Biomass Power: Increasing Demand and Production Statistics

The increasing demand for renewable energy sources has led to the growth of the biomass power market. The global biomass power market is expected to grow at a compound annual growth rate (CAGR) of 5.73% from 2023 to 2032.

Biomass power refers to the use of organic materials to generate electricity. This can include wood, agricultural residues, municipal solid waste, and other organic materials. Biomass power plants use various technologies to convert biomass into electricity, including combustion, gasification, and anaerobic digestion. These processes involve burning the biomass to produce steam, which is then used to power turbines and generate electricity.

Biomass power refers to the use of organic materials such as wood, crops, agricultural waste, and other plant matter to generate electricity or heat. Biomass power can be produced through several methods, including combustion, gasification, and anaerobic digestion.

Capacity refers to the maximum amount of power that a biomass power plant can produce. Biomass power plants can range in capacity from a few kilowatts to hundreds of megawatts.

Production refers to the amount of electricity or heat that is generated by a biomass power plant over a specific period of time. The production of biomass power can vary depending on several factors, including the type of biomass used, the efficiency of the power plant, and the availability of the biomass.

Consumption refers to the amount of biomass energy that is used by consumers or industries. Biomass energy can be consumed in the form of electricity or heat, and it can be used for a wide range of applications, including powering homes and businesses, heating buildings, and fueling vehicles. The consumption of biomass energy can vary depending on factors such as the availability and cost of other energy sources, government policies, and technological advancements.

Here are some statistics related to biomass power production:

  1. In 2020, biomass power generated approximately 44.5 billion kilowatt-hours of electricity in the United States.

  2. Globally, biomass power accounted for approximately 7% of renewable energy consumption in 2019.

  3. The European Union is the largest producer of biomass power in the world, generating over 20% of its renewable energy from biomass sources in 2020.

  4. The largest biomass power plant in the world is located in Denmark and has a capacity of 150 megawatts.

  5. According to the International Energy Agency (IEA), the use of biomass for energy could increase by 60% by 2040, driven by the growing demand for renewable energy and efforts to reduce greenhouse gas emissions.

  6. In the United States, the use of biomass for power generation has declined in recent years due to competition from cheaper natural gas and other renewable energy sources.

  7. However, some states, such as California, continue to incentivize the use of biomass energy as a way to reduce greenhouse gas emissions and promote local economic development.

The global biomass power market size was accounted for USD 134.76 billion in 2022 and it is expanding around USD 210.5 billion by 2030.

Market Growth Potential

The global biomass power market is expected to grow at a compound annual growth rate (CAGR) of 5.73% from 2023 to 2032. The report attributes this growth to several factors, including increasing government initiatives for renewable energy, rising demand for electricity, and favourable policies and regulations. In addition, the decreasing cost of biomass feedstock and the technological advancements in biomass power plants are also driving market growth.

The increasing demand for renewable energy sources has led to the growth of the biomass power market. Biomass is organic matter that comes from plants and animals, and it can be used to produce electricity, heat, and fuel. This market has been gaining traction due to the need for sustainable and eco-friendly energy sources. In this blog, we will explore the biomass power market, its growth potential, and the challenges it faces. Growing environmental concern along with rising penetration towards adoption of sustainable sources of energy is expected to propel the growth of the market.

Increasing demand for energy is expected to boost the market growth

Key advantages associated with the biomass such as low carbon emission. The growing demand for energy is anticipated to propel the growth of the market. Surging supply of biomass renewable power owing to the increasing initiatives taken by the government is providing lucrative opportunities to the growth of the industry. For instance, the unavailability of fossil fuels in order to meet the continuous power demand is shifting the demand towards renewable energy triggers the potential growth of the market.

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High operating cost is restraining the market growth

The process of biomass generation requires high initial and operating cost. High transportation, feedstock acquisition cost along with cost associated with pre-treatment technologies of biomass is expected to restrain the growth of the industry. Moreover, the additional expenses associated with cost of generating electricity is also hindering the market growth.

