Bioenergy Market Size To Surpass 317.0 GW By 2033 With A 6.6% CAGR

The bioenergy market is experiencing rapid growth, driven by strong government support and mandates, rising environmental concerns and need for energy security, and advances in technology and feedstock utilization. According to IMARC Group's latest research publication, “Bioenergy Market Report by Product Type (Solid Biomass, Liquid Biofuel, Biogas, and Others), Feedstock (Agricultural Waste, Wood Waste, Solid Waste, and Others), Application (Power Generation, Heat Generation, Transportation, and Others), and Region 2025-2033”, 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.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Bioenergy Market

• Strong Government Support and Mandates

Across major regions, governments are fueling the momentum of bioenergy with a mix of incentives and mandatory targets. In India, for example, the National Bio-Energy Mission and related schemes offer capital subsidies up to ₹45 lakh per megawatt for biomass projects, tax breaks for equipment, and financial support for compressed biogas ventures. Europe's ambitious targets for renewables have sparked significant investments, while the U.S. sets strict mandates for blending biofuels into conventional fuels. This coordinated policy push is making bioenergy financially attractive for both established players and new market entrants, directly boosting output, innovation, and capacity.

• Rising Environmental Concerns and Need for Energy Security

Global demand for greener, locally-sourced energy is at an all-time high-bioenergy answers both the climate call and energy independence drive. With the global market valued above $145 billion and the Asia-Pacific region accounting for nearly 33% of capacity, bioenergy is quickly replacing fossil fuels for electricity and transport. Companies and governments alike are focused on reducing emissions, improving air quality, and minimizing waste through bioenergy solutions. In countries like Germany, the push to phase out nuclear power and enhance energy security is adding even more urgency to the transition, reinforcing long-term growth.

• Advances in Technology and Feedstock Utilization

Tech innovation is making bioenergy cleaner, more efficient, and easier to scale. Modern conversion technologies now allow producers to process a broader range of feedstocks, from agricultural waste to urban sewage, driving down costs and opening new streams of revenue. Leading companies are introducing advanced biomass, biogas, and energy-from-waste solutions that slash greenhouse gas emissions while powering industries and homes. In North America and Europe, cutting-edge plants, automated systems, and strong infrastructure mean faster adoption and higher output-even as resources diversify and regulatory requirements tighten.

Key Trends in the Bioenergy Market

• Move Toward Advanced and Low-Emission Biofuels

One of the most exciting trends is the rise of advanced biofuels made from non-food sources like agricultural waste, algae, or municipal refuse. These next-generation fuels deliver huge emission cuts and don't compete with food supplies. Globally, new blending requirements for ethanol, biodiesel, and biogas in transport are creating fresh demand for such advanced fuels. India, for example, has set ambitious targets for ethanol and biogas blending, aiming to multiply their use severalfold compared to standard biofuels. Companies are investing heavily in pilot facilities and large-scale plants to meet this demand, all while decarbonizing sectors like aviation and shipping.

• Expanding Biopower and Biogas Infrastructure

Biopower and biogas facilities are cropping up across continents-these plants convert organic waste into electricity, heat, or renewable gas. As pressure mounts to divert waste from landfills and meet renewable targets, both municipal and industrial sectors are turning to biogas and waste-to-energy systems. In Spain, for instance, a national push is underway to double biogas output, and Asia-Pacific markets are rapidly scaling up to electrify rural communities and reduce pollution. Modern plants now feature advanced automation, grid connectivity, and even integration with natural gas pipelines, making bioenergy a reliable (and greener) alternative to coal or gas power.

• Global Race for Strategic Partnerships and Market Expansion

The bioenergy industry is seeing a flurry of deals, joint ventures, and acquisitions as companies vie for market share and technological edge. Major players like Mitsubishi Heavy Industries, Orsted, and Fortum are partnering with governments, utilities, and tech innovators to deploy biogas, biomethane, and advanced biomass solutions worldwide. New projects span everything from integrated biorefinery hubs to distributed generation for rural electrification. Companies are also expanding into emerging regions-especially Asia and South America-where fast growth and abundant feedstock offer major opportunities, ensuring bioenergy's continued global boom.

Leading Companies Operating in the Global Bioenergy Industry :

• Archer-Daniels-Midland Company
• Babcock & Wilcox Enterprises Inc.
• Bunge limited
• EnviTec Biogas AG
• Fortum Oyj
• Hitachi Zosen Corporation
• Mitsubishi Heavy Industries Ltd.
• MVV Energie AG
• Ørsted A/S
• Pacific BioEnergy
• POET LLC

Bioenergy Market Report Segmentation:

By Product Type:

• Solid Biomass
• Liquid Biofuel
• Biogas
• Others

Liquid biofuel represents the largest segment as it offers a direct substitute for conventional fossil fuels like gasoline and diesel, making them more readily adoptable within existing infrastructure and transportation systems.

By Feedstock:

• Agricultural Waste
• Wood Waste
• Solid Waste
• Others

Solid waste accounts for the majority of the market share due to the abundance of this waste, including organic materials like agricultural residue, forestry waste, and municipal solid waste, which presents a readily available and often underutilized resource for bioenergy production.

By Application:

• Power Generation
• Heat Generation
• Transportation
• Others

Transportation dominates the market as the largest segment focused on using energy for vehicles and transportation systems.

Regional Insights:

• 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 enjoys the leading position in the bioenergy market on account of favorable government policies, robust infrastructure, and a strong commitment to renewable energy.

Research Methodology:

The report employs a comprehensive research methodology , combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability .

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