1h Free Analyst Time
The Biomass Power Generation Market grew from USD 5.80 billion in 2024 to USD 6.26 billion in 2025. It is expected to continue growing at a CAGR of 7.68%, reaching USD 9.05 billion by 2030.Speak directly to the analyst to clarify any post sales queries you may have.
Biomass power generation has emerged as a cornerstone of sustainable energy portfolios worldwide, harnessing organic materials-from agricultural residues to municipal waste-to produce electricity, heat, and fuel. By converting biological feedstocks into usable energy through processes such as combustion, gasification, anaerobic digestion, and pyrolysis, this sector advances both renewable energy goals and circular economy principles. Over the past decade, technological innovation has driven efficiency gains, while policy frameworks aimed at carbon reduction have catalyzed investment. As stakeholders seek to balance cost competitiveness with environmental responsibility, biomass power offers a versatile pathway to decarbonize industrial processes, support rural economies, and integrate with broader renewable energy systems. In this context, understanding the dynamics of feedstock availability, conversion methods, regulatory drivers, and market structure is essential for decision-makers, investors, and technology providers. This introduction frames a rapidly evolving landscape in which strategic alignment across stakeholders will determine the success of biomass power projects in meeting global sustainability targets.
Transformative Shifts in the Biomass Power Landscape
Global energy systems are experiencing transformative shifts that are reshaping the biomass power generation landscape. Decarbonization commitments by public and private entities have elevated biomass from a niche technology to a mainstream option for baseload renewable energy. Advances in reactor design, such as fluidized bed combustion and high-pressure gasifiers, have improved thermal efficiencies and reduced emissions, while improvements in pretreatment and feedstock logistics lower operating costs. At the same time, growing demand for resilient, distributed energy solutions has amplified interest in off-grid and behind-the-meter applications, driving modular, containerized plant designs. Policy regimes-ranging from renewable portfolio standards in North America to bioenergy mandates in Europe and Asia-have become more sophisticated, linking incentives to carbon intensity, sustainability certification, and lifecycle analysis. These frameworks, combined with evolving carbon pricing mechanisms, are encouraging project developers to integrate digital monitoring, remote diagnostics, and automated control systems to optimize performance and ensure compliance. Furthermore, circular economy principles are increasingly embedded in plant design, facilitating co-production of biofuels, biochemicals, and soil amendments from process residues. Collectively, these shifts are forging a landscape where technical innovation, regulatory evolution, and market integration converge to propel biomass power into its next phase of growth.Cumulative Impact of United States Tariffs 2025
The introduction of new United States tariffs in 2025 has had a cumulative impact on biomass power supply chains, influencing equipment costs, feedstock imports, and project feasibility. Tariffs on specialized boilers, gasification reactors, and turbines sourced from key manufacturing hubs have increased capital expenditures for developers of combustion and thermo-chemical conversion plants. At the same time, duties on agricultural residues and wood pellets imported from major exporters have put upward pressure on feedstock prices, prompting plant operators to reassess supply agreements and logistics strategies. In response, many project sponsors are accelerating domestic equipment manufacturing partnerships, while exploring alternative feedstock sources such as local forestry residues and animal waste to mitigate exposure to international duty regimes. These strategic adjustments are also fostering innovation in feedstock preprocessing, enabling greater tolerance for mixed waste streams and reducing sensitivity to import fluctuations. Meanwhile, policy dialogues at both federal and state levels are underway to refine tariff structures and introduce countervailing measures that support domestic industry competitiveness. Through these market adaptations, the biomass power sector is demonstrating resilience by realigning procurement practices, optimizing plant design for imported components, and leveraging strategic alliances to navigate the evolving trade environment.Key Segmentation Insights for Market Stakeholders
A nuanced understanding of segmentation is critical for stakeholders evaluating biomass power opportunities. In technology type, the market spans anaerobic digestion-further divided into dry and wet digestion-next-generation combustion including fluidized bed and grate firing units, gasification across fixed bed and fluidized bed gasifiers, and pyrolysis in fast, flash, and slow variants. Feedstock diversity underpins project viability, extending from agricultural residues such as corn stalks, rice husks, and straw to animal waste streams of cow dung and poultry litter, municipal solid waste categorized into biodegradable and mixed fractions, and wood biomass encompassing forest residues, wood chips, and wood pellets. End-use applications range from commercial installations in office buildings and shopping centers to industrial operations in the cement and pulp & paper industries, alongside residential