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Biomass Boiler Market

ID: MRFR/EnP/23749-HCR
128 Pages
Priya Nagrale
October 2025

Biomass Boiler Market Research Report By Type (Industrial, Commercial, Residential), By Fuel Type (Wood Chips, Wood Pellets, Agricultural Residues, Forestry Residues, Industrial Waste), By Capacity (5 MW, 5-20 MW, 20-50 MW, >50 MW), By Technology (Grate-Fired, Fluidized Bed, Stoker-Fired, Pellet-Fired), By End-Use (Power Generation, Industrial Process Heat, District Heating, Residential Heating, Institutional Heating) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Biomass Boiler Market Summary

As per MRFR analysis, the Biomass Boiler Market Size was estimated at 14.22 USD Billion in 2024. The Biomass Boiler industry is projected to grow from 15.82 USD Billion in 2025 to 45.96 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 11.25 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Biomass Boiler Market is experiencing robust growth driven by technological advancements and increasing environmental awareness.

  • North America remains the largest market for biomass boilers, driven by rising energy demand and regulatory support.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by rapid industrialization and government incentives.
  • The industrial segment dominates the market, while the commercial segment is witnessing the fastest growth due to diverse applications.
  • Key market drivers include rising energy demand and government incentives, which are propelling the adoption of wood pellets and wood chips as feedstock.

Market Size & Forecast

2024 Market Size 14.22 (USD Billion)
2035 Market Size 45.96 (USD Billion)
CAGR (2025 - 2035) 11.25%

Major Players

Andritz AG (AT), Froling (AT), Babcock & Wilcox (US), Valmet (FI), Siemens (DE), Kawasaki Heavy Industries (JP), Dalkia (FR), Enertech (PH), Hurst Boiler & Welding Co. (US)

Biomass Boiler Market Trends

The Biomass Boiler Market is currently experiencing a notable transformation, driven by a growing emphasis on sustainable energy solutions. As environmental concerns escalate, industries and governments are increasingly turning to biomass as a renewable energy source. This shift is not merely a trend but appears to be a fundamental change in how energy is produced and consumed. The integration of biomass boilers into various sectors, including residential, commercial, and industrial applications, suggests a broad acceptance of this technology. Furthermore, advancements in boiler efficiency and emissions control technologies indicate a commitment to enhancing the performance of biomass systems, thereby making them more appealing to potential users. In addition to technological improvements, regulatory frameworks are evolving to support the adoption of biomass energy. Policies promoting renewable energy sources and providing incentives for biomass boiler installations are likely to bolster market growth. The increasing availability of biomass feedstock, coupled with rising energy prices, may further encourage the transition towards biomass solutions. As the Biomass Boiler Market continues to expand, it is essential to monitor these developments closely, as they could shape the future landscape of energy production and consumption.

Technological Advancements

Recent innovations in biomass boiler technology are enhancing efficiency and reducing emissions. These advancements may lead to increased adoption across various sectors, as users seek to optimize performance while minimizing environmental impact.

Regulatory Support

Government policies are increasingly favoring renewable energy sources, including biomass. This regulatory support could provide financial incentives for installations, thereby stimulating market growth and encouraging wider acceptance of biomass solutions.

Diverse Feedstock Availability

The availability of various biomass feedstocks is expanding, which may enhance the feasibility of biomass boilers in different regions. This diversity could lead to more localized energy production, reducing transportation costs and increasing sustainability.

Biomass Boiler Market Drivers

Rising Energy Demand

The increasing The Biomass Boiler Industry. As populations grow and industrial activities expand, the need for sustainable energy sources intensifies. Biomass boilers, which utilize organic materials for energy production, present a viable alternative to fossil fuels. According to recent data, the energy consumption is projected to rise by approximately 30% by 2040, necessitating innovative solutions. This trend indicates a growing market for biomass boilers, as they can provide renewable energy while reducing greenhouse gas emissions. The Biomass Boiler Market is thus positioned to benefit from this escalating demand, as stakeholders seek to diversify their energy portfolios and enhance sustainability efforts.

