Biomass Power Generation Market Research Report By Fuel Type (Wood Biomass, Agricultural Biomass, Forestry Residues, Energy Crops, Animal Biomass), By Technology (Direct Combustion, Gasification, Pyrolysis, Co-firing, Advanced Conversion Technologies), By Capacity (Small-scale (up to 50 MW), Medium-scale (50-200 MW), Large-scale (over 200 MW)), By Application (Grid-Connected Power Generation, Distributed Generation, Combined Heat and Power (CHP)), By Ownership (Independent Power Producers (IPPs), Utilities, Industrial and Commercial Users)

Global Biomass Power Generation Market Overview:

As per MRFR analysis, the Biomass Power Generation Market Size was estimated at 36.94 (USD Billion) in 2022. The Biomass Power Generation Market Industry is expected to grow from 40.42(USD Billion) in 2023 to 90.9 (USD Billion) by 2032. The Biomass Power Generation Market CAGR (growth rate) is expected to be around 9.42% during the forecast period (2024 - 2032).

Key Biomass Power Generation Market Trends Highlighted

The biomass power generation market is projected to witness significant growth due to rising concerns over climate change and the need for sustainable energy sources. Key market drivers include government policies promoting renewable energy, declining costs of biomass feedstock, and technological advancements in biomass conversion processes.

Opportunities lie in the exploration of non-traditional biomass sources such as agricultural residues and algae, as well as the development of innovative technologies for more efficient and cost-effective power generation. Additionally, the increasing demand for bioenergy in regions with limited access to fossil fuels presents further growth potential.

Recent trends include the integration of biomass power plants with combined heat and power (CHP) systems to maximize energy efficiency and reduce emissions. Furthermore, there is a growing focus on the development of small-scale biomass power plants that can be deployed in rural areas or industrial facilities, offering flexibility and resilience in energy supply.

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

Biomass Power Generation Market Drivers

Increasing Demand for Renewable Energy

The growing concerns about climate change and the depletion of fossil fuels have led to an increased demand for renewable energy sources. Biomass power generation is a sustainable and environmentally friendly alternative to fossil fuels, as it utilizes organic matter to produce electricity. The rising demand for renewable energy is expected to drive the growth of the Biomass Power Generation Market in the coming years. Governments worldwide are implementing policies and incentives to promote the adoption of renewable energy, which is further boosting the market growth. The increasing awareness among consumers about the benefits of renewable energy is also contributing to the market demand.

Technological Advancements and Cost Reductions

The development of technology is a big contributor to the improvement of the Biomass Power Generation Market Industry: it helps produce energy more efficiently and at a lower cost. The production of biomass power has been made cheaper by the development of several new technologies of biomass conversion – e.g., gasification and pyrolysis. Today, such conversion technologies allow to produce energy out of a lot of biomass feedstocks that used to be too expensive to use, like agricultural and forest residues and municipal solid waste. Lower costs of production result in higher profitability of biomass power plants, too. Finally, over the recent years, the competition among manufacturers has increased, and such technological solutions are now available to biomass power plants in economies of scale.

Government Support and Incentives

The governments worldwide are playing a significant role in boosting the Biomass Power Generation Market Industry. They have been doing this by providing support mechanisms such as feed-in tariffs, tax credits, and renewable portfolio standards that increase the economic attractiveness of biomass power generation. Moreover, many governments are also providing research and development funding to develop and improve biomass conversion technologies and enhance the efficiency of biomass power plants.

Biomass Power Generation Market Segment Insights:

Biomass Power Generation Market Fuel Type Insights  

The Biomass Power Generation Market by Fuel Type includes Wood Biomass, Agricultural Biomass, Forestry Residues, Energy Crops, and Animal Biomass. Wood Biomass had the highest share of the market in 2023, with over 60% of the global market. The Agricultural Biomass segment is expected to grow at the highest CAGR during the forecast period- 2024 to 2032. Though not effective as a fuel source, forestry residues- bark, branches, and other wood waste from forestry operations- make up the third largest segment of the global market. It is unlikely that these will cease to be effective as waste-to-energy products in the future.

Energy crops are perennially grown sources of bioenergy. Energy crops are also easy to grow and become readily-available fuel stocks, which causes it to be an efficient environmental solution. Manure and other animal waste, the biomass derived from animals, is coming to prominence as it is easy and inexpensive to dispose of waste. Some of the factors driving the Biomass Power Generation Market by Fuel Type are increasing demand for renewable energy, government incentives to use clean sources of energy, and the advancement of technology in the field of biomass conversion.

