Bioenergy Market

Market Overview:

The global bioenergy market size reached 166.7 GW in 2024. Looking forward, IMARC Group expects the market to reach 317.0 GW by 2033, exhibiting a growth rate (CAGR) of 6.6% during 2025-2033. Europe exhibits a clear dominance owing to its strong foundation for bioenergy development. Moreover, the rapid urbanization, the increasing energy needs worldwide, the stricter environmental regulations, the shift from fossil fuels to renewable sources, and the rising popularity of eco-friendly energy options are some of the factors propelling the market.

Bioenergy is a beacon of hope for our planet's sustainable future. Harnessing the power of nature, it utilizes organic materials like plants, agricultural residues, and waste to generate clean, renewable energy. This eco-friendly approach reduces greenhouse gas emissions and curbs our dependence on fossil fuels. One of its most significant advantages is its versatility. It can produce electricity, heat, and even biofuels, offering various applications. Biomass power plants generate electricity efficiently, while biogas from organic waste can provide clean cooking fuel for communities worldwide. It also fuels economic growth by creating farming, forestry, and technology jobs. It promotes rural development and empowers local communities to become self-sufficient in energy production. It is a sustainable solution to the global energy crisis. With responsible management of biomass resources and continual technology innovation, bioenergy can play a pivotal role in achieving a greener, more sustainable world.

The global market is majorly driven by the government's mandates and global goals for increasing renewable energy use. In line with this, the rising need to reduce greenhouse gas emissions accelerates the adoption of low-carbon bioenergy sources. Furthermore, it contributes to energy independence by diversifying energy sources, significantly contributing to the market. Apart from this, the growing need for rural development is positively influencing the market. Moreover, the ongoing innovation in bioenergy technologies offers numerous market opportunities. Abundant biomass resources, like crop residues and forestry waste, fuel market growth. Besides, the subsidies, tax credits, and grants encourage investment in bioenergy projects. Growing environmental consciousness motivates individuals and businesses to support bioenergy, creating a positive outlook for the market. Additionally, the heavy investments in R&D lead to breakthroughs in bioenergy production and utilization, bolstering the market.

Bioenergy Market Trends:

Increased demand for renewable energy

Industries and governments are placing an emphasis on raising production of renewable energy. As concerns over climate change increase, along with the demand for sustainable solutions to energy needs, bioenergy is becoming a favored green solution to fossil fuels. Governments are introducing policies that encourage the use of renewable energy sources, including biofuels, biomass, and biogas, to minimize greenhouse gas emissions. International commitments to meet net-zero targets are also propelling bioenergy's growth. The Ministry of New and Renewable Energy (MNRE) has improved the National Bio-Energy Mission 2025 to assist biofuel producers in India. This program offers significant financial rewards and regulatory assistance for firms establishing biofuel production facilities in India. Moreover, the government is promoting public-private partnerships (PPPs) to stimulate research and innovation in advanced biofuels. This is making bioenergy a primary focus for energy transitions, with major players investing in bioenergy infrastructure and technologies.

Technological advancements in bioenergy production

Researchers and engineers are constantly developing bioenergy production technologies. Advances in cellulosic biofuels, algae biofuels, and anaerobic digestion are increasing the efficiency and affordability of bioenergy. New technologies are improving energy yields with a decrease in the utilization of agricultural land and freshwater resources. Such technological advancements are making bioenergy more competitive compared to traditional sources of energy. The increased availability of advanced biofuels, particularly in the transport sector, is a crucial driver of global bioenergy markets. In 2024, Vitol, a global energy trader, announced in a statement that it would provide specialized bunker barges in Singapore in early 2024 and would offer various biofuel blends via its subsidiaries V-Bunkers and Vitol Bunkers. The decision followed the rising popularity and market interest in biofuel bunkering at Singapore, the largest bunker hub globally, as the maritime sector explores methods to decarbonise and transition from conventional dirty bunker fuels.

Government incentives and policies

Governments are also giving large amounts of incentives to foster bioenergy development. Tax credits, subsidies, and renewable energy mandates are all helping to make bioenergy projects more appealing to investors. The incentives assist in covering initial capital expenditures and lowering the financial risks of bioenergy production. Most nations have made bold renewable energy goals that are stimulating the bioenergy market. By investing in the growth of biofuel infrastructure and bioenergy crops, governments are promoting a sustainable energy future and rising demand for bioenergy technologies. India installed 4.15 GW of wind energy in FY 2024–25, raising the total capacity to 51.6 GW. Wind energy produced 83.35 billion units from April 2024 to March 2025, accounting for 4.56% of the total electricity. The nation possesses a wind capacity of 1164 GW and has a yearly production capability of 18 GW

Bioenergy Market Growth Drivers:

Growing environmental consciousness

Environmental pressures are leading consumers and industries to look for more sustainable alternatives to energy. As increased awareness of the environmental consequences of fossil fuel use grows, so too does the appeal of bioenergy. Bioenergy presents a lower carbon footprint than coal, oil, and natural gas, further reducing the negative impacts of climate change. People and companies are also becoming increasingly aware of their environmental impact and are in turn increasing demand for cleaner sources of energy. Consequently, the market for bioenergy is on the rise as consumers switch to cleaner sources of energy.

Growing availability of feedstock

The increased availability of varied feedstocks is driving the bioenergy market. Biomass feedstocks such as forestry residues, crop residues, and energy crops are being employed to generate biofuels and biogas. Since agricultural and forestry sectors produce huge quantities of organic waste, bioenergy producers are accessing these resources to generate renewable energy. In addition, improvements in feedstock gathering and processing technology are enhancing the availability of feedstocks for bioenergy production. As bioenergy demand increases, so does the need for effective feedstock supply, stimulating the development of bioenergy.

Energy security and independence

Nations are seeking increased energy security and independence by decreasing dependence on foreign fossil fuels. Bioenergy is perceived as a homegrown solution to energy problems since it can be locally produced, with less threat of supply interruption. As countries look to diversify their energy mix, bioenergy provides a consistent and renewable choice. Through the development of bioenergy infrastructure, countries can lower their reliance on foreign energy supplies while encouraging sustainable economic development. The trend is prompting governments to incorporate bioenergy into national energy policies, further propelling the market.

Bioenergy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global bioenergy market report, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on product type, feedstock, and application.

Breakup by Product Type:

• Solid Biomass
• Liquid Biofuel
• Biogas
• Others

Liquid biofuel dominates the market

The report has provided a detailed breakup and analysis of the market based on the product type. This includes solid biomass, liquid biofuel, biogas, and others. According to the report, liquid biofuel represented the largest segment.

Liquid biofuels, primarily biodiesel, and bioethanol, are key contributors to the transportation sector's decarbonization efforts. They offer a cleaner alternative to conventional fossil fuels, reducing greenhouse gas emissions and dependence on oil imports. The adoption of biofuels is driven by environmental concerns, government mandates, and the automotive industry's pursuit of cleaner mobility solutions.

Furthermore, solid biomass, encompassing wood, agricultural residues, and energy crops, is a versatile renewable energy source. It is used for heat and electricity generation, making it a valuable solution for residential, industrial, and power generation applications. Its sustainability, reliability, and adaptability contribute significantly to its market growth, especially in regions with abundant biomass resources.

Moreover, biogas, derived from organic waste materials through anaerobic digestion, serves multiple purposes. It can be used for electricity, heat generation, and as a clean alternative to natural gas for various industrial processes and transportation. The growing focus on waste-to-energy solutions and sustainable waste management practices fuels the demand for biogas, promoting market growth.

Breakup by Feedstock:

• Agricultural Waste
• Wood Waste
• Solid Waste
• Others

Solid waste dominates the market

The report has provided a detailed breakup and analysis of the market based on the feedstock. This includes agricultural waste, wood waste, solid waste, and others. According to the report, solid waste represented the largest segment.

Solid waste, encompassing municipal solid waste and industrial waste, addresses two critical issues simultaneously: waste management and energy production. By diverting solid waste from landfills and incineration, it reduces environmental pollution and harnesses the energy potential within waste materials. This segment is essential for urban areas grappling with waste disposal challenges and striving for cleaner, more sustainable waste-to-energy solutions.

Agricultural waste, such as crop residues and manure, on the other hand, presents a valuable source for bioenergy production. Its utilization reduces waste disposal issues and offers farmers an additional revenue stream while contributing to the renewable energy sector. This feedstock segment is particularly crucial in regions with extensive agricultural activity.

Furthermore, wood waste, including forestry residues, sawdust, and wood chips, has been a traditional source of bioenergy. It is highly efficient in generating heat and electricity and is abundant in forested regions. Its sustainable and carbon-neutral attributes make it a popular choice for bioenergy projects, supporting market growth in the forestry sector.

Breakup by Application:

• Power Generation
• Heat Generation
• Transportation
• Others

Transportation dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes power generation, heat generation, transportation, and others. According to the report, transportation represented the largest segment.

Liquid biofuels, such as biodiesel and bioethanol, are integral to the transportation sector's efforts to reduce greenhouse gas emissions and dependence on fossil fuels. Biofuels can be blended with conventional fuels or used in dedicated vehicles, providing a cleaner alternative for cars, trucks, and aviation. The growth of the bioenergy market in transportation aligns with the global push for greener mobility solutions and sustainable transportation.

Bioenergy plays a crucial role in electricity production. Biomass power plants, utilizing solid biomass or biogas, generate clean and renewable electricity. They contribute to grid stability and can provide baseload or dispatchable power, making bioenergy a reliable source of electricity. With an increasing focus on renewable energy sources, bioenergy's role in power generation is pivotal in reducing carbon emissions and promoting sustainable energy.

Furthermore, it is widely used for heat generation in residential, industrial, and commercial applications. Biomass heating systems, such as pellet stoves and biomass boilers, utilize solid biomass for space heating and hot water production. This sector reduces the carbon footprint and supports rural development by creating jobs in biomass production and processing.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Europe exhibits a clear dominance, accounting for the largest market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

Europe is experiencing robust growth in the bioenergy sector. It is rich in biomass resources, including agricultural residues, forestry waste, and dedicated energy crops. This abundance provides a strong foundation for bioenergy development. The governments across the region have set ambitious renewable energy targets, promoting the adoption of bioenergy as a clean and sustainable energy source. Government incentives, subsidies, and federal and state/provincial regulations encourage investment in bioenergy projects, stimulating market growth. Bioenergy helps reduce dependence on fossil fuel imports, enhancing energy security in the region.

On the contrary, ongoing research and development efforts in North America lead to technological innovations, improving the efficiency and cost-effectiveness of bioenergy production. Growing environmental awareness and concerns about climate change drive demand for cleaner energy alternatives, including bioenergy. The bioenergy sector creates agriculture, forestry, and technology jobs, contributing to economic growth, especially in rural areas. North American nations prioritize sustainable land management and waste-to-energy solutions, aligning with bioenergy's core principles.

Competitive Landscape:

Top companies are strengthening the market through strategic initiatives and unwavering commitment to sustainability. These industry leaders are at the forefront of progress in several key areas. They channel substantial investments into research and development, propelling innovations that enhance bioenergy technologies' efficiency, cost-effectiveness, and environmental impact. These companies also drive market expansion by scaling up their production capacities to meet the surging demand for biofuels, biomass power, and biogas. Furthermore, they prioritize sustainable supply chains, ensuring responsible biomass sourcing and minimizing ecological footprints. By actively collaborating with governments, research institutions, and industry peers, they influence policies, share knowledge, and foster innovation. Several top bioenergy firms are expanding their global footprint, introducing bioenergy solutions to new markets and regions. Through educational initiatives and a dedication to carbon reduction, these companies bolster their positions and champion the broader adoption of sustainable bioenergy solutions worldwide.

The report has provided a comprehensive analysis of the competitive landscape in the bioenergy market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• A2A SpA
• Ameresco
• Archer-Daniels-Midland Company
• Babcock & Wilcox Enterprises, Inc
• Bunge
• Enerkem
• EnviTec Biogas AG
• Enviva
• Green Plains Inc
• MVV Energie AG

Recent Developments:

• September 2025: Qualitas Energy, a prominent international investment and management entity concentrating on financing and advancing renewable energy, energy transition, and sustainable infrastructure, announced today the opening of its inaugural renewable biomethane facility in the United Kingdom: Three Maids, an anaerobic digestion (AD) facility developed by its portfolio company Acorn Bioenergy. Situated at Three Maids Hill, Winchester, the plant has already generated 15 jobs and is projected to support up to 50 roles within the broader engineering, rural, and infrastructure supply chain.
• August 2025: BioEnergy Development Inc. has revealed the commercial rollout of a containerized waste-to-energy microgrid system that can provide around 1 GWh of flexible electricity. The system, evaluated on wood waste and cattle waste, focuses on energy-demanding AI, high-performance computing (HPC), and cryptocurrency mining activities encountering grid limitations.
• August 2025: VIDA Bioenergy, entirely owned by VTTI, has initiated operations at its inaugural UK biomethane plant while progressing with the construction of a second location. The firm, which started operations in early 2025, seeks to establish itself as a top biomethane producer in Europe by transforming biomass into renewable gas via specialized facilities throughout the UK. Its initial operational location, Glentham Green Energy in Lincolnshire, started introducing biomethane into the National Transmission System earlier this year.
• August 2025: The biogas plant's expansion in Lavigny has achieved an important milestone, as the pressure test was successfully finished ahead of schedule. The initiative, directed by Kanadevia Inova, signifies the newest phase in a prolonged partnership with Ecorecyclage SA, part of the Holdigaz Group, which has utilized Kompogas® technology since 2008. The expansion involves building a second digester to enhance the capacity of the facility.
• July 2025: Byont Deutschland GmbH & Co. KG has made significant progress in its renewable energy growth by purchasing a biogas service firm located in Germany. The agreement, starting in early July, encompasses the integration of all personnel and functions into Byont’s current structure, according to Bioenergy Insight. This acquisition provides Byont with direct access to multiple biogas plants and extra technical expertise in Lower Saxony—a region recognized for its robust agricultural foundation and biogas production potential. Byont, concentrating on renewable gas infrastructure, is consistently expanding its presence throughout Germany and Europe.
• May 2025: Ruzo Green Energy has revealed plans to establish a new compressed biogas facility in Uttar Pradesh that will utilize locally sourced organic waste to generate clean fuel. The facility will operate on a method tailored for solid waste and intends to minimize production costs while ensuring high efficiency, according to Energetica India. The organization intends to incorporate artificial intelligence to assist in managing the plant. The system will manage responsibilities such as sorting the incoming waste, overseeing the machinery, forecasting maintenance needs before issues occur, and assessing the quality of the output.

Bioenergy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, bioenergy market forecast, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global bioenergy market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the bioenergy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.