Biomass Boiler Market
By Fuel Type;
Wood Chip Boilers, Pellet Boilers, Log Boilers and Organic Waste BoilersBy Capacity;
Below 10kW, 10kW-20kW, 20kW-50kW and Above 50kWBy End Use;
Commercial, Residential and IndustrialBy Application;
Heating and Power GenerationBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Biomass Boiler Market Overview
Biomass Boiler Market (USD Million)
Biomass Boiler Market was valued at USD 5,160.57 million in the year 2024. The size of this market is expected to increase to USD 7,862.66 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 6.2%.
Biomass Boiler Market
*Market size in USD million
CAGR 6.2 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 6.2 % |
Market Size (2024) | USD 5,160.57 Million |
Market Size (2031) | USD 7,862.66 Million |
Market Concentration | Medium |
Report Pages | 305 |
Major Players
- nnasol Limited
- WDS Green Energy Limited
- AbioNova
- Babcock & Wilcox
- Dongfang Electric
- Mitsubishi Hitachi Power Sytems
- Harbin Electric
- Doosan Heavy Industries
- Bharat Heavy Electricals
- Ansaldo
- Siemens
- Thermax
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Biomass Boiler Market
Fragmented - Highly competitive market without dominant players
The Biomass Boiler Market is experiencing strong momentum as businesses and households move toward renewable heating technologies. With nearly 45% of consumers adopting low-carbon systems, biomass boilers are gaining traction as a sustainable alternative to fossil fuel-based units. Their ability to operate on organic residues and pellets supports both cost efficiency and eco-friendly energy use.
Environmental Benefits Fueling Growth
By delivering up to a 50% cut in carbon emissions, biomass boilers stand out as an essential technology in green energy adoption. Almost 40% of modern eco-building projects are incorporating these systems to meet stringent sustainability requirements. This alignment with environmental goals is a key factor driving their growing integration.
Technological Innovations Strengthening Adoption
Technological innovation has further boosted adoption, with advanced combustion controls, automated fuel feeding, and heat recovery systems improving efficiency by over 35%. Additionally, nearly 30% of users now rely on smart monitoring features to optimize performance, enhance reliability, and reduce operational costs.
Policy Support and Consumer Preference
Supportive energy policies and incentive programs have encouraged nearly 42% of buyers to switch to biomass boilers. At the same time, about 48% of consumers link these systems to enhanced energy security and financial savings. Together, these trends highlight the crucial role of biomass boilers in shaping the future of sustainable heating.
Biomass Boiler Market Recent Developments
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In June 2023, Viessmann Group launched a next-generation biomass boiler with smart IoT features for residential and commercial use
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In September 2022, Babcock & Wilcox signed a contract for a large-scale biomass boiler project in the Asia-Pacific region to support industrial decarbonization efforts
Segment Analysis
The Global Biomass Boiler Market is segmented by feedstock type, including woody biomass, agriculture and forest residues, biogas and energy crops, and urban residues. Woody biomass, derived from wood and wood waste, serves as a primary feedstock due to its abundance and efficient combustion properties. Agriculture and forest residues, such as crop residues and sawdust, offer additional biomass sources, contributing to the market's diversity. Biogas and energy crops, including organic waste and dedicated energy crops like switchgrass, present renewable alternatives for biomass boiler fuel. Urban residues, comprising municipal solid waste and sewage sludge, provide opportunities for waste-to-energy solutions, further expanding the biomass boiler market's scope.
The wood chips segment dominates the biomass fuel market due to its widespread availability, cost-effectiveness, and suitability for large-scale industrial applications. Wood chips are primarily derived from forestry activities, sawmill residues, and dedicated energy plantations. Their relatively low processing requirements make them an economical option for biomass power plants, district heating systems, and co-firing with coal in conventional power stations. However, their higher moisture content and bulkiness pose challenges in storage, transportation, and combustion efficiency.