Technological Innovations

Technological innovations are transforming the Biomass Boiler Market, enhancing efficiency and performance. Advances in combustion technology, automation, and control systems have led to more efficient biomass boilers that can operate with a variety of feedstocks. These innovations not only improve energy output but also reduce operational costs, making biomass a more competitive energy source. The market is witnessing the introduction of smart biomass boilers that integrate with renewable energy systems, further optimizing energy use. As these technologies continue to evolve, the Biomass Boiler Market is expected to attract more investments and interest from various sectors, including residential, commercial, and industrial applications.

Government Incentives and Policies

Government incentives and supportive policies play a crucial role in shaping the Biomass Boiler Market. Many countries have implemented regulations that promote renewable energy sources, including biomass. These policies often include tax credits, grants, and subsidies aimed at encouraging the adoption of biomass technologies. For instance, certain regions have set ambitious targets for renewable energy usage, which could lead to a substantial increase in biomass boiler installations. The Biomass Boiler Market is likely to experience growth as these incentives make biomass solutions more financially attractive for businesses and consumers alike. This regulatory environment fosters innovation and investment in biomass technologies, further propelling market expansion.

Environmental Sustainability Concerns

Growing concerns regarding environmental sustainability are significantly influencing the Biomass Boiler Market. As climate change becomes an increasingly pressing issue, there is a collective push towards reducing carbon footprints and transitioning to cleaner energy sources. Biomass boilers are recognized for their potential to utilize waste materials, thereby contributing to waste management and reducing landfill use. The market data suggests that the biomass sector could potentially reduce carbon emissions by up to 80% compared to traditional fossil fuels. This environmental advantage positions the Biomass Boiler Market favorably as consumers and businesses alike prioritize sustainable practices in their energy consumption.

Diverse Applications Across Industries

The versatility of biomass boilers across various industries serves as a significant driver for the Biomass Boiler Market. These systems are employed in sectors such as agriculture, food processing, and manufacturing, where they provide a reliable source of heat and power. The ability to utilize different types of biomass feedstock, including agricultural residues and wood chips, enhances their appeal. Market analysis indicates that the industrial sector is increasingly adopting biomass boilers to meet energy needs while adhering to sustainability goals. This trend suggests a robust growth trajectory for the Biomass Boiler Market, as more industries recognize the benefits of integrating biomass solutions into their energy strategies.

Market Segment Insights

By Type: Industrial (Largest) vs. Commercial (Fastest-Growing)

In the Biomass Boiler Market, the Type segment is primarily divided into Industrial, Commercial, and Residential categories. Among these, the Industrial sector represents the largest share, driven by increased energy demands and the need for sustainable operations. The Commercial segment follows closely, gaining traction as businesses adopt greener strategies to reduce their carbon footprint. Residential biomass boilers are also present, but they cater to a niche market focused on sustainable home heating solutions.

Commercial (Dominant) vs. Residential (Emerging)

The Commercial sector of the Biomass Boiler Market stands out as a dominant player, characterized by the increasing adoption of eco-friendly heating solutions among businesses. This segment benefits from regulatory incentives and a growing awareness of environmental sustainability, making it a preferred choice for commercial establishments. Conversely, the Residential segment is emerging but smaller in scale, driven by individual households seeking to reduce energy costs and enhance energy efficiency. While it struggles with higher upfront costs, the growing trend of self-sustained energy sources positions it as a compelling option for environmentally conscious homeowners.

By Fuel Type: Wood Pellets (Largest) vs. Wood Chips (Fastest-Growing)

In the Biomass Boiler Market, the fuel type segmentation reveals that wood pellets dominate the market share, being favored for their high energy density and uniform size that facilitate efficient combustion. Conversely, wood chips, while currently holding a smaller share, are rapidly gaining traction due to increased adoption in various applications, driven by their relatively low cost and availability. The diversity in agricultural and forestry residues, including agricultural residues and forestry residues, further complements the broad spectrum of fuel options available to consumers.

Wood Pellets (Dominant) vs. Wood Chips (Emerging)

Wood pellets represent the dominant fuel type in the Biomass Boiler Market, characterized by their high calorific value, consistent quality, and ease of storage and transport. They are produced through a stringent process, ensuring minimal moisture content and maximum efficiency in combustion. On the other hand, wood chips are emerging as a favored choice among consumers, gaining popularity due to their lower cost and the abundance of raw materials. While they have a larger size compared to pellets, making handling and storage a bit challenging, their availability drives strong interest in their use. The biomass boiler market is seeing an increasing shift towards adopting diverse fuels, with both wood pellets and wood chips playing crucial roles.

