Bioenergy Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Solid Biomass, Liquid Biofuel, Biogas, Others), By Feedstock (Agricultural Waste, Wood Waste, Solid Waste, Others), By Technology (Gasification, Fast Pyrolysis, Fermentation, Others), By Application (Power Generation, Heat Generation, Transportation, Others), By Region, and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 129.63 Billion
CAGR (2026-2031)	8.01%
Fastest Growing Segment	Biogas
Largest Market	Europe
Market Size (2031)	USD 205.82 Billion

Market Overview

The Global Bioenergy Market will grow from USD 129.63 Billion in 2025 to USD 205.82 Billion by 2031 at a 8.01% CAGR. Bioenergy encompasses renewable energy generated from biological materials, primarily organic biomass, which is processed to produce heat, electricity, and transportation fuels. The market is substantially driven by rigid government mandates aimed at carbon emission reduction and the strategic necessity to diversify energy portfolios for enhanced national security. Furthermore, consistent regulatory incentives, such as renewable portfolio standards and blending obligations, provide the structural financial stability required for long-term infrastructure investment, acting as a foundational support distinct from transient adoption trends.

According to the World Bioenergy Association, in 2024, global bioenergy installed capacity reached 151 GW. Despite this measurable progress, the sector faces a significant impediment regarding the reliable and sustainable procurement of feedstock, as logistical complexities and competition with agricultural food production systems can severely constrain the scalability of raw material supply chains.

Key Market Drivers

Supportive government policies and renewable energy mandates serve as the primary catalyst for the Global Bioenergy Market, establishing the necessary regulatory frameworks to de-risk long-term infrastructure investments. Governments are increasingly enforcing stringent carbon intensity targets and blending obligations, effectively compelling the integration of bio-based power and fuels into national energy grids. This legislative momentum is particularly evident in the biogas sector, where incentives are driving rapid deployment to meet heating and grid-balancing needs. According to the International Energy Agency, October 2024, in the 'Renewables 2024' report, these strengthened policy frameworks are projected to drive a 30% increase in global demand for biogases between 2024 and 2030, underscoring the critical role of state-level intervention in market expansion.

Simultaneously, the rising demand for biofuels in the transportation and aviation sectors is fundamentally reshaping market dynamics as industries strive to meet net-zero commitments. The aviation sector has emerged as a key growth vector, with airlines aggressively pivoting toward Sustainable Aviation Fuel (SAF) to mitigate emissions in a hard-to-abate industry. According to the International Air Transport Association, December 2024, in a global market update, SAF production reached 1 million tonnes in 2024, doubling the output recorded in the previous year. This sectoral surge is part of a broader trend in renewable transport fuels; according to the Energy Institute, in 2024, global biofuels production increased by over 8% during the preceding year, driven largely by record output in the United States and Brazil.

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Key Market Challenges

The primary impediment hindering the expansion of the global bioenergy market is the complexity and unreliability of feedstock procurement. Unlike fossil fuels, biomass is often characterized by low energy density and high moisture content, which makes transportation over long distances economically inefficient and logistically difficult. This physical constraint forces bioenergy facilities to be situated in close proximity to harvest sites, severely limiting infrastructure flexibility and scalability. Furthermore, the seasonality of agricultural yields introduces significant supply volatility, necessitating expensive storage solutions to ensure continuous power generation or fuel production during off-peak periods.

This reliance on agricultural resources creates intense competition with food production systems, leading to market instability. As bioenergy demand rises, it exerts pressure on the availability of essential crops such as maize, sugarcane, and vegetable oils. According to the World Bioenergy Association, in 2024, global ethanol production reached 118 billion liters, a figure that illustrates the massive volume of raw material required to sustain the sector. This dependence on dual-use crops exposes the industry to volatile commodity price fluctuations and geopolitical supply shocks, making long-term financial planning hazardous for investors and slowing the overall growth trajectory of the market.

Key Market Trends

The Commercial Integration of Bioenergy with Carbon Capture and Storage (BECCS) is fundamentally altering the market by enabling carbon-negative energy generation. Unlike traditional bioenergy systems that are merely carbon-neutral, BECCS facilities produce power while permanently sequestering emissions, generating high-value carbon credits for corporations with net-zero targets. This technological convergence is creating a new revenue stream distinct from energy sales, driving investment into projects that offer verifiable atmospheric carbon reduction. According to Carbon Herald, August 2024, in the 'BECCS Dominates Q2 2024 CDR Market' report, BECCS projects accounted for 90% of all durable carbon removal transactions by volume in the second quarter of 2024, totaling 4.3 million tonnes. This data underscores how the sector is evolving from simple fuel production into a pivotal solution for industrial decarbonization.

Simultaneously, the Rapid Scaling of Biomethane and Renewable Natural Gas (RNG) Infrastructure is prioritizing grid-injectable fuels to ensure energy security and utilize existing gas networks. Biomethane is increasingly refined to natural gas quality for direct pipeline integration, bypassing the need for new end-user equipment and offering an immediate substitute for fossil gas in heating and industrial processes. This infrastructure expansion is accelerating as regions focus on decentralizing gas production through the valorization of municipal and agricultural waste. According to the European Biogas Association, July 2024, in the '2024 European Biomethane Map', Europe’s installed biomethane capacity reached 6.4 billion cubic meters per year, marking a 37% growth in the EU-27 countries compared to the previous dataset. This trend reflects a strategic pivot toward fungible renewable gases that allow for the immediate displacement of fossil fuels.

Segmental Insights

The biogas segment represents the fastest-growing category within the global bioenergy market, driven by the urgent global shift toward low-carbon energy sources and sustainable waste management. This rapid expansion is heavily supported by regulatory frameworks from entities such as the European Union and the United States Environmental Protection Agency, which incentivize the conversion of agricultural and municipal waste into renewable natural gas. By addressing both energy security and environmental compliance, biogas technology offers a practical alternative to fossil fuels, encouraging widespread adoption across industrial and residential sectors.

Regional Insights

Europe dominates the Global Bioenergy Market due to comprehensive policy frameworks that prioritize decarbonization and energy security. The European Union enforces the Renewable Energy Directive, which sets binding targets for renewable energy consumption in heating, electricity, and transport sectors. This regulatory environment drives substantial investment in biomass infrastructure and encourages the transition away from fossil fuels. Furthermore, the European Green Deal strengthens this market position by offering incentives for sustainable energy projects. Consequently, these strategic measures create a stable demand for bioenergy, firmly establishing Europe as the central hub for industry expansion.

Recent Developments

• In December 2025, Weyerhaeuser Company and Aymium formed a joint venture to build a facility in Mississippi dedicated to converting wood fiber into sustainable biocarbon. This product was developed as a drop-in replacement for coal in industrial applications such as metals production, utilizing a combustion-free, low-emissions process. The partnership aimed to produce and sell up to 1.5 million tons of biocarbon annually by leveraging Weyerhaeuser’s extensive fiber supply chain. This development marked a significant step in the solid biofuels market, offering a renewable solution to heavy industries seeking to reduce their carbon footprint and reliance on fossil-based coal.
• In September 2024, Honeywell entered into a strategic collaboration with USA BioEnergy to implement advanced automation and safety systems at a new biorefinery in Texas. The facility was designed to convert sustainably sourced wood waste into sustainable aviation fuel using specialized process technologies. Under the agreement, the company provided its distributed control systems to manage the plant's central operations, ensuring optimal performance and reliability. This partnership underscored the critical role of automation in scaling up the production of low-carbon fuels and supported the energy sector's transition by enhancing the efficiency of complex bioenergy manufacturing processes.
• In June 2024, BP reached a definitive agreement to acquire the remaining 50% interest in BP Bunge Bioenergia from Bunge, enabling it to assume full ownership of the Brazilian bioenergy joint venture. The enterprise value of the acquired stake was approximately $1.4 billion. This strategic consolidation provided the company with an industrial-scale sugar and ethanol business capable of producing around 50,000 barrels of ethanol equivalent per day. Full ownership allowed the company to accelerate value creation by integrating the bioenergy platform with its trading and technology capabilities, while also exploring new growth opportunities in sustainable aviation fuel and biogas.
• In April 2024, TotalEnergies and Vanguard Renewables signed an agreement to establish an equally owned joint venture focused on developing renewable natural gas (RNG) projects in the United States. This collaboration involved advancing 10 RNG projects into construction within the following 12 months, targeting a total annual capacity of 0.8 terawatt-hours. The partnership combined Vanguard Renewables' expertise in farm-based organics-to-RNG production with TotalEnergies' large-scale industrial capabilities. The companies also outlined plans to consider joint investments in a potential pipeline of approximately 60 additional projects, aiming for a total annual capacity of 5 terawatt-hours to support decarbonization in the industrial sector.

Key Market Players

• POET LLC
• Renewable Energy Group
• Green Plains Inc.
• Archer Daniels Midland Company
• Valero Energy Corporation
• BP Bunge Bioenergia
• Cosan Limited
• Borregaard ASA
• REX American Resources
• Gevo Inc.

By Product Type	By Feedstock	By Technology	By Application	By Region
Solid Biomass Liquid Biofuel Biogas Others	Agricultural Waste Wood Waste Solid Waste Others	Gasification Fast Pyrolysis Fermentation Others	Power Generation Heat Generation Transportation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bioenergy Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bioenergy Market, By Product Type:

• Solid Biomass
• Liquid Biofuel
• Biogas
• Others

• Bioenergy Market, By Feedstock:

• Agricultural Waste
• Wood Waste
• Solid Waste
• Others

• Bioenergy Market, By Technology:

• Gasification
• Fast Pyrolysis
• Fermentation
• Others

• Bioenergy Market, By Application:

• Power Generation
• Heat Generation
• Transportation
• Others

• Bioenergy Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE