Biomass Electricity Market Report 2026

Biomass Electricity Market Overview

• Biomass Electricity market size has reached to $58.31 billion in 2025 • Expected to grow to $77.09 billion in 2030 at a compound annual growth rate (CAGR) of 5.8% • Growth Driver: Effect Of Energy Sector Investments On Biomass Electricity Growth • Market Trend: Innovative Approaches In Biomass Electricity Generation • Western Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Biomass Electricity Market?

Biomass electricity refers to the electricity generated by a process that involves the burning of biomass for the generation of product gas or syngas for the production of electricity. Biomass electricity helps decrease dependence on fossil fuels, cut greenhouse gas emissions, and supports sustainable waste management. The main types of feedstocks in biomass electricity are solid biomass, biogas, municipal solid waste, and liquid biomass. Solid biomass, also known as feedstock, consists of solid or compacted organic materials in the form of pellets that discharge stored energy through combustion and burning. The different technologies include anaerobic digestion, combustion, co-firing, gasification, landfill gas, and others. They are used by various sectors such as households, industrial sectors, government sectors, and others.

What Is The Biomass Electricity Market Growth Forecast?

The biomass electricity market size is expected to see strong growth in the next few years. It will grow to $77.09 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to advancements in gasification and co-firing technologies, growth in industrial-scale biomass electricity plants, integration with smart grids, expansion of municipal solid waste management programs, rising demand for sustainable biofuels. Major trends in the forecast period include increasing adoption of solid biomass feedstock for electricity generation, rising utilization of biogas and anaerobic digestion technologies, expansion of municipal solid waste-to-energy projects, integration of liquid biomass for biofuel-based power generation, growing focus on combined heat and power (chp) systems.

Global Biomass Electricity Market Segmentation

1) By Feedstock: Solid Biomass, Biogas, Municipal Solid Waste 2) By Technology: Anaerobic Digestion, Combustion, Co-Firing, Gasification, Landfill Gas 3) By End-User: Industrial Sector, Government Sector, Other End Users Subsegments: 1) By Solid Biomass: Wood Pellets, Agricultural Residues, Wood Chips, Energy Crops 2) By Biogas: Landfill Gas, Wastewater Treatment Biogas 3) By Municipal Solid Waste: Organic Waste, Non-recyclable Residuals

What Is The Driver Of The Biomass Electricity Market?

The rising investment in the energy sector is expected to propel the growth of the biomass electricity market going forward. The energy sector refers to the portion of the economy that is involved in the production, generation, distribution, and consumption of various forms of energy. Increased investment in the energy sector benefits biomass energy by promoting the development and expansion of sustainable biomass projects, leading to greater renewable energy production and reduced reliance on fossil fuels. For instance, in June 2025, according to the International Energy Agency, a France-based intergovernmental organization, in 2025, global investment in solar energy encompassing both utility-scale and rooftop installations is projected to reach $450 billion. Therefore, rising investment in the energy sector is driving the growth of the biomass electricity industry.

Key Players In The Global Biomass Electricity Market

Major companies operating in the biomass electricity market are Drax Group, Engie, EDF, RWE, Ørsted A/S, Ameresco Inc, CEZ Group, Xcel Energy Inc, Salzburg AG, Vattenfall AB, Dominion Energy, Acciona SA, Fortum Oyj, E.ON (biomass electricity division), Statkraft, NextEra Energy (biomass portfolio), China Energy Investment Corporation, Japan Renewable Energy Company (RENOVA Inc), San Carlos BioPower, Oy Alholmens Kraft Ab

Global Biomass Electricity Market Trends and Insights

Major companies operating in the biomass electricity market are focusing on developing innovative power generation technologies, such as biogas-based combined heat and power (CHP) systems, to improve energy efficiency, reduce waste, and support sustainable energy goals. Biogas CHP systems involve producing electricity and heat from organic waste through anaerobic digestion, enabling companies to convert agricultural and food waste into renewable energy while supplying surplus electricity to the grid. For instance, in August 2023, HoSt Group Japan-based company launched 530 kWe ‘Sagamihara Biogas Power’ biogas plant. which produces annually 1.9 million Nm3 biogas from pig feed waste and food waste using anaerobic digestion. The plant applies a combined heat and power (CHP) system to generate electricity and heat, which is supplied to the grid and used for the plant's operations.

What Are Latest Mergers And Acquisitions In The Biomass Electricity Market?

In June 2024, Greenvolt Energias Renováveis, S.A., a Portugal based renewable energy company, acquired the Kent Renewable Energy Plant for an undisclosed amount. Through this acquisition, Greenvolt aims to expand its biomass electricity generation capacity in the United Kingdom and support sustainable energy production. The Kent Renewable Energy Limited is a UK based company that operates a biomass combined heat and power (CHP) plant producing renewable electricity and heat.

Regional Outlook

Western Europe was the largest region in the biomass electricity market in 2025. Asia-Pacific was the second-largest region in the global biomass market analysis. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Biomass Electricity Market?

The biomass electricity market includes revenues earned by entities by wood and agricultural products, landfill gas and biogas, and alcohol fuels like Ethanol or Biodiesel. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Biomass Electricity Market Report 2026?

The biomass electricity market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the biomass electricity Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?