Biomass Power Market Size, Share & Trends Analysis Report

Technology Insights

On the basis of technologies, the global market for biomass power has been further categorized into combustion, gasification, and anaerobic digestion. In terms of revenue, the combustion segment dominated the market in 2021 and accounted for the maximum share of more than 88.0% of the global revenue. The trend is expected to continue in the future with the segment registering a steady growth rate over the forecast period. Biomass feedstock is directly combusted in a furnace with air, to convert water into steam. The produced steam is used to drive a steam turbine to generate electricity.

The combustion technology has a non-complex operation and operates at a lesser cost compared to other advanced biomass power technologies. This is expected to drive the demand for combustion technology in the market over other available technologies. Biomass power can be used for power generation, lighting, heating, and cooking gas applications. These factors are expected to boost the growth of the anaerobic digestion technology segment over the forecast period. However, the gasification technology segment is estimated to register the fastest CAGR over the forecast period.

Feedstock Insights

On the basis of feedstock, the global market has been further segmented into solid biofuel, liquid biofuel, and biogas. In terms of revenue, the solid biofuel segment accounted for the maximum revenue share of 85.5% in 2021. The segment will expand further at a steady CAGR retaining its leading position throughout the forecast period. The easy availability and low cost of solid biofuelshave resulted in their higher adoption over liquid biofuels and biogas for power generation applications. On the other hand, the liquid biofuel segment is projected to record the fastest growth rate during the forecast period.

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The biogas segment accounted for the second-largest market share, in terms of revenue, in 2021 owing to its higher calorific value and ability to be produced and utilized in remote areas. The segment is expected to grow at a steady growth rate during the forecast period. Biogas is majorly composed of methane and carbon dioxide, which is produced by the process of anaerobic digestion and it can be also produced through the thermal process of solid biofuel. Biomass power can be utilized for various applications, such as power generation, heating, and cooking.

Regional Insights

Europe was the largest regional market in 2021 and accounted for a revenue share of more than 37.0%. The European Union, in its long-term strategy, has aimed to be carbon-neutral by 2050. This objective is in line with the European Union’s commitments as part of the Paris Agreement. According to the European Green Deal, the European Commission in March 2020 has passed the first-ever European Climate Law to achieve its 2050 climate-neutrality goal. Furthermore, the European Union member countries are required to develop and implement national long-term strategies to achieve their commitments as per the Paris Agreement.

North America also accounted for a significant share of the global market revenue in 2021. The demand for biomass power across North America is primarily driven by the U.S. and Canada. The North America region is majorly dependent on coal for power generation. The recent discovery of shale gas reserves in the region has resulted in gas-based power generation, which is gaining higher growth over coal-based power generation. On the other hand, the market in Asia Pacific is estimated to register the fastest growth rate over the forecast period.

Biomass Power Market Report Scope