solutions for cooking and household heating. Conversion methods bifurcate into bio-chemical routes-namely anaerobic digestion and fermentation-and thermo-chemical pathways like combustion and gasification. Outputs are classified by product type: electricity supplied via grid feed-in or off-grid systems, fuels in the form of biodiesel and bioethanol, and thermal energy delivered for district heating or industrial processes. Ownership structures span private developers, public entities, and public-private partnerships, and application contexts include heating plants tailored to commercial and residential needs alongside cogeneration and standalone power plants. Segmentation analysis reveals differentiated risk profiles, cost structures, and policy incentives, enabling investors to target high-margin niches, developers to align technology choices with feedstock availability, and policymakers to design tailored support measures that reflect local resource endowments and demand dynamics.Key Regional Insights Shaping Market Dynamics
Regional dynamics in biomass power generation reflect varying resource availability, policy drivers, and infrastructure maturity. In the Americas, well-established feedstock supply chains for wood pellets and agricultural by-products, coupled with renewable portfolio standards and tax credits, have spawned a large base of utility-scale projects and distributed energy installations. Regulatory stability and mature financing channels support long-term power purchase agreements, while emerging carbon markets offer additional revenue streams. In Europe, Middle East & Africa, policy harmonization under the EU’s Renewable Energy Directive and national biomass sustainability criteria have elevated investments in advanced conversion technologies and integrated bioenergy hubs. Incentives for circular economy initiatives and waste-to-energy applications are expanding the role of biomass within diversified renewable energy mixes. Africa’s abundant agricultural residues and municipal waste streams present untapped potential, albeit constrained by infrastructure gaps and regulatory complexity. Across the Asia-Pacific region, rapid urbanization is driving demand for waste-to-energy solutions in densely populated cities, while agro-industrial economies in Southeast Asia, China, and India are intensifying focus on biofuel co-production and cogeneration plants. Policy mandates for renewable heating and cooling, as well as grid stability programs, are catalyzing investments in both large-scale power plants and smaller modular systems tailored to remote communities and industrial parks.Competitive Landscape and Key Company Insights
The competitive landscape in biomass power generation encompasses a diverse array of equipment manufacturers, technology integrators, service providers, utilities, and engineering consultancies. Established OEMs such as ALSTOM Holdings, Babcock & Wilcox Enterprises, Inc., General Electric Company, Mitsubishi Heavy Industries, Ltd., and Sulzer Ltd. supply core combustion and gasification equipment, while specialized biogas technology firms including Beltran Technologies, Inc., CHOREN Industrietechnik GmbH, EnviTec Biogas AG, and WELTEC BIOPOWER GmbH drive innovation in anaerobic digestion and pyrolysis. Utilities and operators-Ameresco, Inc.; Drax Group PLC; E.ON SE; ENGIE SA; Vattenfall AB; Ørsted A/S; and Xcel Energy Inc.-are expanding portfolios with integrated biomass projects and strategic acquisitions, often supported by engineering, procurement, and construction partners such as Dalkia by EDF Group, Ramboll Group A/S, and Valmet Corporation. Complementary expertise is provided by Rockwell Automation Inc. and MEIDENSHA CORPORATION in automation and control solutions, while emerging challengers like HYOGO PULP Co., Ltd., IWATEC CORPORATION, KASAG Swiss AG, and Spanner Re² GmbH pursuit niche applications in modular systems and feedstock preprocessing. Service providers including Veolia Environnement SA and ENERTEC Kraftwerke GmbH deliver operation, maintenance, and logistics management, and new entrants such as RENOVA, Inc., Ze Energy Inc. and Höcker Polytechnik GmbH are forging partnerships across value chains. This competitive ecosystem is characterized by collaborative R&D, cross-sector alliances, and targeted M&A activity aimed at scaling up capacity, enhancing feedstock flexibility, and integrating digital monitoring platforms.Actionable Recommendations for Industry Leaders
- Prioritize modular and scalable plant designs that can be deployed across diverse geographies, enabling rapid project roll-out and reduced capital risk.
- Invest in digital twins and advanced analytics to optimize conversion efficiency, streamline operations, and anticipate maintenance needs, thereby minimizing downtime and cost overruns.
- Diversify feedstock sourcing strategies by forging partnerships with agricultural, forestry, and municipal stakeholders to secure consistent supply while mitigating tariff and logistics risks.
- Pursue strategic alliances and joint ventures along the value chain-including EPC firms, technology licensors, and feedstock aggregators-to share risk, access new markets, and accelerate innovation.
- Engage proactively with policymakers and regulatory bodies to shape incentive schemes, carbon pricing mechanisms, and sustainability criteria that support sustainable biomass projects.
- Strengthen offtake agreements with utilities, industrial players, and local governments to guarantee revenue stability and facilitate project financing under long-term power purchase or heat supply contracts.
