Bioenergy Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Bioenergy Market is projected to expand from USD 129.63 Billion in 2025 to USD 205.82 Billion by 2031, registering a CAGR of 8.01%. Bioenergy refers to renewable energy produced from biological materials, chiefly organic biomass, which is processed to create heat, electricity, and transportation fuels. The market is significantly propelled by strict government mandates designed to reduce carbon emissions and the strategic need to diversify energy portfolios for improved national security. Additionally, enduring regulatory incentives, such as renewable portfolio standards and blending obligations, offer the financial stability necessary for long-term infrastructure investment, serving as a fundamental support system beyond temporary adoption trends.

According to the World Bioenergy Association, global bioenergy installed capacity reached 151 GW in 2024. Despite this progress, the sector faces substantial obstacles regarding the reliable and sustainable sourcing of feedstock, as logistical difficulties and competition with agricultural food production systems can severely restrict the scalability of raw material supply chains.

Market Drivers

Supportive government policies and renewable energy mandates act as the primary catalyst for the Global Bioenergy Market, creating the regulatory frameworks necessary to de-risk long-term infrastructure investments. Governments are increasingly enforcing strict carbon intensity targets and blending obligations, effectively compelling the integration of bio-based power and fuels into national energy grids. This legislative momentum is especially strong in the biogas sector, where incentives are driving rapid deployment for heating and grid-balancing purposes. According to the International Energy Agency's "Renewables 2024" report from October 2024, these robust policy frameworks are expected to drive a 30% increase in global demand for biogases between 2024 and 2030, highlighting the critical role of state-level intervention in market expansion.

Concurrently, rising demand for biofuels in the transportation and aviation sectors is fundamentally reshaping market dynamics as industries aim to meet net-zero commitments. The aviation sector has become a primary growth vector, with airlines aggressively shifting toward Sustainable Aviation Fuel (SAF) to mitigate emissions in a hard-to-abate industry. According to the International Air Transport Association's December 2024 global market update, SAF production hit 1 million tonnes in 2024, doubling the volume recorded the previous year. This surge is part of a wider trend in renewable transport fuels; the Energy Institute reported that global biofuels production rose by over 8% in 2024, driven largely by record outputs in the United States and Brazil.

Market Challenges

The principal impediment restricting the expansion of the global bioenergy market is the complexity and unreliability of feedstock procurement. Unlike fossil fuels, biomass generally possesses low energy density and high moisture content, making long-distance transportation economically inefficient and logistically challenging. This physical constraint compels bioenergy facilities to operate in close proximity to harvest sites, severely limiting infrastructure flexibility and scalability. Moreover, the seasonality of agricultural yields creates significant supply volatility, requiring expensive storage solutions to ensure continuous power generation or fuel production during off-peak periods.

This reliance on agricultural resources causes intense competition with food production systems, resulting in market instability. As bioenergy demand grows, it strains the availability of essential crops such as maize, sugarcane, and vegetable oils. According to the World Bioenergy Association, global ethanol production reached 118 billion liters in 2024, a figure that highlights the massive volume of raw material needed to sustain the sector. This dependence on dual-use crops exposes the industry to volatile commodity price fluctuations and geopolitical supply shocks, making long-term financial planning risky for investors and slowing the market's overall growth trajectory.

Market Trends

The commercial integration of Bioenergy with Carbon Capture and Storage (BECCS) is fundamentally transforming the market by facilitating carbon-negative energy generation. Unlike traditional bioenergy systems that are simply carbon-neutral, BECCS facilities generate power while permanently sequestering emissions, producing high-value carbon credits for corporations with net-zero targets. This technological convergence creates a new revenue stream distinct from energy sales, driving investment into projects that offer verifiable atmospheric carbon reduction. According to Carbon Herald's "BECCS Dominates Q2 2024 CDR Market" report from August 2024, BECCS projects accounted for 90% of all durable carbon removal transactions by volume in the second quarter of 2024, totaling 4.3 million tonnes, underscoring the sector's evolution into a pivotal solution for industrial decarbonization.

Simultaneously, the rapid scaling of Biomethane and Renewable Natural Gas (RNG) infrastructure is prioritizing grid-injectable fuels to ensure energy security and utilize existing gas networks. Biomethane is increasingly refined to natural gas quality for direct pipeline integration, eliminating the need for new end-user equipment and offering an immediate substitute for fossil gas in heating and industrial processes. This infrastructure expansion is accelerating as regions focus on decentralizing gas production through the valorization of municipal and agricultural waste. According to the European Biogas Association's "2024 European Biomethane Map" released in July 2024, Europe’s installed biomethane capacity reached 6.4 billion cubic meters per year, marking a 37% growth in EU-27 countries compared to the previous dataset, reflecting a strategic shift toward fungible renewable gases that allow for the immediate displacement of fossil fuels.

Key Players Profiled in the Bioenergy Market

• POET LLC
• Renewable Energy Group
• Green Plains Inc.
• Archer Daniels Midland Company
• Valero Energy Corporation
• BP Bunge Bioenergia
• Cosan Limited
• Borregaard ASA
• REX American Resources
• Gevo Inc.

Report Scope

In this report, the Global Bioenergy Market has been segmented into the following categories:

Bioenergy Market, by Product Type:

• Solid Biomass
• Liquid Biofuel
• Biogas
• Others

Bioenergy Market, by Feedstock:

• Agricultural Waste
• Wood Waste
• Solid Waste
• Others

Bioenergy Market, by Technology:

• Gasification
• Fast Pyrolysis
• Fermentation
• Others

Bioenergy Market, by Application:

• Power Generation
• Heat Generation
• Transportation
• Others

Bioenergy Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Bioenergy Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.