Global Wood Pellets Biomass Boiler Market Overview
As per MRFR analysis, the Wood Pellets Biomass Boiler Market Size was estimated at 12.67 (USD Billion) in 2022. The Wood Pellets Biomass Boiler Market Industry is expected to grow from 13.54 (USD Billion) in 2023 to 24.5 (USD Billion) by 2032. The Wood Pellets Biomass Boiler Market CAGR (growth rate) is expected to be around 6.81% during the forecast period (2024 - 2032).
Key Wood Pellets Biomass Boiler Market Trends Highlighted
The Wood Pellets Biomass Boiler Market is experiencing significant growth attributed to rising concerns over climate change, increasing demand for renewable energy sources, and government initiatives promoting sustainable energy practices. The growing awareness of the environmental benefits of wood pellets, coupled with their cost-effectiveness and ease of use, is driving their adoption in both residential and commercial settings.Additionally, the technological advancements in biomass boiler design, enhancing efficiency and reducing emissions, are further supporting market expansion. The market is expected to witness a surge in demand from emerging economies, where urbanization and industrialization are driving energy consumption and creating a favorable landscape for renewable energy solutions.Recent trends in the market include the emergence of wood pellet stoves and inserts, offering a convenient and cost-effective way to heat smaller spaces. The growing popularity of smart home technologies is also influencing the market, leading to the development of connected biomass boilers that can be controlled remotely. With ongoing research and innovation in biomass boiler technology, the market is poised for continued growth in the coming years, solidifying its role in the transition to a sustainable energy future.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Wood Pellets Biomass Boiler Market Drivers
Increasing Demand for Renewable Energy Sources
The wood pellets biomass boiler market is exhibiting a rising trend in demand and growth with the emergence of concerns over global warming and the gradual depletion of fossil fuels. Energy obtained from wood pellets is a renewable source of energy that is highly sustainable, and the carbon dioxide emission rate as a result of generating energy from these substances is zero. Because governments and businesses in various regions of the world are under a range of stringent environmental regulations and quality standards, the rates of demand for this alternative system of biomass boiler are predicted to augment and support the general growth of the Wood Pellets Biomass Boiler Market Industry.The prices of fossil fuels such as natural gas and oil are on the surge, and they are substantially costlier than wood pellets. Subsequently, in locations within many parts of the world where gas services are not available, wood pellets can replace the present source of fuel efficiently. Therefore, the trend discussed above is likely to last for many future years and result in the growth of the Wood Pellets Biomass Boiler Market Industry’s growth.
Government Incentives and Policies
Governments around the world are implementing various incentives and policies to promote the adoption of renewable energy sources, including wood pellets. These incentives include tax credits, rebates, and grants. In addition, many governments have adopted policies that require utilities to generate a certain percentage of their electricity from renewable sources. These policies are creating a favorable environment for the growth of the Wood Pellets Biomass Boiler Market Industry.
Technological Advancements
Technological advancements are also contributing to the growth of the Wood Pellets Biomass Boiler Market Industry. These advancements include the development of more efficient and cost-effective wood pellet boilers. In addition, the development of new technologies for the production and transportation of wood pellets is making it easier and more affordable to use wood pellets as a fuel source. These technological advancements are expected to continue to drive the growth of the Wood Pellets Biomass Boiler Market Industry in the coming years.
