How Much Growth Is Anticipated In The Biomass Power Generation Market Size From 2026 To 2035?
The biomass power generation market size has grown strongly in recent years. It will grow from $63.97 billion in 2025 to $68.48 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to availability of low cost biomass feedstock, early adoption of biomass combustion plants, government incentives for renewable power, rising waste to energy initiatives, growth in rural electrification programs.
The biomass power generation market size is expected to see strong growth in the next few years. It will grow to $89.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to expansion of biomass gasification projects, increasing focus on carbon neutral electricity, rising integration of smart biomass plant monitoring, investment in waste to energy technologies, growth in industrial biomass chp demand. Major trends in the forecast period include increasing use of renewable biomass feedstock, rising deployment of biomass chp systems, growth in advanced biomass combustion technologies, expanding use of agricultural and urban waste for power, increasing investment in decentralized biomass power plants.
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Which Major Drivers Are Accelerating Expansion Within The Biomass Power Generation Market?
Government initiatives for biomass power generation are expected to propel the growth of the biomass power generation market. Government initiatives refer to planned actions, programs, or policies undertaken by a government to address specific issues, achieve goals, or respond to the needs of its citizens. Governments from major countries offer financial incentives, such as grants, subsidies, or tax credits, to encourage the establishment and operation of biomass power plants. These incentives help reduce the financial burden on investors and make biomass projects more economically viable. For instance, in August 2025, according to the Natural Resources Canada, a Canada-based governmental department, Canada’s clean energy GDP is expected to climb to $107 billion by 2030, supported by approximately $58 billion in annual sector investments. Therefore, government initiatives for biomass power generation drive the biomass power generation market.
Which Segments Are Expected To Shape The Future Direction Of The Biomass Power Generation Market?
The biomass power generation market covered in this report is segmented –
1) By Feedstock: Woody Biomass, Agriculture And Forest Residues, Biogas And Energy Crops, Urban Residues, Landfill Gas (LFG) Feedstock
2) By Technology: Anaerobic Digestion, Combustion, Gasification, Co-firing And CHP, Landfill Gas (LFG)
3) By End-User: Commercial, Industrial, Residential
Subsegments:
1) By Woody Biomass: Wood Chips, Wood Pellets, Sawdust, Wood Logs, Bark
2) By Agriculture And Forest Residues: Crop Residues, Forest Residues, Agricultural Waste
3) By Biogas And Energy Crops: Biogas, Energy Crops
4) By Urban Residues: Municipal Solid Waste (MSW), Yard Waste, Paper Waste, Food Waste
5) By Landfill Gas (LFG) Feedstock: Methane from Landfill Gas
Which Rising Trends Are Anticipated To Influence The Future Trajectory Of The Biomass Power Generation Market?
Major companies operating in the biomass power generation market are adopting a strategic partnership approach to gain a competitive edge in the market. Partnerships in biomass power generation can yield numerous benefits, contributing to the success and sustainability of projects in this biomass power generation energy sector. For instance, in April 2023, Marubeni Corporation, a Japan-based trading company, partnered with Taisei Corporation, a Japan-based real estate development company. With this partnership, both companies have begun constructing the Ishikari Area Biomass Power Plant in Ishikari City, Hokkaido, expected to produce 9,950 kW of power. Furthermore, in December 2023, Air Burners, a US-based company specializing in manufacturing air curtain burner systems for biomass waste disposal, partnered with Rolls-Royce, a UK-based luxury automobile maker, and Volvo, a Swedish-based automotive company. With this strategic collaboration with Volvo and Rolls Royce, Air Burners developed BioCharger, a portable machine that turns biomass waste into energy. It is designed to efficiently convert biomass waste into energy, providing off-grid power solutions for various applications.
Who Are The Companies Setting The Competitive Benchmark In The Biomass Power Generation Market?
Major companies operating in the biomass power generation market are E.ON SE, ENGIE SA, Siemens AG, General Electric Company, Veolia Environnement SA, Mitsubishi Heavy Industries Ltd., ALSTOM Holdings, Dalkia by EDF Group, Drax Group PLC, Rockwell Automation Inc., MVV Energie AG, John Wood Group, Valmet Corporation, Alfa Laval, Aker Solutions, MEIDENSHA CORPORATION, Ameresco Inc., Ramboll Group A/S, Babcock & Wilcox Enterprises Inc., EnviTec Biogas AG, Vattenfall AB, WELTEC BIOPOWER GmbH, KASAG Swiss AG, Beltran Technologies Inc., Volue
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Which Regions Are Projected To Advance The Fastest Over The Forecast Horizon In The Biomass Power Generation Market?
Europe was the largest region in the biomass power generation market in 2025. The regions covered in the biomass power generation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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