Biomass Gasification Market Global Forecast, CAGR, and Key Developments 2032

The biomass gasification market is gaining momentum due to rising global energy demand, growing environmental concerns, and the urgent need to reduce reliance on fossil fuels. Biomass gasification offers a sustainable pathway to convert waste materials into valuable energy resources while minimizing greenhouse gas emissions. Asia Pacific accounts for the largest market revenue share, supported by abundant biomass availability, expanding industrial infrastructure, and strong government initiatives promoting renewable energy and decarbonization efforts.

The global Biomass Gasification Market in 2026 is witnessing steady growth as industries and governments increasingly focus on renewable energy adoption and decarbonization initiatives. According to Fortune Business Insights, The market was valued at USD 17.20 billion in 2024 and is expected to reach USD 17.86 billion in 2025. Furthermore, the market is projected to expand to USD 28.32 billion by 2032, registering a CAGR of 6.81% during the forecast period of 2025–2032.

Biomass gasification is a thermochemical conversion process that transforms biomass feedstocks such as agricultural residues, forest waste, municipal solid waste, and animal waste into synthesis gas (syngas). This syngas can be utilized for power generation, heat production, biofuels manufacturing, hydrogen production, and synthetic gas applications.

Market Dynamics

Market Drivers

• Rising Demand for Renewable Energy: Increasing energy consumption and the transition toward cleaner energy sources are major drivers for biomass gasification adoption.

• Supportive Government Policies: Incentives, subsidies, and renewable energy targets encourage investments in biomass-based power and fuel generation.

• Technological Advancements: Improvements in gasifier design, efficiency, and integration with hydrogen production and carbon capture technologies enhance market growth.

Market Restraints

High initial capital investment, feedstock availability challenges, transportation costs, and operational complexity remain key restraints. Inconsistent biomass quality and storage limitations can impact system efficiency and scalability.

Market Opportunities

The integration of biomass gasification with carbon capture and utilization (CCU) technologies presents significant growth opportunities. These systems enable carbon-negative energy production and support the manufacturing of value-added products such as methanol and green hydrogen.

Market Challenges

Limited access to financing, insufficient infrastructure, and competing fossil fuel subsidies in developing regions pose challenges to large-scale deployment. Addressing these challenges requires public-private partnerships and tailored financing mechanisms.

Market Trends

Advanced gasification technologies, including fluidized-bed and plasma gasification systems, are gaining popularity due to their higher efficiency and ability to process diverse biomass feedstocks. The growing focus on decentralized energy generation and waste-to-energy solutions further supports market expansion.

Market Segmentation Analysis

By Feedstock

The market is segmented into Agricultural Residues, Forest Residues, Municipal Solid Waste (MSW), Animal Waste, and Others. Among these, the municipal solid waste segment held the largest market share in 2024. MSW gasification helps reduce landfill waste while generating clean energy.

Agricultural residues are expected to witness strong growth due to the widespread availability of crop waste such as rice husks, wheat straw, and sugarcane bagasse, particularly in emerging economies.

By Technology

Based on technology, the market is categorized into Fixed-Bed, Fluidized-Bed, Entrained-Flow, Plasma, and Others. The fluidized-bed gasification segment dominated the market in 2024 due to its operational flexibility, improved heat transfer, and ability to handle varied biomass types.

The fixed-bed segment is gaining traction owing to its simple design, lower operational costs, and suitability for small-scale and rural energy applications.

By Application

The application segments include Power Generation, Biofuels Production, Heat & Combined Heat and Power (CHP), Hydrogen & Synthetic Gas Production, and Others. Power generation accounted for the largest share in 2024, driven by the growing demand for renewable electricity.

Hydrogen and synthetic gas production is anticipated to grow at the fastest rate due to rising industrial demand for clean fuels and increased investments in green hydrogen initiatives.

Explore the full research report with detailed insights and TOC:https://www.fortunebusinessinsights.com/biomass-gasification-market-112336 

Market Regional Insights

Asia Pacific

Asia Pacific leads the biomass gasification market, driven by rapid industrialization, rising energy demand, and strong policy support in countries such as China and India. The region benefits from abundant agricultural and forestry biomass resources.

North America

North America holds a significant market share, supported by advanced technologies, favorable renewable energy policies, and increased focus on waste-to-energy projects. The U.S. remains a key contributor to regional growth.

Europe

Europe continues to expand steadily due to stringent environmental regulations, carbon reduction targets, and increasing investments in district heating and sustainable energy infrastructure.

Market Competitive Landscape

The biomass gasification market is moderately fragmented, with companies focusing on technological innovation, strategic collaborations, and regional expansion. Key players operating in the market include:

• Valmet (Finland)

• Synthesis Energy Systems Inc. (U.S.)

• EQTEC (Ireland)

• Bellwether Recuperative Gasification Ltd (Germany)

• SynTech Bioenergy, LLC (U.S.)

• HaiQI Inc. (China)

• thyssenkrupp AG (Germany)

• Bio Energy Netherlands (Netherlands)

• Mitsubishi Heavy Industries, Ltd. (Japan)

• Infinite Energy (India)

Key Industry Developments

• In October 2025, Dall Energy announced the supply of four biomass boilers to expand district heating networks in France, aiming to power nearly 40,000 homes with 100% renewable energy by 2031.

Future Market Scope

The future outlook for the biomass gasification market remains positive, driven by technological advancements, rising renewable energy adoption, and growing emphasis on circular economy models. The integration of biomass gasification with hydrogen production and carbon capture technologies is expected to unlock new revenue streams.

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