The market is likely to continue growing positively soon as more countries turn to clean sources of energy to comply with their climate change agreements.

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

Biomass Power Generation Market Technology Insights  

The Biomass Power Generation Market is segmented by technology into direct combustion, gasification, pyrolysis, co-firing, and advanced conversion technologies. Direct combustion accounted for the largest market share in 2023, and it is expected to continue to dominate the market over the forecast period.

Gasification is projected to be the fastest-growing segment during the forecast period, owing to its high efficiency and ability to utilize a wide range of biomass feedstocks. Pyrolysis is a promising technology that has the potential to produce high-value bio-oil and biochar, and it is expected to gain significant market share in the coming years.

Co-firing, which involves burning biomass with fossil fuels, is a cost-effective way to reduce greenhouse gas emissions, and it is expected to remain a popular option for many power plants. Advanced conversion technologies, such as hydrothermal liquefaction and torrefaction, are still in their early stages of development, but they have the potential to revolutionize the biomass power industry.

Biomass Power Generation Market Capacity Insights  

The Biomass Power Generation Market is segmented by capacity into small-scale (up to 50 MW), medium-scale (50-200 MW), and large-scale (over 200 MW). The large-scale segment is expected to account for the largest market share in 2023, owing to the increasing demand for large-scale power generation projects.

The medium-scale segment is expected to grow at the fastest CAGR during the forecast period, due to the rising adoption of biomass power generation for distributed power generation. The small-scale segment is expected to account for a significant market share, driven by the growing demand for small-scale biomass power generation systems for residential and commercial applications.

Biomass Power Generation Market revenue was valued at USD 32.05 billion in 2023 and is expected to grow at a CAGR of 10.2% to reach USD 73.49 billion by 2032. The market growth is attributed to the increasing demand for renewable energy sources, government incentives for biomass power generation, and technological advancements in biomass conversion technologies.

Biomass Power Generation Market Application Insights  

The application segment plays a pivotal role in the Biomass Power Generation Market segmentation. The market is divided into three key application segments: Grid-Connected Power Generation, Distributed Generation, and Combined Heat and Power (CHP). Grid-Connected Power Generation accounted for the largest share of the Biomass Power Generation Market revenue in 2023 and is projected to maintain its dominance throughout the forecast period. This dominance can be attributed to the increasing demand for renewable energy sources, government initiatives promoting grid integration of renewable energy, and the growing adoption of biomass power plants by utilities and independent power producers.

Distributed Generation is gaining traction due to its ability to provide electricity to remote areas and reduce transmission and distribution losses. The segment is expected to witness significant growth over the forecast period, driven by the rising demand for decentralized energy generation and the increasing adoption of microgrids and distributed energy resources. Combined Heat and Power (CHP) systems are witnessing growing adoption due to their ability to generate both electricity and heat from biomass, leading to improved energy efficiency and reduced operating costs.

The segment is expected to grow steadily over the forecast period, driven by the increasing demand for energy-efficient solutions and the growing adoption of CHP systems in industrial and commercial applications.

Biomass Power Generation Market Ownership Insights  

The Ownership segment of the Biomass Power Generation Market is categorized into Independent Power Producers (IPPs), Utilities, and Industrial and Commercial Users. Among these, IPPs held the largest market share in 2023, accounting for around 45% of the Biomass Power Generation Market revenue. This dominance is attributed to the growing trend of private sector participation in the power generation industry, particularly in developing countries. IPPs are typically responsible for financing, constructing, and operating power plants, and they sell electricity to utilities or directly to end-users.

Utilities, which are typically government-owned or regulated entities, accounted for a significant share of the market in 2023, but their market share is expected to decline slightly over the forecast period. Industrial and Commercial Users, who generate electricity for their own consumption, are also expected to increase their share of the market in the coming years.

Biomass Power Generation Market Regional Insights  

The Biomass Power Generation Market by region is segmented into North America, Europe, APAC, South America, and MEA. Europe dominated the market with a share of over 35% in 2023, owing to the region's supportive government policies and the presence of a well-established biomass industry.

APAC is expected to grow at a CAGR of over 12% during the forecast period, driven by increasing energy demand and the rising adoption of renewable energy sources in the region. North America is also anticipated to witness significant growth, with the United States being the key market due to the growing demand for sustainable energy and the availability of vast biomass resources.