Wood pellets, on the other hand, are gaining traction due to their higher energy density, lower moisture content, and standardized size, making them an attractive choice for residential heating and small-scale commercial applications. The growing adoption of pellet stoves and boilers, particularly in Europe and North America, has fueled the demand for wood pellets. Their ease of handling, efficient combustion, and lower emissions compared to raw biomass contribute to their increasing preference. However, the production of wood pellets requires additional processing, making them relatively more expensive than raw biomass fuels.Agricultural residues, including straw, husks, bagasse, and corn stover, offer a renewable and cost-effective alternative for biomass energy production. These residues are byproducts of agricultural activities and are often underutilized or disposed of as waste. Utilizing agricultural residues for energy generation enhances sustainability and reduces environmental concerns associated with open burning. However, challenges such as seasonal availability, low bulk density, and high transportation costs limit their widespread adoption. Additionally, their chemical composition, including higher ash and alkali content, can lead to operational challenges in biomass combustion systems.
Forestry residues, consisting of branches, leaves, bark, and sawmill waste, play a crucial role in the biomass fuel market. These residues are generated during logging operations and wood processing activities, providing a sustainable fuel source without requiring additional deforestation. Their use in biomass power plants and cogeneration facilities contributes to waste reduction and carbon neutrality. However, similar to agricultural residues, forestry residues often require preprocessing to improve their combustion efficiency and transportability. In some cases, their collection and handling costs may offset the economic benefits, making them less competitive than other biomass fuel options.In terms of product type, the market encompasses stoker boilers, bubbling fluidized bed (BFB) boilers, and circulating fluidized bed (CFB) boilers. Stoker boilers are widely used for biomass combustion, offering simplicity and reliability in operation. BFB boilers utilize a bed of sand or limestone to facilitate combustion, providing flexibility in fuel types and minimizing emissions. CFB boilers employ a circulating fluidized bed for enhanced combustion efficiency and pollutant control, making them suitable for larger-scale biomass power generation. North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America are key regions contributing to the global biomass boiler market, each with its unique feedstock availability, regulatory landscape, and market drivers shaping the adoption of biomass boilers for sustainable heat and power generation.
Global Biomass Boiler Segment Analysis
In this report, the Global Biomass Boiler Market has been segmented by Feedstock Type, Product Type,Fuel Type and Geography.
Global Biomass Boiler Market, By Feedstock Type
The Global Biomass Boiler Market has been segmented by Feedstock Type into Woody Biomass, Agriculture & Forest Residues, Biogas & Energy Crops and Urban Residues.
Woody biomass, derived from wood-based materials such as forestry residues and wood chips, represents a significant segment in the market due to its abundant availability and established supply chains. Agriculture and forest residues, including crop residues, sawdust, and bark, also contribute substantially to biomass boiler usage, leveraging agricultural waste streams and byproducts for energy production, thus promoting sustainability in both agricultural and industrial sectors.The utilization of biogas and energy crops, such as switchgrass and miscanthus, as feedstock for biomass boilers highlights the increasing focus on organic waste-to-energy solutions and dedicated energy crop cultivation. Biogas derived from organic waste streams and anaerobic digestion processes presents a renewable alternative for heat and power generation. The utilization of urban residues, including municipal solid waste and sewage sludge, showcases the potential of biomass boilers in addressing urban waste management challenges while simultaneously contributing to renewable energy production.
Global Biomass Boiler Market, By Product Type
The Global Biomass Boiler Market has been segmented by Product Type into Stoker Boilers, Bubbling Fluidized Bed (BFB) Boilers and Circulating Fluidized Bed (CFB) Boilers.
Stoker boilers are characterized by their use of a mechanical stoker to feed fuel into the combustion chamber, making them suitable for solid biomass fuels such as wood chips and pellets. These boilers are commonly used in applications where fuel quality and consistency are essential, such as in industrial and commercial settings. Bubbling Fluidized Bed (BFB) boilers utilize a bed of sand or inert material to suspend and combust biomass fuels, offering advantages in fuel flexibility and lower emissions compared to conventional stoker boilers. BFB boilers are often employed in smaller-scale biomass combustion plants and cogeneration systems.Circulating Fluidized Bed (CFB) boilers feature a larger combustion chamber and high velocity air flow, facilitating efficient combustion of a wide range of biomass fuels, including agricultural residues and forestry biomass. CFB boilers are renowned for their ability to handle varying fuel types and moisture content, making them suitable for large-scale biomass power plants and utility applications. CFB boilers offer advantages in terms of higher efficiency and reduced emissions compared to traditional combustion technologies.
