Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.6 % over the past five years, to reach an estimated £2.5bn in 2024.
Trends and Insights
Environmental concerns and a shift in renewables policy stalls growth in bioenergy electricity generation capacity
- Despite often being more emissive than fossil fuels, bioenergy has benefited from its status as a renewable energy source in the UK’s decarbonisation efforts over the last 10 to 15 years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Integrating technology to reduce emissions is crucial to bioenergy’s prospects as a clean energy source
- Investment in Carbon Capture and Storage (CCS) technology will be essential to overcoming opposition from environmentalists and will remain a key feature in the UK’s decarbonisation efforts in the coming years.
Biggest companies in the Biomass Electricity Generation in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Drax Power Limited | 1,613.1 | |
Lynemouth Power Limited | 354.0 | |
Melton Renewable Energy UK Limited | 141.8 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Solid biomass, Biogas and Biodegradable wastes. Solid biomass is the largest segment of the Biomass Electricity Generation in the UK.
Trends and Insights
Volatile wood pellet prices push down solid biomass electricity generation volumes
- Solid biomass electricity generation involves burning organic materials like wood, agricultural residues, or waste to produce steam that drives turbines, generating electricity.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Enterprises in this industry operate electricity-generating facilities using biomass (e.g. agricultural byproducts, landfill gas and biogenic municipal waste).
What's included in this industry?
Solid biomassBiogasBiodegradable wastesCompanies
Drax Power LimitedLynemouth Power LimitedMelton Renewable Energy UK LimitedPurchase this report to view all 4 major companies in this industry.
Related Terms
Contracts For Difference (Cfd)Biomass FeedstockInstalled CapacityCarbon Capture And Storage (CCS)Industry Code
SIC 35.11 - Biomass Electricity Generation in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Environmental opposition stifles growth. Criticism of bioenergy’s carbon emissions has led to a pivot in focus towards other renewables, such as offshore wind, in recent year...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Solid biomass electricity generation faces challenges. Volatile wood pellet prices have made solid biomass electricity generation temporarily uneconomical at major power plan...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Businesses benefit from abundant agricultural feedstocks in the East of England. Locally sourced byproducts facilitate sustainable biomass generation, ensuring regulatory com...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The dominance of Drax Power Station curbs competition. Drax accounts for more than two-thirds of the UK’s biomass-generating capacity, making it difficult for other generator...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Drax Power Ltd dominates the industry. Through its ownership of the world’s largest biomass plant, Drax Power Ltd accounts for the majority share of revenue.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Drax Power Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Lynemouth Power Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Melton Renewable Energy UK Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Drax Power Limited, and factors influencing its performance in the industry
- Description and key data for Lynemouth Power Limited, and factors influencing its performance in the industry
- Description and key data for Melton Renewable Energy UK Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Investment in research and development drives bioenergy growth. Advancements in sustainable feedstocks and carbon reduction measures help to maintain bioenergy’s position in ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising feedstock prices increase input costs. As wood pellet prices surged, soaring purchase costs made pellet fuel temporarily uneconomical for generators subject to fixed p...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Biomass Electricity Generation in the UK industry in United Kingdom in 2024?
The market size of the Biomass Electricity Generation in the UK industry in United Kingdom is £2.5bn in 2024.
How many businesses are there in the Biomass Electricity Generation in the UK industry in 2024?
There are 13 businesses in the Biomass Electricity Generation in the UK industry in United Kingdom, which has grown at a CAGR of 1.6 % between 2019 and 2024.
Has the Biomass Electricity Generation in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Biomass Electricity Generation in the UK industry in United Kingdom has been declining at a CAGR of 0.6 % between 2019 and 2024.
What is the forecast growth of the Biomass Electricity Generation in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Biomass Electricity Generation in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Biomass Electricity Generation in the UK market in United Kingdom?
The biggest companies operating in the Biomass Electricity Generation market in United Kingdom are Drax Power Limited, Lynemouth Power Limited and Melton Renewable Energy UK Limited
What does the Biomass Electricity Generation in the UK in United Kingdom include?
Solid biomass and Biogas are part of the Biomass Electricity Generation in the UK industry.
Which companies have the highest market share in the Biomass Electricity Generation in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Drax Power Limited.
How competitive is the Biomass Electricity Generation in the UK industry in United Kingdom?
The level of competition is low and steady in the Biomass Electricity Generation in the UK industry in United Kingdom.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Wind Power Generation in the UK
- Hydroelectric Electricity Generation in the UK
Complementors
- Electricity Distribution in the UK
- Electricity Supply in the UK
- Electricity Transmission in the UK
International industries
- Biomass Power in the US
- Renewable Energy Generation in Germany
- Electricity Production in Ireland
- Electric Utilities in Spain
- Electric Utilities in France
View all industries in United Kingdom
Methodology
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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