Global Bioenergy Market
The Global Bioenergy Market is analyzed in this report across product type, production process, feedstock, power generation capacity, application, end-user, and region, highlighting major trends and growth forecasts for each segment.
Introduction:
Bioenergy is fast becoming a cornerstone in the global shift toward sustainable and renewable energy systems. It plays a vital role in mitigating climate change, bolstering energy security, and reducing reliance on fossil fuels. The sector encompasses a wide array of technologies that convert organic materials—ranging from agricultural and forestry residues to municipal solid waste and purpose-grown energy crops—into usable energy forms such as electricity, heat, and transportation fuels.
The global bioenergy market is experiencing strong momentum, fueled by heightened environmental concerns, favorable policy frameworks, and expanding investments in clean energy infrastructure. Demand is further reinforced by the urgent need for more efficient organic waste management and the rising preference for low-emission solutions across power generation and transport. In 2024, the market was valued at approximately USD 361 billion and is projected to reach USD 967 billion by 2030, advancing at a compound annual growth rate (CAGR) of 9.5% over the forecast period.
Market Dynamics:
The bioenergy market is experiencing accelerated expansion, driven by a confluence of environmental, economic, and technological forces. Core growth drivers include the intensifying global commitment to decarbonization, the increasing demand for sustainable energy alternatives, and stricter regulatory frameworks targeting greenhouse gas emissions. As a renewable substitute for fossil fuels, bioenergy supports energy diversification while advancing circular economy objectives by converting agricultural residues, forestry byproducts, and municipal solid waste into usable energy.
Additionally, technological advancements are playing a pivotal role in scaling the sector. Innovations in conversion methods—such as anaerobic digestion, gasification, and second-generation biofuel technologies—are enhancing system efficiency and broadening commercial viability. The rising urgency to address organic waste sustainably, along with growing energy needs in emerging markets, is further accelerating the deployment of bioenergy across key sectors, including power generation, heating, transportation, and industrial applications.
The global bioenergy landscape offers a range of strategic opportunities for stakeholders across the value chain. These include scaling the production of advanced biofuels for aviation and maritime transport, increasing capital flows into integrated biorefinery projects, and leveraging bioenergy with carbon capture and storage (BECCS) technologies to deliver negative emissions. As nations intensify efforts to meet renewable energy targets, bioenergy is gaining traction as a dependable and dispatchable resource. Meanwhile, progress in building sustainable biomass supply chains and utilizing feedstocks such as algae, dedicated energy crops, and organic waste is unlocking new paths for innovation and market growth.
Moreover, the integration of digital technologies such as IoT and AI to enable real-time system optimization, the rise of decentralized biomass solutions to support rural electrification, and a broader shift toward circular bioeconomy models that link energy production with waste management and agricultural practices. Notably, Drax Group is advancing BECCS initiatives to achieve negative emissions in support of the UK’s net-zero ambitions. In parallel, Neste Oyj continues to lead in renewable fuels, producing sustainable aviation fuel (SAF) and renewable diesel from waste-derived inputs, reinforcing circularity across energy sectors. On a global scale, increased collaboration around sustainability certification and standards is enhancing transparency and accountability throughout the bioenergy supply chain. As energy systems evolve, bioenergy is poised to play an increasingly strategic role in advancing climate objectives, strengthening energy resilience, and driving long-term sustainability.