The South American market is expected to grow steadily, fueled by the increasing adoption of biomass power generation in countries such as Brazil and Argentina. MEA is expected to experience moderate growth, with countries like Saudi Arabia and the UAE investing in renewable energy projects to diversify their energy mix.

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

Biomass Power Generation Market Key Players And Competitive Insights:

Major players in Biomass Power Generation Market are constantly seeking innovative solutions to meet the growing demand for renewable energy. Leading Biomass Power Generation Market players such as Drax Group, EDF Renewables, and Enel Green Power are investing heavily in research and development to improve efficiency and reduce costs. Biomass Power Generation Market industry is highly competitive, with several key players competing for market share. These companies are focusing on developing new technologies, expanding their geographical reach, and forming strategic partnerships to gain a competitive edge. The competitive landscape is expected to remain dynamic over the next few years.

A leading Biomass Power Generation Market player, Drax Group, has been at the forefront of biomass energy for over 20 years. The company operates a portfolio of biomass power stations in the UK, Europe, and North America. Drax Group is committed to providing sustainable energy solutions and has invested heavily in developing innovative biomass technologies. The company's Selby biomass power station is one of the largest and most efficient in the world. Drax Group is also exploring the use of carbon capture and storage technology to further reduce the environmental impact of its operations.

A prominent competitor in the Biomass Power Generation Market, Enel Green Power, is a global leader in renewable energy. The company operates a diverse portfolio of power plants, including biomass, solar, and wind. Enel Green Power is committed to developing sustainable energy solutions and has a strong track record of innovation. The company's biomass power plants are located in Europe, North America, and South America. Enel Green Power is also investing in research and development to improve the efficiency and cost-effectiveness of biomass energy.

Key Companies in the Biomass Power Generation Market Include:

• IBERDROLA


• GE Renewable Energy


• Babcock Wilcox Enterprises


• Siemens Gamesa Renewable Energy


• EDF


• Enviva Biomass


• Drax Group plc


• RWE AG


• Fortum Oyj


• Engie SA


• Statkraft AS


• Vattenfall AB


• FLS


• Uniper SE


• Enel Green Power

Biomass Power Generation Market Industry Developments

Technological advancements: Innovations in biomass combustion and gasification technologies are improving the efficiency and reducing the emissions of biomass power plants. For example, the development of circulating fluidized bed (CFB) boilers has led to higher thermal efficiency and reduced air pollution.

Governments worldwide are implementing supportive policies to promote the adoption of renewable energy sources, including biomass. These policies include feed-in tariffs, tax incentives, and renewable portfolio standards. For instance, the European Union has set a target of achieving 40% of its energy consumption from renewable sources by 2030, which is driving the growth of biomass power generation.

The increasing demand for sustainable and environmentally friendly energy sources is driving the growth of the biomass power generation market. Biomass power plants offer a reliable and renewable alternative to fossil fuels, helping to reduce greenhouse gas emissions and mitigate climate change.

The availability of biomass resources, such as wood residues, agricultural waste, and energy crops, is essential for the growth of the biomass power generation market. The increasing production of biomass resources, particularly in developing countries, is supporting the expansion of biomass power capacity.

Biomass Power Generation Market Segmentation Insights

• Biomass Power Generation Market Fuel Type Outlook
  
  
  
  • Wood Biomass
  
  
  • Agricultural Biomass
  
  
  • Forestry Residues
  
  
  • Energy Crops
  
  
  • Animal Biomass
  
  
  
  


• Biomass Power Generation Market Technology Outlook
  
  
  
  • Direct Combustion
  
  
  • Gasification
  
  
  • Pyrolysis
  
  
  • Co-firing
  
  
  • Advanced Conversion Technologies
  
  
  
  


• Biomass Power Generation Market Capacity Outlook
  
  
  
  • Small-scale (up to 50 MW)
  
  
  • Medium-scale (50-200 MW)
  
  
  • Large-scale (over 200 MW)
  
  
  
  


• Biomass Power Generation Market Application Outlook
  
  
  
  • Grid-Connected Power Generation
  
  
  • Distributed Generation
  
  
  • Combined Heat and Power (CHP)
  
  
  
  


• Biomass Power Generation Market Ownership Outlook
  
  
  
  • Independent Power Producers (IPPs)
  
  
  • Utilities
  
  
  • Industrial and Commercial Users
  
  
  
  


• Biomass Power Generation Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa