Biomass Gasification Market - Industry Analysis and Forecast (2025-2031)

 

Market Overview

1. Market Overview

The global Biomass Gasification Market, valued at $27.89 billion in 2024, represents a critical segment within the waste-to-energy sector. This technology converts organic materials into synthesis gas (syngas) for electricity, heat, and biofuel production, addressing both renewable energy generation and waste management challenges. According to Department of Scientific & Industrial Research (DSIR), with over 130 commercial-scale plants operating globally and capacity utilization rates reaching 70-85%, biomass gasification is rapidly transitioning from emerging technology to mainstream energy solution.

2. Executive Summary

The market is projected to grow at 10.5% CAGR, reaching $56.1 billion by 2031, driven by rising global emphasis on renewable energy, increasing demand for sustainable waste management, and the need for decentralized power generation, particularly in rural and off-grid regions. Biomass gasification, a process that converts organic materials into syngas through partial oxidation, is increasingly being adopted for electricity generation, industrial heating, and biofuel production. As climate goals tighten and sustainable energy becomes a priority, biomass gasification is positioned as a strategic component in the global transition to a low-carbon energy future.

3. Competitive Landscape

The market features three distinct competitive tiers:

Tier 1: Global Industrial Leaders (40% market share)

  • In July 2024, Siemens AG has signed a Memorandum of Understanding with Boson Energy to collaborate on technology that converts non-recyclable waste into energy, which could include biomass fractions.
  • In March 2025, Germany-headed thyssenkrupp Uhde, has announced that its biomass gasification technology has been selected for the French BioTJet project led by Elyse Energy SAS and its partners (Axens, Avril, IFPEN).
  • In April 2024, Air Liquide further develops its biomethane capacities in the U.S. with two new production units. Air Liquide continues to expand its capacities in biomethane, also known as Renewable Natural Gas (RNG) in the U.S., with the construction of two new production units.
  • In October 2024, Mitsubishi Heavy Industries (MHI), has completed the construction of a 50-megawatt (MW) class woody biomass-fired power plant in the city of Hyuga, in Miyazaki Prefecture.

Tier 2: Specialized Technology Providers (35% market share)

  • Valmet's biomass gasification solutions aim to replace fossil fuels with renewable sources, reducing emissions and promoting sustainable energy production.
  • In March 2025, International technology group ANDRITZ has handed over a state-of-the-art biomass power plant to Hungrana, Hungary's leading sugar producer.
  • EQTEC PLC developing and implementing gasification technologies for various projects. They have announced plans to develop biomass gasification projects in Greece, including a 500 kW and a 1 MW plant. EQTEC has also partnered with Phoenix Biomass Energy Inc to jointly develop projects in the US.

Tier 3: Regional & Small-Scale Specialists (25% market share)

  • Ankur Scientific Energy Technologies Pvt. Ltd., manufacturer of biomass gasifier systems, offering over 60 variants, the company produces gasifiers primarily used for power generation, utilizing biomass as a clean, renewable energy source.
  • Infinite Energy Pvt. Ltd. is an Indian company approved by the Ministry of New & Renewable Energy for manufacturing Biomass Gasification Plants. They are involved in biomass conversion and processing technology.
  • All Power Labs (APL) designs, manufactures, and deploys mobile biomass gasification systems. These systems convert woody waste into electricity, heat, and biochar, aiming to move carbon from the atmosphere to the soil.

4. Market Forces

Key Drivers (Statistically Validated):

  1. Accelerating Renewable Energy Demand: According to the International Energy Agency (IEA), renewable electricity generation is expected to reach 14,430 TWh by 2028, marking an increase of almost 70% from 2022. This surge is driven by the need to decarbonize the energy sector and reduce reliance on fossil fuels. While solar and wind are leading this growth, bioenergy, including biomass gasification, plays a crucial role in providing dispatchable and flexible power generation.
  2. Waste Management Imperatives: The World Bank projects that municipal solid waste will increase from 2.01 billion tonnes in 2016 to 3.40 billion tonnes by 2050, driven by urbanization and population growth. Traditional waste management methods are becoming insufficient, leading to environmental and health concerns. Biomass gasification offers a compelling solution by converting organic waste into syngas, which can be used for energy production. This process not only reduces the volume of waste by 85-90%, significantly more than the 5-15% reduction achieved through traditional composting, but also generates renewable energy, contributing to a circular economy. 

Key Restraints (Quantified):

  1. High Capital Investment and Operational Complexity: The establishment of biomass gasification plants demands substantial capital investment, encompassing costs for advanced gasification equipment, feedstock handling systems, and gas cleaning technologies. These significant upfront expenses can deter potential investors, particularly in developing regions where financial resources may be limited. Moreover, the operational complexity of gasification processes such as managing diverse feedstocks, controlling tar formation, and ensuring consistent syngas quality requires specialized expertise and continuous optimization. This complexity not only escalates operational costs but also poses challenges in maintaining consistent plant performance, thereby impacting the overall return on investment.
  2. Environmental Compliance and Regulatory Challenges: While biomass gasification is considered a cleaner alternative to fossil fuels, it is not devoid of environmental concerns. The process can produce pollutants like condensable hydrocarbons, soot, and ash, necessitating stringent environmental compliance measures. Meeting these regulatory requirements often involves additional investments in pollution control technologies and monitoring systems, further increasing the operational costs. Additionally, the lack of standardized regulations and policies across different regions can create uncertainties for project developers and investors, potentially slowing down the adoption of biomass gasification technologies.

5. Biomass Gasification Market - by Geography (Market Size - US$ Billion)

  • Europe: In 2024, Europe accounted for the largest share 38% of the global biomass gasification market. The region’s leadership is reinforced by active policy support for clean technologies and a focus on circular economy principles. According to the European Biogas Association (EBA) report published in December 2024, Europe hosts around 141 biomass and waste gasification installations, with 54 additional projects under development, signalling continued investment and expansion. Germany leads the region with 61 operational plants, while France, Finland, and Italy are emerging as key contributors, reflecting the continent’s commitment to diversifying biomass processing and waste utilization. This solid foundation and ongoing project pipeline position Europe as a pivotal hub in the global push toward decarbonized energy systems.
  • Asia-Pacific: The Asia-Pacific region is emerging as the fastest-growing market and is projected to expand at a CAGR of 15.2% through 2031. This rapid growth is fuelled by rising energy demands, abundant biomass resources, and strong government support for renewable energy initiatives across countries like China and India. Notably, in November 2024, Clariant announced its collaboration in a biomass gasification-to-green methanol project in China, a key milestone in the region’s clean energy development. The project, which integrates advanced gasification technology and sustainable methanol production, is scheduled to begin operations in the first half of 2025. This development highlights Asia-Pacific’s accelerating shift toward innovative, carbon-neutral energy solutions and its pivotal role in the global biomass gasification landscape.

6. Key Takeaways

  • Investment Opportunity: The biomass gasification market presents a lucrative investment landscape, with a projected CAGR of 10.5% and an anticipated market expansion of $28.2 billion by 2031. Early entrants focusing on specialized niches such as advanced syngas applications or modular gasification systems stand to benefit from premium margins and a strong foothold as the market matures.
  • Technology Convergence: Integration with carbon capture is creating high-value negative emissions pathways. By capturing and storing carbon dioxide (CO2) emissions from the gasification process, this combination not only contributes to sustainable energy generation but also plays a crucial role in global efforts to combat climate change.
  • Segmentation Strategy: While large-scale biomass gasification projects often garner the most attention, the 1–5 MW capacity segment is emerging as the fastest-growing category, registering a remarkable CAGR of 17.3%. This growth is fuelled by increasing demand from industrial applications and community energy systems, where decentralized, cost-effective, and clean energy solutions are critical.
  • Gasification’s Role in a Fossil-Free Future: In recent years, biomass gasification has evolved beyond power generation to include advanced applications such as the production of synthetic natural gas (SNG), Fischer-Tropsch (FT) liquids, methanol, and mixed alcohols. These developments highlight gasification’s growing potential as a cornerstone technology in the transition to a fossil-free future.

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Location: United States

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