced biofuels are creating new opportunities for growth in the market. Finally, increased awareness of the environmental benefits of bioenergy is creating greater political support for its use. There are now many policy measures in place around the world to support the growth of the bioenergy market, including incentives and subsidies. In conclusion, the bioenergy market is expected to continue to grow in the coming years due to an increasing need to reduce global emissions, cost efficiency, technological advances, and greater political support.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Bioenergy Market Trends

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  Rising worldwide energy demands and surging awareness and stringent regulations against global emissions

  
  

The bioenergy market is transforming rapidly with increased demand for cleaner energy sources. Driven by mounting environmental concerns and technological advancements, the sector is shifting from traditional sources of energy to burgeoning renewable energy sources. Stakeholders have seized the potential of bioenergy and harnessed its eco-friendly attributes. This shift is creating ample activity in the global bioenergy industry and there are a number of ongoing and upcoming market trends that are driving the market. The growing necessity of alternative energy sources is a key driver in the bioenergy market. Transforming regulatory policies have left a need for energy which is both renewable and cost-effective. With the increasing cost of energy production from fossil fuels, along with pressure on the government to reduce carbon-related harm and induce clean energy technology, bioenergy has become a viable option.

The governments of several countries have implemented numerous initiatives to support the bioenergy industry and are investing heavily in research and development of bioenergy. These activities are expected to give a fillip to the growth of the market. Along with government support, private organizations and companies are also increasingly investing in the sector due to the rising returns.  The increasing awareness of bioenergy is another major trend in the sector. As environmental issues gain traction, the public is increasingly veering towards green energy sources, resulting in a higher demand for bioenergy. Companies are capitalizing on the opportunity this presents to transform their production process and replace hazardous fossil fuels with renewable and biodegradable green energy.

The emergence of innovative technologies is yet another factor influencing the growth of the bioenergy market. With developments in bioconversion processes, there is tremendous potential to create clean energy from organic waste materials. AI and robotics are making it easier for companies to invest in cost-effective processes and create renewable energy sources. The ever-increasing demand for energy from renewable and sustainable sources is likely to open a multitude of opportunities for the bioenergy sector. The promising advancements in the industry and the substantial investments from both the public and the private sector indicate that market is likely to grow at a robust rate in the future. Consequently, stakeholders should remain abreast of the ongoing trends in the marketplace to capitalize on the potential of the ever-increasing demand for clean energy sources.

Bioenergy Market Segment Insights

Bioenergy Market Type Insights:

Based on type, the Bioenergy market has segmented into Solid Biomass, Liquid Biofuel, Biogas and Others. Solid Biomass segment dominated the Bioenergy Market. Solid biomass is a significant form of bioenergy sourced from organic materials like wood, agricultural residues, and dedicated energy crops. Through processes such as combustion, gasification, or pyrolysis, solid biomass is converted into heat, electricity, or biofuels. This renewable energy source offers a versatile solution for various sectors, including residential heating, industrial processes, and power generation. Solid biomass harnesses carbon captured during plant growth, making it a carbon-neutral option that mitigates climate impact. However, sustainable sourcing, efficient conversion technologies, and responsible land use practices are essential to ensure that solid biomass remains an environmentally viable and socially responsible bioenergy solution.

Bioenergy Market Feedstock Insights:

Based on feedstock, the Bioenergy market has segmented into Agricultural waste, Wood waste, Solid Waste and Others. Solid Waste segment dominated the Bioenergy Market. Solid waste serves as a valuable feedstock for bioenergy production. Through processes like anaerobic digestion and incineration, organic waste, including food scraps and agricultural residues, can be converted into biogas or heat energy. Landfill gas recovery also harnesses the methane emissions from decomposing waste. These approaches offer dual benefits: reducing landfill waste and generating renewable energy. However, careful waste management and technology implementation are essential to maximize energy recovery while minimizing environmental impacts. Solid waste-to-bioenergy strategies contribute to sustainable waste reduction and a greener energy mix.

Bioenergy Market Application Insights:

Based on Application, the Bioenergy market has segmented into Power generation, Heat Generation, Transportation and Others. Heat Generation Bioenergy segment dominated the Bioenergy Market. Bioenergy plays a crucial role in the heat generation sector as a sustainable alternative to fossil fuels. Biomass, including wood, agricultural residues, and organic waste, can be converted into heat energy through processes like combustion, gasification, or anaerobic digestion. This renewable heat is used for space heating, water heating, and industrial processes. District heating systems utilize biomass boilers to distribute heat to communities. By replacing non-renewable sources, bioenergy reduces greenhouse gas emissions, curbs air pollution, and enhances energy security. Its versatility and environmental benefits position bioenergy as a vital contributor to sustainable heat generation and the broader transition to cleaner energy systems.

Bioenergy Market Region Insights:

Region-wise Bioenergy Market has been divided into North America, Europe, Asia-Pacific, Middle East & Africa and Latin America. North America held the largest market share of 31.65% in 2022. North America has positioned itself as a prominent leader in the Bioenergy Market, driven by advancements in technology, abundant biomass resources, and a growing emphasis on renewable energy. The United States and Canada have been at the forefront of bioenergy adoption, particularly in sectors like biofuels, biogas, and biomass power generation. Policies such as the Renewable Fuel Standard in the U.S. have catalyzed the growth of biofuels like ethanol and biodiesel. The continent's focus on research and development has led to innovative solutions, including cellulosic biofuels and waste-to-energy projects. With a commitment to reducing carbon emissions, enhancing energy security, and supporting rural economies, North America's bioenergy market continues to flourish, showcasing its leadership in the global transition to sustainable energy systems.

Europe has emerged as a leader in the Bioenergy Market, spearheading the transition towards renewable energy sources. The region's commitment to sustainability, stringent environmental regulations, and innovative policies have driven the growth of bioenergy solutions. Europe invests significantly in advanced technologies, such as biomass and biogas production, biofuel refining, and waste-to-energy conversion. The European Union's Renewable Energy Directive mandates increased bioenergy usage, encouraging member states to adopt renewable solutions. This approach has led to the development of efficient supply chains, improved energy security, and reduced greenhouse gas emissions. As a pioneer in renewable energy adoption, Europe serves as a model for other regions seeking to harness the potential of bioenergy to combat climate change and create a sustainable energy future.

Bioenergy Key Market Players & Competitive Insights

The Bioenergy Market is becoming increasingly competitive due to the presence of several large and small players that are consistently engaging in various strategies to gain a competitive edge. Some of the leading companies in the market include ADM, POET, LLC, Neste, RENEWABLE ENERGY GROUP (REG), ABENGOA BIOENERGY, WILMAR INTERNATIONAL, Raízen, VALERO ENERGY CORPORATION, ENVITEC Biogas AG, GEVO, INC.

These companies are primarily focused on the development of advanced biofuel technology and the introduction of innovative products. The players have been actively engaging in mergers and acquisitions, product launches, and other business strategies to enhance their market presence. These strategies are likely to help the key market players expand their business and further strengthen their existing position in the market.

Archer Daniels Midland Company (ADM): stands out prominently in the global bioenergy domain. Renowned for its prowess in food processing and commodities, ADM has seamlessly ventured into the bioenergy sector. With a robust focus on sustainability, ADM has emerged as a significant biofuel producer, particularly in the ethanol segment sourced from renewable feedstocks like corn and sugarcane. ADM's engagement extends to biodiesel production, research and development, and innovation in biofuel technologies. Its comprehensive approach encompasses not only production but also research initiatives aimed at enhancing bioenergy processes and feedstock utilization. Furthermore, ADM advocates for supportive policies that foster the growth of the bioenergy market. This multifaceted involvement places ADM in a pivotal role, driving advancements in the bioenergy sector and contributing to a more sustainable energy landscape.

Envitec Biogas AG: is a significant player in the bioenergy market with a strong focus on biogas production. As a leading international supplier of biogas technology, the company specializes in designing, building, and operating biogas plants that utilize organic waste materials to generate renewable energy. Envitec's expertise spans across various sectors, including agriculture, industrial waste, and wastewater treatment, enabling efficient and sustainable energy production while addressing waste management challenges. With a commitment to innovation, Envitec continuously develops advanced biogas solutions and optimizes plant performance. Its contributions extend beyond technology, as the company plays an essential role in promoting the adoption of biogas as a viable renewable energy source worldwide. Envitec Biogas AG's comprehensive approach positions it as a key player driving the transition to cleaner and more sustainable energy systems.

Key Companies in the Bioenergy Market includes

• ADM (USA)


• Poet LLC (USA)


• Neste (Finland)


• Renewable Energy Group (USA)


• Abengoa Bioenergy (Spain)


• Wilmar International (Singapore)


• Raízen (Brazil)


• Valero Energy Corporation (USA)


• Envitec Biogas AG (Germany)


• Gevo, Inc. (USA)

Bioenergy Industry Developments

July 2021, Liquind 24/7 GmbH and EnviTec Biogas AG agreed to deliver and market bio-LNG produced by EnviTec Biogas AG in Gustrow in heavy duty clients at Liquind 24/7 GmbH’s truck fueling facilities in Europe.

April 2020 - Finnish-Swiss biotech company Ductor is building three combined biofertilizer-biogas facilities in northern Poland. The new facilities will be built in Poland's Zachodniopomorskie region, located off the coast of the Baltic Sea. Two of the new plants would have installed capacity of 0.5MW, and the third will be 1MW. All three plants are expected to be operational in 2021.

February 2020 - The U.S. based Brightmark Energy company announced plans to expand its waste-to-biogas project, partnering with six total farms in the region. The 'Yellowjacket' project would extract methane from 265,000 gallons of dairy manure per day and convert it into renewable natural gas (RNG) and other useful by-products.

Bioenergy Market Segmentation

Bioenergy Type Outlook

• Solid Biomass


• Liquid Biofuel


• Biogas


• Others

Bioenergy Feedstock Outlook

• Agricultural waste


• Wood waste


• Solid Waste


• Others

Bioenergy Application Outlook

• Power generation


• Heat Generation


• Transportation


• Others

Bioenergy Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World
  
  
  
  • Middle East & Africa
  
  
  • South America