The global biomass power Industry size was valued at USD 121.34 billion in 2023 and is expected to be worth around USD 223.53 billion by 2033, with a registered CAGR of 6.3 % during forecast period 2024 to 2033. Key factors driving the biomass power Industry growth include the minimize dependence on fossil fuels, reduce greenhouse gas emissions, and improving the security of the energy supply.

The Industry has been witnessed growth with the rise in environmental concerns, which has forced various countries to increase the share of renewable energy in their power mix. Countries, such as India, China, Germany, the U.K., and France, have announced renewable energy targets and are aiming at becoming carbon-neutral nations in the future. Moreover, rising adoption owing to favorable policies and regulations drives the Industry.

Furthermore, the European Union countries are looking for a coal phase-out, which is expected to boost the demand for biomass power. In addition, in countries, such as India, the U.S., and China, co-firing of coal-based power plants is done with biomass feedstock to limit carbon emissions from the plants. These factors will boost the growth of the Industry in the forecast period. The U.S. witnessed biomass power capacity addition of 177 MW in 2019 through 14 projects. The new project commissioned in 2019 was done in locations, such as Florida, Georgia, California, and Hawaii. Furthermore, over 384 MW of biomass power projects are under different development phases in the country. These factors are anticipated to boost the Industry growth in the country over the forecast period.

The U.S. and Canada dominate the North America regional Industry. The North America region is majorly dependent on coal for power generation. The recent discovery of shale gas reserves in the region has resulted in gas-based power generation, which is gaining higher growth over coal-based power generation in the region in the past decade.Installers and system providers usually hold stock of major equipment in inventory. However, manufacturers faced bottlenecks and shortages owing to limited production in countries during the COVID-19 crisis. Furthermore, upcoming biomass power projects witnessed delays in commissioning due to the disruption in the supply chain and halt of on-site construction activities caused by the imposition of lockdowns in severely affected areas.

According to recent study by nova one advisor, the global biomass power Industry size was exhibited at USD 121,340.78 million in 2023 and is projected to hit around USD 223,531.86 million by 2033, growing at a CAGR of 6.3% during the forecast period of 2024 to 2033.

Key Takeaways:

• Europe was the largest regional Industry in 2023 and accounted for a revenue share of more than 40.0%.


• In terms of revenue, the combustion segment dominated the Industry in 2023 and accounted for the maximum share of more than 88.0% of global revenue.


• In terms of revenue, the solid biofuel segment accounted for the maximum revenue share of 88.0% in 2023.

Technology Insights

On the basis of technologies, the global Industry for biomass power has been further categorized into combustion, gasification, and anaerobic digestion. In terms of revenue, the combustion segment dominated the Industry in 2023 and accounted for the maximum share of more than 88.0% of the global revenue. The trend is expected to continue in the future with the segment registering a steady growth rate over the forecast period. Biomass feedstock is directly combusted in a furnace with air, to convert water into steam. The produced steam is used to drive a steam turbine to generate electricity.

The combustion technology has a non-complex operation and operates at a lesser cost compared to other advanced biomass power technologies. This is expected to drive the demand for combustion technology in the Industry over other available technologies. Biomass power can be used for power generation, lighting, heating, and cooking gas applications. These factors are expected to boost the growth of the anaerobic digestion technology segment over the forecast period. However, the gasification technology segment is estimated to register the fastest CAGR over the forecast period.

Feedstock Insights

On the basis of feedstock, the global Industry has been further segmented into solid biofuel, liquid biofuel, and biogas. In terms of revenue, the solid biofuel segment accounted for the maximum revenue share of 88.0% in 2023. The segment will expand further at a steady CAGR retaining its leading position throughout the forecast period. The easy availability and low cost of solid biofuelshave resulted in their higher adoption over liquid biofuels and biogas for power generation applications. On the other hand, the liquid biofuel segment is projected to record the fastest growth rate during the forecast period.

The biogas segment accounted for the second-largest Industry share, in terms of revenue, in 2023 owing to its higher calorific value and ability to be produced and utilized in remote areas. The segment is expected to grow at a steady growth rate during the forecast period. Biogas is majorly composed of methane and carbon dioxide, which is produced by the process of anaerobic digestion and it can be also produced through the thermal process of solid biofuel. Biomass power can be utilized for various applications, such as power generation, heating, and cooking.

Key companies profiled: Mitsubishi Power Ltd.; Suez; Xcel Energy Inc.; Ramboll Group A/S; Babcock & Wilcox Enterprises, Inc.; Orsted A/S; Ameresco Inc; General Electric; Veolia; Vattenfall AB

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