Biomass Gasification Market

• Major Factors Driving the market growth

The market CAGR of biomass gasification is gaining momentum owing to several factors, one being municipal solid waste (MSW), which consists of paper, wood chippings, cardboard,  leaves, and leather products, and non-biomass products such as plastic, glasses, and metal. Other than this, municipal waste, wood processing, and wood wastes are the main sources of biomass gasification. The wood waste from pellets, firewood, sawdust, lumber, furniture wastes, and others are burnt to produce energy through gasification and thus act as another factor for driving the growth of the biomass gasification industry.

Apart from them, corn, soybeans, sugar cane, switchgrass, algae, woody plants, and crop and food processing residues are used to make biofuels through the biomass gasification process. Biomass is an environment-friendly power source as it is sourced from wood or forest waste. It can comprise logs, sawmill waste, along with dried wood strands.

Additionally, the biomass gasification plants were limited and only used in residential or industrial setups that too on a lower level. However, Growing investment and awareness about the various benefits and incentives have led to growth in biomass gasification demand. Thus, it has led to a rise in the commercialization of the process and market growth.

Moreover, Fossil fuels are finite sources and thus will cease to exist one day. The coal-based nuclear power plants and other coal applications have led to increased coal extraction. This leads to higher carbon emissions throughout the coal extraction value chain, from mining to burning. Similarly, oil and gas are finite energy sources and are being explored and extracted rapidly to meet energy needs.

However, since the sources are depleting at such a high pace, other options for obtaining energy are being explored and invested in. Renewable sources are being preferred, and biomass being such a resource, is being explored and researched. Thus, the biomass gasification market is driven by rapidly depleting fossil fuels. This industry is further assisted by the abundant biomass availability, along with several initiatives by the governments of many countries to promote the use of renewable sources of energy. The industry growth may find obstruction in the form of high costs in the gasification process.

Furthermore, biomass gasification has been used for several decades to produce heat and energy for use in various residential and industrial applications. However, the existing technologies for gasification are limited in efficiency and have a questionable carbon-neutral claim. Research and development in enhancing the technology with maximum output and clean energy production is the need of the hour. Thus, advancement in gasification technologies for biomass will open wide opportunities for the biomass gasification industry growth and, thus, drive the Biomass Gasification market revenue.

The Global Biomass Gasification Market Industry is experiencing a surge in demand for renewable energy sources due to increasing global energy consumption. As populations grow and economies expand, the need for sustainable energy solutions becomes more pressing. Biomass gasification offers a viable alternative to fossil fuels, converting organic materials into syngas for energy production. In 2024, the market is projected to reach 112.5 USD Billion, reflecting a growing recognition of biomass as a key player in the energy sector. This trend is expected to continue, with projections indicating a market size of 246.8 USD Billion by 2035, driven by the need for cleaner energy solutions.

The Global Biomass Gasification Market Industry is poised for substantial growth, with projections indicating a market size of 246.8 USD Billion by 2035. This growth trajectory reflects the increasing adoption of biomass gasification technologies across various sectors, including power generation, transportation, and industrial applications. The anticipated compound annual growth rate of 7.4% from 2025 to 2035 underscores the market's potential as a key player in the renewable energy landscape. As investments in biomass technologies rise and awareness of their benefits spreads, the market is likely to expand, contributing to a more sustainable energy future.

Technological innovations are significantly influencing the Global Biomass Gasification Market Industry. Advances in gasification technologies, such as improved reactor designs and enhanced feedstock processing techniques, are increasing the efficiency and effectiveness of biomass conversion. These innovations enable the production of higher quality syngas, which can be utilized for electricity generation, heating, and as a feedstock for chemicals. Furthermore, ongoing research and development efforts are likely to yield even more efficient processes, thereby attracting investments and expanding market opportunities. As the industry evolves, these technological advancements are expected to play a pivotal role in shaping the future landscape of biomass gasification.

The Global Biomass Gasification Market Industry is increasingly driven by the need for environmental sustainability. As concerns over climate change and pollution intensify, there is a growing emphasis on reducing reliance on fossil fuels. Biomass gasification presents a sustainable solution by converting waste materials into energy, thereby minimizing landfill use and lowering carbon emissions. This environmentally friendly approach aligns with global sustainability goals, making biomass gasification an attractive option for energy production. The market's growth is likely to be fueled by this shift towards sustainable practices, as businesses and governments alike seek to implement greener energy solutions.

