Bioenergy Market Size, Share & COVID-19 Impact Analysis, By Product Type (Solid Biomass, Liquid Biofuel, Biogas, and Others), By Feedstock (Agricultural Waste, Wood and Woody Biomass, Solid Waste and Others), By Application (Power Generation, Heat Generation, Transportation, and Others), and Regional Forecast, 2020-2032

The global bioenergy market size was valued at USD 344.90 billion in 2019 and is projected to reach USD 978.67 billion by 2032, exhibiting a CAGR of 8.34% during the forecast period of 2020-2032. The bioenergy market in the U.S. is projected to grow significantly, reaching an estimated value of USD 191.91 billion by 2032, driven by the federal and state renewable energy mandates and the push toward combating GHG emissions.

Bioenergy is a renewable source of energy that is made up of materials that are derived from natural/biological sources. The factors that were fueling the market growth before the COVID-19 pandemic include rising concerns about the safety of the environment and increased demand for energy. Additionally, the cost-effectiveness offered is also contributing significantly to the global bioenergy market growth.

COVID-19 Pandemic Affects Heavily On Bioenergy Projects

Currently due to Covid-19, the restrictions on travel, work, and industry are expected to cut billions of barrels of oil, and trillions of cubic meters of gas from the global energy system in 2020 alone. The U.S. Energy Information Administration (EIA) currently forecasts that biomass will be used to generate 27.3 billion kilowatt-hours (kWh) of electricity this year, down from 28.8 billion kWh in 2019.

The COVID-19 pandemic is also expected to impact largely on U.S. electricity consumption. According to EIA’s Short-Term Energy Outlook report, predicts that retail sales of electricity in the commercial sector will fall by 6.5% in 2020 because many businesses have closed and many people are working from home. Industrial retail sales of electricity are also expected to fall by 6.5% this year as many factories cut back production.

LATEST BIOENERGY MARKET TRENDS 

Rising Number of Countries Accepting the Paris Climate Change Agreement to Boost the Market

The number of countries accepting the Paris Climate Change Agreement has been increasing significantly. This agreement enforces countries to increase the utilization of renewable energy sources in the total power generation. The use of biofuels and biogas is attracting considerable attention worldwide as an innovative strategy to tackle climate change, to limit GHG emissions, precisely for reduction of CO2 emissions, and to fulfill the Kyoto Protocol agreements. In the energy sector, fossil fuel emissions are the main source of global warming. Biofuels and biogas, on the other hand, cause far lower greenhouse gas emissions depending on the source and circumstances. This also holds good for other routes of biomass applications such as heat production or electricity generation from primary biomass. Some other associated benefits of using biofuels are local air quality improvement, waste reduction, and under the right circumstances, protection of ecosystems & soils.

Biofuels, Biogas, and Biomethane to Create Revenue Opoortunities in Waste Management

Waste management is a major global problem. Billions of tons of waste is generated by agriculture, municipal, and industrial sectors every year. Biofuels, biogas, and biomethane systems are turning the waste management issue into a revenue opportunity for farms, dairies, food processing, and wastewater treatment industries. Biogas is created during anaerobic digestion. This gas is further processed to manufacture biomethane. Biofuel is also derived from plant, algal, or animal biomass. It is used as a high energy renewable fuel, which can be used as a substitute for fossil fuels. Biogas-fueled gas engines improve waste management while maximizing energy supply. 17 million tons of waste is produced each year in the U.S. This waste includes edible and inedible waste. Approximately 90 million tons of manure and slurry is generated each year in the U.K. Availability of a large quantity of feedstock for bioenergy production is projected to boost the market during the forecast period.

BIOENERGY MARKET DRIVING FACTORS

Rising Investments in Renewable Energy to Drive this Market

The rise in environmental protection regulations across the globe are encouraging the power generation industry to opt for cleaner and environmentally friendly energy resources. Major economies around the world are focused on developing renewable energy capacities to reduce their dependency on conventional power generation, which requires fossil fuels. Renewable investment records indicate that the global dependence on coal and other fossil fuels is decreasing due to the rise in investment in this type of energy, solar, wind, and geothermal energy. This energy is a major source of renewable energy, holding around 50% share in the world’s total renewables consumption, and can solve many global challenges such as limited availability of fossil fuels and related environmental issues. It is the only renewable energy that can be used across all three energy sectors, i.e., electricity, heat, and transport. Thus most of the countries are considering investing in these energy sources. This, in turn, is driving the global market during the forecast period.

