Biomass Power Generation Market Report 2026

Biomass Power Generation Market Overview

• Biomass Power Generation market size has reached to $63.97 billion in 2025 • Expected to grow to $89.18 billion in 2030 at a compound annual growth rate (CAGR) of 6.8% • Growth Driver: Government Initiatives Catalysts For Growth In Biomass Power Generation • Market Trend: Strategic Collaborations Fueling Growth Major Companies' Partnership Approach In Biomass Power Generation • Europe was the largest region in 2025.

What Is Covered Under Biomass Power Generation Market?

Biomass electricity generation involves converting organic materials such as wood, agricultural residues, or organic waste into electricity. This renewable energy method includes burning biomass to produce steam, which then powers turbines connected to generators, generating electricity. It helps reduce greenhouse gas emissions and dependence on fossil fuels while using organic materials that can be sustainably replenished. The main types of feedstock for biomass power generation are woody biomass, agriculture and forest residues, biogas and energy crops, urban residues, and landfill gas (LFG) feedstock. Woody biomass refers to organic material derived from trees and woody plants, including branches, bark, wood chips, sawdust, and forest residues. The various technologies include anaerobic digestion, combustion, gasification, co-firing, and CHP, and landfill gas (LFG) that are used by various end-users such as commercial, industrial, and residential.

What Is The Biomass Power Generation Market Growth Forecast?

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.

Global Biomass Power Generation Market Segmentation

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

What Is The Driver Of 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 industry.

Key Players In The Global 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

Global Biomass Power Generation Market Trends and Insights

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.

What Are Latest Mergers And Acquisitions In The Biomass Power Generation Market?

In January 2023, Pacolet Milliken, LLC, a US-based investment firm, acquired Piedmont Green Power for an undisclosed amount. With this acquisition, Pacolet Milliken, LLC underscores its commitment to expanding its renewable energy portfolio and advancing its sustainability goals. Piedmont Green Power is a US-based company that offers biomass power generation solutions.

Regional Outlook

Europe was the largest region in the biomass power generation market in 2025. 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 Power Generation Market?

The biomass power generation market consists of sales of gas generation, fuel generation, and solid generation. 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 Power Generation Market Report 2026?

The biomass power generation 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 power generation 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.