Biomass Power Generation Market Size to Surge USD 159.54 Billion by 2035

Market Highlights

• Asia Pacific dominated the biomass power generation market, holding more than 40% of market share in 2025.
• North America is expected to grow at a significant CAGR from 2026 to 2035.
• By feedstock, the forest waste segment accounted for a considerable share of the market in 2025.
• By feedstock, the agriculture waste segment is expected to experience the fastest growth between 2026 and 2035.
• By technology, the combustion segment led the market in 2025.
• By technology, the gasification segment is growing at a strong CAGR from 2026 to 2035.
• By fuel, the solid fuel segment registered its dominance in 2025.
• By fuel, the liquid fuel segment is expanding at a solid CAGR from 2026 to 2035.

Market Overview

The steady rise in global renewable energy adoption is accelerating the expansion of biogas-based power generation. Electricity produced from organic feedstock is gaining traction as a dependable and increasingly cost-effective energy source, effectively complementing intermittent renewables such as wind and solar. Biogas power offers the advantage of continuous generation while supporting waste-to-energy and circular economy objectives.

According to the World Bioenergy Association’s Global Bioenergy Statistics Report 2025, global bioenergy electricity generation reached 698 TWh in 2024, reflecting a year-over-year growth of 3%. In parallel, ambitious renewable energy targets, decarbonization goals, and sustainability mandates are encouraging utilities, governments, and private investors to expand biomass and biogas power projects. These factors collectively are strengthening the role of biogas power within the global renewable energy mix and driving sustained market growth.

Impact of Artificial Intelligence on the Biomass Power Generation Market

Artificial intelligence is playing an increasingly important role in transforming the biomass power generation market by enhancing operational efficiency, reliability, and sustainability. AI-driven analytics enable plant operators to continuously monitor combustion conditions, fuel quality, and equipment performance in real time, allowing for precise control of boilers, turbines, and feedstock handling systems. This results in more stable power output, improved fuel utilization, and reduced operating costs.

In addition, AI supports predictive maintenance by identifying early signs of equipment degradation, helping operators prevent unplanned downtime and extend asset life. AI-based systems also assist with environmental compliance by tracking emissions data, detecting anomalies, and recommending corrective actions to ensure adherence to regulatory standards. Through these capabilities, AI is enabling biomass power plants to operate more efficiently, meet sustainability targets, and remain competitive within the evolving renewable energy landscape.

Biomass Power Generation Market Growth Factors

• Supportive Government Policies and Incentives: Feed-in tariffs, renewable portfolio standards, tax benefits, and subsidies are encouraging investments in biomass and bioenergy power projects.
• Rising Demand for Waste-to-Energy Solutions: Growing volumes of agricultural, forestry, and municipal waste are increasing the adoption of biomass technologies for sustainable power generation.
• Technological Advancements in Biomass Conversion: Improvements in combustion, gasification, and anaerobic digestion technologies are enhancing efficiency and lowering emissions.
• Expansion of Decentralized and Off-Grid Energy Systems: Biomass power is gaining traction in rural and remote areas as a reliable alternative to grid-based electricity.
• Corporate Decarbonization and Sustainability Goals: Companies pursuing carbon-neutral operations are incorporating biomass power into renewable energy portfolios.
• Need for Reliable Baseload Renewable Power: Biomass offers consistent electricity generation, complementing intermittent renewables like wind and solar.

Regional Insights of the Biomass Power Generation Market

Europe holds a leading position in the biomass power generation market, driven by strong renewable energy mandates, advanced waste management infrastructure, and widespread adoption of bioenergy across countries such as Germany, the UK, Sweden, and Finland. North America follows closely, with the United States and Canada benefiting from abundant feedstock availability, supportive federal and state-level incentives, and growing corporate demand for renewable baseload power. Asia Pacific is emerging as the fastest-growing region, supported by rising energy demand, agricultural waste availability, and government-led renewable initiatives in countries like China, India, and Japan. Latin America is witnessing steady growth as nations such as Brazil and Chile invest in biomass projects to diversify energy sources, while the Middle East & Africa region shows gradual adoption, driven by rural electrification efforts and increasing interest in sustainable waste-to-energy solutions.