Wood Pellets Biomass Boiler Market Segment Insights:
Wood Pellets Biomass Boiler Market Feedstock Type Insights
Feedstock Type Outlook is the second factor in the market analysis of the Wood Pellets Biomass Boiler Market. It is narrowed down to Wood Chips, Wood Pellets, Wood Logs, and Other Biomass. The component of the Feedstock Type Outlook that is expected to dominate and constitute a significant portion of the revenue is Wood Pellets, mainly because these materials offer ease of use, are highly effective, and are less emissive. The Wood Pellets segment is projected to generate USD 10.24 billion of revenue in 2024. Wood pellets are a type of solid fuel that is made from sawdust and other wood waste compressed into small cylinders, making this option practical, efficient, and inexpensive.Higher usages in both personal and business settings are also influencing the sector. The global market for Wood Pellets will also be supported by governmental incentives and regulations in favor of renewable feeds. Wood Chips are the next major component of the Feedstock Type Outlook and the second-largest segment of the market. Chips are comprised of small solid pieces that have no more than 50% moisture content, making them an optimal solution for industrial and commercial utility since they also have an energy density of 11,8, resulting in an estimated USD 6.49 billion in 2024.The next Feedstock Type Outlook consists of Wood Logs, which are wooden materials with an average diameter of 150 mm and a length of 500 mm, which are burned in their entirety. Because wood pellets are practical and efficient, many organizations and individuals are transitioning from wood logs to biomass boilers induced by pellets. The rate of growth of the Wood Logs segment is limited– in 2024, the revenue these products are expected to generate is estimated at USD 2.81 billion. Other Biomass is the final component of the Feedstock Type Outlook and the one with the fastest rate, as it is likely to account for USD 1.96 billion of revenue.The category includes any biomass that does not fall within the other three categories, such as agricultural and forestry residues and energy crops. Dynamic growth is attributed to the increased usage of biomass-fired boilers in CHP plants and the proliferation of renewable feeds.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Wood Pellets Biomass Boiler Market Application Insights
The Wood Pellets Biomass Boiler Market is segmented by Application into Residential, Commercial, Industrial, Power Generation, and Other Applications. Among these segments, the Residential segment is expected to hold the largest market share during the forecast period. The growing popularity of wood pellet boilers in residential applications can be attributed to their cost-effectiveness, environmental friendliness, and ease of use. The increasing demand for sustainable and renewable energy sources is further driving the growth of the Residential segment.The Commercial segment is also expected to witness significant growth in the coming years. The rising demand for wood pellet boilers in commercial buildings, such as offices, schools, and hospitals, is contributing to the growth of this segment. The increasing awareness of the benefits of wood pellet boilers, such as their low operating costs and reduced carbon emissions, is the adoption of these systems in commercial applications. The Industrial segment is expected to grow at a moderate pace during the forecast period. The use of wood pellet boilers in industrial applications, such as manufacturing facilities and warehouses, is increasing due to their ability to provide efficient and cost-effective heating solutions.The growing emphasis on reducing carbon emissions in the industrial sector is also driving the adoption of wood pellet boilers. The Power Generation segment is expected to witness steady growth in the coming years. The increasing demand for renewable energy sources is leading to the growing adoption of wood pellet boilers in power generation plants. The ability of wood pellet boilers to provide reliable and sustainable power generation is contributing to the growth of this segment. Overall, the Wood Pellets Biomass Boiler Market is expected to witness significant growth in the coming years, driven by the increasing demand for sustainable and cost-effective heating solutions across various applications.
Wood Pellets Biomass Boiler Market Power Output Insights
The power output segment plays a crucial role in the Wood Pellets Biomass Boiler Market, influencing market growth and revenue generation. Among the key segments, 'Less than 50 kW' held a significant market share in 2023, capturing a revenue of 3.14 (USD Billion). This segment caters to smaller applications, such as residential heating and small-scale industries. Moving up the power range, the '50-100 kW' segment is projected to witness steady growth, reaching a projected revenue of 4.21 (USD Billion) by 2032. This segment finds applications in commercial buildings and medium-sized industries.The '100-500 kW' segment, targeting larger industrial and commercial applications, is estimated to generate a revenue of 6.35 (USD Billion) by 2032. Finally, the '500 kW and above' segment, serving heavy industries and power plants, is anticipated to reach a projected revenue of 10.8 (USD Billion) by 2032. This segment offers high-capacity heating solutions for large-scale operations.
