|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 27.23 Billion
|
|
Market Size (2029)
|
USD 38.27 Billion
|
|
CAGR (2024-2029)
|
6.01%
|
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Fastest Growing Segment
|
Pellets
|
|
Largest Market
|
North America
|
Market Overview
Global Solid Biomass Feedstock Market was valued at
USD 27.23 Billion in 2023 and is expected to reach USD 38.27 Billion by 2029
with a CAGR of 6.01% during the forecast period.
The Global Solid Biomass Feedstock Market is
experiencing significant growth, driven by the increasing demand for renewable
energy sources and the global shift toward reducing carbon emissions. Solid
biomass feedstock, which includes materials such as wood, agricultural
residues, and organic waste, serves as a crucial component in the production of
bioenergy and biofuels. According to the U.S. Energy Information
Administration, biomass represented approximately 5% of total U.S. energy
consumption in 2023, amounting to around 4,978 trillion British thermal units
(TBtu). The breakdown of biomass energy consumption by type and their
respective shares in 2023 was as follows: biofuels constituted 2,662 TBtu,
accounting for 53%; wood and wood waste contributed 1,918 TBtu, or 39%; while
municipal solid waste, animal manure, and sewage comprised 398 TBtu, making up
8%.This market's growth is fueled by government policies and incentives
aimed at promoting sustainable energy practices, along with rising awareness of
the environmental benefits of biomass over fossil fuels. Key sectors driving
the demand for solid biomass feedstock include power generation, residential
heating, and industrial applications. Power plants are increasingly
incorporating biomass as a co-firing solution with coal to reduce greenhouse
gas emissions, while industries are using it for combined heat and power (CHP)
systems. The residential sector, especially in regions with colder climates,
relies on solid biomass for heating solutions, further propelling market
expansion.
However, challenges such as the availability of
consistent and cost-effective feedstock, land-use concerns, and competition
with food crops for agricultural residues pose obstacles to market growth. Regional variations in biomass resources and regulatory
frameworks influence the market’s dynamics, with Europe and North America
leading in adoption, while Asia-Pacific is emerging as a key growth region due
to its vast agricultural base. Technological advancements in biomass processing
and conversion methods are expected to enhance efficiency and scalability in
the future. As the world intensifies its focus on renewable energy, the Global
Solid Biomass Feedstock Market is positioned for continued expansion, driven by
its potential to support energy security and environmental sustainability.
Key Market Drivers
Growing Demand for Renewable Energy
The growing demand for renewable energy is a
crucial factor driving the expansion of the solid biomass feedstock market. As
nations around the world work to reduce their dependency on fossil fuels and
cut down carbon emissions, the transition to renewable energy has become a
global priority. Governments and organizations are adopting policies that
actively promote renewable energy development, making solid biomass feedstock
an attractive alternative. Derived from organic materials such as wood,
agricultural residues, and waste, solid biomass offers a sustainable and
carbon-neutral energy source. Unlike traditional fossil fuels like coal and
natural gas, biomass provides an opportunity to generate power and heat with
minimal environmental impact, making it an integral component of many
countries' renewable energy strategies.
Several countries have set ambitious renewable
energy targets, and biomass is playing a vital role in achieving those goals.
Similarly, countries in North America, Asia, and other regions are also
investing in biomass as part of their energy transition strategies. The demand
for solid biomass feedstock is expected to rise significantly, especially as
decarbonization efforts accelerate and coal is phased out in power generation.
For instance, According to the U.S. Energy Information Administration, the
industrial sector emerged as the largest consumer of biomass for energy in the
United States in 2023, highlighting its critical role in the biomass energy
market. The distribution of total U.S. biomass energy consumption by sector,
measured in trillion British thermal units (TBtu), underscores the market
dynamics: industrial usage accounted for 2,225 TBtu, representing 45% of total
consumption; transportation utilized 1,788 TBtu, or 36%; residential
consumption totaled 450 TBtu, equating to 9%; electric power generation
consumed 329 TBtu, comprising 7%; and the commercial sector accounted for 185
TBtu, or 4%. This segmentation illustrates the diverse applications of biomass
energy and emphasizes the industrial sector's significant market share,
reflecting its dependence on renewable energy sources for operational
efficiency and sustainability. In addition to policy support, financial
incentives and subsidies are bolstering the growth of the solid biomass
feedstock market. Advancements in biomass processing and
conversion technologies are enhancing its efficiency and cost-effectiveness,
making it an even more viable option for energy producers. These innovations
have improved the ability of biomass to compete with other renewable energy
sources such as solar and wind, contributing to its growing adoption worldwide.
