BIOMASS POWER MARKET Size and trends

Biomass Power Market Size and Trends

The Biomass Power Market is estimated to be valued at USD 146.58 Bn in 2025 and is expected to reach USD 211.96 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2025 to 2032.

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Rising environmental concerns around the world and growing emphasis on the use of clean energy are major factors driving the demand for biomass power. Many countries are supporting the development of biomass power industry through various incentives and policies to reduce dependence on fossil fuels. Moreover, biomass is considered to be carbon neutral and help lower greenhouse gas emissions. Several power projects based on biomass gasification and combustion technologies are underway globally. Advancing technologies are also helping optimize plant capacity and efficiency. However, high production and transportation cost of biomass remains a challenge for market growth.

Policies Supporting Renewable Energy

Many countries around the world are implementing supportive policies and incentives to increase the production and usage of renewable energy in order to reduce dependence on fossil fuels and cut down carbon emissions. Biomass is one of the key renewable sources that is being encouraged through various policies. Several nations have introduced renewable portfolio standards that mandate utility companies and other large energy producers to generate a certain percentage of their power from renewable sources including biomass. Some jurisdictions provide tax credits, production based incentives, and premium pricing for biomass power producers. These measures make biomass power generation a more financially attractive business proposition. Meanwhile, biomass power plants are often exempted from various environmental compliance costs that thermal power projects have to bear. Such nudges through policy instruments have boosted investments in biomass power capacities. As more and more countries strengthen their commitments towards clean energy goals under the Paris Agreement, favorable policies for biomass are likely to spread wider.