Wood Pellets Biomass Boiler Market Boiler Design Insights
The Wood Pellets Biomass Boiler Market is segmented based on boiler design into stoker-fired, grate-fired, fluidized bed, pellet-fired, and other designs. Among these, the stoker-fired segment held the largest market share in 2023. The stoker-fired boilers are widely used in industrial and commercial applications due to their high efficiency, reliability, and ability to handle a wide range of fuels. The grate-fired boilers are also gaining popularity due to their low emissions and cost-effectiveness. The fluidized bed boilers offer high combustion efficiency and low emissions, making them suitable for large-scale power generation applications.The pellet-fired boilers are becoming increasingly popular in residential and small commercial applications due to their ease of use, compact size, and low maintenance requirements. The other designs include biomass gasification boilers, which are gaining traction due to their high efficiency and ability to produce syngas, which can be used for power generation or other industrial applications.
Wood Pellets Biomass Boiler Market End User Insights
The end-user segment plays a vital role in shaping the dynamics of the Wood Pellets Biomass Boiler Market. Homeowners are major consumers, driven by the increasing popularity of biomass boilers for residential heating due to their cost-effectiveness and environmental benefits. Businesses, including commercial and industrial establishments, are also significant end-users, utilizing biomass boilers for space and process heating. Manufacturers leverage biomass boilers for generating thermal energy in production processes, reducing their reliance on fossil fuels.Government agencies and utilities are investing in biomass boilers to promote renewable energy and reduce carbon emissions. Other end-users, such as schools, hospitals, and agricultural facilities, are also contributing to the market growth.
Wood Pellets Biomass Boiler Market Regional Insights
The Wood Pellets Biomass Boiler Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, Europe is expected to dominate the market in 2023, with a market value of USD 5.6 billion and a CAGR of 6.5%. The growth in this region is primarily driven by the increasing adoption of renewable energy sources and the supportive government policies promoting the use of biomass boilers. North America is expected to be the second-largest market, with a market value of USD 4.2 billion and a CAGR of 6.2%. The market growth in this region is attributed to the rising demand for wood pellets as a sustainable and cost-effective heating source.APAC is anticipated to witness significant growth in the coming years, with a market value of USD 2.9 billion and a CAGR of 7.1%. The growth in this region is primarily driven by the increasing industrialization and urbanization, leading to a surge in energy demand.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Wood Pellets Biomass Boiler Market Key Players And Competitive Insights:
Major wood pellet biomass boiler market players have increased expenditure on research and development tasks. Leading companies are focusing on strategic innovations compatible with the trends specified. Consequently, the development of the wood pellets biomass boiler market has been affected by the mentioned factors. Moreover, market trends have also been influenced by the demand for sustainable and eco-friendly devices.Hargassner GmbH is a wood pellets biomass boiler market representative. The company is involved in the design and manufacturing of biomass boilers. The strong market presence of Hargassner GmbH is supported by the competitive quality of devices produced by the leading company. In addition, the company has broad experience within the market of wood pellets biomass boilers. A variety of Hargassner GmbH devices is suitable for different customer groups. Froling Heizkessel- und Behälterbau Ges.m.b.H is another essential market player representative. The company is considered to be a European leader in the field. A high level of product efficiency and reliability contributes to the company’s success. A wide range of fueling wood pellets biomass boilers are available.
Key Companies in the Wood Pellets Biomass Boiler Market Include:
- ETA
- KWB
- Buderus
- Herz Austria
- Wolf
- Nibe
- Solarfocus
- Kob
- HDG Bavaria
- Hargassner
- PlamenGuntamatic
- Rika
- BioFit
Wood Pellets Biomass Boiler Market Industry Developments
The Wood Pellets Biomass Boiler Market is projected to witness steady growth over the forecast period, with a CAGR of 6.81% from 2023 to 2032. The market is anticipated to reach a valuation of USD 24.5 billion by 2032, driven by factors such as rising energy demand, government incentives, and increasing environmental concerns.Recent developments in the industry include the growing adoption of advanced technologies, such as automated biomass feeding systems and improved combustion efficiency, which enhance overall performance and reduce operating costs. Furthermore, strategic partnerships and collaborations among key players are shaping the market landscape. For instance, in 2023, Enviva and Drax announced a partnership to explore sustainable biomass supply chain solutions.
