Throughout the forecast period, the global bioenergy market is expected to grow at a CAGR of 7.4%. The market is expanding as a result of rising awareness of the need to reduce carbon emissions and the transition to net zero emissions.
Energy produced using bio based renewable resources such as bio-fuel, bio-gas and biomass is known as Bioenergy. Bioenergy has proven to be the largest source of renewable energy. It accounted for the 55% of renewable energy and 6% of energy supply. Rising penetration towards reducing the carbon emissions along with a move towards net zero emission is driving the growth of the market. Utilization of modern bioenergy has experienced surge of about 7% per year between 2010 and 2021.
Even while this on its own is rather deceiving, the total worldwide bioenergy use in 2030 under the Net Zero Scenario is only roughly 20% greater than in 2021. For traditional cooking methods, which are unsustainable, ineffective, harmful, and responsible for 5 million premature deaths in 2021 alone, more than 35% of the bioenergy utilized in that year came from biomass.
In the Net Zero Scenario, the usage of this conventional biomass is reduced to zero by 2030 in order to meet UN Sustainable Development Goal 7 on Access to Affordable and Clean Energy. By excluding traditional uses of biomass, the consumption of modern bioenergy roughly doubles from about42 EJ in 2021 to 80 EJ in 2030.
According to the Precedence Research, the Global bioenergy market size was estimated at US$ 108.71 billion in 2021 and is expected to surpass around US$ 206.24 billion by 2030, growing at a CAGR of 7.4% during the forecast period.
Pandemic hampered the market growth
The outbreak of the deadly virus has put restrictions on the imports and exports of goods. The lockdown imposed by the government of various economies halted the production activities further declined the demand for bioenergy. However, the market is anticipated to re-gain its growth during the upcoming years owing to removal of restrictions.
Future Scenario of Bioenergy Market
The total demand for bioenergy grow at 20% during 2022-2027 owing to the increasing consumption in developed economies. Increasing penetration towards reducing the GHG is proliferating the growth of the industry. Moreover, 70% of the renewable diesel and biojet fuel comes from waste in 2021. Various benefits associated with bio energy such as reducing landfills, cost saving and biodegradability is expected to accelerate the growth of the market. Growing environment issues due to the burning of fossil fuel is also accelerating the growth of the market.
Government efforts to accelerate the market demand
Government is putting stringent regulations in order to reduce the carbon emission and environment pollution due to the burning of fossil fuel. Increasing transition from coal and diesel to bioenergy-based vehicles in automotive sector is also providing lucrative opportunities for the growth of the industry. Moreover, the government offers various benefits in order to move towards greener energy that reduces the overall expenditure. Increasing efforts to look for the alternative of traditional energy produced from fossil fuel is expanding the market demand.
High Cost is restraining the market growth
High initial cost associated with the installation of bioenergy plant is one of the primary factor restraining the growth of the market. Moreover, there is a high operational and pre-treatment cost which makes it difficult for the farmers to afford further restraining the growth of Bioenergy Market.
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Biomass to dominate the market
Bioenergy is the energy produced with the biological products that are specifically known as organic products as well. These products are stored with chemical energy like wood. For Instance, accordoing to the International Renewable association, the global demand for biofuels is expected to increase during the upcoming years by 28% by 2026. In 2020, the bioenergy electricity generation experienced an increase by 53 TWh from 2019. Moreover, the Biomass comes from various feedstock including wood fuel, charcoal, agriculture crops, biogas and bio fuels. More than 60% of the biopower produced in Europe in 2020 originated from sources of solid biomass, such as wood chips and wood pellets. Around 20% came from municipal trash, and the remaining 15% came from biogas. Similar to how power produced from garbage and biomass made up about 2% of all electricity produced in the United States. Similarly, the India also experienced significant growth in biomass power generation owing to the increasing support from Indian government through renewable energy sources. These factors are expected to further proliferate the Bioenergy market growth across the world.
Europe is anticipated to lead the Global Market
Europe accounted the most share of 87% and dominated the overall market owing to the owing to the surging manufacturing activities. The growth of the market is also attributed to the incorporation of Europian Union member states with the National Renewable Energy Action Plans in order to meet the renewable energy targets. Moreover, Bioenergy is a crucial energy to meet the European climate targets for 2020 and 2030, which call for 32% of the EU's energy consumption to come from renewable sources. Asia Pacific is also anticipated to grow at a share of 8% during the forecast period. Thus, with the upcoming projects and the targets to achieve a carbon-neutral environment during the upcoming years, the region is expected to have dominance during the forecast period. The agreement is expected to create a shared project pipeline for the two companies, allowing both to maximise their considerable experience in developing, building, and managing facilities that create renewable natural gas from organic waste.
Germany is leading in Bioenergy Market
Germany, one of the world's leaders in bioenergy, produced 7.5% of its total electricity from biomass or bioenergy in 2020. The country has more than 8000 biogas plants as of that year, and more are anticipated to be operational over the projection period. The nation intends to purchase close to 40,000 MWh of power from 86 biogas cogeneration units by 2022. Also, nations like Italy are probably going to encourage the expansion of the region's bioenergy sector. Engie and BTS Biogas Srl, two market leaders in the biogas industry, inked a Memorandum of Understanding (MOU) in July 2020, as part of which the two businesses want to exchange knowledge and resources to advance decarbonization initiatives beginning in Italy and spreading across all of Europe.
Germany will stop the utilization of palm oil as a raw material to produce bio fuel with the aim of reducing carbon emission. Moreover, surging awareness regarding the usage of cleaner fuels and increasing initiatives taken by the government is expected to fuel the growth of the market.
Prominent Players in the market
The Bioenergy market is moderately fragmented. Some of the key players in the market are:
- Ameresco Inc.
- MVV Energie AG
- Enexor Energy
- Drax Group
- EnviTec Biogas AG
- Pacific BioEnergy Corp.
- Green Plains Inc.
Key Developments are contributing to the market demand
EnviTec Biogas AG and Liquind 24/7 GmbH entered into a contract in July 2021 to transport and distribute the bio-LNG generated at Gustrow by EnviTec Biogas AG to heavy-duty customers at Liquind 24/7 GmbH's truck fuelling stations in Germany.
After a brief 12-month building phase, EnviTec Biogas AG began operating its biogas production in China in 2021. The Shanxi province's 1,570 Nm3 biogas facility will use dairy cattle dung, turkey litter, and maize stover silage as inputs.
Segments Covered in the Report
By Product Type
- Solid Biomass
- Liquid Biofuel
- Agricultural waste
- Wood and Woody Biomass
- Solid Waste
- Power generation
- Heat generation
- Fast Pyrolysis
- North America
- South Korea
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- North Africa
- South Africa
- Rest of the Middle East & Africa
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