As the global focus on renewable energy intensifies, the demand for solid
biomass feedstock will continue to surge.
Increased Adoption of Biomass in Power Generation
The increased adoption of biomass in power
generation is a key driver of the global solid biomass feedstock market.
Biomass offers a flexible and sustainable solution for reducing greenhouse gas
emissions in the energy sector, as it can be co-fired with coal in power plants.
This process, known as biomass co-firing, enables power plants to incorporate
renewable energy without significant infrastructural changes, making it a
cost-effective approach for transitioning away from fossil fuels. By
integrating biomass into their operations, power plants can reduce their carbon
footprint while maintaining consistent energy production, making it an
attractive option for energy producers.
In addition to co-firing, dedicated biomass power
plants are becoming more prevalent, especially in regions rich in biomass
resources. These plants use solid biomass feedstock, such as wood pellets,
agricultural residues, and waste materials, to generate electricity and heat.
Technologies like combustion and gasification convert the biomass into energy,
and the growing interest in advanced biomass conversion technologies is further
driving market expansion. Combined Heat and Power (CHP) systems, which simultaneously
generate electricity and thermal energy, are also contributing to increased
biomass adoption. CHP systems are particularly valuable in industrial
applications, where both electricity and heat are required, boosting the demand
for solid biomass feedstock.
Countries with abundant biomass resources, such as
the United States, Canada, and Brazil, are experiencing a surge in biomass
power generation projects. Government support, in the form of subsidies, tax
incentives, and renewable energy mandates, is fueling this growth. Private investments in biomass infrastructure and technology are accelerating
the development of new projects. Unlike intermittent renewable energy sources
like wind and solar, biomass can provide baseload power, ensuring a steady supply
of energy. This reliability makes biomass a crucial component of the global
energy mix, and as countries aim to diversify their energy sources, the demand
for solid biomass feedstock in power generation continues to rise.
Rising Environmental Concerns and Carbon Neutrality
Goals
Rising environmental concerns and the global push
towards carbon neutrality are significant drivers for the growth of the solid
biomass feedstock market. As the impact of climate change becomes more evident,
governments, industries, and individuals are increasingly focusing on reducing
greenhouse gas emissions to mitigate global warming. Biomass stands out as a
carbon-neutral energy source, as the carbon dioxide (CO2) released during its
combustion is balanced by the CO2 absorbed by plants during their growth cycle.
This natural balance makes biomass an appealing option for countries and
companies striving to meet their carbon reduction goals.
Many governments have set ambitious carbon
neutrality targets, with policies and regulations encouraging the use of
renewable energy sources like biomass. In response, industries—especially those
in energy-intensive sectors such as manufacturing, transportation, and
construction—are turning to biomass to decrease their carbon emissions and
comply with stricter environmental standards. Biomass offers these industries a
practical and sustainable solution, enabling them to transition away from
fossil fuels and reduce their reliance on coal and natural gas without
compromising energy output. Solid biomass feedstock is not only gaining
popularity in power generation but also in biofuel production, particularly in
the transportation sector. As the demand for cleaner transportation fuels
rises, biofuels derived from solid biomass provide a viable alternative to
petroleum-based fuels. The adoption of biofuels, including bioethanol and
biodiesel, is seen as a key strategy for reducing the carbon footprint of the
transportation industry, which accounts for a significant portion of global
emissions.
The push for cleaner energy sources is further
fueled by growing consumer awareness and corporate commitments to
sustainability. Many companies are adopting Environmental, Social, and
Governance (ESG) goals that prioritize carbon reduction, driving investments in
renewable energy like biomass. As the urgency to combat climate change
intensifies, the demand for solid biomass feedstock is expected to rise,
reinforcing its role as a critical component in the transition to a low-carbon
economy.
