Southeast Asia Biomass Market Summary

The Southeast Asia biomass market size was estimated at USD 3.68 billion in 2023 and is expected to grow at a CAGR of 11.9% from 2024 to 2030. This strong growth trajectory reflects the region's increasing shift toward renewable energy solutions, underpinned by rising energy needs, environmental sustainability targets, and supportive government initiatives. As Southeast Asia addresses the dual challenges of climate change and energy security, biomass energy is becoming an essential element of its long-term sustainable energy framework, offering cleaner alternatives to traditional fossil fuels.

One of the main contributors to the market’s expansion in Southeast Asia is the surge in energy demand arising from rapid industrialization and urban development. As nations within the region advance economically, the need for dependable and sustainable energy sources intensifies. Biomass energy, which is derived from organic materials including agricultural waste, wood pellets, and other biodegradable resources, presents an eco-friendly and renewable alternative to conventional energy. It not only helps mitigate greenhouse gas emissions but also plays a role in solving waste disposal issues by converting waste into productive energy sources. These dual advantages make biomass increasingly appealing to both policymakers and industries seeking greener operations.

Key Market Trends & Insights

  • Palm kernel shells (PKS) emerged as the largest feedstock segment, accounting for a 69.0% market share in 2023. This significant share indicates a growing recognition of PKS as a valuable and accessible resource across several sectors, especially in energy and manufacturing. The availability, low cost, and high calorific value of PKS contribute to its dominance as a preferred biomass feedstock in the region.
  • Bio gas was the largest product segment in 2023, holding a 42.1% share of the market. Its widespread use can be attributed to its versatility in application, high energy output, and relatively low production costs. Bio gas is increasingly adopted across industrial and utility-scale projects as a sustainable energy source that complements existing power infrastructures.
  • Thermal technology emerged as the leading technology segment in the biomass market, capturing a 63.0% market share in 2023. This prominence is driven by the efficiency and reliability of thermal technologies such as combustion and gasification, which have been widely deployed across Southeast Asia to harness biomass for energy generation and heating applications.
  • Power generation was the largest application segment, comprising 58.0% of the market share in 2023. Its dominance is closely linked to the region's urgent requirement for reliable electricity to support economic growth, urban expansion, and industrial activities. Biomass-powered electricity not only provides an alternative to coal-based power but also helps reduce dependency on imported energy sources.
  • The industrial sector accounted for the largest end-use segment, with a 57.3% share in 2023. This is largely due to the significant energy consumption needs of industries such as manufacturing, food processing, and textiles. Biomass serves as a dependable and cost-effective energy solution for these sectors, helping them meet energy demands while aligning with sustainability mandates.
  • Indonesia led the Southeast Asia biomass market in 2023, holding a commanding 49.1% revenue share. This leadership position is supported by Indonesia’s rich reserves of agricultural and forestry biomass, along with government support for biomass-related energy projects. Its favorable climate and large land area make it ideal for both raw material cultivation and energy production facilities.

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Market Size & Forecast

  • 2023 Market Size: USD 3.68 Billion
  • 2030 Projected Market Size: USD 7,788.67 Million
  • CAGR (2024 - 2030): 11.9%
  • Indonesia: Largest market in 2023

Key Companies & Market Share Insights

The Southeast Asia biomass market remains moderately fragmented, with a diverse presence of medium to large enterprises. Major players are actively involved in supplying biomass to the power generation, heating, and industrial sectors. These companies are strategically adopting both organic and inorganic methods such as facility expansion, mergers and acquisitions, and joint ventures to strengthen their foothold and broaden their market outreach.

  • In December 2023, Sumitomo Corporation entered into an agreement with Solariant Capital LLC to pilot the production of biofuel and biochemical products through pyrolysis technology. The trial focuses on using feedstock such as sugarcane and wooden biomass to test scalable and sustainable production models.
  • In March 2023, the Asian Development Bank partnered with SAEL Industries Limited, signing a loan agreement worth approximately USD 91.14 million. This investment supports biomass energy development by leveraging agricultural waste. The collaboration will facilitate the construction of five biomass power plants across Jhunjhunu, Churu, Bikaner, Hanumangarh, and Sikar districts in India. Together, these plants will convert an estimated 650,000 tons of agricultural waste into around 544 gigawatt-hours of electricity annually, thereby diversifying India’s energy mix and reducing carbon intensity.

Key Players

  • DP CleanTech
  • Drax Plc
  • Singapore BioEnergy
  • QLD Resources Berhad
  • Malakoff Corporation Berhad
  • BE Green
  • Asia Renewables Ltd
  • Vietnam Biomass Energy JSC (VBE)
  • QLD Resources Berhad
  • Golden Agri-Resources Ltd

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Conclusion

The Southeast Asia biomass market is on a rapid growth trajectory, driven by increasing energy demands, environmental goals, and abundant natural resources. With rising industrialization and urbanization, the region is turning to biomass as a sustainable and cost-effective alternative to fossil fuels. Key segments such as PKS feedstock, bio gas, thermal technologies, and power generation continue to dominate the market landscape. Indonesia leads with significant contributions due to its resource-rich environment. Continued government support, technological innovation, and strategic collaborations are expected to further propel market expansion, reinforcing biomass’s role as a pivotal element in Southeast Asia’s renewable energy future.