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The bioenergy market is projected to reach an installed capacity of 200 gigawatts (GW) by 2030, growing from 157.5 GW in 2025, at a compound annual growth rate (CAGR) of 4.89 % during the forecast period 2025-2030.
Bioenergy is seen as a flexible renewable source because it can generate electricity and heat and produce fuels such as biomethane and bioethanol. Its ability to use agricultural and forestry residues helps reduce waste while supplying steady energy, especially in regions with abundant biomass resources.
Key Trends in Bioenergy Market
Growth of Solid Biomass and Biogas Segments
Solid biomass continues to be the largest contributor within the bioenergy market, accounting for a significant share of capacity due to established pellet and residue supply chains. Biogas, however, is the fastest growing sub-segment, supported by better anaerobic digestion technologies and stronger waste management regulations.
Increasing Use of Agricultural and Forestry Feedstock
Bioenergy feedstock is evolving. Forestry residues currently make up a large share of overall supply, but agricultural residues such as corn stalks, rice husks, and wheat straw are expanding as policies encourage utilizing these materials for energy rather than letting them decompose or be burned in the open.
Shift to Advanced Conversion Technologies
Traditional combustion remains dominant, but technologies like anaerobic digestion, gasification, and pyrolysis are gaining traction. These methods improve energy output and environmental performance, helping the bioenergy market serve broader energy needs while reducing emissions.
Expansion in Transport Fuel Demand
While heat generation currently holds the largest share, demand for renewable transportation fuels including biofuels for aviation and road transport is increasing at one of the highest growth rates in the bioenergy market as blending mandates expand.
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Bioenergy Market Segmentation
By Type
- Solid Biomass: Dominant segment with the largest installed capacity.
- Biogas: Fastest growing segment, propelled by organic waste utilization.
- Renewable Waste and Other Types: Providing additional niche market contributions.
By Feedstock
- Forestry Residues: Significant share due to established supply chains.
- Agricultural Residues: Rapidly expanding as renewable policies encourage use.
- Energy Crops and Municipal Waste: Supporting diverse bioenergy inputs.
By Technology
- Combustion: Still accounting for most capacity due to simplicity and reliability.
- Anaerobic Digestion: Growing quickly, especially for biogas production.
- Gasification and Pyrolysis: Increasing for advanced fuel and energy production.
By Application
- Heat Generation: Largest share of the bioenergy market due to industrial and district heating demand.
- Electricity Generation: Supporting grid renewables with dispatchable output.
- Transportation Fuel: Fast growth as sustainable fuel mandates expand.
By End-User
- Power Utilities: Major consumers of bioenergy capacity.
- Commercial & Industrial: Increasing demand for low-carbon energy sources.
- Residential: Reflecting pellet stove and small-scale installations.
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Key Bioenergy Market Players
- Orsted A/S
- Drax Group plc
- Fortum Oyj
- Enviva Inc.
- Mitsubishi Heavy Industries Ltd
Conclusion
The bioenergy market is set for continued growth through 2030, supported by increasing heat and fuel demand, policy support for renewables, and diversification of feedstock and conversion technologies. With an expected installed capacity of 200 GW by 2030, bioenergy will remain a key contributor to global renewable energy strategies, providing flexible energy solutions and supporting climate goals.
Efforts to improve supply chains and scale advanced bioenergy technologies will be important for maintaining momentum. As countries pursue broader clean energy targets, the bioenergy market’s role in power, heat, and transport is likely to expand steadily in the coming years.
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