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Key Market Challenges
Supply Chain and Feedstock Availability Issues
One of the major challenges facing the Global Solid
Biomass Feedstock Market is the complexity of maintaining a reliable and
consistent supply chain for feedstock. Solid biomass feedstock is derived from
a variety of sources, including agricultural residues, forestry waste, and
organic materials. However, the availability and accessibility of these
materials can be highly variable, depending on geographic location, seasonal
conditions, and local land-use policies. For example, agricultural residues
like straw and corn stover are harvested at specific times of the year, leading
to potential shortages or oversupply in different seasons. This variability
makes it difficult for energy producers to secure a consistent supply of
biomass, which in turn impacts the efficiency and scalability of biomass energy
projects.
The transportation of biomass
feedstock from rural or remote areas to power plants or processing facilities
poses logistical challenges. Biomass is typically bulky and has a lower energy
density compared to fossil fuels, which increases transportation costs and
requires specialized storage facilities to prevent degradation. This can make
biomass energy projects less economically viable, especially in regions with
poor infrastructure. The cost and complexity of the biomass supply chain are significant
barriers to the wider adoption of biomass energy, and they require coordinated
efforts from stakeholders across the value chain, including farmers, transport
providers, and energy producers.
Competition with Food and Land Resources
Another significant challenge for the Global Solid
Biomass Feedstock Market is the competition between biomass production and food
security, as well as the potential impact on land resources. The use of
agricultural land for growing biomass feedstock, such as energy crops like
switchgrass or miscanthus, can conflict with food production, especially in
regions where land is scarce or agricultural resources are already stretched.
This creates a "food vs. fuel" debate, where the allocation of land
for energy production is questioned, particularly in developing countries where
food security remains a critical issue.
The expansion of biomass production
can lead to deforestation and other forms of land-use change, which may
undermine the environmental benefits of using biomass as a renewable energy
source. Deforestation not only contributes to the loss of biodiversity but also
releases carbon stored in trees and soil, potentially negating the
carbon-neutral claims of biomass energy. The demand for agricultural residues,
such as crop waste, may also impact soil health if not managed sustainably.
These residues are often left on the field to provide nutrients to the soil and
prevent erosion. Excessive removal of these materials for biomass production
can lead to soil degradation and reduced agricultural productivity in the long
term. Addressing these challenges requires careful planning and the
implementation of sustainable land management practices to balance the needs of
energy production, food security, and environmental conservation.
Key Market Trends
Growth of the Biofuel Industry
The rapid growth of the biofuel industry is playing
a pivotal role in the expansion of the solid biomass feedstock market. Solid
biomass, including agricultural residues, wood chips, and other organic
materials, is crucial for the production of second-generation biofuels. Unlike
first-generation biofuels, which are derived from food crops, second-generation
biofuels are produced from non-food biomass materials, making them a more
sustainable option. This shift towards more sustainable biofuels is particularly
important in the transportation sector, where bioethanol and biodiesel are
increasingly being adopted as alternatives to traditional fossil fuels like
gasoline and diesel. Biofuel blending mandates introduced by many governments
are a key factor driving demand for biomass-based feedstocks. These mandates
require a certain percentage of biofuels to be blended with conventional fuels,
creating a strong and sustained demand for biomass. For example, countries like
the United States and Brazil have implemented policies that promote biofuel
use, particularly through ethanol-blended gasoline (E10, E15, or higher blends)
and biodiesel (B5, B10, etc.). These blending requirements help reduce
greenhouse gas emissions while promoting energy security and decreasing
dependence on imported fossil fuels.
In addition to regulatory support, government
incentives, research, and development initiatives are fostering the growth of
the biofuel industry. Many governments are offering subsidies, tax credits, and
grants to biofuel producers and farmers supplying biomass, further enhancing
the attractiveness of biofuels as a renewable energy source. These measures are
encouraging investment in biofuel production facilities, creating a positive
feedback loop that increases demand for solid biomass feedstock. Technological
advancements in biofuel production are also contributing to this growth.
Innovations in conversion technologies, such as enzymatic hydrolysis,
gasification, and advanced fermentation processes, are making it more efficient
to convert biomass into high-energy biofuels. This improved efficiency not only
reduces production costs but also increases the overall energy yield, making
biofuels a more competitive option in the global energy market.
