Biomass Power Market Size, Share & Trends Report

Biomass Power Market Size, Share & Trends Analysis Report By Feedstock (Solid, Liquid Biofuels), By Technology (Combustion, Gasification), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-936-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 90

Report Overview

The global biomass power market size was valued at USD 49.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2020 to 2027. Favorable government regulations encouraging thermal power stations to switch from coal to cleaner fuels, such as biomass, are expected to play a vital role in market growth over the forecast period. Biomass generates bioenergy that is used across several end-use markets to minimize dependence on fossil fuels, reduce Greenhouse Gas (GHG) emissions, and improve the security of energy supply. Moreover, the decline in coal usage along with the growing use of wood biomass for distributed electricity production is anticipated to positively influence the industry landscape. The U.S. market is projected to witness a substantial growth owing to rising implementation of climate change laws requiring usage of renewable sources for power generation purposes. Biomass fuels are used as a primary energy source in the U.S. and are majorly sourced from wood-derived biomass and municipal waste biomass.

The U.S. biomass power market size

In addition, new developments aimed at using more biomass for fuel are set to boost regional market growth. Biomass serves as a sustainable and low-carbon alternative to conventional fossil fuels while allowing local groups to use domestically available biomass sources. It makes efficient utilization of crop residues, the unused portions of urban waste, and wood manufacturing wastes. The government organizations are emphasizing on utilizing biomass for electricity production as a part of energy security and energy efficiency strategy. Such initiatives aim to augment the share of clean renewables in the overall energy mix of national economies.

Bioenergy is the energy produced through the burning of biomass or biomass fuels. According to the International Energy Agency (IEA), bioenergy power production rose by 5% in 2019 that is only a percent less than the 6% yearly rate required to meet the 2030 Sustainable Development Scenario goals. Market developments and recent policy changes in emerging nations are expected to further provide a positive outlook to the market growth.

Technology Insights

In 2019, the combustion segment occupied the largest revenue share of more than 79% and will retain the dominant position during the forecast years. Direct biomass combustion technology has relatively non-complex operations, higher reliability, and lower cost when compared to other advanced biomass power technologies. However, the segment may witness a decline with other efficient technologies taking over the market share.

The gasification segment is anticipated to attain the fastest growth rate over the forecast period owing to the high operational efficiency of the process. The process converts solid biomass into gaseous fuels that are further used to generate electricity with remaining gas used as synthesis gas in chemical industries. Gasification technology is gaining traction owing to its ability to significantly reduce carbon emissions while producing a high calorific gas from a renewable source.

Anaerobic digestion plants serve as stand-alone energy plants near large volumes of forest or agricultural residue. Biogas production via anaerobic digestion is implemented at the household scale, village, and commercial scales in emerging economies of Asia Pacific, such as China and India. The process offers efficient management of abundantly available animal dung along with the gas production for power generation, lighting, or cooking purposes.

Feedstock Insights

The solid biofuel segment accounted for the largest revenue share of 81.1% in 2019. Solid biomass, such as crop waste, sawdust, and wood, are either used directly or processed into charcoal and briquettes for power generation, cooking, and heating purposes. However, burning solid biomass leads to an aggravation of severe climate change issues, which may hamper the segment growth over the forecast period.

Global biomass power market share

Liquid biofuels include ethanol produced from grain and biodiesel produced from trans esterified vegetable oils blended with diesel. Biofuel serves as an alternative to internal combustion engines powered on kerosene, diesel, or gasoline, including usage in airplanes, ships, trucks, and passenger vehicles. Moreover, advanced liquid biofuels can provide an 80% emission reduction in aviation, heavy freight, and shipping. Technology commercialization is expected to boost the growth of advanced biofuels over the forecast period.

Biogas segment is forecasted to register a significant CAGR of 8.9% owing to the ability of biogas to provide heat and electricity for use in fuel cells, microturbines, and engines. Biogas is upgraded into Renewable Natural Gas (RNG) or biomethane and further used as a vehicle fuel or injected into natural gas pipelines. Its ability to significantly reduce harmful methane emissions and recycle them into valuable commodities, such as biochemicals and biofertilizers, is expected to further boost the segment growth.

Regional Insights

Europe accounted for the highest market share of 34.1% in 2019 owing to the favorable environmental regulations implemented across the region to maximize the bioenergy potential in various countries. Countries, such as Finland, France, Sweden, and Germany, have abundant availability of forest residues and large forestry industries, which will provide robust growth to the regional market over the forecast period.

North America is estimated to witness considerable growth over the next few years, with the U.S. being the major revenue contributor. The growing trend of biomass electricity generation provides valuable waste disposal services, which otherwise would be burned openly, thereby reducing the environmental impact and sustaining the biomass power market demand across the region.

Asia Pacific is projected to be the fastest-growing region from 2020 to 2027 owing to the abundant availability and wide feedstock base of biomass across the emerging economies, such as China and India. In addition, biogas digesters are heavily subsidized in certain parts of the region. Biogas production via anaerobic digestion allows for systematic management of huge amounts of animal dung and efficient production of gas for power generation, lighting, and cooking purposes.

Key Companies & Market Share Insights

The industry faces a complex supply chain interaction where the market players need to interact with regional and local participants to ensure a continuous supply of biomass feedstocks, the transportation, conversion, and delivery of the valuable fuels to the end-use markets. Moreover, the industry participants are emphasizing on intensive research and development activities to further commercialize the various types of biomass power generation technologies. Some of the prominent players in the biomass power market include:

  • Mitsubishi Heavy Industries, Ltd.

  • Suez

  • Xcel Energy Inc.

  • Ramboll Group A/S

  • Babcock & Wilcox Enterprises

Biomass Power Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 52.9 billion

Market volume in 2020

787.7 MWh

Revenue forecast in 2027

USD 98.0 billion

Volume forecast in 2027

1409.3 MWh

Growth Rate

CAGR of 9.2% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in MWh, revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Technology, feedstock, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

The U.S.; Canada; Mexico; Germany; The U.K.; Italy; China; India; Thailand; Brazil

Key companies profiled

Mitsubishi Heavy Industries, Ltd.; Suez; Xcel Energy Inc.; Ramboll Group A/S; Babcock & Wilcox Enterprises, Inc.; Ørsted A/S; Ameresco; Licella Holdings Ltd.; Veolia; Vattenfall Ab

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global biomass power market report on the basis of technology, feedstock, and region:

  • Technology Outlook (Volume, MWh; Revenue, USD Million, 2016 - 2027)

    • Combustion

    • Anaerobic Digestion

    • Gasification

  • Feedstock Outlook (Volume, MWh; Revenue, USD Million, 2016 - 2027)

    • Solid biofuel

    • Liquid biofuel

    • Biogas

  • Regional Outlook (Volume, MWh; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • Italy

    • Asia Pacific

      • China

      • India

      • Thailand

    • Central & South America

      • Brazil

    • Middle East & Africa

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