By Capacity: 5-20 MW (Largest) vs. >50 MW (Fastest-Growing)

In the Biomass Boiler Market, the segment distribution reveals that capacities between 5-20 MW hold a significant market share, making it the largest segment due to widespread adoption in various industrial applications. The reason behind this dominance is the optimal balance of energy output and efficiency that meets the needs of medium-sized facilities, providing a reliable and sustainable source of heat and power. On the other hand, the >50 MW segment is emerging as the fastest-growing capacity range, driven by increasing industrial demand for larger scale solutions and the push for renewable energy sources. As large-scale producers seek to minimize carbon emissions, this segment will likely witness rapid advancements and a rise in technological innovation.

5-20 MW (Dominant) vs. >50 MW (Emerging)

The 5-20 MW segment is characterized by its versatility, catering to a wide array of applications across manufacturing and commercial industries. Facilities within this range benefit from a sweet spot of energy production that is both cost-effective and efficient, allowing users to harness biomass for a sustainable energy source. Conversely, the >50 MW segment is rapidly emerging as a vital player in the market, driven by the trend toward larger installations that can accommodate vast operational needs. As industries pivot to greener alternatives, this segment emphasizes advanced technology and sustainability, appealing to larger industrial processes that demand high output and efficiency.

By Technology: Grate-Fired (Largest) vs. Fluidized Bed (Fastest-Growing)

The Biomass Boiler Market showcases a diverse technological landscape, with Grate-Fired systems leading in market share due to their widespread adoption in large-scale biomass applications. This segment is favored for its efficiency and ability to handle a variety of biomass fuels, maintaining a significant presence in the market. Meanwhile, Fluidized Bed technology is rapidly gaining traction, driven by its flexibility and the ability to combust a range of biomass materials. This growing segment is particularly appealing to modern energy applications, particularly in industries seeking lower emissions standards.

Technology: Grate-Fired (Dominant) vs. Fluidized Bed (Emerging)

Grate-Fired biomass boilers are recognized for their robustness and efficiency in handling bulk biomass fuels, making them a dominant choice for large-scale energy producers. These systems enable efficient heat transfer and effective combustion control, thereby optimizing overall performance. On the other hand, Fluidized Bed boilers are emerging as a preferred choice due to their ability to burn diverse feedstocks and lower emissions. They are especially favored for their operational flexibility, allowing for cleaner energy production and adaptability to varying biomass types. This evolution reflects the industry's shift towards more sustainable and efficient biomass energy utilization.

By End-Use: Power Generation (Largest) vs. Industrial Process Heat (Fastest-Growing)

The Biomass Boiler Market is segmented into various end-uses, including Power Generation, Industrial Process Heat, District Heating, Residential Heating, and Institutional Heating. Power Generation holds the largest market share, driven by increased investments in renewable energy and the demand for sustainable power sources. Meanwhile, the Industrial Process Heat segment is rapidly gaining ground as industries seek cleaner heating solutions to meet stricter emissions regulations, highlighting a significant shift in energy consumption patterns.

Power Generation: Dominant vs. Industrial Process Heat: Emerging

Power Generation remains the dominant end-use in the Biomass Boiler Market, capitalizing on growing energy demands and governmental incentives for renewable energy solutions. Its established infrastructure and technological advancements enable efficient energy production, making it a favored choice. On the other hand, Industrial Process Heat is emerging rapidly, showcasing high growth potential as sectors like manufacturing and food processing adopt biomass solutions to reduce fossil fuel dependency. This segment is characterized by its flexibility in usage, with applications ranging from steam generation to direct heating, thus appealing to various industrial applications.

Get more detailed insights about Biomass Boiler Market

Regional Insights

North America : Sustainable Energy Leader

North America is witnessing a significant surge in the biomass boiler market, driven by increasing energy demands and a shift towards sustainable energy solutions. The region is the largest market, holding approximately 40% of the global share, with the U.S. leading the charge. Regulatory support for renewable energy initiatives and incentives for biomass utilization are key growth drivers, fostering innovation and investment in this sector. The competitive landscape is characterized by major players such as Babcock & Wilcox and Hurst Boiler & Welding Co., which are actively expanding their product offerings. The U.S. and Canada are the leading countries, with a robust infrastructure for biomass energy production. The presence of established companies and ongoing research into advanced biomass technologies further solidifies North America's position in the market.