Wood Pellets Biomass Boiler Market Segmentation Insights
- Wood Pellets Biomass Boiler Market Feedstock Type Outlook
- Wood Chips
- Wood Pellets
- Wood Logs
- Other Biomass
- Wood Pellets Biomass Boiler Market Application Outlook
- Residential
- Commercial
- Industrial
- Power Generation
- Other Applications
- Wood Pellets Biomass Boiler Market Power Output Outlook
- Less than 50 kW
- 50-100 kW
- 100-500 kW
- 500 kW and above
- Wood Pellets Biomass Boiler Market Boiler Design Outlook
- Stoker-fired
- Grate-fired
- Fluidized Bed
- Pellet-fired
- Other Designs
- Wood Pellets Biomass Boiler Market End User Outlook
- Homeowners
- Businesses
- Manufacturers
- Government Agencies
- Utilities
- Other End Users
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.67 (USD Billion) |
| Market Size 2023 |
13.54 (USD Billion) |
| Market Size 2032 |
24.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.81% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
ETA, KWB, Buderus, Herz Austria, Wolf, Nibe, Solarfocus, Kob, HDG Bavaria, Hargassner, Plamen, Guntamatic, Rika, BioFit |
| Segments Covered |
Feedstock Type, Application, Power Output, Boiler Design, End User, Regional |
| Key Market Opportunities |
Increasing demand for renewable energy Growing environmental concerns Government incentives for biomass use Technological advancements in boiler efficiency Expanding residential and commercial construction sectors |
| Key Market Dynamics |
Growth in Demand for Clean Energy Government Incentives Technological Advancements Rising Energy Costs Fluctuations in Raw Material Prices |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Wood Pellets Biomass Boiler Market was valued at USD 13.54 billion in 2023 and is projected to reach USD 24.5 billion by 2032, with a CAGR of 6.81% over the forecast period.
The key regions in the Wood Pellets Biomass Boiler Market are North America, Europe, Asia-Pacific, and the Rest of the World (RoW). North America held the largest market share in 2023, followed by Europe and Asia-Pacific.
Wood Pellets Biomass Boilers are primarily used for residential heating, commercial heating, and industrial heating applications. The residential sector accounted for the largest share of the market in 2023, followed by the commercial and industrial sectors.
Some of the key competitors in the Wood Pellets Biomass Boiler Market include AHT Group, Babcock & Wilcox Enterprises, Biomass Energy Systems, Hargassner GmbH, Herz Group, and Hoval Group.
The key trends in the Wood Pellets Biomass Boiler Market include increasing demand for renewable energy sources, rising environmental concerns, and government incentives for the adoption of biomass boilers.
The challenges in the Wood Pellets Biomass Boiler Market include high upfront costs, limited availability of wood pellets in some regions, and competition from other renewable energy technologies.
The future outlook for the Wood Pellets Biomass Boiler Market is positive. The market is expected to grow steadily over the next decade, driven by increasing demand for renewable energy and supportive government policies.
The key factors driving the growth of the Wood Pellets Biomass Boiler Market include rising energy costs, increasing environmental awareness, and government regulations promoting the use of renewable energy sources.
The potential risks to the growth of the Wood Pellets Biomass Boiler Market include fluctuating raw material prices, supply chain disruptions, and competition from other renewable energy technologies.
The key opportunities for growth in the Wood Pellets Biomass Boiler Market include expanding into new markets, developing innovative products, and forming strategic partnerships.
