Biomass Market Trends

Global Biomass Market Overview

Biomass Market Size was valued at USD 58,924.11 Mn in 2023. The Biomass industry is projected to grow from USD 60,365.74 Mn in 2024 to USD 82.593.50 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.12% during the forecast period (2024 - 2032). The Biomass Market is expected to be driven by Rising need to control the greenhouse gas emissions. The growing concern over global warming, combined with deteriorating climatic and environmental circumstances because of excessive pollution, has compelled the development and deployment of clean and green energy. As a result, Biomass is a clean and green energy source that is predicted to increase at a large rate during the forecast period. Energy efficiency, electrification, renewable energy, Biomass and Biomass-based fuels, and carbon, capture, utilization, and storage are some of the major technological pillars to decarbonize the world energy system. Modern bioenergy derived from biomass is a promising nearly emission-free fuel because when this biomass is used to generate electricity, the carbon is liberated during combustion and only returns to the environment. The development and deployment of new technologies are necessary because of the growing concerns about global warming and the deteriorating climatic and environmental conditions caused by the excess pollution because of significant greenhouse gas emissions. This increased need for renewable energy sources has pushed the use of biomass for energy and power generation, opening lucrative market opportunities.

Biomass Market Trends

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  Biomass Market Sees Accelerated Growth Amid Rising Renewable Energy Demand

  
  

The Biomass Market has been experiencing accelerated growth in recent years, primarily driven by the rising demand for renewable energy sources and the global shift towards a more sustainable and low-carbon energy future. Biomass, which refers to organic materials derived from plants and animals, is being harnessed for a wide range of applications, including power generation, transportation fuels, and heat production, making it a versatile and promising alternative to conventional fossil fuels. One of the key drivers behind the rapid growth of the Biomass Market is the increasing demand for renewable energy. With growing concerns over climate change and the need to reduce greenhouse gas emissions, countries worldwide are looking to transition away from fossil fuels and embrace cleaner and more sustainable energy sources. Biomass, as a renewable energy option, provides an attractive solution for meeting this demand while also offering the benefit of utilizing organic waste materials and agricultural residues that might otherwise end up as landfill or be left to decompose, releasing potent greenhouse gases like methane.

The biomass market has seen increased interest in the production of transportation fuels, particularly biofuels. Biofuels, such as bioethanol and biodiesel, are derived from biomass feedstock and can be used as a substitute for traditional petroleum-based fuels. With the transportation sector being a significant contributor to greenhouse gas emissions, the utilization of biofuels offers an opportunity to reduce emissions and promote sustainable mobility. Moreover, advancements in technology and research have played a crucial role in driving the growth of the Biomass Market. Innovations in biomass conversion technologies have led to improved efficiency and cost-effectiveness in biomass energy production. Processes like biomass gasification and pyrolysis have shown promise in enabling more energy-dense and cleaner forms of biomass energy, opening new possibilities for biomass applications.

The global focus on sustainable and circular economies has further boosted the demand for biomass as it aligns with principles of resource efficiency and waste reduction. Biomass presents an opportunity to create a closed-loop system where organic waste materials are converted into valuable energy and products, contributing to a more sustainable and environmentally friendly approach to resource management. Government policies and regulations have also played a crucial role in supporting the accelerated growth of the biomass market. Many countries have introduced incentives, subsidies, and mandates to promote the use of renewable energy sources, including biomass. These policy measures have encouraged investments in the biomass sector and facilitated the development of a robust biomass supply chain.

Biomass Market Segment Insights

Biomass Market by Feedstock Insights

The Biomass Market has been segmented into Food Crop, Non-Food Crop, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae and Others. In 2022, the wood segment drove the Biomass Market by holding a substantial market share with a market value of USD 18,025.3 million. It is projected to register a CAGR of 7.51% during the projected timeframe. Wood biomass is an energy source derived from trees. Wood biomass is classified as sawmill residues and construction scrap wood. Wood biomass is used for the conversion of biomass electricity. The energy produced from biomass is also good for the climate, especially while applying sustainable forest management practices and efficient use of biomass to produce electricity, such as using CHP plants or bio-refineries. According to a report published by World Bioenergy, in 2019, around 1.9 billion m3 (meter cubic) of wood biomass fuel was generated globally. It is also reported that major regions such as Africa and the Americas held the highest share of wood fuel production by contributing 36% and 37% of global woody biomass fuel, respectively.

Biomass Market by Technology Insights

The Biomass Market has been segmented into Combined Heat and Power (CHP), Anaerobic Digestion, and Gasification, Co-Firing and Landfill Gas. In 2022, the Combined Heat and Power (CHP) segment drove the Biomass Market by holding a substantial market share with a market value of USD 31,086.6 million. It is projected to register a CAGR of 7.42 % during the projected timeframe. Combined heat and power (CHP) are the technology used for the conversion of biomass into power. In this technology, there is simultaneous generation of multiple forms of renewable energy (usually mechanical and thermal) from biomass resources in a single, integrated system. About 90% of the energy potential contained in the fuel is converted on average into electricity through CHP systems as it employs both electricity and heat for the generation of power. For instance, in Germany, in November 2019, a major energy utility, EON, announced plans to build a biomass-fired CHP plant on a paper mill site in Wurth, Germany. The new plant is designed for a thermal capacity of 87 MW with an electrical power output of 20 MW. The segment is anticipated to grow significantly during the forecast period due to its higher efficiency in the generation of power.

Biomass Market by Product Insights

The Biomass Market has been segmented into Biodiesel, Biomethanol, Biogas and Others. In 2022, the Biodiesel segment drove the Biomass Market by holding a substantial market share with a market value of USD 25,197.1 million. It is projected to register a CAGR of 7.42 % during the projected timeframe. Biodiesel is a sustainable, biodegradable fuel made domestically from biomass feedstocks such as vegetable oils, animal fats, or used restaurant grease. Vegetable and animal lipids are transesterified to create biodiesel. The primary feedstocks used to produce biodiesel in the United States are vegetable oils, mostly soybean oil. Animal fats from meat processing facilities, used/recycled cooking oil, and yellow grease from restaurants are other significant U.S. biodiesel feedstocks. In other nations, palm oil, sunflower oil, and rapeseed oil are the main feedstocks used to produce biodiesel. Algae has the potential to be used as biofuels. Algae have pockets of fat that keep them buoyant; these fat pockets can be harvested and converted into biofuels. The physical characteristics and applications of biodiesel can be impacted by the feedstocks used in its manufacture. Biodiesel is used to power compression-ignition engines, the same as petroleum diesel.

Biomass Market by End Use Insights

The Biomass Market has been segmented into Industrial, Commercial and Residential. In 2022, the Commercial segment drove the Biomass Market by holding a substantial market share with a market value of USD 27,022.8 million. It is projected to register a CAGR of 7.42 % during the projected timeframe. The commercial segment involves the use of renewable energy sources to power commercial buildings, such as office spaces, showrooms, movie theatres, and food courts. Large multinational companies such as Google LLC and Apple Inc. are now looking to completely rely on renewable sources of energy for powering most of their electrical systems and electronics commercial buildings, because of which the commercial segment is expected to witness significant growth during the forecast period.

Biomass Market Regional Insights

The Biomass Market has been segmented into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. In 2022, the Asia-Pacific region drove the Biomass Market by holding a substantial market share with a market value of USD 21,473.4 million. It is projected to register a CAGR of 7.52 % during the projected timeframe. The Asia-pacific market is mainly driven by the availability of raw materials and increasing demand for biomass energy across the region in various end-use sectors. Due to the rise in population and increased per capita income, demand for biomass products such as biogas, biodiesel, biomethane, and others. For instance, as per the Ministry of Petroleum and Natural Gas, the procurement of biodiesel by OMCs has increased from 1.1 crore liters in 2015–16 to 10.56 crore liters in 2019–20. Europe is expected to show healthy growth in the market for biomass during the forecast period. This is due to major biomass manufacturers and technology solution providers in the region and the focus on sustainable development is accelerating the market growth.

Biomass Key Market Players & Competitive Insights

Many regional and local vendors characterize the biomass market. The market is highly competitive, with all the players competing to gain maximum market share. The increasing biomass demand in residential, commercial, and industrial sector is boosting the sales of biomass. The vendors compete based on cost, product quality, and the availability of the products according to the geographies. The vendors must provide cost-effective and high-quality biomass to compete in the market.

