Biomass Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The biomass power market size is expected to grow from USD 121.67 billion in 2025 to USD 127.75 billion in 2026 and is forecast to reach USD 171.02 billion by 2031 at 6.01% CAGR over 2026-2031. This report is segmented by Feedstock (Solid Biomass, Biogas, Liquid Biomass), Technology (Combustion, Gasification, Anaerobic Digestion, Co-Firing, and More), Capacity (Below 1 MW, 1-10 MW, 10-50 MW, 50-100 MW, Above 100 MW), Application (Residential, Commercial, Industrial, Utility-Scale), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). Forecasts are in Value (USD).

Global Biomass Power Market Trends and Insights

Dispatchable Renewable Power for Grid Flexibility

The Biomass power market benefits from generation that can be scheduled regardless of weather conditions. A 2025 study for the Renewable Energy Association found that biomass could provide up to 5.5 GW of firm capacity in Great Britain. This was equivalent to 90% of the country’s operational nuclear capacity. The study also found that wind output fell below 11% of rated capacity for periods of 6 hours or longer on 30 occasions in the year to March 2024. Keeping biomass capacity available could reduce the United Kingdom Capacity Market costs by GBP 900 million in 2028/29. Austria, Denmark, Finland, Sweden, and Germany have included flexible bioenergy in national decarbonization pathways to replace retiring dispatchable coal capacity before enough storage and other firm capacity is available.

Waste Management and Circular Economy Mandates

Waste rules are making municipal waste, agro-industrial effluent, and livestock manure more valuable as energy feedstocks. The European Biogas Association reported EUR 36 billion in biomethane investment commitments in 2026, compared with EUR 28 billion in the prior year. These commitments target 9 billion cubic meters of annual production capacity by 2030. Organic waste can produce both a disposal solution and a fuel source. This can reduce feedstock costs for anaerobic digestion projects compared with projects using dedicated energy crops or virgin biomass. The Biomass power market, therefore, has an opportunity where waste policy, local collection systems, and energy demand are aligned.

Feedstock Sustainability and Competing Land Uses

Feedstock certification and competition for land remain persistent constraints for the Biomass power market. The World Resources Institute found that biomass demand across energy, aviation fuel, and industrial chemicals could exceed sustainable supply. It also found that dedicated energy crops can create indirect land-use-change risk when they displace natural ecosystems. The European Commission’s Joint Research Centre documented competing demands from energy, food, and material uses of biomass in the European Union. Its report emphasized governance that gives priority to higher-value cascading uses before energy use. Developers increasingly need traceable supply chains and recognized certification to secure long-term offtake and financing.

Other drivers and restraints analyzed in the detailed report include:

• Industrial CHP Decarbonization
• Coal Plant Repurposing Through Biomass Co-Firing
• Solar, Wind, and Storage Cost Competition

Segment Analysis

Solid biomass held 67.5% of Biomass power market share in 2025. Its position reflects established wood pellet supply chains, dedicated combustion assets, and trading links from North America and the Baltics to Europe and Asia. Liquid biomass remains concentrated in agro-industrial settings. Brazil’s sugarcane bagasse contributed to the country’s bioenergy capacity base in 2024. Solid biomass remains important for large plants with predictable fuel specifications. Its long-term position will depend on sustainable forestry practices, certification, and the availability of residues.

Biogas is forecast to grow at a 9.3% CAGR through 2031. The Biomass power market benefits where municipal waste, livestock manure, and agro-industrial effluent can be used as local feedstocks. European biomethane capacity reached 8.2 billion cubic meters per year by mid-2026. The reported total was more than 1 billion cubic meters higher than a year earlier, supported by EUR 36 billion in investment commitments. These feedstocks can avoid the land-use concerns associated with dedicated energy crops. This gives waste-based projects a stronger fit with emerging sustainability frameworks.

