Biomass Market Report 2026

The biomass market size has grown strongly in recent years. It will grow from $67.52 billion in 2025 to $72.58 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to increasing adoption of biomass for rural electrification, growing demand for renewable heat solutions, rising utilization of agricultural residues for energy, expanding use of biomass in industrial boilers, and increasing policy support for bioenergy deployment.

The biomass market size is expected to see strong growth in the next few years. It will grow to $95.9 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to growing demand for low-carbon energy sources, rising investment in advanced biomass conversion facilities, increasing adoption of biomass in district heating systems, expanding use of bioenergy for carbon-neutral industrial processes, and increasing focus on waste-to-energy integration. Major trends in the forecast period include technology advancements in biomass gasification systems, innovations in advanced combustion and co-firing solutions, developments in high-efficiency bioenergy conversion technologies, research and development in algae-based biomass production, and advancements in automated biomass supply chain and logistics systems.

The growing need for clean energy is expected to drive the growth of the biomass market in the coming years. Clean energy refers to power generated from renewable or low-emission sources that reduce environmental impact and limit greenhouse gas emissions. This rising demand for clean energy is driven by increasing awareness of environmental sustainability, as clean energy helps lower greenhouse gas emissions and address climate change. Biomass supports clean energy by converting organic materials such as agricultural residues, wood, and waste into renewable energy, making it an effective option for reducing reliance on fossil fuels. It enables sustainable energy generation by providing a stable, carbon-neutral energy source that improves environmental performance and strengthens energy security. For instance, in June 2024, according to the International Energy Agency, a France-based intergovernmental organization, global investment in clean energy reached $80 billion in 2024, up from $67 billion in 2023. Therefore, the increasing need for clean energy is driving the growth of the biomass market.

Major companies operating in the biomass power generation market are concentrating on the development of advanced facilities, such as high-efficiency gasification systems, to increase energy output, improve fuel flexibility, and reduce emissions and overall environmental impact. High-efficiency gasification systems are advanced technologies that convert biomass into syngas with minimal waste and high thermal efficiency, making them suitable for reliable power generation. For instance, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, launched the Chofu Biomass Power Plant. This dedicated biomass power plant features a high-efficiency gasification system that enables the use of a wide range of biomass fuels, including wood pellets and agricultural residues. The plant is equipped with automated fuel handling and combustion control systems, allowing stable and efficient power generation with limited manual intervention. It also integrates advanced emissions control and waste heat recovery technologies, maximizing energy utilization while minimizing the environmental footprint for local energy operators.

In September 2024, NewEnergyBlue, a U.S.-based clean technology company, acquired the biomass conversion technology and international patent portfolio of Inbicon A/S for an undisclosed sum. Through this acquisition, NewEnergyBlue seeks to strengthen its technological capabilities in converting agricultural waste into low-carbon biofuels and biochemicals while expanding its global licensing reach and operational presence. Inbicon A/S is a biomass conversion technology company that specializes in transforming plant-based residues into valuable biofuels and biochemicals.

Major companies operating in the biomass market are TotalEnergies SE, Archer-Daniels-Midland Company (ADM), Veolia Environnement S.A., Neste Oyj, UPM Biofuels, Drax Group plc, ANDRITZ Group, Wärtsilä Corporation, Valmet Oyj, Green Plains Inc., Enviva Inc., Babcock & Wilcox Enterprises Inc., Hitachi Zosen Inova AG, EnviTec Biogas AG, Clean Energy Fuels Corp., Praj Industries Limited, AS Graanul Invest, Anaergia Inc., ReEnergy Holdings LLC, Greenlane Renewables Inc., WELTEC BIOPOWER GmbH, IES Biogas S.r.l., GoodFuels B.V., Xergi A/S.

Europe was the largest region in the biomass market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biomass 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 market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have had a mixed impact on the biomass market by increasing costs for imported biomass processing equipment, biofuel conversion systems, and specialized machinery, while also affecting cross-border trade of wood pellets and biofuels. The impact is most visible in industrial and utility-scale power generation segments and in regions reliant on imports, particularly Europe and parts of Asia-Pacific. Higher tariffs have encouraged local sourcing of biomass feedstock and domestic manufacturing of equipment. In some cases, this has positively supported regional supply chains and strengthened local biomass production ecosystems.

Biomass refers to organic material obtained from plants, animals, and other living organisms that can be utilized as an energy source. It is renewable and can be transformed into biofuels, electricity, and heat through processes such as combustion, gasification, and anaerobic digestion. It plays an important role in reducing reliance on fossil fuels and decreasing greenhouse gas emissions.

The main product types of biomass include solid biomass, liquid biofuels, and biogas. Solid biomass consists of organic materials such as wood, crop residues, and other plant based matter that can be used directly as fuel for heating or power generation. Technologies involved include direct combustion, gasification, anaerobic digestion, and pyrolysis. The organization sizes include residential, commercial, industrial, and utilities, and they are used by several end users including residential, commercial, industrial, and others.

The biomass market consists of sales of agricultural residues, energy crops, animal manure, algae biomass, forestry residues, food waste, and biogas, biochar. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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