Global Biomass Boiler Market

MARKET SCOPE:

The global biomass boiler market is projected to grow significantly, registering a CAGR of 8.4% during the forecast period (2025 – 2034).

The biomass boiler industry is gaining momentum, driven by increasing demand for sustainable and renewable energy products used in residential, commercial, and industrial sectors. Many countries around the world are updating their environmental regulations, offering incentives for businesses and other users to transition from traditional fossil fuels to more sustainable options, such as biomass. This change to more sustainable fuels is also prompted by something nobody can ignore - environmental regulations concerning climate change and carbon emissions. While environmental protocols change the landscape of fuel provided by fossil fuels, biomass solutions can be more affordable also, so rational businesses would want to take that route if they can afford it as well improve the efficiency of their energy use. Additionally, boiler systems can be upgraded with smart technologies and automation to provide better sub-performance in boiling systems which is desirable more than ever with the increasing market demand.

Another relevant aspect that drives the biomass boiler industry forward is the growing availability of environmentally sourced feedstocks, based on surveys of woody biomass, agricultural residues, and biogas sourcing. Using locally sourced feedstocks for a manufacturer, or business, is ideal to accomplish not only more self-reliance but also energy security streams, as the majority of feedstocks would be sourced locally requiring less fossil fuel supplies to transport. Additionally, the growth of biomass and renewable sources would trend towards combined heat and power (CHP) systems with higher level of efficiency than total transported of fossil fuel produced energy. For industrial sectors that supply high energy volumes biomass can offer hybrid solutions more than ever for higher energy levels and with great reliability. As noted before there are multiple feeds stocks available as opposed to one feedstock, and energy volumes for each feedstock too. So, utilizing biomass for integrated solutions only makes for more competent and reliable energy sources as we make more choices to better fit several energy usage demands.

MARKET OVERVIEW:

Driver: Government Incentives and Regulations Boosting Biomass Boiler Adoption

Government decisions aimed at reducing carbon emissions and providing consumers with a renewable energy alternative are driving the biomass boiler market. Many countries promote it through financial incentives to utilize biomass as a cleaner alternative to fossil fuels. Examples include tax breaks, grants, and subsidies for biomass use. One of the policies from the European Union government (RED II - Renewable Energy Directive) focused on adding more renewable energy (including biomass) to current levels for targeted climate benefits.

In addition, different regions are creating regulatory environments for both businesses and consumers to invest in sustainable heating solutions. These regulations reduce greenhouse gas emissions and help enhance energy independence, while also creating a biomass boiler demand in many markets. Given that countries are prioritizing green energy policies, it is reasonable to expect that the biomass boiler market will continue to grow.

Restraint: High Initial Installation Costs for Biomass Boilers

Biomass boilers can save money in the long run; however, the high initial installation costs are a major obstacle in the market. The upfront cost of biomass heating systems is generally well above the other conventional sources, including gas or oil, plus there will be separate expenses in terms of fuel storage, fuel handling systems and connecting the technology to the existing systems too. The initial high capital costs can dissuade many potential buyers including small businesses and homeowners, even though the financial savings of utilizing renewable energy will eventually cover the costs through operational savings and lower tariff values, the upfront costs are still a major barrier, particularly where no or insufficient financial or tax incentives are offered to aid the uptake of biomass systems.

Opportunity: Technological Changes and Efficiency Improvements in Biomass Boiler Systems

Technological advancements in biomass boiler systems present a significant opportunity for market growth. Innovations such as automated fuel handling systems, enhanced combustion control, and linkages with smart-grid technology, are driving biomass boilers to increased efficiency and lowered operations. Improvements in energy conversion proportions, lower emissions, and reduced maintenance costs make biomass and biomass boilers more attractive as a renewable energy resource.

Moreover, technological advancements in feedstock handling may even facilitate more versatile systems that can utilize an array of renewable materials, including agricultural waste and forest residuals. As technologies improve, there will be a continuous improvement in the cost-benefit to consumers using biomass boilers and continued cost advantages over energy options particularly in regions with high energy demands and sustainability drives.