Conclusion: Charting the Future of Biomass Power
Biomass power generation stands at a critical juncture where technological innovation, regulatory evolution, and market dynamics intersect. The sector’s ability to deliver carbon-neutral electricity, fuel, and heat will depend on strategic segmentation, regional adaptation, and competitive differentiation. By aligning technology choices with feedstock availability, embracing flexible project structures, and leveraging emerging digital capabilities, stakeholders can unlock new growth pathways. Collaboration across the value chain-spanning equipment suppliers, developers, operators, and policymakers-will be essential to maximize resource efficiency and ensure sustainable deployment. As the global energy transition accelerates, biomass power offers a proven, versatile solution to complement wind, solar, and hydro, delivering firm, dispatchable energy when it is needed most.Market Segmentation & Coverage
This research report categorizes the Biomass Power Generation Market to forecast the revenues and analyze trends in each of the following sub-segmentations:
- Anaerobic Digestion
- Dry Digestion
- Wet Digestion
- Combustion
- Fluidized Bed Combustion
- Grate Firing
- Gasification
- Fixed Bed Gasifiers
- Fluidized Bed Gasifiers
- Pyrolysis
- Fast Pyrolysis
- Flash Pyrolysis
- Slow Pyrolysis
- Agricultural Residue
- Corn Stalks
- Rice Husks
- Straw
- Animal Waste
- Cow Dung
- Poultry Waste
- Municipal Solid Waste
- Biodegradable Waste
- Mixed Waste
- Wood and Woody Biomass
- Forest Residues
- Wood Chips
- Wood Pellets
- Commercial
- Office Buildings
- Shopping Centers
- Industrial
- Cement Industry
- Pulp and Paper Industry
- Residential
- Cooking
- Household Heating
- Bio-Chemical
- Anaerobic Digestion
- Fermentation
- Thermo-Chemical
- Combustion
- Gasification
- Electricity
- Grid Feed-In
- Off-Grid
- Fuel
- Biodiesel
- Bioethanol
- Heat
- District Heating
- Industrial Heat
- Private
- Public
- Public-Private Partnership
- Heating Plants
- Commercial
- Residential
- Power Plants
- Cogeneration Plants
- Standalone Plants
This research report categorizes the Biomass Power Generation Market to forecast the revenues and analyze trends in each of the following sub-regions:
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
This research report categorizes the Biomass Power Generation Market to delves into recent significant developments and analyze trends in each of the following companies:
- ALSTOM Holdings
- Ameresco, Inc.
- Babcock & Wilcox Enterprises, Inc.
- Beltran Technologies, Inc.
- CHOREN Industrietechnik GmbH
- Dalkia by EDF Group
- Drax Group PLC
- E.ON SE
- Enertec Kraftwerke GmbH
- ENGIE SA
- EnviTec Biogas AG
- General Electric Company
- HYOGO PULP Co.,Ltd.
- Höcker Polytechnik GmbH
- IWATEC CORPORATION
- KASAG Swiss AG
- MEIDENSHA CORPORATION
- Mitsubishi Heavy Industries, Ltd.
- MVV Energie AG
- Ramboll Group A/S
- RENOVA, Inc.
- Rockwell Automation Inc.
- Spanner Re² GmbH
- Sulzer Ltd.
- Valmet Corporation
- Vattenfall AB
- Veolia Environnement SA
- WELTEC BIOPOWER GmbH
- Xcel Energy Inc.
- ZE Energy Inc.
- Ørsted A/S
Additional Product Information:
- Purchase of this report includes 1 year online access with quarterly updates.
- This report can be updated on request. Please contact our Customer Experience team using the Ask a Question widget on our website.
Table of Contents
1. Preface
2. Research Methodology
4. Market Overview
6. Market Insights
8. Biomass Power Generation Market, by Technology Type
9. Biomass Power Generation Market, by Feedstock Type
10. Biomass Power Generation Market, by End Use
11. Biomass Power Generation Market, by Conversion Method
12. Biomass Power Generation Market, by Product Type
13. Biomass Power Generation Market, by Ownership
14. Biomass Power Generation Market, by Application
15. Americas Biomass Power Generation Market
16. Asia-Pacific Biomass Power Generation Market
17. Europe, Middle East & Africa Biomass Power Generation Market
18. Competitive Landscape
20. ResearchStatistics
21. ResearchContacts
22. ResearchArticles
23. Appendix
List of Figures
List of Tables
Companies Mentioned
- ALSTOM Holdings
- Ameresco, Inc.
- Babcock & Wilcox Enterprises, Inc.
- Beltran Technologies, Inc.
- CHOREN Industrietechnik GmbH
- Dalkia by EDF Group
- Drax Group PLC
- E.ON SE
- Enertec Kraftwerke GmbH
- ENGIE SA
- EnviTec Biogas AG
- General Electric Company
- HYOGO PULP Co.,Ltd.
- Höcker Polytechnik GmbH
- IWATEC CORPORATION
- KASAG Swiss AG
- MEIDENSHA CORPORATION
- Mitsubishi Heavy Industries, Ltd.
- MVV Energie AG
- Ramboll Group A/S
- RENOVA, Inc.
- Rockwell Automation Inc.
- Spanner Re² GmbH
- Sulzer Ltd.
- Valmet Corporation
- Vattenfall AB
- Veolia Environnement SA
- WELTEC BIOPOWER GmbH
- Xcel Energy Inc.
- ZE Energy Inc.
- Ørsted A/S
Methodology
LOADING...