Growth in Transportation Sector Will Augment Market Growth

Biofuels are majorly used as substitutes of petroleum-based fuels for transport, and they are considered as a part of important strategies to improve fuel security, mitigate climate change, and support infrastructure development. To achieve compliance with emission targets set by various governments to slow down global warming and to improve the security of energy supply, an increased contribution from both conventional and advanced biofuels will be needed over the forecast period. On the other hand, aviation is the second-largest consumer of energy in the transport industry. The major hurdle to clear in aviation is the need for highly pure, chemically stable fuel. However, several companies in Europe have begun to produce jet fuel from Jatropha and are set to begin supplying several major airlines shortly. Additionally, test flights with airlines and the U.S. military have demonstrated that subsequent blends of petroleum-based jet fuel and bio-jet fuel are effective and safe for usage. Some of the other areas where liquid biofuels can be used are in rail transport, but their feasibility in this sector remains to be seen in the coming years. In rail transport, most of the railway operations come from diesel traction, and biodiesel could be a viable alternative fuel for running trains. Other biofuels are of secondary importance, which include Hydro-Thermal Upgrading (HTU) diesel & Biomass to Liquid (BtL), biogas, biomethane, bioethanol, and biomass used for electricity generation in other systems.

RESTRAINING FACTORS

High Initial Investment for Establishing Plants May Hinder the Market Growth

The initial investment for establishing biofuel plants is high. Some countries provide financial assistance for the construction of these plants. However, financial assistance is also required for the development and expansion of the plant. The process of procuring and storing feedstock is time-consuming and costly. Financial assistance and regulations are required for the collection, sorting, processing, and supply and distribution of feedstock, construction and operation of plants, and sale & distribution of biogas and biomethane. The output of the plant needs to be sufficient and consistent to cover the installation and operating costs.

BIOENERGY MARKET SEGMENTATION

By Product Type Analysis

Solid Biomass Product Type to Hold a Dominating Share Over the Forecast Period

Based on type, the market is trifurcated into solid biomass, liquid biofuel, biogas, and others. The solid biomass segment is projected to lead the global market. Solid biomass includes wood chips, wood pellets, and fuelwood for cooking and heating etc. Governments of several countries provide incentives and subsidies to consumers using wood pellets for heating applications. Recently, the UK government launched the Domestic Renewable Heat Incentive (Domestic RHI) scheme for promoting the use of renewable heat. Furthermore, solid biomass is widely used in developing countries, mainly for cooking, heating water, and domestic space heating.

Liquid biofuels are another major product type segment of the market. Global production of liquid biofuels increased by nearly 7% in 2018 compared to that in 2017, reaching 154 billion liters in 2018. The U.S. and Brazil are the largest ethanol producers in the world. Together, these countries accounted for 84% share of the global ethanol production in 2018. On the other hand, Europe is the largest producer and consumer of biodiesel in the world. The region alone produces around 35% of the total global biodiesel production.

The biogas segment is expected to grow at a significant pace during the forecast period. The ongoing transition toward a sustainable & circular economy coupled with an increasing focus toward cost-effective waste management practices would fuel the installation of biogas plants. Europe is the largest producer of biogas across the globe. According to the European Biogas Association, more than 18,202 biogas plants are operating in Europe.

By Feedstock Analysis

Wood And Woody Biomass Feedstock Is Primarily Used For Solid Biomass Production

Based on feedstock, the market can be grouped into agricultural waste, wood and woody biomass, solid waste, and others. The wood and woody biomass segment is projected to lead the global bioenergy market share. Woody biomass includes trees or parts of trees, such as trunks, branches, bark, and tops. It contains more lignin than herbaceous feedstock or tree leaves. This type of feedstock is largely used for heat and grid electricity production. Wood continues to be an important fuel in many countries, especially for cooking and heating in developing countries. In 2018, about 2% of total U.S. annual energy consumption was from wood and wood waste.

Agricultural waste includes all organic waste matter generated in agricultural activities. Various types of wastes and residues such as straw, green mass from crops, farming residues, forest waste, plant waste, and landscape waste are utilized as feedstock for biogas and biomethane plants. According to Global Statistics, energy generation from agricultural residues could meet about 3 – 14% of the total energy supply globally. The solid waste consists of waste materials generated by households and similar waste produced by commercial, industrial, or institutional entities.

By Application Analysis

Heat Generation Application to Command Market Share

Based on application, the market can be segmented into power generation, heat generation, transportation, and others. The heat generation segment is projected to lead the market because biofuels are primarily used to generate heat, particularly in Europe and the Middle East & Africa region. Bioenergy for heat in the European Union is anticipated to increase by around 8% by 2023 to reach 3.5 exajoules (EJ). Most biomass heat is used in buildings. The voluntary target within the updated Renewable Energy Directive (RED) for member states to increase renewable energy in heating and cooling by 1.3 percentage points/year should open up opportunities for biomass heating. In the European Union (EU), more than 15 million tonnes of wood pellets were consumed for heating applications in 2018.

Transportation is another major application segment of the market. Transportation is a major source of carbon emissions. Enactment of stringent government regulations regarding carbon emissions across the globe is boosting the demand for alternative fuels. IRENA’s Renewable Energy Roadmaps shows that liquid biofuels, including conventional and advanced forms of ethanol and biodiesel, are expected to account for 10% share of energy usage in the transport sector by 2030. Electricity generation is expected to grow at a significant pace during the forecast period. Increasing demand for electricity across the globe due to rapid industrialization and urbanization is also driving the growth of the market.

