Biomass Gasification Market Report 2026

The biomass gasification market size has grown strongly in recent years. It will grow from $125.47 billion in 2025 to $135.02 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to government support for renewable energy projects, increasing utilization of agricultural residues, rising need for cleaner fuel alternatives, development of decentralized power generation, adoption of biomass-based chemical production.

The biomass gasification market size is expected to see strong growth in the next few years. It will grow to $181.57 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to expansion of hydrogen production initiatives, increasing investments in circular economy projects, rising demand for low-carbon fuels, scaling of municipal waste-to-energy facilities, technological improvements in gasifier efficiency. Major trends in the forecast period include expansion of waste-to-energy infrastructure, rising adoption of advanced gasification reactors, growing integration of process control and monitoring systems, increasing focus on syngas quality optimization, deployment of modular biomass gasification plants.

The increasing emphasis on clean energy sources is expected to drive the growth of the biomass gasification market in the coming years. Clean energy is derived from renewable, sustainable sources that have minimal environmental impact and produce little to no greenhouse gas emissions. The shift toward clean energy is primarily motivated by the urgent need to combat climate change, as these sources generate electricity with reduced carbon footprints. Biomass gasification contributes to this demand by converting organic materials into renewable syngas, which can be used for electricity generation and fuel production. For example, in January 2024, the U.S. Energy Information Administration reported that planned solar initiatives are projected to increase the electric power sector’s solar capacity by 38%, rising from 95 gigawatts (GW) at the end of 2023 to 131 GW by the end of 2024. Consequently, the growing focus on clean energy is expected to propel the biomass gasification market.

Key companies and research institutions in the biomass gasification market are increasingly employing advanced computational modeling techniques, including AI-enabled hybrid models, to improve prediction accuracy, optimize reactor performance, and accelerate large-scale deployment. These next-generation approaches combine traditional simulation tools with machine-learning methods such as neural networks, enabling more precise syngas composition predictions, enhanced process optimization, and reduced computational requirements compared to conventional thermodynamic or CFD models. For instance, in July 2025, the Royal Society of Chemistry (RSC), a UK-based scientific publisher, released a study titled “Recent advances and computational approaches in biomass gasifier modeling: from thermodynamics to AI-driven techniques,” conducted by renewable-energy researchers. The study demonstrated that AI-driven and hybrid models can accurately simulate hydrogen-enriched syngas production from diverse biomass feedstocks, offering superior precision, computational efficiency, and scalability over traditional methods.

In January 2023, Kejuruteraan Asastera Bhd (KAB), a Malaysia-based engineering firm, acquired Future Biomass Gasification Sdn Bhd (FBG) for $3.2 million. This acquisition is aimed at enhancing KAB's sustainable energy solutions (SES) portfolio by adding its first biogas power plant, thereby diversifying its renewable energy assets and generating additional revenue through an existing power purchase agreement with Tenaga Nasional Bhd. Future Biomass Gasification Sdn Bhd (FBG) is a Malaysia-based energy company that specializes in renewable energy solutions, particularly in the biomass sector.

Major companies operating in the biomass gasification market are Siemens Energy AG, Engie SA, Andritz AG, Air Products and Chemicals, Inc., Air Liquide S.A., Mitsubishi Heavy Industries, Ltd., Thyssenkrupp AG, Lahti Energia Oy, Babcock & Wilcox Enterprises, Inc., Shangqiu Haiqi Machinery Equipment Co., Ltd., Sedin Engineering Co., Ltd., Chanderpur Group, Case Group, GGE Power Pvt. Ltd., EnviTec Biogas AG, First Biogas International AG, Shenzhen Puxin Science & Technology Co., Ltd., Mingshuo Environment Technology Group Co., Ltd., Clarke Energy Ltd., Seko Industries Srl, HC Energy, Agraferm Technologies AG, Sunpower Group Ltd., Outotec Oyj (now part of Metso Outotec), Valmet Oyj, Drax Power Limited, Hitachi Zosen Inova AG, EcoTerra BioGas, CEZ Group, Romelectro SA, ZiO-Podolsk (Machine-Building Plant named after Ordzhonikidze), Notus Energy, Polish Energy Group (PGE Polska Grupa Energetyczna S.A.), H3-CHP Clean Energy Systems, Emispec, Inc., PyroGenesis Canada Inc., Lambion Energy Solutions GmbH, Triple Green Energy, Klean Industries Inc., Wright Tech Systems Inc., V&F Analyse- und Messtechnik GmbH, Western Research Institute, CleanTech Biofuels, Inc.

Western Europe was the largest region in the biomass gasification market in 2025, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in the biomass gasification market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biomass gasification market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biomass gasification market includes revenues earned by entities by providing services such as biomass-derived liquid reforming, natural gas reforming, thermochemical water splitting, and photoelectrochemical water splitting services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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