by Biomass power is a renewable source of energy generated from organic materials such as wood, wood waste, straw, and biogas. Biomass power is utilized in power plants to produce heat and electricity through burning biomass in a boiler. It provides efficient and cost-effective renewable energy and reduces reliance on fossil fuels. Biomass power is considered a carbon-neutral form of energy as the carbon dioxide released during combustion is equal to the amount absorbed by the biomass source when it grew.
The global biomass power market is estimated to be valued at US$ 198.30 billion in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period from 2024 to 2031.
The increasing emphasis on the Biomass Power Market Size use of renewable sources for electricity generation coupled with favorable government policies and initiatives supporting biomass power plants is fueling the market growth.
Key Takeaways
Key players operating in the biomass power market are Mitsubishi Heavy Industries, Ltd., Suez, Xcel Energy Inc., Ramboll Group A/S, Babcock & Wilcox Enterprises, Inc., Orsted A/S, Ameresco, General Electric, Veolia, Vattenfall, Dalkia EnviTec Biogas AG, Weltec Biopower GMBH, Drax Group PLC (UK), Enviva LP, Sodra, MVV Energie AG, Helius Energy PLC, Alstom SA, and Vattenfall AB.
The global rise in power demand along with the need to reduce the reliance on conventional sources of energy has opened lucrative opportunities for biomass power market players to set up new biomass power plants. Moreover, government incentives and policies supporting the use of biomass for energy generation are encouraging investments in biomass power projects, especially in European and Asian countries.
The expansion of biomass power capacity in major markets such as the US, UK, Germany, Italy, China, and India is expected to drive the global biomass power market revenue. Favorable renewable purchase policies in these countries are attracting investments towards upgrading and installing new biomass power plants.
Market Drivers
One of the key drivers for the Biomass Power Market Size And Trends is the increasing focus on reducing carbon emissions from the power sector. Biomass power is considered carbon-neutral and helps replace fossil fuel-based power generation. It emits 40-90% lower greenhouse gases than other renewable energy sources like solar or wind per unit of energy produced. The rising global efforts to mitigate climate change are propelling the demand for biomass power.
PEST Analysis
Political: Governments across various countries are offering subsidies and incentives for biomass power projects to meet renewable energy targets and reduce dependency on fossil fuels. Some countries have also introduced regulations mandating a certain percentage of power generation from renewable sources.
Economic: Biomass power is a relatively inexpensive source of renewable energy. Fuel collection and transportation costs are lower compared to other alternatives. Ongoing investments are being made in biomass power plants to benefit from low operating costs over the long term.
Social: As environmental concerns rise globally, biomass power is gaining acceptance due to its renewable nature. It also provides an outlet for agricultural and forestry waste. However, there are some concerns about the sustainability of biomass fuel supply.
Technological: New technologies are enabling higher efficiencies in biomass power generation. Advancements in combustion and gasification systems allow optimized use of various biomass fuels. Integrating biomass power with thermal applications further enhances viability.
The market in terms of value is concentrated highly in regions with ample biomass resources and supportive policies. Europe accounts for a major share due to a well-established industry and incentives offered across countries encouraging renewable uptake. The Asia Pacific region is also emerging as a sizable and fast growing market led by countries like China, India, Japan and South Korea. Substantial investments are ongoing to expand the biomass power sector in light of regional commitments to boost renewable energy usage.
The fastest growing regional market for biomass power is expected to be Asia Pacific through 2031 supported by rapid industrialization and urbanization. Countries across Southeast Asia, South Asia and East Asia are investing heavily in renewable capacity addition including biomass. Rapid economic growth has also boosted the availability of agricultural and forestry residues making biomass power increasingly competitive. Supportive government policies through incentives and mandatory renewable targets will further aid strong adoption in the Asia Pacific region over the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
