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 2032

Biomass Boiler Market Overview:

As per MRFR analysis, the Biomass Boiler Market Size was estimated at 10.33 (USD Billion) in 2022.The Biomass Boiler Market Industry is expected to grow from 11.5(USD Billion) in 2023 to 30.0 (USD Billion) by 2032. The Biomass Boiler Market CAGR (growth rate) is expected to be around 11.25% during the forecast period (2024 - 2032).

Key Biomass Boiler Market Trends Highlighted

Key market drivers for biomass boilers include increasing energy costs, government incentives, and environmental concerns. Opportunities for growth in the biomass boiler market exist in expanding industries, such as power generation and district heating, as well as in emerging regions with abundant biomass resources.Trends in the biomass boiler market include a shift towards advanced technologies for improved efficiency and reduced emissions, as well as an increasing demand for boilers that can handle a wider range of biomass fuels. 

Additionally, the development of smart grid technologies is expected to create new opportunities for biomass boilers as part of distributed energy systems.Recent trends in the biomass boiler market include the growing adoption of biomass boilers in commercial and industrial applications, as well as the development of new biomass fuels that can be used in boilers. Additionally, there is a growing focus on the integration of biomass boilers with other renewable energy sources, such as solar and wind power.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biomass Boiler Market Drivers

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  Government Support and Incentives

  
  

Though not inexorable, government initiatives and policies appear to be some of the most influential factors driving the implementation of biomass boilers. Countries worldwide provide businesses and homeowners with a range of financial incentives, including tax credits, rebates, and grants, to encourage the acquisition of biomass heating systems. Furthermore, the existence of carbon pricing mechanisms along with the promotion of renewable energy by many governments also seem to create favorable conditions for biomass boiler manufacturers.The ultimate goal of these measures is to help curb greenhouse gas emissions, raise national energy security, and support sustainable development. Additionally, as governments worldwide are continuously faced with the need to meet climate agreements and ensure a smooth transition to cleaner energy sources, the demand for biomass boilers will likely skyrocket in the upcoming years.

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  Rising Energy Costs and Fossil Fuel Dependence

  
  

The escalating costs of traditional fossil fuels, such as natural gas and oil, have made biomass boilers a more cost-effective heating solution. Biomass fuels, derived from organic materials like wood chips, pellets, and agricultural residues, are often locally sourced and less susceptible to price volatility. As a result, businesses and homeowners are increasingly turning to biomass boilers to reduce their energy expenses and mitigate the impact of rising fuel prices.This trend is particularly evident in regions heavily reliant on imported fossil fuels.

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  Technological Advancements and Innovation

  
  

Technological advancements are continuously making biomass boilers more efficient, powerful, and environmentally friendly. It should be noted that manufacturers invest heavily in R in order to enhance every stage of burning, reduce emissions, and contribute to the better utilization of biomass fuel. In addition, new boiler designs, such as fluidized bed boilers and gasification systems, have improved energy conversion efficiency, making these new boilers less expensive to operate.Finally, more advanced automation and control systems make these boilers easier for the providers and facility operators to use, which contributes to their adoption.

Biomass Boiler Market Segment Insights:

Biomass Boiler Market Type Insights

Biomass Boiler Market is escalating, and it is categorized into Industrial, Commercial, and Residential type. The Industrial type contributes to the maximum share as the demand for biomass boilers is increasing in industries such as manufacturing, food processing, and power plants. The Commercial sector is also expected to grow hugely in the upcoming years as these boilers are being adopted by various commercial buildings like offices, hotels, and hospitals. Residential building is also anticipated to grow at a substantial rate as many homeowners are opting for biomass boilers as a renewable and cost-effective source of heating.In the Biomass Boiler Market, the fastest-growing region is expected to be the Asia Pacific region.

This can be attributed to the demand for biomass boilers from various APAC countries like China, India, and Indonesia. Europe and North America are also expected to gain a maximum share as well in the upcoming years due to the government policies and favorable initiatives. The Biomass Boiler Market is highly fragmented as there are many small and medium-sized players in the market. There is a consolidation occurring where the established companies are acquiring the small ones to reach a larger market.The key players in the Biomass Boiler Market include Babcock Wilcox Enterprises, Inc., Hurst Boiler Welding Co., Inc., and Viessmann Werke GmbH Co. KG. In conclusion, the development of the Biomass Boiler Market is anticipated due to concepts of utilizing renewable and other alternative sources of energy as the prices of fossil fuel is increasing.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biomass Boiler Market Fuel Type Insights

The Biomass Boiler Market is segmented based on Fuel Type into Wood Chips, Wood Pellets, Agricultural Residues, Forestry Residues, and Industrial Waste. Among these, Wood Pellets held the largest market share in 2023 and are expected to continue its dominance throughout the forecast period. Tne growth of the Wood Pellets segment can be attributed to their high energy density, low moisture content, and consistent quality. In addition, subsidies and stringent regulations on the usage of non-renewable energy sources for power generation necessitate alternative options such as Wood Pellets.The Wood Chips segment also holds a significant share, as they are the cheapest and are available in abundance. Agricultural Residues, Forestry Residues, and Industrial Waste are also expected to grow, as these are beneficial in waste minimization and are relatively cheap.

