Bioenergy Market Size, Share, and Trends 2025 to 2034

What is the Bioenergy Market Size?

The global bioenergy market size is estimated at USD 156.16 billion in 2025 and is predicted to increase from USD 168.18 billion in 2026 to approximately USD 299.44 billion by 2034, growing at a CAGR of 7.52% during the forecast period 2025 to 2034.

Bioenergy Market Key Takeaways

• North America led the global market with the highest market share of 46% in 2024.
• By product type, the solid biomass segment has held the largest market share in 2024.
• By feedstock, the wood and woody biomass segment captured the biggest revenue share in 2024.

Market Outlook

• Industry Growth Overview: The bioenergy market is expanding, as the growing applications of biofuels in transport, the expansion of biogas manufacturing, and the development of advanced bioenergy from waste and non-food biomass to enhanced sustainability.
• Global Expansion:The bioenergy market is experiencing global expansion, as an increasing demand for renewable energy substitutes, and is supported by government guidelines and spending. North America is dominated in the market by strong government regulations, like the US Renewable Fuel Standard (RFS).
• Major investors:Major investors in the bioenergy market comprise global energy giants, agricultural corporations, devoted renewable energy organizations, and regulatory bodies. It includes ADM, DuPont, Drax Group, Orsted A/S, and many others.

Bioenergy Market Growth Factors

The bioenergy is generated by using different sources such as biomass, biofuel, organic waste, and biogas. These wastes are easily available in the market. Thus, these biowastes are utilized largely for the generation of bioenergy. As a result, the surge in demand for clean and green energy is driving the growth of the global bioenergy market over the projected period.

The factor such as implementation of favorable and stringent government regulations and guideline is contributing towards the expansion and development of the global bioenergy market. Moreover, the growing demand for renewable sources of energy is creating demand for bioenergy in the market globally. In addition, it has been noticed that the usage of bioenergy helps in the cost reduction and expenses for electricity generation. This factor is driving the growth of the global bioenergy market.

One of the primary factors driving the growth of the global bioenergy market is rising environmental and energy security issues. To save the environment with the adverse effects of global warming, the government agencies are constantly striving for the surge in the usage of the bioenergy all over the globe. Several nations are looking for alternatives to traditional energy sources because fossil fuels are limited and energy is obtained by them. Thus, bioenergy is widely used in every vertical of industries.

Bioenergy is quickly becoming one of the most popular alternatives to traditional energy sources, helping to diversify the fuel and energy mix and reduce reliance on global petroleum industries and sectors. This type of fuel is very expensive as compared to biofuels or bioenergy. That's the reason, the government and private organizations have started utilizing bioenergy on a large scale.

Market Scope

Furthermore, bioenergy reduces a country's reliance on trade of crude oil, which advantages countries with less or no reserves. As bioenergy and biofuel is sourced from local feedstock, government of developed and developing countries are incentivizing landowners and producers to produce biomass feedstock, which increase the rate of bioenergy production on a large scale at a rapid pace. As a result, all these factors are boosting the growth of the global bioenergy market during the forecast period.

The major factors and key market trends for bioenergy such as increased investment in bioenergy sectors is driving the growth and development of the global bioenergy market. The government agencies and private companies are collaborating with each other for the growth of the bioenergy market.

Furthermore, corporate organizations and government of developed and developed regions around the world are boosting their involvement in biofuel production through specific loans and subsidies. This has prompted suppliers to build plants with significant biofuel production capacity. While the bioenergy market is still in its infancy, these patterns of large-scale investment will attract more organizations and aid in the growth of the global bioenergy market over the forecast period.

The major market players are trying to acquire largest market share in the bioenergy market. For this, they are collaborating and partnering with government agencies for the bioenergy generation. Some of the key market players are collaborating or signing deals with International Energy Agency (IEA). This helps them to capture huge market share all around the globe. In addition, the technological developments and innovative technologies are helping market players for the generation of bioenergy effectively and efficiently without putting extra efforts. Thus, this is leading to market expansion.

Segment Insights

Product Type Insights

The solid biomass segment dominated the bioenergy market in 2024. The solid biomass is largely used in Asia-Pacific and LAMEA regions. This type of bioenergy is utilized for multipurpose such as heating water and cooking. In addition, the government is providing incentives for the use of renewable energy sources, which is driving the segment growth.

The biogas segment is fastest growing segment of the bioenergy market in 2024. The government of developed and developing regions is providing tax rebates and subsidies for the installation of biogas plants. This factor is boosting the growth of the biogas segment.

