Biomass Market Report 2026

Biomass Market Overview

• Biomass market size has reached to $67.52 billion in 2025 • Expected to grow to $95.90 billion in 2030 at a compound annual growth rate (CAGR) of 7.2% • Growth Driver: Rising Need For Clean Energy Fueling The Growth Of The Market Due To Increasing Demand For Sustainable And Carbon-Neutral Energy Sources • Market Trend: New Plant Maximizes Energy Recovery While Minimizing Environmental Footprint • Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Biomass Market?

Biomass refers to organic material derived from plants, animals, and other living organisms that can be used as a source of energy. It is renewable and can be converted into biofuels, electricity, and heat through various processes such as combustion, gasification, and anaerobic digestion. It plays a key role in reducing dependence on fossil fuels and lowering greenhouse gas emissions. The main product types of biomass include solid biomass, liquid biofuels, and biogas. Solid biomass refers to organic materials such as wood, crop residues, and other plant-based matter that can be used directly as fuel for heating or power generation. There are technologies such as direct combustion, gasification, anaerobic digestion, and pyrolysis. The organization sizes include residential, commercial, industrial, and utilities, and they are used by several end-users include residential, commercial, industrial, and others.

What Is The Biomass Market Growth Forecast?

The biomass market size is expected to see strong growth in the next few years. It will grow to $95.90 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to growing demand for low-carbon energy sources, rising investment in advanced biomass conversion facilities, increasing adoption of biomass in district heating systems, expanding use of bioenergy for carbon-neutral industrial processes, and increasing focus on waste-to-energy integration. Major trends in the forecast period include technology advancements in biomass gasification systems, innovations in advanced combustion and co-firing solutions, developments in high-efficiency bioenergy conversion technologies, research and development in algae-based biomass production, and advancements in automated biomass supply chain and logistics systems.

Global Biomass Market Segmentation

1) By Product Type: Solid Biomass, Liquid Biofuels, Biogas 2) By Technology: Direct Combustion, Gasification, Anaerobic Digestion, Pyrolysis 3) By Source: Agricultural Biomass, Forest Biomass, Waste Biomass 4) By Application: Power Generation, Heat Generation, Transportation Fuel (Biofuels), Other Applications 5) By End-User: Residential, Commercial, Industrial, Utilities Subsegments: 1) By Solid Biomass: Wood Chips, Wood Pellets, Agricultural Residues, Energy Crops, Animal Waste 2) By Liquid Biofuels: Bioethanol, Biodiesel, Renewable Diesel, Hydrotreated Vegetable Oil, Fischer Tropsch Diesel 3) By Biogas: Landfill Gas, Sewage Gas, Anaerobic Digestion Gas, Industrial Waste Gas, Agricultural Waste Gas

What Is The Driver Of The Biomass Market?

The rising need for clean energy is expected to propel the growth of the biomass market going forward. Clean energy refers to energy generated from renewable or low-emission sources that minimize environmental impact and reduce greenhouse gas emissions. The demand for clean energy is increasing due to growing awareness of environmental sustainability, as it helps reduce greenhouse gas emissions and combat climate change. Biomass enhances clean energy by converting organic materials such as agricultural residues, wood, and waste into renewable power, making it ideal for reducing dependence on fossil fuels. It supports sustainable energy production by providing a consistent, carbon-neutral energy source, improving environmental outcomes and energy security. For instance, in June 2024, according to the International Energy Agency, a France-based intergovernmental organization, the worldwide investment in clean energy reached $80 billion in 2024, an increase from $67 billion in 2023. Therefore, the rising need for clean energy is driving the growth of the biomass industry.

Key Players In The Global Biomass Market

Major companies operating in the biomass market are TotalEnergies SE, Archer-Daniels-Midland Company (ADM), Veolia Environnement S.A., Neste Oyj, UPM Biofuels, Drax Group plc, ANDRITZ Group, Wärtsilä Corporation, Valmet Oyj, Green Plains Inc., Enviva Inc., Babcock & Wilcox Enterprises Inc., Hitachi Zosen Inova AG, EnviTec Biogas AG, Clean Energy Fuels Corp., Praj Industries Limited, AS Graanul Invest, Anaergia Inc., ReEnergy Holdings LLC, Greenlane Renewables Inc., WELTEC BIOPOWER GmbH, IES Biogas S.r.l., GoodFuels B.V., Xergi A/S

Global Biomass Market Trends and Insights

Major companies operating in the biomass power generation market are focusing on developing advanced facilities, such as high-efficiency gasification systems, to boost energy output, enhance fuel flexibility, and reduce emissions and environmental impact. High-efficiency gasification systems refer to advanced technologies that convert biomass into syngas with minimal waste and high thermal efficiency, suitable for stable power generation. For instance, in January 2025, Chofu Eco Power Co. Ltd., a Japan-based power generation company, launched the Chofu Biomass Power Plant. It is a dedicated biomass power plant featuring a high-efficiency gasification system that allows for the use of diverse biomass fuels, including wood pellets and agricultural residues. The plant includes automated fuel handling and combustion control systems, enabling stable and efficient power generation without extensive manual intervention. It also incorporates advanced emissions control and waste heat recovery technologies, maximizing energy use and minimizing the environmental footprint for local energy operators.

What Are Latest Mergers And Acquisitions In The Biomass Market?

In September 2024, NewEnergyBlue, a U.S.-based clean technology company, acquired the biomass conversion technology and international patent portfolio of Inbicon A/S for an undisclosed amount. With this acquisition, NewEnergyBlue aims to enhance its technological capabilities in converting agricultural waste into low-carbon biofuels and biochemicals and to expand its global licensing and operations footprint. Inbicon A/S is a biomass conversion technology company that specializes in turning plant-based residues into useful biofuels and biochemicals.

Regional Insights

Europe was the largest region in the biomass market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. 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 Market?

The biomass market consists of sales of agricultural residues, energy crops, animal manure, algae biomass, forestry residues, food waste, and biogas, biochar. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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 Market Report 2026?

The biomass market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry 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 industry. 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 industry.