Global Biomass Power Generation Market Size 2026 to 2032 Investment and Potential by Countries, Global Players Vs. Local Players, Power Demand and Supply Gap, Government Strategies, and Future Outlook

The Biomass Power Generation Market size was valued at USD 102.09 Billion in 2025 and the total Biomass Power Generation revenue is expected to grow at a CAGR of 5.9% from 2026 to 2032, reaching nearly USD 152.49 Billion by 2032.

The Biomass Power Generation market is gaining traction as a key component of the global renewable energy and decarbonization strategy, driven by increasing demand for sustainable power generation, waste-to-energy solutions, and baseload renewable energy sources. Biomass power utilises diverse feedstocks, including woody biomass, agricultural residues, biogas, and municipal solid waste, ensuring supply chain flexibility and resource optimisation.

From a regional perspective, Asia-Pacific dominated the Market in 2025, supported by high feedstock availability and rising energy demand, while Europe leads in installed capacity due to strong regulatory frameworks and carbon neutrality targets. Technological advancements in combustion, gasification, and anaerobic digestion, along with growing adoption of combined heat and power (CHP) systems, are enhancing efficiency. Increasing investments in BECCS and circular economy initiatives are expected to further strengthen long-term market growth.

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Biomass Power Generation Market Key Highlights:

• The Biomass Power Generation Market size was valued at USD 102.09 Billion in 2025 and is projected to reach USD 152.49 Billion by 2032, growing at a CAGR of 5.9%.
• By feedstock, woody biomass dominates with 43% share in 2025, due to its high calorific value and strong adoption in Europe and North America.
• Increasing demand for renewable energy, biomass electricity generation, and sustainable power solutions is driving market growth globally.
• Rising adoption of waste-to-energy technologies, biomass-based power plants, and bioenergy systems is strengthening market expansion.
• Strong government support for carbon-neutral energy, green power generation, and decarbonization initiatives is accelerating investments.
• Expansion of combined heat and power (CHP) systems is improving energy efficiency and industrial adoption.
• Technological advancements in gasification, anaerobic digestion, and biomass combustion systems are increasing operational efficiency.
• Emergence of advanced technologies such as BECCS (Bioenergy with Carbon Capture and Storage) is creating new growth opportunities.
• Asia-Pacific dominates Biomass Power Generation Market Share in 2025, while Europe leads in installed capacity and policy-driven adoption.

Biomass Power Generation Market Dynamics

Biomass power market is expected to observe a significant growth because of technological advancements and increasing focus on research and development to provide biomass for power generation. Growing use of biomass such as plant and manure materials to produce electricity and generate biomass fuels for transportation is anticipated to contribute to the industry growth over the forecast period. Additionally, dropping crude oil prices is projected to strengthen the industry.

The shift in the trend towards usage of renewable energy sources as an alternative to conventional resources is estimated to increase the production growth in coming years. Also, government initiatives and support regarding tariffs, tax incentives, loan guarantees and competitive public bidding is invented to drive the industry over the forecast period. However, high installation cost, increased cost of feedstock, and emergence of advanced technologies are the major restraining factor affecting the biomass power industry.

Biomass Power Generation Market Segment Analysis

The biomass power generation market by feedstock is primarily dominated by woody biomass, accounting for approximately 43% share in 2025, driven by its high calorific value, stable supply chain, and strong adoption across Europe and North America for large-scale power plants and co-firing applications. Agriculture and forest residues represent the second-largest segment, supported by their cost-effectiveness and abundant availability in emerging economies such as India, China, and Brazil, where they play a critical role in rural electrification and agricultural waste utilization.

The biogas and energy crops segment is gaining traction due to its low-emission profile and increasing deployment of anaerobic digestion technologies, particularly in Europe where regulatory incentives support renewable gas production. Meanwhile, urban residues, including municipal solid waste, are witnessing steady growth driven by rapid urbanization and the need for sustainable waste-to-energy solutions, especially in Asia-Pacific and Europe.

Additionally, landfill gas (LFG) feedstock is widely utilized in North America and Europe, supported by regulatory frameworks promoting methane capture and emissions reduction. Overall, feedstock diversification remains essential for ensuring supply stability, cost optimization, and long-term sustainability in biomass power generation.

Recent Industry Developments (2025–2026)

Biomass Power Generation Market Regional Insights

The biomass power generation market was dominated by the Asia-Pacific region in 2025, accounting for the largest share of global biomass energy utilization. This dominance is primarily driven by the abundant availability of feedstock, including agricultural residues, forestry waste, and municipal solid waste across countries such as China, India, Indonesia, and Thailand. Rapid industrialization, increasing energy demand, and government initiatives promoting renewable energy adoption and waste-to-energy solutions have significantly accelerated biomass consumption in the region. China leads the regional market with large-scale biomass and co-firing projects, while India is expanding its biomass utilization through rural electrification programs and compressed biogas (CBG) initiatives.

Europe remains a key consumption hub, supported by stringent environmental regulations, carbon neutrality targets, and advanced district heating systems, particularly in countries such as Germany, the U.K., and the Nordic region. North America follows with stable consumption levels, driven by waste-to-energy plants and biomass co-firing in utility-scale power generation. Meanwhile, Latin America and the Middle East & Africa are emerging markets, where biomass consumption is gradually increasing due to growing energy demand, agricultural waste availability, and supportive government policies, positioning these regions for future expansion.

Biomass Power Generation Industry Ecosystem

The biomass power generation industry ecosystem is structured across multiple value chain layers, starting with investors, research organizations, and regulatory bodies that drive funding, innovation, and policy frameworks. The core segment includes biomass power manufacturers and operators such as Drax, Ørsted, Veolia, and Vattenfall, responsible for production and energy generation. EPC players like Valmet and INERCO support engineering, procurement, and plant construction. The downstream includes end users across generation, transmission, and distribution networks, along with industrial consumers such as BASF and ArcelorMittal. The ecosystem is interconnected, with increasing emphasis on efficient distribution networks and broader geographic reach through direct and indirect channels.

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Biomass Power Generation Market, by Region

North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)

Biomass Power Generation Market, Key Players are:

 Global / Multinational

1. Drax Group plc
2. Engie SA
3. Ørsted A/S
4. Vattenfall AB
5. E.ON SE
6. Veolia Environment SA
7. Suez SA
8. Mitsubishi Power Ltd.
9. Siemens Energy AG
10. General Electric Company

North America

1. Xcel Energy Inc.
2. Covanta Holding Corporation
3. Pacific BioEnergy Corporation
4. Biomass Secure Power Inc.

Europe

1. Fortum Oyj
2. Statkraft AS
3. Dalkia (EDF Group)
4. RWE AG

Asia-Pacific

1. China Everbright Environment Group
2. NTPC Limited
3. Tata Power Company Limited
4. Shandong Energy Group

Technology & Engineering

1. Babcock & Wilcox Enterprises, Inc.
2. Valmet Oyj
3. Andritz AG
4. Hitachi Zosen Corporation
5. Aalborg Energie Technik A/S
6. DP CleanTech Group

Bioenergy / Biomass Specialists

1. Enviva Inc.
2. Drax Biomass Inc.
3. Ameresco Inc.
4. EnviTec Biogas AG
5. Borregaard ASA
6. Ensyn Corporation
7. Vyncke NV
8. Verdo A/S
9. Graanul Invest AS