The availability of diverse feedstocks is a key driver for the Global Biomass Gasification Market Industry. Biomass can be sourced from various materials, including agricultural residues, forestry waste, and municipal solid waste, providing flexibility in feedstock selection. This diversity not only enhances the resilience of biomass supply chains but also allows for localized energy production, reducing transportation costs and emissions. As the industry continues to grow, the ability to utilize a wide range of feedstocks will likely attract more stakeholders, further stimulating market expansion. This adaptability is crucial in meeting the increasing energy demands while promoting sustainable practices.

Government initiatives and policies play a crucial role in the Global Biomass Gasification Market Industry. Many countries are implementing regulations and incentives to promote the use of renewable energy, including biomass gasification. For instance, subsidies, tax breaks, and grants are being offered to encourage investment in biomass technologies. This support not only enhances the economic feasibility of biomass projects but also aligns with global climate goals. As a result, the market is likely to witness robust growth, with a projected compound annual growth rate of 7.4% from 2025 to 2035, as governments seek to reduce greenhouse gas emissions and transition to sustainable energy sources.

By region, the study states the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Biomass Gasification market will dominate this market. Rapid globalization and increasing population are expected to boost the usage of biomass gasification in transportation and in ethanol, biodiesel, and biogas generation.

Further, the main countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Biomass Gasification Market Share By Region 2022 (%)

Source: Market Research Future Database, Secondary Research, Primary Research, and Analyst Review

Europe's Biomass Gasification market accounts for the second-largest market share due to the high demand for biomass in different parts of this Region. Further, the German Biomass Gasification market held the largest market share, and the UK Biomass Gasification market was the fastest-growing market in the European Region.

The Asia-Pacific Biomass Gasification Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to high electrification in urban and rural areas of the countries. Moreover, China’s Biomass Gasification market held the largest market share, and the Indian Biomass Gasification market was the fastest-growing market in the Asia-Pacific region.

For instance, the Indian government offers customs duty reduction/exemption on parts of biomass-operated electricity generators, excise duty exemption on parts of biomass-operated electricity generators, and exemption in central sales tax. Such incentives promote market growth for biomass gasification systems.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biomass Gasification market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Biomass Gasification industry must offer cost-effective items.

Manufacturing narrowly to minimize operational costs is one of the key business tactics used by manufacturers in the Biomass Gasification industry to benefit clients and increase the market sector. In recent years, the Biomass Gasification industry has offered some of the most significant advantages to medicine. Major players in the Biomass Gasification market, including Synthesis Energy Systems Inc., Royal Dutch Shell Plc, Cb&l, General Electric, Kbrinc, Air Liquide, Thyssenkrupp AG, Siemens, Mitsubishi Heavy Industries Ltd, and others, are attempting to increase market demand by investing in research and development operations.

Synthesis Energy Systems Inc (SES), a subsidiary of Synthesis Energy Holdings Inc. It is a energy and gasification technology developing company that offers products and solutions to the energy and chemical industries and also provides technology services such as technology licenses, engineering services, and technical and equipment supplies. Its synthesis gas can be converted into a range of energy and chemical products, such as substitute natural gas, power, methanol, and fertilizer. The company works in partnership with Australian Future Energy Pty Ltd in Australia and Tianwo-SES Clean Energy Technologies Limited in China.

Tianwo-SES is a joint venture between Synthesis Energy System's wholly owned subsidiary, SES Asia Technologies, Ltd., and Suzhou THVOW Technology Co., Ltd. (THVOW). The joint venture was formed in 2014 to bring clean energy technologies and turnkey SES gasification systems to China and Asian markets.

Shell Plc (Shell), formerly Royal Dutch Shell Plc, is an oil and gas company. That explores for and produces oil and gas from conventional fields and sources such as shale, tight rock,  and coal formations. It works in refining and petrochemical complexes across the world. Shell's product offerings include lubricants, bitumen, petrochemical products, and liquefied petroleum gas, such as raw materials for plastics, coatings, and detergents. The company is the main producer of biofuel in Brazil. It also has interests in various liquefied natural gas (LNG) and gas-to-liquids (GTL) projects.

The company markets its products indirectly and directly through distributors in Europe, Asia, Oceania, Africa, North America, and South America. Shell is headquartered in London, England, the UK.