SEGMENTATION ANALYSIS:

The Woody Biomass Segment is anticipated to grow significantly during the forecast period

The woody biomass segment in the biomass boiler market is projected to grow considerably owing to it being the main feedstock. Woody biomass, which includes materials such as wood chips, pellets, and sawdust, has been embraced as a feedstock because of its high energy value and widespread availability in forested regions. This feedstock stands out with respect to efficiency, low-cost, and sustainability, making it the feedstock of choice for residential and industrial biomass heating systems. The robust industry around sourcing and processing woody biomass, and distribution chains, has, and will continue to drive optimal results in this sector. The demand for supply of woody biomass will remain strong as businesses and governments pivot to reducing the carbon that they release in their respective industries, as well as adopting more renewable energy sources as replacements.

REGIONAL ANALYSIS:

The Europe region is set to witness significant growth during the forecast period

The Europe biomass boiler market is expected to remain dominant during the forecast period due to significant environmental regulations, government backing for renewable energy, and well-established supply chains for biomass fuels. Countries like Germany, Sweden, and the United Kingdom have a higher share of the market due to the current advanced infrastructure, high technology adoption, and the emphasis on energy efficiency. Additionally, as organizations and individuals become more aware of carbon emissions and sustainability aspects, both home consumers and industrial consumers are beginning to shed light on biomass boilers as an option and a credible environmental heating alternative.

Furthermore, there is also a sense of urgency in the industry to reduce fossil fuel dependency and meet renewable energy mandates, which has accelerated the transition to biomass boilers across Europe. These supportive practices, like subsidies, tax incentives, and grants for renewables heating systems will also help motivate business investors and homeowners to transition to biomass-based solutions. Furthermore, advances in boiler efficiency and operational automation are improving performance and reliability, and delivering in tandem with European biomass boiler supply chains further reaffirms Europe’s leadership in global biomass boiler markets.

COMPETITIVE ANALYSIS:

The global biomass boiler market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

Froling Boiler and Tank Construction

ANDRITZ Group

Guntamatic Heiztechnik

ARITERM

Hargassner

Hoval

Babcock & Wilcox Enterprises

Binder Energietechnik

Cheema Boiler

DP Cleantech

Forbes Marshall

Hurst Boiler & Welding

Recent Development:

In August 2023, Forbes Marshall participated in Boiler World Africa 2023, an event that attracted over a thousand attendees from across the continent.

In February 2025, ANDRITZ, an international technology group headquartered in Graz, Austria, acquired LDX Solutions, a leading provider of emission reduction technologies and related services in the North American industrial market.

In April 2024, Babcock & Wilcox Renewable Service, a subsidiary of Babcock & Wilcox, secured a contract valued at over $7 million to upgrade three municipal and commercial waste-fueled boilers and combustion equipment at a waste-to-energy power plant in Southeast Asia.

SCOPE OF THE REPORT:

By Type

• Fully Automated Biomass Boiler
• Semi-Automated Biomass Boiler
• Combined Heat and Power System
• Others

By Feedstock

• Woody biomass
• Forest residue
• Agriculture
• Biogas & Energy Crop
• Urban Residue
• Others

By Application

• Heating
• Power Generation

By End-user

• Residential
• Commercial
• Industrial

By Region

• North America (United States & Canada)
• Europe (Germany, UK, France, Spain, Italy and Rest of Europe)
• Asia-Pacific (China, Japan, India, South Korea, Australia and Rest of Asia-Pacific)
• Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
• Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa and Rest of Middle East and Africa)

KEY REASONS TO PURCHASE THIS REPORT:

It provides a technological development map over time to understand the industry’s growth rate and indicates how the biomass boiler market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which biomass boiler submarket will be the main driver of the overall market from 2025 to 2034.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2034 and which country will lead the market in 2034. Show more