Biomass Boiler Market Capacity Insights

The Biomass Boiler Market segmentation by capacity reveals distinct market dynamics for different power generation capacities. The '5 MW' segment held a significant market share in 2023, catering to small-scale industrial and commercial applications. The '5-20 MW' segment is projected to witness considerable growth, driven by increasing adoption in medium-sized industries and power plants. The '20-50 MW' segment is expected to gain traction due to its suitability for large-scale industrial applications and district heating systems. 

The '>50 MW' segment is poised for growth, addressing the growing demand for high-capacity power generation in biomass-rich regions.Biomass Boiler Market revenue is expected to reach USD 11.5 billion in 2023, primarily driven by the increasing adoption of renewable energy sources and stringent environmental regulations. Market growth is attributed to government initiatives promoting biomass utilization and technological advancements enhancing boiler efficiency. Key industry players are focusing on product innovation and strategic partnerships to expand their market presence. The Biomass Boiler Market segmentation provides valuable insights into the market dynamics, enabling stakeholders to make informed decisions.This data empowers businesses to identify growth opportunities, target specific segments, and develop effective market strategies.

Biomass Boiler Market Technology Insights

The Biomass Boiler Market is segmented based on technology into grate-fired, fluidized bed, stoker-fired, and pellet-fired boilers. Among these, the fluidized bed segment held the largest market share in 2023, accounting for over 35% of the Biomass Boiler Market revenue. The fluidized bed technology offers several advantages, such as high combustion efficiency, low emissions, and fuel flexibility, making it a preferred choice for large-scale biomass power plants. 

The grate-fired segment is expected to witness significant growth during the forecast period due to its cost-effectiveness and simplicity of operation.The stoker-fired segment is suitable for burning a wide range of biomass fuels, including wood chips, pellets, and agricultural residues. The pellet-fired segment is gaining popularity due to its high efficiency and reduced emissions, making it an attractive option for residential and commercial applications. Overall, the increasing demand for renewable energy sources and stringent environmental regulations are driving the growth of the biomass boiler market across various regions.

Biomass Boiler Market End-Use Insights

The Biomass Boiler Market segmentation by End-Use comprises Power Generation, Industrial Process Heat, District Heating, Residential Heating, and Institutional Heating. Among these, Power Generation accounted for the largest revenue share in 2023, owing to the increasing demand for renewable energy sources for electricity generation. Industrial Process Heat is expected to witness significant growth over the forecast period due to the rising adoption of biomass boilers in industries for process heating applications. District Heating is another key segment, driven by the growing popularity of district heating systems in urban areas.Residential Heating and Institutional Heating segments are also expected to contribute to market growth, driven by government initiatives promoting the adoption of biomass boilers for residential and institutional heating applications.

Biomass Boiler Market Regional Insights

The Biomass Boiler Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market for biomass boilers, accounting for over 30% of the global revenue in 2023. The region is driven by the increasing demand for renewable energy sources and the presence of favorable government policies. For instance, the U.S. government provides tax credits and incentives for the installation of biomass boilers. Europe is the second largest regional market, with a market share of around 25%. 

The region has a strong focus on reducing greenhouse gas emissions and promoting sustainable energy sources.APAC is expected to be the fastest-growing regional market, with a CAGR of over 12% during the forecast period. The region is driven by the growing demand for energy in developing countries such as China and India. Furthermore, government initiatives to promote renewable energy sources are expected to further drive market growth in the region. South America and MEA are expected to account for a smaller share of the Biomass Boiler Market, but they are also expected to witness healthy growth in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Biomass Boiler Market 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 Include:

• Biomax


• ETA


• Herz


• Windhager


• Guntamatic


• Hargassner


• Justus


• Thermag


• Viessmann


• Hotech


• Schmid


• Lessmann

Biomass Boiler Market 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.

Biomass Boiler Market Segmentation Insights

• Biomass Boiler Market Type Outlook
  
  
  
  • Industrial
  
  
  • Commercial
  
  
  • Residential
  
  
  
  

• Biomass Boiler Market Fuel Type Outlook
  
  
  
  • Wood Chips
  
  
  • Wood Pellets
  
  
  • Agricultural Residues
  
  
  • Forestry Residues
  
  
  • Industrial Waste
  
  
  
  

• Biomass Boiler Market Capacity Outlook
  
  
  
  • 5 MW
  
  
  • 5-20 MW
  
  
  • 20-50 MW
  
  
  • >50 MW
  
  
  
  

• Biomass Boiler Market Technology Outlook
  
  
  
  • Grate-Fired
  
  
  • Fluidized Bed
  
  
  • Stoker-Fired
  
  
  • Pellet-Fired
  
  
  
  

• Biomass Boiler Market End-Use Outlook
  
  
  
  • Power Generation
  
  
  • Industrial Process Heat
  
  
  • District Heating
  
  
  • Residential Heating
  
  
  • Institutional Heating
  
  
  
  

• Biomass Boiler Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa