Biomass Market

Biomass Market Sees Accelerated Growth Amid Rising Renewable Energy Demand

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.

These policy measures have encouraged investments in the biomass sector and facilitated the development of a robust biomass supply chain.

Biomass Market Segment Insights

The Global Biomass Market Industry is poised for substantial growth, with projections indicating a market size of 60.4 USD Billion in 2024 and an anticipated increase to 101.5 USD Billion by 2035. This growth trajectory suggests a robust expansion driven by various factors, including rising energy demands, technological advancements, and supportive government policies. The compound annual growth rate of 4.84% from 2025 to 2035 further emphasizes the market's potential. Such projections highlight the increasing recognition of biomass as a critical component of the global energy mix, reinforcing its role in achieving energy security and sustainability.

Increasing environmental concerns regarding greenhouse gas emissions and pollution are propelling the Global Biomass Market Industry. Biomass is perceived as a cleaner alternative to fossil fuels, as it can significantly reduce carbon emissions when sourced sustainably. The growing awareness of environmental issues is prompting both consumers and industries to seek greener energy solutions. This shift is reflected in the rising investments in biomass energy projects globally. As stakeholders prioritize sustainability, the biomass market is expected to expand, aligning with global efforts to combat climate change and promote environmental stewardship. This trend indicates a robust future for biomass as a key player in the renewable energy sector.

The versatility of biomass fuels in various applications is a notable driver of the Global Biomass Market Industry. Biomass can be utilized for electricity generation, heating, and as a feedstock for biofuels, catering to diverse energy needs across sectors. This adaptability enhances its appeal to a wide range of industries, including transportation, agriculture, and manufacturing. As the demand for sustainable energy solutions grows, the biomass market is likely to benefit from its ability to serve multiple purposes. This multifaceted nature of biomass fuels positions the industry for continued growth, as it aligns with the evolving energy landscape and the quest for sustainable alternatives.

Government incentives and supportive policies are crucial drivers of the Global Biomass Market Industry. Many countries are establishing regulations that favor the use of biomass for energy production, such as tax credits, grants, and subsidies. These initiatives not only encourage investment in biomass technologies but also facilitate the development of infrastructure necessary for biomass production and distribution. For example, the European Union has set ambitious targets for renewable energy, which include significant contributions from biomass. Such policies are expected to propel the biomass market, with projections indicating a market size of 101.5 USD Billion by 2035, underscoring the importance of governmental support in fostering growth.

The Global Biomass Market Industry is experiencing a surge in demand for renewable energy sources, driven by increasing awareness of climate change and the need for sustainable energy solutions. Governments worldwide are implementing policies to promote renewable energy, which includes biomass as a viable option. For instance, the global biomass market is projected to reach 60.4 USD Billion in 2024, reflecting a growing shift towards cleaner energy alternatives. This transition is further supported by technological advancements in biomass conversion processes, enhancing efficiency and reducing costs. As countries strive to meet their renewable energy targets, the biomass sector is likely to play a pivotal role in the global energy landscape.

Technological innovations in biomass conversion processes are significantly influencing the Global Biomass Market Industry. Advances in gasification, anaerobic digestion, and fermentation technologies are enhancing the efficiency and viability of biomass as an energy source. These improvements not only increase the yield of biofuels but also reduce production costs, making biomass more competitive with fossil fuels. As a result, the market is likely to witness a compound annual growth rate of 4.84% from 2025 to 2035. Enhanced technologies also contribute to better waste management practices, as biomass can be derived from agricultural residues and organic waste, thereby promoting a circular economy.

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.

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.