The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding their production capacity to meet the demand and enhance their product portfolio. Babcock & Wilcox Enterprises, Inc, Dalkia, EnviTec Biogas AG, Ameresco Inc., Drax Group, Orsted A/S, MVV Energie AG, Mitsubishi Heavy Industries, Ltd, Vattenfall AB and Statkraft AS are the major companies in the market at the present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of biomass. Although the international players dominate the market, regional and local players with small market shares also have a moderate presence. The international players with a global presence, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Babcock & Wilcox Enterprises, Inc (B&W): is a global leading engineering, design, equipment, and technology services provider to assist project development in energy and environmental technologies and services for the power and industrial markets. The company designs and produces incredibly unique products that are specifically suited to the requirements of its global customers. The company operates into three business segments which include: renewable, thermal, and environmental. The company offers biomass technology and services in the renewable energy segment. The company’s biomass technology aids in mitigating the effects of greenhouse gas emissions on the earth and its atmosphere. The company offers Combined heat and power (CHP) solutions for many biomass energy systems to extract energy from biomass to produce heat, process steam, electricity, syngas, and/or bio-oil. Babcock & Wilcox Vølund A/S, Babcock & Wilcox Australia Pty. Ltd, Babcock & Wilcox India Private Limited, Babcock & Wilcox Volund AB, Babcock Wilcox Arabia Limited, and Babcock & Wilcox Company are some of its subsidiaries. The company has eight regional headquarters and has a strong sales and operational presence in over 90 countries across North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.

Dalkia: is one of the leading providers of energy services globally. Since 2014, the company is a wholly owned subsidiary of EDF Group. The company supports its customers in energy and digital transformations through its two business lines, the development of local renewable energies and energy savings. It has developed recyclable and renewable energy sources for various territories in order to help customers to increase their energy efficiency and lower their CO2 emissions. The company is a specialist in electrical engineering, low-carbon heating, operation of heating and cooling systems, generation of cold and compressed air, and local renewable and recovered energy. It develops solutions for alternative renewables such as biomass, geothermal, biogas, and recovered energies to help to find solutions that boost productivity while preserving resources that are creative, economical, environmentally friendly, and useful. The company has worked on 7,500 projects of the heating network supplied by the biomass boiler. It has four subsidiaries and has a presence in the United States, UK, Poland Belgium, and the Middle East along with France globally.

Key Companies in the Biomass Market includes:

• Babcock & Wilcox Enterprises, Inc (B&W) (US)


• Dalkia (France)


• EnviTec Biogas AG (Germany)


• Ameresco Inc. (US)


• Drax Group (UK)


• Orsted A/S (Denmark)


• MVV Energie AG (Germany)


• Mitsubishi Heavy Industries, Ltd. (Japan)


• Vattenfall AB (Sweden)


• Statkraft AS (Norway)

Biomass Market Industry Developments

March 2023, Mitsubishi Heavy Industries, Ltd., and PT. PLN Nusantara Power has signed a Memorandum of Understanding (MoU) to begin three technical studies related to co-firing of less carbon-intensive fuels at Nusantara Power plants. This MoU builds on a previous agreement signed in November 2022 with PLN Group company PT. PLN Indonesia Power and will contribute to the implementation of solutions to accelerate the decarbonization of Indonesia's energy systems.

March 2023: Dalkia has entered long-term cooperation with Solvay to install a biomass boiler in Saint-Fons, France. Dalkia will use waste wood from demolished buildings and furniture that is acquired locally to generate steam and the plant will be put into operation by 2025.

Feb 2023, Ameresco, Inc has acquired ENERQOS Energy Solutions S.r.l., a renewable energy and energy efficiency company headquartered in Milan and signed a definitive purchase and sale agreement. With this acquisition, Ameresco will be able to expand its range of renewable energy projects and solutions throughout Italy.

November 2022: Babcock & Wilcox Enterprises, Inc. has signed a contract agreement with NRG Korea to investigate the viability of employing B&W's BrightLoopTM technology to produce hydrogen using biomass fuel in South Korea. B&W and NRG have signed a memorandum in order to research the technology and perhaps implement the project. The project would employ waste biomass as a feedstock to create hydrogen for fuel cells used for electricity generation.

November 2022, Renault Group collaborated with Dalkia to install a biomass boiler at its Maubeuge facility and replace 65% of the company's gas consumption to accelerate the decarbonization plan. 

Biomass Market Segmentation

Biomass Feedstock Outlook

• Food Crop


• Non-Food Crop


• Wood


• Agricultural Residue


• Municipal Solid Waste (MSW)


• Microalgae


• Others

Biomass Technology Outlook

• Combined Heat and Power (CHP)


• Anaerobic Digestion and Gasification


• Co-Firing


• Landfill Gas

Biomass Product Outlook

• Biodiesel


• Biomethanol


• Biogas


• Others

Biomass End Use Outlook

• Industrial


• Commercial


• Residential

Biomass Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


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


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America