Biopower Market Expected to Reach $26.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Biopower Market," The biopower market was valued at $14.2 billion in 2021, and is estimated to reach $26.3 billion by 2031, growing at a CAGR of 6.4% from 2022 to 2031.

Biopower refers to the energy that is generated by using organic materials. It acts as a useful, sustainable, and renewable source of energy that can be used to generate electrical energy, along with other kinds of power. Since biopower is naturally created, the electricity generated is carbon neutral, and it does not give rise to environmental issues such as pollution and carbon emissions.

Population growth, rising income levels, and rapid urbanization have created global demand for oil, however due to resource shortages, most countries in the world rely primarily on imports for oil supply. Expanding the use of biofuels not only reduces oil demand, however helps diversify the sources of liquid fuel imports, so biofuels are a possible option for addressing oil security issues. In addition, advanced fuel advances provide additional opportunities for farmers to increase their income. The above trends and factors drive the market growth. The increased adoption of ethanol as an alternative vehicle fuel and the benefits of applying advanced fuels in the transport sector can create employment opportunities to create jobs in rural areas and reduce pollution & trade deficits.

The increase in usage of portable electronic gadgets and electric energy source-based products have increased the demand for electricity. The depletion and uneven presence of natural resources across the globe is one of the driving factors for the growth of biopower market. The outbreak of pandemic has led the energy industries and countries which depend on fossil fuel imports into a tight spot, due to various challenges faced during this period. Various governments have set their sights on renewable and cost-efficient methods to solve this problem to overcome the future crisis. The above mentioned are the key factors that provide remunerative opportunities for the growth of the landfill gas technology in biopower market.

The biopower market is segmented on the basis of by feedstock, technology, end use, and region.

On the basis of feedstock, it is fragmented into solid biofuel, liquid biofuel, and biogas. On the basis of technology, the market is categorized into direct combustion, gasification, anaerobic digestion, landfill gas, and other. The landfill gas segment is further classified into electricity, direct use, combined heat & power, and alternate fuels. On the basis of end use, the global biopower market is divided into residential, commercial, and industrial.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.

The major companies profiled in this report include Dalkia, EnviTec Biogas AG, Schmack Biogas GmbH, Orsted A/S, Babcock & Wilcox Enterprises Inc., Ameresco, MVV Energie AG, Enerkem, Drax Group, Helius Energy Plc, Alstom SA, Veolia, Ramboll Group A/S, and Mitsubishi Heavy Industries Ltd. Due to rapid development of industrialization and urbanization across the globe have led to depletion of natural resources. The exhaustion of fossil fuel resources has led to innovation and investment towards alternative resources which are sustainable and eco-friendly. Additional growth strategies such as expansion of production capacities, acquisition, partnership, and research & innovation in the detection technologies have led to attain key developments in the global biopower market trends.

Key findings of the study

• North America would exhibit CAGR of 6.1% during 2022-2031.
• As per global biopower market analysis, by feedstock, the solid biofuel segment accounted for the largest share in 2021.
• By technology, direct combustion was the leading segment in 2021.
• By end use, industrial segment has largest biopower market share in 2021.

Covid-19 Analysis

The global COVID-19 pandemic has negative impact on the biopower market. This market has experienced lower than anticipated demand across all regions compared to pre pandemic levels. The global market has exhibited a decline by about 25% in 2020 compared to 2019 due to shutdown of various food processing industries and agricultural activities from where feedstock is used as raw material for the production of biopower.

COVID-19 has negatively impacted the biopower market due to decline in manpower and material resources. Owing to stringent lockdown restrictions, the manufacturing activity got severely affected, which hampered the market growth and profitability. However, during the forecast period, the market is expected to recover due to eased lockdown restrictions in most nations. Furthermore, the government of various countries across the globe has issued policies regarding sustainable development in coming years which will have positive impact on the market. The presence of investment in the biofuel and biogas production plant in the developing countries such as India and China due to low availability of fossil fuel resources lead to surge in the market growth after the pandemic.