Feedstock Insights

In 2024, the wood and woody biomass segment dominated the bioenergy market. The large amount of wood is available all around the world. The factors such as easy and wide availability of trees, increased rate of production of electricity, and rising government initiatives for the growth of the bioenergy market are propelling the growth of the segment.

The agricultural waste segment, on the other hand, is predicted to develop at the quickest rate in the future years. The waste that is generated due to agricultural activities is known as agricultural waste. It has been observed that every year around 14% of the agricultural waste is being utilized in the production of bioenergy.

Application Insights

The heat generation segment dominated the bioenergy market in 2024. More than 50% of the bioenergy is utilized for the generation of heat. The underdeveloped and developing regions are mainly using bioenergy for this purpose only, which is propelling the growth of the global bioenergy market.

The transportation segment is fastest growing segment of the bioenergy market in 2024. The bioenergy is applicable for the transportation purpose. This is attributed to the increase in the demand and need for electricity as well as urbanization and industrialization.

Regional Insights

U.S. Bioenergy Market Size and Growth 2025 to 2034

The U.S. bioenergy market size is estimated at USD 49.93 billion in 2025 and is predicted to be worth around USD 99.83 billion by 2034, at a CAGR of 8.03% from 2025 to 2034.

North America: Increasing investments in infrastructural development

North America dominated the bioenergy market with revenue share of 46% in 2024. The U.S. dominated the bioenergy market in North America region. The factors such as rising investments in infrastructural development and energy projects, expansion of the energy industry, and growing initiatives by key market players towards the growth of the bioenergy market are supporting for the expansion of the bioenergy market in North America region.

U.S.: Manufacturing and industrial growth

The US has a massive agricultural sector, offering a massive domestic supply of feedstocks for biofuels. Corn is the significant source for ethanol, though soybean oil is a main feedstock for biodiesel. Biofuel manufacturing creates jobs and revitalizes rural economies by offering a market for farming products and associated processing industries.

Asia Pacific: Surging investments in the development of oil and gas distribution

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. Many of the countries and states of Asia-Pacific region do not have proper sources for the generation of electricity. The demand for electricity in such regions is driving the demand for bioenergy in the Asia-Pacific region. In addition, increase in investments in research and development by government is also contributing towards the growth and development of the bioenergy market.

India: Supportive government policies

In India, presence of huge population and rapid economic development, which drives a increasing energy demand. This makes bioenergy a significant component of fulfilling these requirements sustainably and growing energy security. Governments are actively indorsing bioenergy by different initiatives.

Europe: Increasing government initiatives

Europe is experiencing substantial growth in the market due to Europe is deeply reliant on imported fossil fuels, creating it susceptible to supply disruptions and cost volatility. Bioenergy offers a way to surge domestic energy production and enhance energy security. The European Union has implemented an inclusive policy framework, with the Renewable Energy Directive (RED-I), which sets targets for renewable energy in transport and different sectors

UK: Industry Collaboration and R&D

The UK government policies support climate change goals and energy security, major biomass waste resources, and a history of regulatory support for renewables. Using domestic biomass support to reduce reliance on imported fuels, an aim which has become more significant as the UK becomes a net importer of fossil fuels. The UK has momentous domestic biomass resources, specifically waste streams, which drives the growth of the market.

Value Chain Analysis – Bioenergy Market

1.Raw Material:

The raw materials for the bioenergy market include agricultural residues such as rice straw, sugarcane bagasse, and corn stalks, food crops like sugarcane, corn, and wheat, and dedicated energy crops.

• Key Players: Creatio and Innovaccer

2.Chemical Synthesis and Processing:

The bioenergy industry uses different chemical and biochemical processes to convert biomass feedstocks in usable fuels such as biodiesel, bioethanol, and syngas.

• Key Players: Oracle (Cerner) and SAP

3.Compound Formulation and Blending:

In the bioenergy market, compound formulation and combination include combining various feedstocks or refined biofuels to attain particular chemical and physical characteristics, optimize expenses, and ensure compatibility with existing infrastructure and engines.

• Key Players: Salesforce and Microsoft

Bioenergy Market Companies

Other Major Key players

• Pacific BioEnergy Corp.
• Lignetics
• Enerkem
• Green Plains Inc.
• Enviva

Segments Covered in the Report

By Product Type

• Solid Biomass
• Liquid Biofuel
• Biogas
• Others

By Feedstock

• Agricultural waste
• Wood and Woody Biomass
• Solid Waste
• Others

By Application

• Power generation
• Heat generation
• Transportation
• Others

By Technology

• Gasification
• Fast Pyrolysis
• Fermentation
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa