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US Biomass Market

ID: MRFR/CnM/18988-HCR
111 Pages
Chitranshi Jaiswal
October 2025

US Biomass Market Research Report: By Feedstock (Food Crop, Non-Food Crop, Wood, Agricultural Residue, Municipal Solid Waste (MSW), Microalgae, Others), By Technology (Combined Heat and Power (CHP), Anaerobic Digestion and Feedstockification, Co-Firing, Landfill Feedstock), By Product (Biodiesel, Biomethanol, BioFeedstock, Others) and By End Use (Industrial, Commercial, Residential) - Forecast to 2035.

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US Biomass Market Summary

As per Market Research Future analysis, the US biomass market Size was estimated at 7545.72 USD Million in 2024. The US biomass market is projected to grow from 7981.86 USD Million in 2025 to 14000.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5.7% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US biomass market is experiencing robust growth driven by technological advancements and increasing sustainability demands.

  • The largest segment in the US biomass market is the power generation sector, while the fastest-growing segment is biofuels.
  • There is a notable increase in the adoption of advanced technologies for biomass conversion processes.
  • The expansion of biomass supply chains is facilitating greater accessibility and efficiency in the market.
  • Regulatory support for renewable energy and rising energy prices are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 7545.72 (USD Million)
2035 Market Size 14000.0 (USD Million)
CAGR (2025 - 2035) 5.78%

Major Players

Enviva Holdings (US), Drax Group (GB), Green Plains Inc. (US), Pinnacle Renewable Energy (CA), RWE AG (DE), Vattenfall AB (SE), Fortum Oyj (FI), Biomass Secure Power (US)

US Biomass Market Trends

The biomass market in the United States is currently experiencing a notable transformation, driven by a growing emphasis on renewable energy sources and sustainability. This shift is largely influenced by federal and state policies that promote the use of biomass as a viable alternative to fossil fuels. The increasing demand for cleaner energy solutions appears to be fostering innovation within the sector, leading to advancements in technology and efficiency. Furthermore, the integration of biomass into the energy mix is seen as a strategic move to reduce greenhouse gas emissions and enhance energy security. In addition, the biomass market is characterized by a diverse range of feedstocks, including agricultural residues, forestry by-products, and dedicated energy crops. This diversity not only supports local economies but also contributes to waste reduction efforts. As stakeholders continue to explore the potential of biomass, the market is likely to expand, attracting investments and fostering collaboration among various sectors. The future of the biomass market seems promising, with ongoing research and development efforts aimed at optimizing production processes and enhancing the overall sustainability of biomass utilization.

Increased Adoption of Advanced Technologies

The biomass market is witnessing a trend towards the adoption of advanced technologies that enhance the efficiency of biomass conversion processes. Innovations in gasification, anaerobic digestion, and pyrolysis are becoming more prevalent, allowing for improved energy yields and reduced emissions. This technological evolution is likely to attract further investment and support the growth of the sector.

Growing Demand for Sustainable Practices

There is a rising demand for sustainable practices within the biomass market, driven by consumer preferences and regulatory frameworks. Stakeholders are increasingly focusing on sourcing biomass from sustainable and responsibly managed resources. This trend not only aligns with environmental goals but also enhances the market's credibility and appeal to eco-conscious consumers.

Expansion of Biomass Supply Chains

The biomass market is experiencing an expansion of supply chains, as stakeholders seek to optimize logistics and distribution networks. This trend is characterized by increased collaboration among producers, processors, and end-users, which aims to streamline operations and reduce costs. Enhanced supply chain efficiency is expected to bolster market growth and accessibility.

Market Segment Insights

By Feedstock: Wood (Largest) vs. Agricultural Residue (Fastest-Growing)

In the US biomass market, the feedstock segment showcases a diverse distribution with wood holding the largest market share, driven by its established usage in biomass energy production. Other feedstocks such as food crops and municipal solid waste contribute significantly, but wood's long-standing demand solidifies its position as the leader in this category. Agricultural residue, while currently smaller in share, is quickly gaining traction due to its availability and the increasing focus on waste-to-energy solutions. The growth trends in the feedstock segment are significantly influenced by sustainability targets and renewable energy policies. Agricultural residue is emerging as the fastest-growing segment as businesses seek innovative ways to utilize waste materials. The push for greener energy sources, coupled with technological advancements in biomass conversion methods, continues to drive the expansion of both agricultural residue and wood, as new market potentials are being explored and harnessed.

