Bioenergy market seen reaching $241.9 billion by 2035

The global bioenergy market is projected to grow from $155.9 billion in 2026 to $241.9 billion by 2035, driven by waste-to-energy technology upgrades, policy support and demand for dispatchable renewable power. Asia-Pacific leads the market now, while transport fuel, biogas and industrial heat are emerging as the fastest-growing opportunities.

Why it matters: - Bioenergy is gaining traction as a firm renewable power source that can complement solar and wind. - The market outlook points to a larger role for biomass, biogas, renewable waste and liquid biofuels in electricity, heating and transport. - Policy support and carbon pricing are making bioenergy more competitive across major regions.

What happened: - MRFR projects the bioenergy market will reach $155.9 billion in 2026 and climb to $241.9 billion by 2035. - The forecast implies a 5.0% compound annual growth rate from 2026 to 2035. - The report ties the growth outlook to advances in waste-to-energy technologies. - MRFR published the forecast on Aug. 24, 2026. - The company also posted a free sample report and a full market report.

The details: - Bioenergy includes energy from solid biomass, biogas, renewable waste and liquid biofuels. - The sector is used for power generation, heating and transportation. - Net-zero pledges from more than 140 nations and the EU's revised Renewable Energy Directive are directing capital toward bio-based generation. - EU ETS carbon prices above EUR 90 per tonne in early 2024 improved the economics of biomass co-firing versus unabated natural gas. - Legacy open-grate combustion boilers are being replaced by fluidized-bed systems, gasifiers and modular anaerobic digesters. - MRFR says those newer systems can cut levelized costs by 18% to 22% versus 2018 baselines. - The IEA's 2024 World Energy Outlook estimated cumulative bioenergy investment needs at $135 billion through 2030. - The U.S. EPA finalized 2025 Renewable Volume Obligations at 22.33 billion gallons, up 8% from 2023. - Brazil raised RenovaBio decarbonization credit targets by 12% for 2025. - The European Commission's RED III sustainability rules require chain-of-custody documentation and greenhouse-gas savings above 80% for new installations.

Between the lines: - The market's growth is being shaped less by a single fuel and more by a policy-backed need for reliable low-carbon energy. - Waste-to-energy and biogas are gaining momentum because they can turn municipal and agricultural residues into usable energy while addressing waste disposal pressures. - The technology shift toward higher-efficiency conversion systems suggests suppliers with strong feedstock logistics and certification capabilities may be better positioned than commodity biomass players. - Transport fuel is emerging as an important demand center because aviation decarbonization rules are creating a new market for sustainable aviation fuel.

What's next: - Asia-Pacific is expected to keep the largest regional share at 40.0%, led by China and India. - Europe is likely to remain a major market at 28.5%, supported by carbon pricing and sustainability rules. - North America is projected to grow at a 4.8% CAGR through 2035, helped by the Inflation Reduction Act and renewable fuel mandates. - Biogas is forecast to be the fastest-growing type segment at a 10.9% CAGR through 2035. - Transportation fuel is projected to grow at a 10.15% CAGR as SAF requirements expand. - Anaerobic digestion is expected to post a 12.7% CAGR through 2035. - MRFR highlights BECCS, industrial heat decarbonization and digital feedstock platforms as additional growth areas.

The bottom line: - Bioenergy is moving from a niche renewable fuel to a policy-supported component of the global energy system, with the strongest growth tied to waste conversion, biogas and low-carbon transport fuel.