Combustion held 62.3% revenue share in 2025. Direct-fired boilers and circulating fluidized bed systems remain established options for utility and industrial facilities. Combustion systems can use solid fuels at large scale. Gasification and co-firing are receiving attention as coal retirement schedules advance. They can reuse turbines and grid interconnections at converted coal locations. Landfill gas, biomass CHP, and other conversion routes serve localized waste streams and specific energy needs.

Anaerobic digestion is forecast to grow at an 8.1% CAGR through 2031. The Biomass power market can use this technology where waste disposal obligations and methane control policies create steady feedstock availability. A 2025 peer-reviewed study assessed agricultural-residue anaerobic digestion in Southeast Asia. It identified Indonesia, Malaysia, and Vietnam as priority locations under its modeled economics. Anaerobic digestion projects can earn waste tipping fees as well as revenue from electricity sales. This reduces reliance on a single revenue source. It can also make the projects more attractive to infrastructure investors.

Complete Report Scope:

• By Feedstock
  • Solid Biomass
  • Biogas
  • Liquid Biomass
• By Technology
  • Combustion
  • Gasification
  • Anaerobic Digestion
  • Co-firing
  • Combined Heat and Power (CHP)
  • Landfill Gas-to-Power
  • Other Technologies
• By Capacity
  • Below 1 MW
  • 1-10 MW
  • 10-50 MW
  • 50-100 MW
  • Above 100 MW
• By Application
  • Residential
  • Commercial
  • Industrial
  • Utility-Scale Power Generation
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • United Kingdom
    • Poland
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Vietnam
    • Thailand
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Chile
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Egypt
    • South Africa
    • Morocco
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific held 39.2% of Biomass power market share in 2025 and is forecast to grow at a 7.9% CAGR through 2031. China’s installed biopower capacity was 47.4 GW. New additions slowed to 200 MW in 2025 from 2.3 GW in 2021, according to the supplied research draft. Japan commissioned 2 plants of 50 MW in 2025 and has additional capacity planned. India’s installed bioenergy capacity reached 11.58 GW in fiscal 2025. India also had an estimated 295 million metric tons of biomass surplus in fiscal 2025, supporting a large potential resource base.

Europe is restructuring its Biomass power market toward CHP, biomethane, and carbon capture rather than standalone biomass electricity. France’s December 2025 DDADUE legislation transposed parts of the European Union RED III framework. The legislation withdraws public support for certain electricity-only biomass installations from mid-2026. Poland is drawing investment through CHP conversions in Zabrze and Częstochowa and through biomass logistics expansion at Polaniec. A 2025 academic review reported that bioenergy represented 14% of Europe’s total energy supply and 60% of its renewable energy mix. The shift favors projects that deliver heat, waste management, or carbon benefits alongside power.

North and South America give the Biomass power market resource bases in forest residues and sugarcane bagasse. Canada has more than 2,000 MW of forest-residue biomass power, according to the supplied research draft. Brazil had 18 GW of bioenergy capacity, mainly from sugarcane bagasse cogeneration, in 2024. Interest in bioenergy with carbon capture and storage is growing in the United States. In West Africa, Unit 2 of Côte d’Ivoire’s 46 MW Biovéa project began commercial operation in July 2026. The facility uses palm petioles and nutshells and is expected to generate 348 million kWh annually. Morocco, South Africa, and Egypt are identified in the supplied research draft as potential next locations for development.

List of Companies Covered in this Report:

• Drax Group plc
• Ørsted A/S
• ENGIE SA
• Enel SpA
• RWE AG
• EDF
• Vattenfall AB
• E.ON SE
• Veolia Environnement S.A.
• SUEZ
• Ameresco, Inc.
• Babcock & Wilcox Enterprises, Inc.
• Mitsubishi Heavy Industries, Ltd.
• Valmet Oyj
• ANDRITZ AG
• General Electric Company
• Siemens Energy AG
• Hitachi Zosen Corporation
• John Wood Group PLC
• Thermax Limited
• Sumitomo Heavy Industries, Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support