Power Generation Market: USD 102.09 Billion in 2025 to USD 152.49 Billion by 2032 at 5.9% CAGR

Biomass Power Generation Market Overview

The Biomass Power Generation Market was valued at USD 102.09 Billion in 2025 and is projected to reach USD 152.49 Billion by 2032, growing at a CAGR of 5.9% during 2026–2032, according to Maximize Market Research. The industry converts woody biomass, agricultural and forest residues, biogas, energy crops, urban residues and landfill gas into electricity and useful heat. Biomass is gaining importance in renewable-energy and decarbonization strategies because it can support waste utilization and dispatchable power.

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The Biomass Power Generation Market is benefiting from demand for renewable electricity, waste-to-energy solutions and baseload renewable power. MMR highlights advances in combustion, gasification and anaerobic digestion, along with wider use of combined heat and power systems. Government support through tariffs, tax incentives, loan guarantees and competitive public bidding also encourages development, while investment in BECCS and circular-economy initiatives creates longer-term opportunities.

Key Growth Drivers Fueling the Biomass Power Generation Market

Renewable-energy transition. Governments and utilities are shifting toward renewable sources as alternatives to conventional fuels. Biomass supports this transition by converting organic feedstocks into useful energy.

Waste-to-energy expansion. Agricultural residues, municipal solid waste and landfill gas can become energy resources rather than unmanaged waste streams. MMR identifies waste-to-energy technologies and biomass-based plants as important expansion drivers.

Government policy support. Tariffs, tax incentives, loan guarantees, public bidding and carbon-neutral energy initiatives are encouraging investment and improving project viability.

CHP and technology improvements. Combined heat and power systems improve energy utilization by producing electricity and useful heat together. Advances in combustion, gasification and anaerobic digestion are increasing operating efficiency.

BECCS and circular economy. Bioenergy with Carbon Capture and Storage is emerging as a strategic opportunity. MMR expects BECCS and circular-economy investment to strengthen long-term growth.

Market Segmentation  By Feedstock, Technology, Application & End-Use

By feedstock, the Biomass Power Generation Market includes Woody Biomass, Agriculture and Forest Residues, Biogas and Energy Crops, Urban Residues, and Landfill Gas feedstock. Woody biomass dominated with approximately 43% share in 2025, supported by high calorific value, a stable supply chain and strong adoption in Europe and North America. Agriculture and forest residues are the second-largest segment and are important in India and China.

By technology, MMR covers Anaerobic Digestion, Combustion, Gasification, Co-firing and CHP, and LFG. Applications include Power Generation and Combined Heat and Power; end users include Industrial, Utility, and Commercial & Residential. Capacity categories are Small Scale below 10 MW, Medium Scale from 10–50 MW, and Large Scale above 50 MW. MMR’s public summary does not publish shares or identify dominant categories for these additional dimensions.

Regional Analysis  Where Is the Biomass Power Generation Market Growing Fastest?

United States

The United States is part of North America, where biomass consumption remains stable through waste-to-energy plants and biomass co-firing in utility-scale generation. MMR does not publish a standalone U.S. share.

United Kingdom

The United Kingdom is included in Europe, which leads in installed biomass capacity and policy-driven adoption. MMR highlights the UK alongside Germany and Nordic countries within Europe’s advanced biomass ecosystem.

Germany

Germany is a key European market supported by environmental regulation, carbon-neutrality targets and district-heating systems. E.ON SE, one of MMR’s first five global key players, is Germany-based.

Japan

Japan forms part of Asia-Pacific, the dominant region in 2025. MMR reports that Renova commissioned an approximately 75 MW biomass power plant on July 22, 2025.

South Korea

South Korea is included in MMR’s Asia-Pacific coverage. The public summary does not provide a separate South Korean market value, share or CAGR.

China

China leads the Asia-Pacific regional market through large-scale biomass and co-firing projects. Feedstock availability, industrialization, energy demand and renewable-energy initiatives support its position.