Segment Highlights and Performance Overview:
| Category | Leading segment | Description |
| By Product Type | Solid Biomass | Solid biomass represents the largest share within the product type segment, accounting for roughly 68% of the global bioenergy market. This leading position is underpinned by its broad availability, cost-effective production, and the presence of well-established infrastructure supporting biomass-based energy systems. Comprising materials such as wood chips, pellets, and agricultural residues, solid biomass is widely utilized across residential and industrial heating, as well as in power generation. Its versatility and scalability have made it a key driver in achieving renewable energy objectives globally. |
| By Production Process | Fermentation | Fermentation stands as the dominant production process in the bioenergy market, accounting for over 34% of total installed capacity. It plays a crucial role in the production of liquid biofuels—most notably ethanol—derived from sugar- and starch-based feedstocks. Its established commercial maturity, supported by continuous technological advancements and strong regulatory backing for bioethanol blending, reinforces fermentation’s significant share in global bioenergy output. |
| By Feedstock | Agricultural Residues | Agricultural waste holds the largest share in the feedstock segment, contributing nearly 30% of the global bioenergy market. This dominance is fueled by the widespread availability of crop residues, husks, and other by-products in agricultural economies. Beyond providing a low-cost energy source, the use of agricultural waste supports sustainable practices by mitigating open-field burning and its associated environmental harms. Its affordability and strong fit within circular economy models firmly establish agricultural waste as a critical input in the global bioenergy value chain. |
| By Power Generation Capacity | Medium Scale (1–10 MW) | Medium-scale power generation plants represent approximately 35% of the global market share. Their strong market position is driven by a balance of operational efficiency, ability to serve sizable communities or industrial hubs, and favorable cost-to-output ratios in biomass utilization. Both public and private sector stakeholders are steadily increasing investment in this segment to enhance grid stability and advance decarbonization objectives. |
| By Application | Transportation | Transportation is the largest application segment in the global bioenergy market, accounting for over 50% of total share. This leadership is driven by rising global demand for low-emission alternatives to conventional fuels across road, aviation, and marine sectors. Biofuels like biodiesel and ethanol play a critical role in cutting transport-related carbon emissions, particularly in regions with robust biofuel blending mandates and policy support. |
| By End-User | Industrial | The industrial sector leads the end-user segment, accounting for roughly 40% of the global bioenergy market. Industries primarily deploy bioenergy for process heating, on-site power generation, and as a cleaner alternative to fossil fuels to cut emissions. As regulatory and market pressures to decarbonize intensify, the adoption of biomass boilers, combined heat and power (CHP) systems, and biofuels is accelerating—solidifying the sector’s dominant role in bioenergy demand. |
Geographical Analysis:
The global bioenergy market is examined across key regions, including North America, Europe, Asia-Pacific, South & Central America, and the Middle East & Africa.
North America holds the leading position in the global bioenergy market, commanding approximately 46% of total market share. This dominance is driven by significant investment in renewable energy infrastructure, strong policy frameworks, and the widespread availability of advanced biomass conversion technologies across the United States and Canada. The region’s continued focus on lowering carbon emissions and enhancing energy self-sufficiency is propelling the rollout of large-scale bioenergy projects.
Additionally, the Asia-Pacific region is expected to register the highest compound annual growth rate (CAGR), projected between 9% and 11% over the forecast period. This growth is underpinned by surging energy demand, aggressive governmental efforts to reduce fossil fuel dependence, and a rich base of biomass resources in key markets such as China, India, and Indonesia. Ongoing rural electrification programs and rising investments in biofuel and biogas infrastructure are further accelerating bioenergy adoption throughout the region.
Competition Landscape:
The global bioenergy market is characterized by a dynamic and competitive environment, shaped by a mix of established energy giants, specialized technology providers, and agile biofuel startups. Leading companies are actively pursuing technological innovation, forging strategic alliances, and expanding production capacity to solidify their market presence and address rising demand for sustainable energy solutions.
Key players profiled in this report include Archer Daniels Midland Company (ADM), Cargill, Incorporated, POET, LLC, Neste Oyj, BP p.l.c., Royal Dutch Shell plc, Drax Group, Enerkem, Gevo, Inc., Raízen S.A., VERBIO Vereinigte BioEnergie AG, and Green Plains Inc.
Key Developments:
- In December 2024, Drax announced plans to construct wood-fired power plants in the southeastern United States, integrating bioenergy with carbon capture and storage (BECCS) technology. The project is designed to provide renewable power for energy-intensive data centers, reinforcing the strategic role of bioenergy in decarbonizing high-consumption industries.
- In May 2024, VERBIO expanded its production capacity, boosting annual output to 710,000 tonnes of biodiesel, 800,000 tonnes of bioethanol, and 1,980 GWh of biomethane. The company also initiated construction of new facilities in both Germany and the U.S., signaling its intent to deepen market penetration and capitalize on regional strengths for bioenergy production.
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