The global biomass power market is expected to grow at a CAGR of 6% between 2021 to 2030. Biomass power is an alternative source of electricity generated from organic waste such as scrap lumber, forest debris, and agricultural harvest waste that are usually dumped in landfills, burned, or left as fodder for forest fires. These natural materials generate clean, renewable electricity while limiting carbon emissions and safeguarding the environment against the hazardous effects of greenhouse gases. Biomass also improves forest health, protects air quality, and offers a reliable renewable energy source. The global biomass power market is segmented by technology, feedstock, and regions.
Increased carbon emissions due to conventional fossil fuels have resulted in the release of harmful greenhouse gases, leading to global warming. Global warming is the primary environmental concern driving the global market of biomass power. In the wake of the rising environmental concerns, European countries such as the UK, Germany, and Finland are looking to phase out coal-based power generation and adopt biomass power as an alternative. Similarly, Asian countries such as China, India, and Indonesia are shifting toward cleaner and more efficient energy sources.
Furthermore, the favorable government policies and regulations worldwide to promote renewable and sustainable power generation have stimulated the global biomass power market. In addition, government schemes and plans such as Feed-in-Tariff (FiT) also focus on providing relaxation in tariffs. Concurrently, these factors will encourage the growth of the biomass power industry during the forecast period.
Other renewable sources of energy, such as solar and wind, have evolved as better alternatives due to vigorous research and development and huge capital investments. These alternative sources lead to tremendous power generation and require less operational costs than biomass power, drastically affecting the demand for biomass power.
Additionally, the incapacity of solar and wind energy to provide continuous power has been overcome with the evolution of battery energy storage systems. Solar and wind energy have become stable, confirming a steady power supply. Furthermore, the cost of these batteries is steadily declining to match the demands for battery energy storage systems from various industries. Thus, the low costs and widescale adoption of solar and wind energy may hinder the growth of the biomass power market growth during the forecast period.
Rising environmental concerns have enabled countries to use environment-friendly measures to generate power. This has given impetus to the use of biomass as a source of power generation. This growing demand for renewable energy sources has encouraged power generation through biomass, creating lucrative opportunities for the market of biomass power.
Operational challenges like the seasonal nature of biomass feedstock, along with transportation and storage problems, pose severe challenges for plant operators. The availability of biomass feedstock depends upon the climatic conditions of the region they grow in and the cultivation period. Additionally, the cost of biomass feedstock is subject to climatic conditions and availability.
Furthermore, the wet disposition of biomass makes transportation and storage a costly affair. Moreover, in order to avoid scarcity and ensure availability throughout the year, biomass plant operators need to stock up the biomass feedstock, which requires specific storage facilities to prevent an increase in moisture content. These are the major challenges faced by the biomass plant operators.
Based on technology, the global biomass power industry has been segmented into combustion, anaerobic digestion, and gasification. The combustion technology segment held the largest volume and revenue major share of USD 107,073.39 million in 2021, accounting for 88.4% of total revenue generated by all three technologies. This segment is expected to dominate the biomass power market during the forecast period.
Based on feedstock, the global biomass power industry has been segmented into solid biofuel, liquid biofuel, and biogas. The solid biofuel segment was dominant with a major revenue of USD 104,328.59 million in 2021, estimating about 85.9% of total revenue generation among the three types of feedstock, owing to the easy availability and low cost of solid biofuels, resulting in higher adoption over liquid biofuels and biogas for power generation application.
Regionally, the global biomass power industry has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. The European Union countries dominate the regional segment with a goal to pha4se-out coal-based power generation and adopt environment-friendly strategies. Demand in Asia-pacific countries such as India and China is increasing due to its transforming economies.
The COVID-19 pandemic has caused a global crisis, impacting all industries worldwide, including the renewable energy sector. The supply chain of the biomass power industry was majorly affected, resulting in a shortage of raw materials due to lockdown restrictions, further delaying the delivery process. Furthermore, there was a delay in various upcoming projects and a halt of on-site construction projects due to lockdown restrictions.
The lockdown also led to a reduction in power generation supplies due to the closure of operations.
However, supportive steps have been taken by the government of some countries, such as the US, Germany, and India, to extend the deadline for upcoming projects and the projects on-site to help them with the eligibility for incentives and tax credits. These measures are expected to boost the growth of the market for biomass power in the forecast period.
Significant Growth in Europe and Asia-Pacific
Europe and Asia-Pacific are the top two dominant markets for biomass power generation. With a revenue generation of USD 45,598.93 million, Europe is expected to grow at a CAGR of 5.4%. Whereas Asia-Pacific, with revenue generation of USD 41,148.28 million, is expected to grow at a CAGR of 7.8%. In its long-term strategy and in line with the Paris agreement, European Union has aimed to be carbon neutral by 2050. Demand for biofuel in Asia-Pacific is expected to grow with growing investment by public and private sectors to develop biofuel technologies.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|