BIOENERGY MARKET REGIONAL INSIGHTS

Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Asia Pacific is anticipated to lead the market over the forecast period. Emerging economies such as India and China are implementing strong regulations to lower their carbon footprint, which is a crucial factor driving the growth of the market. In Japan, the use of wood for energy has been expanding, with two-thirds of the land being covered by forests in which some 100 million m³ of wood stocks grow each year. In 2018, solid wood biomass used for heat and power amounted to some 9 Mt, of which more than 75% were chips. China, India, Australia, South Korea, and Southeast Asia are the major consumers for this type of energy in the Asia Pacific region.

Bioenergy is expected to contribute to around 50% of the EU’s target of 20% renewable energy genearation by 2020. Adding to this, the 2009 EU Renewable Energy Directive has set a target for the U.K. to achieve 15% of its total gross final energy consumption from renewable sources by 2020. Germany, U.K, France, Spain, Italy, and Sweden are the major countries utilizing bio-based energy sources. Currently, Europe has the highest number of COVID-19 cases, and most of the countries in Europe are in the lockdown stage. Thus, the market in Europe could decreased in 2020 compared to 2019.

North America has been a significant region for liquid biofuels over the last few years. Around 45% of liquid biofuel is produced in the region. The United States, Canada, and Mexico are the key countries for bioenergy in North America. The U.S. is the largest producer of ethanol in the world. It produced around 16 billion gallons or nearly 60 billion liters of ethanol in 2018. Furthermore, more than 2000 plants produce biogas in the U.S.

The Middle East & Africa is the second largest region in the global market. The region accounts for around 45% of the world’s total energy potential from all renewable sources. These sources can generate more than three times the total demand for power in the world. It also has abundant biomass energy resources that have remained largely unexplored. Key nations participating across the territory are Nigeria and the Gulf Cooperation Council (GCC) countries. Brazil and Argentina are the key countries of liquid biofuels in Latin America. Both these countries account for around 90% production of liquid biofuels in the region.

BIOENERGY KEY INDUSTRY PLAYERS

EnviTec Biogas AG Is investing in New Plants to Increase its Capacity and Geographic Presence

• EnviTec Biogas AG started the operations for its biogas project in China, following a construction period of just 12 months. Input for the 1,570 Nm³ biogas plant located in Shanxi province would include maize stover silage, turkey litter, and dairy cattle manure.

List of Key Companies Profiled:

• ADM (U.S.)


• POET (U.S.)


• Ameresco, Inc. (U.S.)


• Enerkem (Canada)


• MVV Energie AG (Germany)


• Enviva (U.S.)


• EnviTec Biogas AG (Germany)


• Green Plains Inc. (U.S.)


• Pacific BioEnergy Corp (Canada)


• Lignetics (U.S.)


• Drax Group (U.S.)


• Enexor Energy (U.S.)

Key Players Are Focusing On Increasing Their Production Capacity

Different players across the global market are increasingly participating in organic & inorganic developments to fortify their market position globally. Additionally, the companies are also expanding their production capacities by introducing new plants or expanding the existing ones. For instance, in February 2020, Canadian firm XEBEC ADSORPTION, a global provider of clean bioenergy solutions, signed an agreement with Bähler Biogas to develop a renewable natural gas (RNG) facility. The new integrated facility, to be constructed in Québec, would process various organic wastes for the production of RNG and biofertilizers.

BIOENERGY INDUSTRY DEVELOPMENTS:

• April 2020 – Finnish-Swiss biotech company Ductor is building three combined biofertilizer-biogas facilities in northern Poland. The new facilities will be built in Poland's Zachodniopomorskie region, located off the coast of the Baltic Sea. Two of the new plants would have installed capacity of 0.5MW, and the third will be 1MW. All three plants are expected to be operational in 2021.


• February 2020 – The U.S. based Brightmark Energy company announced plans to expand its waste-to-biogas project, partnering with six total farms in the region. The ‘Yellowjacket’ project would extract methane from 265,000 gallons of dairy manure per day and convert it into renewable natural gas (RNG) and other useful by-products.

BIOENERGY FUTURE OUTLOOK

The expansion of this market is propelled by increasing investments in the renewable sector across different regions. Furthermore, growing measures to curb carbon emissions and the introduction of new incentives and subsidies to increase the use of bio-based energy will upsurge the demand. Consequently, increasing the influence of COVID-19 across the globe, several industries are experiencing a negative impact on their business due to lockdown measures. Thus, investment in the renewable sector might show some downfall during the forecast period

REPORT COVERAGE

The global bioenergy market report offers qualitative and quantitative insights on the these energy sources and a detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the production of the bioenergy in each region, recent industry developments such as partnerships, mergers & acquisitions, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE & SEGMENTATION