Europe : Innovative Biomass Solutions

Europe is emerging as a powerhouse in the biomass boiler market, driven by stringent environmental regulations and a strong commitment to renewable energy. The region holds approximately 35% of the global market share, with Germany and Sweden being the largest contributors. The European Union's Green Deal and various national policies are pivotal in promoting biomass as a sustainable energy source, encouraging investments and technological advancements in the sector. Leading countries like Germany, Austria, and Finland are home to key players such as Andritz AG and Valmet, which are at the forefront of innovation. The competitive landscape is marked by a focus on efficiency and sustainability, with companies investing in research and development to enhance biomass boiler technologies. This commitment to innovation positions Europe as a leader in The Biomass Boiler Market.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is witnessing rapid growth in the biomass boiler market, driven by increasing energy needs and a focus on sustainable practices. The region holds approximately 20% of the global market share, with countries like China and India leading the way. Government initiatives promoting renewable energy and reducing carbon emissions are significant catalysts for market expansion, encouraging the adoption of biomass technologies across various sectors. China is the largest market in the region, with substantial investments in biomass energy infrastructure. Key players such as Kawasaki Heavy Industries and Enertech are actively involved in developing innovative solutions tailored to local needs. The competitive landscape is evolving, with a growing number of domestic companies entering the market, enhancing competition and driving technological advancements in biomass boiler systems.

Middle East and Africa : Untapped Energy Resources

The Middle East and Africa region presents significant untapped potential in the biomass boiler market, driven by increasing energy demands and a shift towards renewable energy sources. The region holds approximately 5% of the global market share, with countries like South Africa and Kenya showing promising growth. Government initiatives aimed at diversifying energy sources and enhancing energy security are key drivers for biomass adoption in this region. South Africa is leading the way in biomass energy projects, with various initiatives aimed at promoting sustainable practices. The competitive landscape is still developing, with a mix of local and international players entering the market. Companies are focusing on establishing partnerships and collaborations to enhance their market presence and drive innovation in biomass technologies, paving the way for future growth in the region.

Biomass Boiler Market Regional Image

Key Players and Competitive Insights

Major players in the Biomass Boiler Market industry are constantly looking for ways to improve their products and services in order to stay ahead of the competition. Leading Biomass Boiler Market players are investing in research and development to create new and innovative products that meet the needs of customers. The Biomass Boiler Market is expected to grow significantly in the coming years, due to the increasing demand for renewable energy sources. This growth is expected to create new opportunities for companies in the industry. 

The Biomass Boiler Market is a competitive landscape, with a number of major players. Some of the leading Biomass Boiler Market players include Viessmann, A.O. Smith, and Bosch Thermotechnology. These companies are all well-established in the industry and have a strong track record of success. They are also constantly looking for ways to improve their products and services in order to stay ahead of the competition.A.O. Smith is a leading manufacturer of water heaters and boilers. The company has a long history of innovation and has been a pioneer in the development of new technologies. A.O.

Smith's biomass boilers are known for their efficiency and reliability. The company also offers a wide range of other products and services, including water heaters, boilers, and heat pumps. A.O. Smith is a global company with operations in North America, Europe, and Asia. 

The company is committed to providing high-quality products and services to its customers.Bosch Thermotechnology is a leading global supplier of heating, cooling, and hot water systems. The company has a long history of innovation and has been a pioneer in the development of new technologies. Bosch Thermotechnology's biomass boilers are known for their efficiency and reliability. The company also offers a wide range of other products and services, including boilers, heat pumps, and solar thermal systems. Bosch Thermotechnology is a global company with operations in Europe, North America, and Asia.

The company is committed to providing high-quality products and services to its customers.

