Bioenergy Global Market Opportunities and Strategies to 2034

This report describes and explains the bioenergy market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global bioenergy market reached a value of nearly $276.14 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.41% since 2019. The market is expected to grow from $276.14 billion in 2024 to $390.04 billion in 2029 at a rate of 7.15%. The market is then expected to grow at a CAGR of 7.15% from 2029 and reach $550.83 billion in 2034.

Growth in the historic period resulted from rising global energy demand, rising waste-to-energy initiatives, corporate renewable energy commitments and rising demand for biofuels. Factors that negatively affected growth in the historic period were competing renewable options and high initial capital investment.

Going forward, growing industrial adoption of biomass-based energy, government incentives and subsidies, circular economy and resource recovery focus and growing demand for renewable electricity will drive the growth. Factors that could hinder the growth of the bioenergy market in the future include impact of trade war and tariff, policy and regulatory uncertainty and land availability limits.

Western Europe was the largest region in the bioenergy market, accounting for 29.80% or $82.29 billion of the total in 2024. It was followed by Asia Pacific, South America and then the other regions. Going forward, the fastest-growing regions in the bioenergy market will be Asia Pacific and South America where growth will be at CAGRs of 9.36% and 7.38% respectively. These will be followed by North America and Middle East where the markets are expected to grow at CAGRs of 6.73% and 6.72% respectively.

The global bioenergy market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 35.05% of the total market in 2024. BP Plc was the largest competitor with a 12.36% share of the market, followed by Cargill Inc with 11.15%, Cosan S.A. (Raízen) with 6.73%, Drax Group PLC with 1.42%, Valero Energy Corporation with 1.10%, Ørsted A/S with 0.88%, POET LLC with 0.36%, Südzucker AG (CropEnergies AG) with 0.353%, Green Plains Inc with 0.352% and MVV Energie AG with 0.346%.

The bioenergy market is segmented by type into biomass and renewable municipal waste, biogas and liquid biofuels. The biomass and renewable municipal waste market was the largest segment of the bioenergy market segmented by type, accounting for 54.06% or $149.29 billion of the total in 2024. Going forward, the liquid biofuels segment is expected to be the fastest growing segment in the bioenergy market segmented by type, at a CAGR of 11.73% during 2024-2029.

The bioenergy market is segmented by technology into gasification, fast pyrolysis, fermentation and other technologies. The fermentation market was the largest segment of the bioenergy market segmented by technology, accounting for 38.03% or $105.01 billion of the total in 2024. Going forward, the fermentation segment is expected to be the fastest growing segment in the bioenergy market segmented by technology, at a CAGR of 9.54% during 2024-2029.

The bioenergy market is segmented by application into power generation, heat generation, transportation and other applications. The power generation market was the largest segment of the bioenergy market segmented by application, accounting for 65.75% or $181.56 billion of the total in 2024. Going forward, the transportation segment is expected to be the fastest growing segment in the bioenergy market segmented by application, at a CAGR of 10.79% during 2024-2029.

The top opportunities in the bioenergy market segmented by type will arise in the biomass and renewable municipal waste segment, which will gain $59.6 billion of global annual sales by 2029. The top opportunities in the bioenergy market segmented by technology will arise in the fermentation segment, which will gain $60.62 billion of global annual sales by 2029. The top opportunities in the bioenergy market segmented by application will arise in the power generation segment, which will gain $70.25 billion of global annual sales by 2029. The bioenergy market size will gain the most in Brazil at $22.73 billion.

Market-trend-based strategies for the bioenergy market include focus on waste-to-energy initiatives boost brazil’s decarbonization goals, focus on sustainable aviation fuel (SAF) development through advanced biomass conversion, focus on expansion of bioethanol and compressed biogas (CBG) production, focus on growth of plant-based biochemicals as alternatives to petrochemicals, focus on expansion of converting commercial and organic waste into renewable energy and focus on development of liquid biofuels through green hydrogen initiatives.

Player-adopted strategies in the bioenergy market include focus on strategic acquisitions to support growth to develop in new regions and focus on strengthening business capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the bioenergy market companies to focus on waste-to-biomethane fuel expansion, focus on bioethanol and compressed biogas production growth, focus on advanced waste conversion systems, focus on liquid biofuel and green hydrogen integration, focus on liquid biofuels to accelerate decarbonization growth, focus on fermentation to strengthen high-growth biofuel production, expand in emerging markets, focus on sustainable aviation fuel scale-up, focus on plant-based chemical pathways, focus on adaptive value-based pricing to support competitiveness and margin stability, focus on performance-based promotion to increase stakeholder confidence and project uptake, focus on digital education and collaborative outreach to expand market readiness and accelerate evaluation cycles and focus on transportation fuels to capture high-growth decarbonization demand.