Wood (Dominant) vs. Agricultural Residue (Emerging)

Wood remains the dominant feedstock in the US biomass market due to its extensive applications and efficient energy output. Its availability and established supply chains contribute to its leading market position, making it a reliable choice for biomass energy producers. In contrast, agricultural residue is recognized as an emerging feedstock, characterized by its growth potential and the ability to repurpose waste products into valuable energy sources. The increasing focus on sustainability and environmental impact is encouraging investments in technologies that enhance agricultural residue utilization, thus positioning it as a strong alternative to conventional wood feedstock.

By Technology: Combined Heat and Power (CHP) (Largest) vs. Anaerobic Digestion (Fastest-Growing)

In the US biomass market, the distribution of market share among various technologies indicates that Combined Heat and Power (CHP) holds the largest share, showcasing its established presence and reliability in converting biomass into usable energy. Anaerobic Digestion follows, gaining traction as it leverages organic waste for energy production, attracting investments and interest for its sustainable approach. Gasification, Co-Firing, and Landfill Gas technologies represent smaller but significant portions of the market, each contributing to the diversification of biomass energy solutions. Growth trends reveal that the demand for renewable energy sources is propelling Anaerobic Digestion as the fastest-growing segment in the US biomass market. This growth is driven by increasing regulatory support for renewable energy, coupled with corporate sustainability goals aiming to reduce waste and carbon footprints. CHP continues to dominate due to its efficiency and capability to provide both heat and power, while Gasification and Co-Firing are also showing potential as emerging technologies, capturing interest for their innovative approaches to energy generation.

Technology: CHP (Dominant) vs. Anaerobic Digestion (Emerging)

The segment dynamics in the US biomass market reveal that Combined Heat and Power (CHP) technology is the dominant player, known for its dual output of heat and electricity, significantly enhancing efficiency. It operates effectively in combination with various biomass feedstocks, making it versatile for different applications. On the other hand, Anaerobic Digestion stands out as an emerging technology that processes organic waste into energy, showcasing a unique ability to tackle waste management issues while generating renewable energy. Both technologies reflect the market’s shift towards sustainable practices, with CHP being preferred for established energy needs and Anaerobic Digestion appealing to environmentally-conscious initiatives.

By Product: Biodiesel (Largest) vs. Biogas (Fastest-Growing)

The US biomass market is characterized by a diverse product segmentation, where biodiesel holds the largest market share. It is widely recognized for its role as a renewable energy source derived from various organic materials. Following biodiesel, biogas is emerging as a significant segment, gaining traction due to its environmental benefits and increasing demand for renewable energy solutions. The other product categories, such as biomethanol and others, also contribute to the overall market dynamics but remain less dominant compared to the leading segments. In recent years, the growth of the US biomass market has been driven by various factors, including government policies promoting renewable energy, technological advancements, and rising environmental concerns. Biodiesel has benefitted from its established infrastructure and consumer acceptance, whereas biogas is increasingly recognized for its potential in reducing greenhouse gas emissions and waste management. The collective push for sustainable energy sources continues to fuel the expansion of both segments, with biogas showing a promising growth trajectory as it addresses energy needs through waste-to-energy conversion processes.

Biodiesel (Dominant) vs. Biogas (Emerging)

Biodiesel remains a dominant force in the US biomass market, primarily due to its versatility as a fuel option that can be used in existing diesel engines without major modifications. It is produced from organic materials like vegetable oils and animal fats, which not only provide a renewable energy source but also help in reducing greenhouse gas emissions. The established supply chains and significant production capacities further strengthen its market position. Conversely, biogas is positioned as an emerging player in this market, stemming from its production process, which involves anaerobic digestion of organic waste. This process not only generates renewable energy but also effectively addresses waste management challenges. Biogas's appeal lies in its potential for on-site generation and integration into existing energy systems, making it an attractive option for sustainable energy solutions.

By End Use: Industrial (Largest) vs. Residential (Fastest-Growing)

The US biomass market showcases a diverse range of end uses, with the industrial segment holding the largest share. This segment capitalizes on biomass to meet energy needs, driving demand from manufacturing and large-scale operations. In contrast, the residential sector is emerging as a strong contender, fueled by an increasing number of households adopting biomass solutions for heating and energy, illustrating a shift towards sustainable living. Growth trends indicate that while industrial usage remains the backbone of the market, the commercial and residential sectors are rapidly gaining traction. Factors such as government incentives, rising environmental awareness, and advancements in biomass technology are contributing to the expansion of residential applications, making it the fastest-growing segment in the market.

Industrial (Dominant) vs. Residential (Emerging)

The industrial segment, being the dominant force in the US biomass market, relies heavily on biomass for a variety of applications, including power generation and manufacturing processes. Its established infrastructure and long-standing partnerships with biomass suppliers enhance its competitive edge. On the other hand, the residential segment is emerging as a viable market participant as more households seek eco-friendly alternatives to traditional energy sources. This shift is supported by increasing fuel prices and the accessibility of biomass heating systems, attracting a growing number of consumers who prioritize sustainability. Both segments are vital, although they cater to different market dynamics and consumer needs, driving innovation and market growth in the sector.

Get more detailed insights about US Biomass Market

Key Players and Competitive Insights

The biomass market exhibits a dynamic competitive landscape characterized by a blend of innovation, sustainability initiatives, and strategic partnerships. Key players such as Enviva Holdings (US), Drax Group (GB), and Green Plains Inc. (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Enviva Holdings (US) focuses on expanding its production capacity and enhancing its supply chain efficiency, which appears to be a response to the increasing demand for renewable energy sources. Drax Group (GB) emphasizes digital transformation and operational efficiency, aiming to leverage technology to optimize biomass production processes. Meanwhile, Green Plains Inc. (US) is diversifying its portfolio by integrating biomass with its existing ethanol production, thereby creating synergies that could enhance profitability and sustainability.

The business tactics employed by these companies reflect a moderately fragmented market structure, where localized manufacturing and supply chain optimization are pivotal. The collective influence of these key players shapes the competitive environment, as they strive to meet the growing demand for biomass while navigating regulatory frameworks and sustainability goals. This competitive structure fosters innovation and encourages companies to adopt more efficient practices, ultimately benefiting the market as a whole.

In September 2025, Enviva Holdings (US) announced the opening of a new production facility in North Carolina, which is expected to increase its output by 30%. This strategic move not only enhances its production capabilities but also positions the company to better serve its customers in the southeastern US, where demand for biomass is surging. The facility is anticipated to create approximately 100 jobs, further solidifying Enviva's commitment to local economies and sustainable practices.

In October 2025, Drax Group (GB) unveiled a partnership with a leading technology firm to develop AI-driven solutions for optimizing biomass supply chains. This collaboration aims to enhance operational efficiency and reduce costs, which could provide Drax with a competitive edge in the market. By integrating advanced technologies, Drax is likely to improve its forecasting and inventory management, thereby minimizing waste and maximizing resource utilization.

In August 2025, Green Plains Inc. (US) completed the acquisition of a biomass processing facility in Nebraska, which is expected to bolster its production capacity by 25%. This acquisition aligns with Green Plains' strategy to diversify its offerings and enhance its sustainability profile. By integrating biomass into its operations, the company is poised to capitalize on the growing demand for renewable energy while reducing its carbon footprint.

As of November 2025, the biomass market is increasingly defined by trends such as digitalization, sustainability, and the integration of advanced technologies. Strategic alliances are becoming more prevalent, as companies recognize the importance of collaboration in achieving their sustainability goals. Looking ahead, competitive differentiation is likely to evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may enable companies to better meet the demands of a rapidly changing market, ultimately fostering a more sustainable and resilient biomass sector.

Key Companies in the US Biomass Market market include

Industry Developments

Recent developments in the US Biomass Market have shown a growing focus on sustainability and renewable energy sources. Companies like Clearway Energy and Dominion Energy have been prominently involved in enhancing their biomass production capabilities, as the demand for cleaner energy grows.

In October 2023, Ameresco announced its collaboration with various local governments to implement biomass energy projects, reflecting a shift towards more community-based renewable energy initiatives. Additionally, Green Plains Renewable Energy has been expanding its operations to include advanced biofuels, contributing to significant market growth amid federal support for renewable energy technologies.

In terms of mergers and acquisitions, Enviva has been noted for its strategic acquisition of a biomass pellet manufacturing facility in March 2023, further enhancing its production capacity and market reach. The increased interest from investors and stakeholders in the biomass sector has boosted company valuations, particularly for firms like Waste Management and POET, as they explore innovative waste-to-energy solutions.

Over the last two to three years, the US Biomass Market has witnessed substantial growth, driven by government incentives and increasing environmental awareness, marking May 2021 as a notable month when significant regulations were introduced to support biomass energy initiatives.

Future Outlook

US Biomass Market Future Outlook

The biomass market is projected to grow at a 5.78% CAGR from 2024 to 2035, driven by increasing energy demands, sustainability initiatives, and technological advancements.

New opportunities lie in:

  • Development of advanced biomass conversion technologies for higher efficiency.
  • Expansion of biomass supply chains to enhance market accessibility.
  • Investment in biomass energy storage solutions to stabilize supply.

By 2035, the biomass market is expected to achieve substantial growth, positioning itself as a key player in the energy sector.