Challenges in the Biomass Power Market

Despite the growth potential, the biomass power market faces several challenges. One of the main challenges is the availability and cost of biomass feedstock. The cost of biomass can vary depending on the location, season, and availability, which can affect the profitability of biomass power plants. In addition, the transportation of biomass from the source to the power plant can also add to the cost.
Another challenge is the environmental impact of biomass power plants. While biomass is considered a renewable energy source, its production and use can still have negative impacts on the environment. For example, the combustion of biomass can release greenhouse gases and other pollutants, which can contribute to climate change and air pollution. Therefore, it is essential to ensure that biomass power plants operate within environmentally sustainable practices.

COVID-19 impact

The outburst of coronavirus pandemic has declined the growth of the industry. Shortage of raw materials due to the lockdown imposed by the government across various nations. Decline in electricity prices due to spread of the virus negatively declined the growth of the industry.

Europe accounted the largest revenue share

In 2022, Europe was the largest regional market by revenue share (more than 38.7%). By 2050, the European Union intends to have a carbon-neutral economy. This objective is in line with the obligations the European Union has under the Paris Agreement. In accordance with the European Green Deal, the European Commission approved the first European Climate Law in March 2020 to achieve its 2050 environmental neutrality goal. In addition, the member states of the European Union are required to develop and operate public long-distance networks in order to fulfil their obligations under the Paris Agreement.

In 2022, North America contributed significantly to the global market's revenue. The United States, along with Canada, play a crucial role in determining the interest in biomass electricity across North America. The region of North America depends heavily on coal for its energy needs. The new discovery of shale gas reserves in the region has ushered in the gas-based power era, which is developing more rapidly than the coal-based power age. However, it is believed that the market in Asia-Pacific will experience the fastest rate of growth during the measurement time.

The growth of the region is being aided by international cooperation on emerging power sources. For instance, in March 2021, the United States and India decided to coordinate their fundamental power connection in order to cooperate in cleaner power sectors, such as biofuels and the hydrogen age. The two countries would become more determined to benefit from cutting-edge American innovations and India's rapidly expanding power field.

In addition, over the forecast period, Asia Pacific is predicted to experience a high CAGR in the global market. Because of the increased interest in sustainable power initiatives, countries like China and India have experienced notable increases in power usage. According to the IBE Forum, between April 2000 and June 2021, FDI inflows into India's non-customary power industry totaled US$10.28 billion. (DPIIT) Over US$ 42 billion has been invested in India's sustainable electricity sector since about 2014.


The biomass power market is a promising area of growth in the renewable energy sector. It offers a sustainable and eco-friendly solution to meet the rising demand for electricity. However, the market faces challenges related to the availability and cost of biomass feedstock and the environmental impact of biomass power plants. Addressing these challenges will be critical for the continued growth and success of the biomass power market.

Market share insights

Due to the presence of big businesses, the global industry is very competitive. In order to maintain a steady supply of biomass feedstocks, convert those feedstocks into valuable fuels, transport those valuable fuels, and distribute them to the end-user segment, the industry must interact with local and regional players. Additionally, the market players place a strong emphasis on ongoing research and development projects to help further commercialise the different biomass power generation technologies.

Leading participants in the global biomass power industry include:

  • Mitsubishi Heavy Industries, Ltd.

  • Suez

  • Xcel Energy Inc.

  • Ramboll Group A/S

  • Babcock & Wilcox Enterprises, Inc.

  • Orsted A/S

  • Ameresco

  • General Electric

  • Veolia

  • Vattenfall

By Technology

  • Combustion

  • Gasification

  • Anaerobic Digestion

  • Others

By Feedstock

  • Solid Biofuel

  • Liquid Biofuel

  • Biogas

  • Others

By End Use

  • Industrial

  • Commercial

  • Residential

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