Key Companies in the Biomass Boiler Market market include

Industry Developments

The Biomass Boiler Market is projected to reach USD 30.0 billion by 2032, exhibiting a CAGR of 11.25% during the forecast period. Increasing environmental concerns, supportive government policies, and rising energy demand are the key factors driving market growth.Recent developments in the market include:- In 2023, the International Energy Agency (IEA) released a report highlighting the role of biomass boilers in reducing carbon emissions. The report emphasized the need for increased investment in biomass boiler technologies.- In 2024, the European Union announced a new directive promoting the use of renewable energy sources, including biomass.

This directive is expected to boost the demand for biomass boilers in the region.- Several leading manufacturers, such as Viessmann, AHT Cooling Systems, and Hurst Boiler Welding Company, are investing in research and development to improve the efficiency and affordability of biomass boilers.

Future Outlook

Biomass Boiler Market Future Outlook

The Biomass Boiler Market is projected to grow at 11.25% CAGR from 2024 to 2035, driven by increasing energy demands, sustainability initiatives, and technological advancements.

New opportunities lie in:

  • Expansion into emerging markets with tailored biomass solutions.
  • Development of hybrid systems integrating biomass with solar technologies.
  • Investment in R&D for advanced biomass fuel processing techniques.

By 2035, the Biomass Boiler Market is expected to be robust, driven by innovation and strategic investments.

Market Segmentation

Biomass Boiler Market Type Outlook

  • Industrial
  • Commercial
  • Residential

Biomass Boiler Market End-Use Outlook

  • Power Generation
  • Industrial Process Heat
  • District Heating
  • Residential Heating
  • Institutional Heating

Biomass Boiler Market Capacity Outlook

  • 5 MW
  • 5-20 MW
  • 20-50 MW
  • >50 MW

Biomass Boiler Market Fuel Type Outlook

  • Wood Chips
  • Wood Pellets
  • Agricultural Residues
  • Forestry Residues
  • Industrial Waste

Biomass Boiler Market Technology Outlook

  • Grate-Fired
  • Fluidized Bed
  • Stoker-Fired
  • Pellet-Fired

Report Scope

MARKET SIZE 202414.22(USD Billion)
MARKET SIZE 202515.82(USD Billion)
MARKET SIZE 203545.96(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)11.25% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing demand for sustainable energy solutions drives innovation in the Biomass Boiler Market.
Key Market DynamicsRising regulatory support and technological advancements drive growth in the biomass boiler market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the current valuation of the Biomass Boiler Market as of 2024?

The Biomass Boiler Market was valued at 14.22 USD Billion in 2024.

What is the projected market valuation for the Biomass Boiler Market in 2035?

The market is projected to reach 45.96 USD Billion by 2035.

What is the expected CAGR for the Biomass Boiler Market during the forecast period 2025 - 2035?

The expected CAGR for the Biomass Boiler Market during 2025 - 2035 is 11.25%.

Which companies are considered key players in the Biomass Boiler Market?

Key players include Andritz AG, Froling, Babcock & Wilcox, Valmet, Siemens, Kawasaki Heavy Industries, Dalkia, Enertech, and Hurst Boiler & Welding Co.

What are the market segments for the Biomass Boiler Market based on type?

The market segments based on type include Industrial, Commercial, and Residential, with valuations ranging from 5.0 to 17.96 USD Billion.

How does the fuel type segment perform in the Biomass Boiler Market?

The fuel type segment includes Wood Chips, Wood Pellets, Agricultural Residues, Forestry Residues, and Industrial Waste, with valuations from 2.12 to 11.84 USD Billion.

What capacity ranges are available in the Biomass Boiler Market?

Capacity ranges include 5 MW, 5-20 MW, 20-50 MW, and >50 MW, with valuations from 2.84 to 13.56 USD Billion.

What technologies are utilized in the Biomass Boiler Market?

Technologies include Grate-Fired, Fluidized Bed, Stoker-Fired, and Pellet-Fired, with valuations from 2.5 to 17.46 USD Billion.

What are the primary end-use applications for Biomass Boilers?

End-use applications include Power Generation, Industrial Process Heat, District Heating, Residential Heating, and Institutional Heating, with valuations from 2.0 to 12.0 USD Billion.

How does the Biomass Boiler Market's growth potential appear in the coming years?

The market appears poised for growth, with a projected increase in valuation and a robust CAGR of 11.25% during 2025 - 2035.

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