Biomass power generation utilizes various types of biodegradable materials such as wood, agricultural waste, and municipal solid waste to produce electric power through combustion. Biomass is first collected and processed, and then burned to produce heat. This heat is then used to raise steam, which drives turbines that generate electricity. Biomass power offers advantages such as renewable source of energy, reduces dependency on fossil fuels, and lower carbon emissions compared to coal. It also helps in waste management by utilizing various agricultural and municipal wastes to produce energy. With growing awareness towards climate change, many countries are shifting towards renewable sources of power to achieve carbon neutrality goals.
The Global Biomass Power Market is estimated to be valued at US$ 198.30 Billion in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.
Biomass power generation helps in reducing greenhouse gas emissions by replacing fossil fuels. Countries worldwide are promoting policies to increase the share of renewable energy in overall power generation. This is increasing investments in biomass power projects globally.
Key Takeaways
Key players operating in the Biomass Power Market are Mitsubishi Heavy Industries, Ltd., Suez, Xcel Energy Inc., Ramboll Group A/S, Babcock & Wilcox Enterprises, Inc., Orsted A/S, Ameresco, General Electric, Veolia, Vattenfall, Dalkia EnviTec Biogas AG, Weltec Biopower GMBH, Drax Group PLC (UK), Enviva LP, Sodra, MVV Energie AG, Helius Energy PLC, Alstom SA, and Vattenfall AB. These leading players are focused on geographical expansion and new project developments to increase their market share.
The growing demand for renewable sources of energy alongside emphasis on waste management is a key factor driving the Biomass Power Market Size Many countries worldwide have set renewable purchase obligations and feed-in-tariffs to encourage biomass power projects. This is positively impacting the market growth.
Countries across regions are also focusing on reducing their dependence on imports of fossil fuels. This is accelerating the global expansion of the biomass power market. Investments are increasing in large-scale biomass power projects across countries such as the U.S., China, Japan and several European nations.
Market Key Trends
One of the key trends in the Biomass Power Market Size And Trends is the use of advanced technologies to improve efficiency and reduce emissions. Players are focusing on retrofitting existing power plants with new supercritical boiler technology and flue gas treatment systems. This helps in optimizing combustion and reducing particulate matter emissions. Such technological enhancements are expected to boost the adoption of biomass power over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the biomass power market as it requires huge capital investments for setting up plants and requires long-term biomass fuel supply contracts.
Bargaining power of buyers: The bargaining power of buyers is moderate as the buyers have multiple options to purchase power from other renewable sources such as solar and wind.
Bargaining power of suppliers: The bargaining power of suppliers is high due to supply constraints and long-term fuel contracts involved. Suppliers can influence prices of biomass fuel.
Threat of new substitutes: The threat of substitutes is high as other renewable sources like solar and wind power are gaining widespread acceptance.
Competitive rivalry: The competitive rivalry is high among existing players due to maturity of technology and increasing capacity additions.
Geographical Regions
In terms of value, the biomass power market in Europe is currently the largest with countries like Germany, UK and Italy being major markets. According to industry estimates, Europe accounts for over 40% of the global market. Abundant supply of biomass waste and supportive government policies promoting renewable energy are major drivers for the large European market.
The Asia Pacific region is expected to be the fastest growing market for biomass power during the forecast period. Countries like India, China, Japan and Southeast Asian nations are witnessing exponential growth due to dependence on biomass as primary energy source in rural areas and policy push for renewable energy capacity additions. According to industry experts, the Asia Pacific market is projected to grow at a CAGR of around 7-8% during the forecast period driven by the rapid economic growth and government targets for renewable adoption.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)