Market Segmentation

US Biomass Market End Use Outlook

  • Industrial
  • Commercial
  • Residential

US Biomass Market Product Outlook

  • Biodiesel
  • Biomethanol
  • Biogas
  • Others

US Biomass Market Feedstock Outlook

  • Food Crop
  • Non-Food Crop
  • Wood
  • Agricultural Residue
  • Municipal Solid Waste (MSW)
  • Microalgae
  • Others

US Biomass Market Technology Outlook

  • Combined Heat and Power (CHP)
  • Anaerobic Digestion
  • Gasification
  • Co-Firing
  • Landfill Gas

Report Scope

MARKET SIZE 20247545.72(USD Million)
MARKET SIZE 20257981.86(USD Million)
MARKET SIZE 203514000.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.78% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["Enviva Holdings (US)", "Drax Group (GB)", "Green Plains Inc. (US)", "Pinnacle Renewable Energy (CA)", "RWE AG (DE)", "Vattenfall AB (SE)", "Fortum Oyj (FI)", "Biomass Secure Power (US)"]
Segments CoveredFeedstock, Technology, Product, End Use
Key Market OpportunitiesAdvancements in biomass conversion technologies enhance efficiency and sustainability in energy production.
Key Market DynamicsGrowing regulatory support and technological advancements drive innovation in the biomass market.
Countries CoveredUS

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FAQs

What is the expected market size of the US Biomass Market by 2024?

By 2024, the US Biomass Market is anticipated to be valued at 9.1 billion USD.

What will be the market size of the US Biomass Market by 2035?

The US Biomass Market is expected to reach a value of 15.5 billion USD by the year 2035.

What is the compound annual growth rate (CAGR) for the US Biomass Market from 2025 to 2035?

The expected CAGR for the US Biomass Market from 2025 to 2035 is 4.961%.

Which feedstock segment has the highest value in the US Biomass Market for 2024?

In 2024, the Food Crop segment is valued at 2.5 billion USD, making it the highest segment in the US Biomass Market.

What is the projected value of the Wood feedstock segment by 2035?

The Wood feedstock segment is projected to be valued at 3.2 billion USD by the year 2035.

Who are the key players in the US Biomass Market?

Key players in the US Biomass Market include companies such as Clearway Energy, Renewable Biofuels, and Duke Energy.

What is the anticipated market size for Municipal Solid Waste (MSW) segment by 2035?

The Municipal Solid Waste (MSW) segment is anticipated to reach a value of 3.2 billion USD by 2035.

What challenges are currently faced by the US Biomass Market?

Challenges in the US Biomass Market include regulatory hurdles and competition from other renewable energy sources.

How is the US Biomass Market expected to grow regionally?

The US Biomass Market is expected to see significant growth across multiple regions, driven by increasing demand for renewable energy.

What opportunity does the agricultural residue segment present in the US Biomass Market?

The agricultural residue segment is valued at 1.5 billion USD in 2024 and expected to grow to 2.5 billion USD by 2035, indicating a strong opportunity for growth.

What is the projected market size of the US Biomass Market in 2024?

The US Biomass Market is expected to be valued at 9.5 USD Billion in 2024.

What will be the expected market value of the US Biomass Market by 2035?

The market is anticipated to reach a value of 16.0 USD Billion by 2035.

What is the expected CAGR for the US Biomass Market from 2025 to 2035?

The market is projected to grow at a CAGR of 4.853% during the period from 2025 to 2035.

Who are the major players in the US Biomass Market?

Key players in the market include Clearway Energy, Pacific Gas and Electric, Agartha Bioenergy, and Enviva among others.

What is the market size for Food Crop feedstock in 2024?

The Food Crop feedstock segment is valued at 2.5 USD Billion in 2024.

How much is the Wood feedstock segment expected to be valued in 2035?

The Wood feedstock segment is expected to be valued at 5.2 USD Billion by 2035.

What are the current growth opportunities in the US Biomass Market?

Growth opportunities in the market stem from advancements in biomass technologies and increasing demand for renewable energy sources.

What challenges might the US Biomass Market face in the coming years?

The market may encounter challenges such as regulatory hurdles and competition from other renewable energy sources.

What will the market size for Municipal Solid Waste feedstock be in 2035?

The Municipal Solid Waste (MSW) feedstock segment is projected to be valued at 2.17 USD Billion by 2035.

What is the growth rate for Agricultural Residue feedstock from 2024 to 2035?

The Agricultural Residue feedstock is expected to grow from 1.1 USD Billion in 2024 to 1.9 USD Billion by 2035.

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