"The Global Bioenergy Market was valued at USD 288.85 billion in 2025 and is projected to reach USD 618.9 billion by 2034, growing at a CAGR of 8.84%."
The bioenergy market represents a pivotal segment of the global renewable energy landscape, offering a sustainable alternative to fossil fuels by converting organic materials into usable forms of energy such as heat, electricity, and transportation fuels. Derived from biomass sources like agricultural waste, forestry residues, animal manure, and energy crops, bioenergy contributes significantly to carbon emission reduction and circular economy strategies. Governments across the globe are incentivizing the development of biomass-to-energy projects through subsidies, tax credits, and mandates, particularly in regions striving to meet net-zero targets. Technologies such as anaerobic digestion, direct combustion, gasification, and advanced biofuels production are witnessing rapid commercialization. As industrial sectors look to decarbonize and replace coal or natural gas-based systems, bioenergy offers a dispatchable and renewable energy solution compatible with existing infrastructure.
The growing emphasis on energy security, sustainable rural development, and low-carbon industrial heating applications is propelling investments into bioenergy infrastructure. Key industries adopting bioenergy solutions include power generation, district heating, agriculture, pulp and paper, and food processing. Additionally, biofuels both biodiesel and bioethanol are gaining traction in transportation due to government blending mandates and rising EV-biofuel hybrid initiatives. With the scalability of feedstocks and the flexibility to integrate with combined heat and power (CHP) systems, bioenergy is positioned to become a backbone of decentralized and community-based renewable energy supply chains. Innovations in feedstock pre-treatment, carbon capture integration, and next-gen biorefineries are expected to transform the market dynamics in the coming decade.
Parameter | Detail |
---|---|
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2026-2034 |
Market Size-Units | USD billion/Million |
Market Splits Covered | By Type ,By Technology ,By Application |
Countries Covered | North America (USA, Canada, Mexico) Europe (Germany, UK, France, Spain, Italy, Rest of Europe) Asia-Pacific (China, India, Japan, Australia, Rest of APAC) The Middle East and Africa (Middle East, Africa) South and Central America (Brazil, Argentina, Rest of SCA) |
Analysis Covered | Latest Trends, Driving Factors, Challenges, Supply-Chain Analysis, Competitive Landscape, Company Strategies |
Customization | 10% free customization(up to 10 analyst hours) to modify segments, geographies, and companies analyzed |
Post-Sale Support | 4 analyst hours, available up to 4 weeks |
Delivery Format | The Latest Updated PDF and Excel Datafile |
North America's bioenergy market is experiencing renewed momentum as federal and state-level policies promote renewable fuels, sustainable agriculture, and decarbonization of the power and transport sectors. The United States and Canada are actively investing in biogas, RNG (renewable natural gas), and wood pellet production, backed by mandates for clean fuel standards and carbon offset incentives. The region offers lucrative opportunities in landfill gas-to-energy projects, manure-based digester systems, and industrial-scale bioethanol facilities. The deployment of BECCS (Bioenergy with Carbon Capture and Storage) is emerging as a future growth avenue, with pilot projects underway in ethanol plants. Corporate demand for carbon-neutral energy sources is further spurring market expansion, particularly in food, beverage, and logistics sectors.
Asia Pacific represents one of the fastest-growing bioenergy markets, driven by high energy demand, growing population, and the need to manage agricultural waste and urban biomass. Countries like China, India, Indonesia, and Thailand are witnessing significant growth in biomass power plants, rice husk gasification, and biogas digesters. Rural electrification programs, waste-to-energy policies, and feed-in-tariff schemes are stimulating local and foreign investments in bioenergy infrastructure. Additionally, bio-CNG and ethanol blending mandates in transport fuel are opening up scalable opportunities for private sector participation. The region is also home to expanding pellet manufacturing and export facilities, particularly aimed at meeting Japanese and Korean demand for biomass co-firing.
Europe remains a mature but dynamically evolving market for bioenergy, with strong policy backing through the EU Renewable Energy Directive and national decarbonization plans. Biomass heating, combined heat and power (CHP), and district heating systems dominate the regional landscape, especially in countries like Germany, Sweden, Finland, and Austria. The region’s emphasis on circular economy, waste valorization, and green public procurement creates favorable conditions for bioenergy operators. Biofuel production from waste-based feedstocks, wood chips, and agricultural residues is accelerating, supported by R&D funding and industry partnerships. Europe is also pioneering BECCS integration, especially in large-scale biomass and bioethanol plants, as part of its climate-neutral objectives.
The rising global demand for renewable energy is driving significant investment in bioenergy projects, particularly in regions with abundant agricultural and forestry residues. As governments push for carbon neutrality, biomass-based power plants and biogas facilities are receiving greater policy and financial backing.
Biogas production from organic municipal solid waste and agricultural byproducts is expanding rapidly. Countries are developing large-scale anaerobic digestion plants to enhance rural energy access and reduce landfill waste, aligning with circular economy goals.
Advanced biofuels, including cellulosic ethanol and renewable diesel, are gaining market traction due to stricter emissions standards in the transportation sector. These fuels are seen as essential to decarbonizing aviation and heavy-duty freight logistics.
Technological advancements in gasification and pyrolysis are enabling the conversion of low-grade biomass into high-value syngas and bio-oil, opening new avenues in industrial heating and green chemical production.
Asia Pacific is emerging as a major hub for bioenergy growth, driven by rising energy demand, supportive government programs in countries like China and India, and availability of feedstock from agricultural operations and agro-industrial waste.
In Europe, bioenergy continues to dominate the renewable heating sector, with district heating networks increasingly integrating biomass boilers and CHP systems to supply clean thermal energy to urban and rural households.
North America is witnessing increased private sector participation in bioenergy, particularly in developing RNG (renewable natural gas) from livestock manure and food processing waste, as part of corporate sustainability commitments.
Biomass pellet production and export markets are expanding, particularly in Canada and Southeast Asia, to meet European and Japanese demand for co-firing and dedicated biomass power generation.
Next-generation biorefineries are being developed to produce multiple outputs such as fuels, electricity, bioplastics, and fertilizers from a single biomass input, creating vertically integrated and economically viable models.
Integration of carbon capture technologies in bioenergy projects (BECCS) is gaining attention as a negative emissions pathway. These projects are being piloted in the US and EU, especially in ethanol and biomass-fired power plants.
July 2025: A new biogas plant project has been approved near Nowra, New South Wales, Australia. The facility aims to convert cow manure and organic waste into renewable electricity, demonstrating increasing integration between agriculture and bioenergy.
June 2025: The International Energy Agency reported a projected 13% year-on-year increase in global investments in bioenergy technologies, underlining continued confidence in sustainable biofuels and biomass conversion solutions.
May 2025: USA BioEnergy finalized land acquisition in Bon Wier, Texas, for a planned USD 2.8 billion biofuel refinery. The facility will convert woody biomass into sustainable aviation fuel, with full operations targeted within four years.
February 2025: Toyota Tsusho and partners launched a study for a biomethane plant in São Paulo, Brazil. The plant will utilize sugarcane waste and is expected to generate over 5,000 Nm³/day of renewable gas upon completion.
February 2025: Nippon Paper Industries partnered with Japanese firms to establish Morisora Bio Refinery LLC. The facility will produce bioethanol from woody biomass, targeting commercial-scale output by 2027.
January 2025: The U.S. Department of Energy and EPA jointly awarded USD 6 million to advance three promising biofuel technologies focused on sustainable aviation and low-emission fuels.
January 2025: DOE’s Bioenergy Technologies Office announced USD 12 million in new funding to accelerate the scale-up of integrated biorefineries, aimed at decarbonizing aviation and heavy industry.
December 2024: Nuada completed installation of its biomass carbon capture pilot system at the University of Sheffield, achieving daily carbon capture of approximately 1 tonne using VPSA-based separation.
November 2024: Bioenergy Devco rebranded as BTS Bioenergy, aligning with strategic changes to improve operational performance at its anaerobic digestion facilities in the U.S., particularly in Maryland.
October 2024: Drax signed a biomass supply agreement with Pathway Energy to deliver over 1 million tonnes of wood pellets annually to Texas, supporting SAF production with integrated carbon capture.
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The Global Bioenergy Market is estimated to generate USD 288.85 billion in revenue in 2025.
The Global Bioenergy Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.84% during the forecast period from 2025 to 2034.
The Bioenergy Market is estimated to reach USD 618.9 billion by 2034.
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