India

India is expanding biomass utilization through rural electrification and compressed biogas initiatives. Agricultural and forest residues are important because of their availability and role in agricultural-waste utilization.

Asia-Pacific dominated in 2025, while Europe leads installed capacity. MMR does not explicitly name a fastest-growing region; within Asia-Pacific, China is the clearest investment hotspot because MMR identifies it as the regional leader, while India is also expanding rapidly through biomass and compressed-biogas initiatives.

Competitive Landscape  Leading Companies in the Biomass Power Generation Market

Drax Group plc: Drax is listed first among MMR’s global key players and is highlighted for advancing BECCS projects focused on carbon-negative generation.

Engie SA: Engie is included among the leading multinational participants across energy and utility markets relevant to biomass deployment.

Ørsted A/S: Ørsted is listed among MMR’s top global participants in the renewable-energy ecosystem.

Vattenfall AB: Vattenfall is another major multinational identified by MMR within Europe’s renewable-energy landscape.

E.ON SE: E.ON is listed among the first five global players and represents Germany in the competitive landscape.

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Recent Developments & Strategic Moves

• On March 15, 2025, Drax Group advanced BECCS projects designed to support carbon-negative power generation.
• On July 22, 2025, Renova commissioned an approximately 75 MW biomass power plant in Japan.
• On January 10, 2026, Bio Eneco commissioned a 240,000 tons-per-year biomass processing plant in Malaysia to convert palm waste into fuel.
• On February 18, 2026, Suzuki Motor Corporation inaugurated a 1.5 TPD biogas plant in India for waste-to-energy conversion.
• On May 5, 2026, GAIL, Reliance and ORSL signed agreements to develop compressed biogas infrastructure in India.

These moves show the Biomass Power Generation Market shifting toward carbon capture, waste valorization, larger processing infrastructure and integrated bioenergy supply chains.

AI & Digital Transformation Impact on Biomass Power Generation Market

AI and digital tools can support biomass plants through feedstock planning, combustion control, predictive maintenance and operational monitoring. AI can help operators interpret equipment and process data as feedstock quality and generation conditions change. MMR’s strongest named technology themes remain combustion, gasification, anaerobic digestion, CHP and BECCS rather than AI as a standalone segment.

Digital transformation therefore acts as an enabling layer around conversion technologies. Monitoring and automated controls can complement MMR’s identified efficiency improvements while supporting more consistent plant performance and resource optimization.

Future Outlook  Investment Opportunities & Emerging Trends

The future of the Biomass Power Generation Market will be shaped by feedstock diversification, waste-to-energy investment, CHP, gasification, anaerobic digestion and BECCS. With MMR forecasting revenue to increase from USD 102.09 Billion in 2025 to USD 152.49 Billion by 2032 at a 5.9% CAGR, opportunities are developing around woody biomass, agricultural residues, biogas, municipal waste and carbon-removal technologies. Asia-Pacific’s feedstock availability and energy demand, together with Europe’s installed capacity and policy support, create distinct investment pathways.

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Expert Commentary

"According to Neha Nalawade, Research Manager at Maximize Market Research, 'The Biomass Power Generation Market, valued at USD 102.09 Billion in 2025, is projected to reach USD 152.49 Billion by 2032 at a CAGR of 5.9% during 2026–2032. Investment in waste-to-energy, CHP, advanced conversion technologies and BECCS is strengthening biomass power’s role in renewable generation, resource optimization and long-term decarbonization strategies.'"

About Maximize Market Research

Maximize Market Research Pvt. Ltd. (MMR) is a global market research and consulting company that provides reliable, data-focused, and practical business insights. The firm serves a wide range of industries, including healthcare, pharmaceuticals, technology, automotive, electronics, chemicals, personal care, and consumer goods. Through market forecasts, competitive analysis, strategic consulting, and industry impact assessments, MMR helps organizations understand changing market conditions, identify growth opportunities, and make informed business decisions for long-term success.

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