Energy Security and Rural Economic Development
Solid biomass feedstock plays a vital role in
enhancing energy security, especially for countries aiming to reduce their
reliance on imported fossil fuels. By utilizing locally sourced biomass,
nations can diversify their energy portfolios and lessen their dependence on
volatile global energy markets. This strategy is particularly advantageous for
developing countries and regions with abundant agricultural and forestry
resources, where biomass provides a reliable, renewable alternative to fossil
fuels. By tapping into these local resources, countries can stabilize their
energy supplies, reduce exposure to price shocks, and foster greater energy
independence. In addition to boosting energy security, the growth of the solid
biomass feedstock market has significant economic benefits, particularly in
rural areas. Rural regions, often rich in biomass resources like agricultural
residues, wood chips, and forest waste, stand to benefit greatly from the
expansion of the biomass industry. The demand for solid biomass creates jobs in
various sectors, including biomass collection, processing, and transportation.
These activities provide new employment opportunities, particularly in regions
where traditional job markets may be limited. Farmers, foresters, and
landowners who supply biomass feedstock gain access to additional income
streams, turning what was once considered waste into a valuable resource.
Rural areas with limited access to
conventional energy sources are increasingly adopting biomass as a dependable
and affordable energy solution. Biomass power generation projects in such areas
can deliver electricity and heat, enhancing the quality of life for residents
while reducing their dependency on expensive and less sustainable energy
imports. The local production and consumption of biomass energy also keep
energy costs down, making it a more feasible option for communities with limited
financial resources. The development of biomass energy projects often
stimulates rural economies by attracting investments and creating local supply
chains. As the solid biomass feedstock market continues to grow, it not only
meets the energy needs of countries but also contributes to sustainable
economic development, providing a long-term, environmentally friendly solution
for rural communities across the globe.
Segmental Insights
Type Insights
Based on the Type, In the Global Solid Biomass
Feedstock Market, pellets are currently the dominating segment due to their
superior characteristics and advantages over other forms such as chips and
briquettes. Biomass pellets are produced by compressing biomass materials,
which results in a dense and uniform product that offers several benefits.
Their higher energy density allows for more efficient storage and
transportation compared to chips, making them an attractive option for both
energy producers and consumers.
Pellets are designed to provide consistent
combustion properties, leading to higher efficiency and lower emissions during
energy production. This consistency is crucial for industrial applications,
particularly in power generation and heating systems, where uniform fuel
quality is essential for optimizing performance. The use of
pellets minimizes the issues associated with moisture content and variability
typically found in chips, enhancing reliability in biomass energy production. The
growing demand for sustainable energy sources and government policies promoting
renewable energy further bolster the appeal of pellets. With the rising
popularity of biomass heating systems in residential and commercial sectors,
the market for wood pellets, in particular, has seen significant growth. Technological advancements in pellet production and distribution
have made this segment more accessible and cost-effective, further solidifying
its dominance in the biomass feedstock market.
Source Insights
Based on the Source, In the Global Solid Biomass
Feedstock Market, agricultural waste is the dominating segment, primarily due
to its abundant availability and diverse sources. Agricultural waste
encompasses a wide range of materials, including crop residues such as straw, corn
stover, and sugarcane bagasse, which are produced in large quantities during
farming activities. This sector benefits from the global push toward
sustainable practices, as utilizing agricultural waste for biomass energy helps
manage waste effectively while providing an alternative source of renewable
energy.
The high volume of agricultural production,
particularly in countries with extensive farming activities, ensures a steady
supply of feedstock for biomass conversion. This availability positions
agricultural waste as a reliable and cost-effective resource for biomass energy
production. The conversion of agricultural waste into energy
supports the circular economy by turning waste into valuable resources, thereby
enhancing the overall sustainability of agricultural practices. Technological advancements in biomass processing have improved the efficiency
of converting agricultural residues into energy, making this segment
increasingly attractive for energy producers. Governments and industries are
actively promoting the use of agricultural waste for bioenergy through various
incentives and support programs, further driving market growth.
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Regional Insights
North America, region is currently dominating the
Global Solid Biomass Feedstock Market, primarily due to its vast agricultural resources,
advanced biomass processing technologies, and supportive government policies
promoting renewable energy. The United States and Canada have established
themselves as leaders in biomass energy production, leveraging abundant
agricultural residues, forestry by-products, and dedicated energy crops. In the
U.S., significant investments in biomass power plants and combined heat and
power (CHP) systems have bolstered the demand for solid biomass feedstock. The
region’s established infrastructure for harvesting, processing, and
distributing biomass fuels contributes to the efficient supply chain necessary
for sustained market growth. North America's robust research and
development efforts focus on enhancing biomass conversion technologies, which
further increase the viability and competitiveness of solid biomass as an
energy source.
Government incentives, such as tax credits and
grants, coupled with state-level renewable portfolio standards, encourage both
private and public sector investments in biomass energy projects. This
supportive regulatory environment fosters a favorable landscape for biomass
utilization, making it an integral part of the region's renewable energy
strategy. Rising awareness of climate change and the urgent need to
transition to sustainable energy solutions have prompted various industries in
North America to incorporate biomass into their energy mix, further solidifying
its dominance in the global market.
Recent Developments
- In April 2023, the LEAG Group acquired Wismar
Pellets GmbH to enhance the production and supply portfolio of its processing
division. Wismar Pellets GmbH produces approximately 256,000 tons of
high-quality wood pellets for generating green heat and green electricity at
its primary facility. The company holds a stake in the biomass
cogeneration plant operated by Bioenergie Wismar, as well as in Best Pellets
Handelsgemeinschaft GmbH and German Pellets Denmark Aps, which oversees the
group’s operations in Scandinavia. The acquisition is pending approval from the
Federal Cartel Authority.
- In August 2024, the ReFuelEU Aviation regulation
was adopted in Europe, following its approval in October 2023 as part of the EU
Fit for 55 package. This regulation mandates the use of Sustainable Aviation
Fuel (SAF) and outlines eligible feedstocks for achieving blending targets.
According to the International Council on Clean Transportation (ICCT), SAF is
projected to play a significant role in future CO2 reductions within the
aviation sector. It is anticipated that SAF blending targets through
2035 can be met using readily available low-greenhouse gas (GHG) biomass, such
as agricultural residues and municipal solid waste, thereby avoiding the need
for higher-risk feedstocks that are susceptible to labeling fraud or could
adversely affect global markets for food and animal feed. The ReFuelEU Aviation
regulation enhances market demand for SAF, promoting sustainable feedstocks
while mitigating risks to food and animal feed markets.
- A research study titled "Exploring the
Potential of Biomass Pellet Fuels in Ghana: Production, Properties, and
Economic Viability," published in April 2024, highlights the urgent need
for alternative fuels to address the growing global energy demand, projected to
increase by 19% by 2040. This surge is expected to result in a 1.9% annual rise
in CO2 emissions, underscoring the pressing environmental challenges linked to
fossil fuel dependence. The study emphasizes the potential of biomass pellet
fuels, which offer high combustion efficiency and meet emission standards for
gas-fired boilers. By utilizing low-density biomass residues, such as
agricultural and municipal waste, Ghana can effectively reduce environmental
pollution while moving away from coal in its energy applications. The research provides a comprehensive analysis of the production processes,
properties, and economic viability of biomass pellets, offering critical
insights into their sustainable integration within Ghana's energy landscape.
Key Market Players
- Arbaflame AS
- Enviva Inc.
- DRAX GROUP PLC
- Segezha Group
- Ecostrat Inc.
- Stora Enso Oyj
- Rentechinc
- Lignetics Group
- The Supreme Industries Limited
- LEAG Group
|
By Type
|
By Source
|
By End-User
|
By Region
|
- Chips
- Pellets
- Briquettes
- Others
|
- Agriculture Waste
- Forest Waste
- Animal Waste
- Municipal Waste
|
- Residential & Commercial
- Industrial
- Utilities
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Solid Biomass Feedstock
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Solid Biomass Feedstock
Market, By
Type:
o Chips
o Pellets
o Briquettes
o Others
- Solid Biomass Feedstock
Market, By
Source:
o Agriculture Waste
o Forest Waste
o Animal Waste
o Municipal Waste
- Solid Biomass Feedstock
Market, By
End User:
o Residential & Commercial
o Industrial
o Utilities
- Solid Biomass Feedstock
Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Solid Biomass Feedstock Market.
Available Customizations:
Global Solid Biomass Feedstock Market report
with the given market data, TechSci Research offers customizations according to
a company's specific needs. The following customization options are available
for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
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