Report Overview:

The global bio‑energy market is on a clear upward trajectory. With a valuation of approximately USD 140.2 billion in 2024, it’s projected to soar to nearly USD 289 billion by 2034 expanding at a steady compound annual growth rate of 7.5%.

Bio‑energy, produced from organic materials like plant residue, wood scraps, agricultural and food waste, offers diverse energy outputs heat, electricity, transportation fuels, and more. Its carbon‑neutral potential hinges on the balance between CO₂ absorbed during plant growth and emissions during use. Sustainability, waste valorization, and an expanding push for cleaner energy are fueling its broader acceptance.

Europe currently leads, accounting for around 40% of this market. Solid biomass is the dominant form, making up over half of all bio‑energy types. Technologies such as gasification are gaining significant traction, while wood‑based feedstocks and power generation applications anchor the market’s structure.Overall, the combination of environmental urgency, supportive policies, advancing technology, and resource efficiency is creating a robust foundation for ongoing growth.

Key Takeaways:
The global bio-energy market was valued at US$ 140.2 Billion in 2024.
The global bio-energy market is projected to grow at a CAGR of 7.5% and is estimated to reach US$ 289.0 Billion by 2034.
Among types, solid biomass accounted for the largest market share of 52.2%.
Among feedstock, wood waste accounted for the majority of the market share at 38.4%.
By technology, gasification accounted for the largest market share of 38.5%.
By application, power generation accounted for the majority of the market share at 49.2%.
Europe is estimated as the largest market for Bio-Energy with a share of 39.9% of the market share.


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Key Market Segments:
By Type
Solid Biomass
Biogas
Renewable Waste
Others
By Feedstock
Agricultural waste
Wood waste
 Solid waste
Others
By Technology
Gasification
Fast Pyrolysis
Fermentation
Others
By Application
Power generation
Heat generation
Transportation
Others
Drivers:

The expansion of the bio‑energy market is strongly supported by the increasing use of biogas and biofuels in industrial and transportation sectors. Governments worldwide are encouraging transitions from fossil fuels to cleaner alternatives through initiatives and mandates such as biofuel blending rules and low‑carbon fuel standards targeted at reducing greenhouse gas emissions.

Advanced economies and emerging markets alike are tapping into bioethanol, biodiesel, and biogas to improve energy diversity and move toward net‑zero targets. Notably, biofuel sources like plant residues, lignocellulosic biomass, and non‑food crops are gaining traction thanks to innovation and favorable policies.

For instance, India’s extension of its advanced biofuel projects under the JI‑VAN Yojana program demonstrates this trend. Taken together, demand for sustainable energy, supportive regulations, and enhancements in feedstock and technology infrastructure are all propelling the market forward

Opportunities:

The integration of bio‑energy with carbon capture and storage (BECCS) represents a high‑value opportunity. By capturing CO₂ emissions from biomass‑based energy processes, BECCS enables negative emissions helping to actively reduce atmospheric greenhouse gas levels. This dual benefit aligns clean energy production with climate remediation. As decarbonisation takes priority, investment in BECCS allows bio‑energy projects to participate in carbon markets and access new revenue streams.

The development of new carbon‑capture hardware, feedstock tracking systems, and transport infrastructure further strengthens the business case. Moreover, major industrial zones are exploring BECCS solutions for example, energy‑from‑waste facilities piloting carbon capture to meet hard‑to‑abate emission targets . This synergy helps bio‑energy projects secure long‑term viability, offering a sustainable, profitable path aligned with global climate goals.

Restraints:

Despite its upside, bio‑energy faces obstacles most notably limited and inconsistent biomass supply. Feedstocks like agricultural or wood waste depend heavily on seasonal cycles, land use, and climate conditions. Moreover, competition with food crops and environmental consequences like deforestation or soil degradation complicate efforts to expand feedstock sourcing. These pressures can raise costs and create uncertainties for project developers. Beyond resource issues, awareness gaps persist.

Many stakeholders particularly in newer markets remain unclear about bio‑energy’s full potential, economic viability, and diverse applications. This lack of understanding can hinder investment and slow adoption of innovative solutions. Sustainable practices and public education will thus be crucial to secure consistent feedstock and encourage broader acceptance of bio‑energy technologies .

Trends:

Bio‑energy is increasingly focused on district heating systems, especially in colder regions where heating demand is high. Biomass district heating (BioDH) plants efficiently convert wood chips, agricultural residues, industrial and municipal waste into heat for residential and commercial buildings. These systems offer stable baseload heat, unlike solar or wind, and can integrate waste heat recovery, geothermal, or solar thermal to optimize network efficiency.

Advances in small‑scale gasification, smart grid controls, and low‑temperature network design are refining performance and reducing emissions. As cities pursue decarbonisation of heating, bio‑energy enables a transition without relying solely on electrification. Its ability to leverage local biomass resources also supports regional job creation and resource recycling. Together with supportive policy frameworks, BioDH is set to become a key component in sustainable urban energy strategies .

Market Key Players:
ADM
Ameresco, Inc.
BABCOCK & WILCOX ENTERPRISES, INC.
BP PLC
Drax Group
Enerkem
Enexor Energy
EnviTec Biogas AG
Enviva
FORTUM
Green Plains Inc.
HITACHI ZOSEN CORPORATION
Lignetics
MWV Energie AG
ORSTED A/S
Pacific BioEnergy Corp
POET
Royal Dutch Shell Plc
Others

Conclusion:

the global bio‑energy market presents a compelling and dynamic opportunity. It reflects rising interest in renewable and carbon‑neutral energy sources.Solid biomass, wood waste feedstocks, gasification technology, and power generation use form the backbone of this sector. Such established segments, combined with supportive policy landscapes, reinforce the market’s resilience and long‑term outlook.

Integrating advanced solutions like BECCS and district heating systems can amplify bio‑energy’s contribution to climate goals. However, scaling sustainably will require better feedstock supply chains, stakeholder awareness, and technological innovation. As carbon pricing and regulation tighten, bio‑energy’s appeal as a flexible, regionally grounded, and environmentally beneficial solution is poised to grow. For investors, policymakers, and project developers, embracing both the opportunities and challenges in feedstock, technology, and integration will be crucial in driving this market into its next decade of sustainable expansion.