Global Biomass Boiler Market, By Fuel Type
The Global Biomass Boiler Market has been segmented by Fuel Type into Wood Chips, Wood Pellets, Agricultural Residues, and Forestry Residues
The wood chips segment dominates the biomass fuel market due to its widespread availability, cost-effectiveness, and suitability for large-scale industrial applications. Wood chips are primarily derived from forestry activities, sawmill residues, and dedicated energy plantations. Their relatively low processing requirements make them an economical option for biomass power plants, district heating systems, and co-firing with coal in conventional power stations. However, their higher moisture content and bulkiness pose challenges in storage, transportation, and combustion efficiency.
Wood pellets, on the other hand, are gaining traction due to their higher energy density, lower moisture content, and standardized size, making them an attractive choice for residential heating and small-scale commercial applications. The growing adoption of pellet stoves and boilers, particularly in Europe and North America, has fueled the demand for wood pellets. Their ease of handling, efficient combustion, and lower emissions compared to raw biomass contribute to their increasing preference. However, the production of wood pellets requires additional processing, making them relatively more expensive than raw biomass fuels.Agricultural residues, including straw, husks, bagasse, and corn stover, offer a renewable and cost-effective alternative for biomass energy production. These residues are byproducts of agricultural activities and are often underutilized or disposed of as waste. Utilizing agricultural residues for energy generation enhances sustainability and reduces environmental concerns associated with open burning. However, challenges such as seasonal availability, low bulk density, and high transportation costs limit their widespread adoption. Additionally, their chemical composition, including higher ash and alkali content, can lead to operational challenges in biomass combustion systems.
Forestry residues, consisting of branches, leaves, bark, and sawmill waste, play a crucial role in the biomass fuel market. These residues are generated during logging operations and wood processing activities, providing a sustainable fuel source without requiring additional deforestation. Their use in biomass power plants and cogeneration facilities contributes to waste reduction and carbon neutrality. However, similar to agricultural residues, forestry residues often require preprocessing to improve their combustion efficiency and transportability. In some cases, their collection and handling costs may offset the economic benefits, making them less competitive than other biomass fuel options.
Global Biomass Boiler Market, By Geography
In this report, the Global Biomass Boiler Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa and Latin America.
Global Biomass Boiler Market Share (%), by Geographical Region, 2024
In North America, particularly in the United States and Canada, the biomass boiler market is witnessing substantial growth fueled by increasing environmental concerns and government incentives promoting renewable energy sources. The region's abundant biomass resources, coupled with favorable regulatory policies and investments in renewable energy infrastructure, are driving the adoption of biomass boilers across various industries and residential sectors.
Europe stands as a leading market for biomass boilers, with countries like Germany, the United Kingdom, and Sweden spearheading the transition towards sustainable energy solutions. Stringent environmental regulations, ambitious renewable energy targets, and a growing emphasis on reducing carbon emissions are driving the demand for biomass boilers in the region. Technological advancements in biomass combustion technology and government subsidies for biomass heat and power generation further bolster market growth. With Europe's strong commitment to combating climate change and achieving energy independence, the biomass boiler market is poised for continued expansion in the region.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Biomass Boiler Market. These factors include; Market Drivers, Restraints and Opportunities Analysis
Drivers, Restraints and Opportunities Analysis
Drivers
- Better biomass boiler technology
- Energy security needs
- Carbon emission targets rising
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Plenty of biomass available - The availability of abundant biomass resources serves as a significant driving force for the Global Biomass Boiler Market. Biomass, derived from organic materials such as wood, agricultural residues, and waste, offers a renewable and sustainable energy source. This ample availability of biomass feedstock ensures a steady and reliable supply for biomass boiler operations, reducing dependency on finite fossil fuels.
The abundance of biomass resources contributes to the resilience and stability of the biomass boiler market, offering long-term sustainability in energy production. The utilization of biomass for heat and power generation presents opportunities for mitigating waste streams and promoting circular economy principles. Biomass residues from forestry, agriculture, and other industries can be effectively converted into energy through biomass boilers, thus reducing landfill waste and minimizing environmental pollution.
Restraints
- Biomass quality and availability varies
- Biomass boiler systems not easily scalable
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Transportation and storage issues - Biomass materials, such as wood pellets, chips, and agricultural residues, often require specialized handling and transportation infrastructure due to their bulkiness and moisture content. In regions with limited biomass resources or inadequate transportation networks, logistics costs can escalate, affecting the overall competitiveness of biomass boiler systems.
Ensuring a steady and reliable supply of biomass feedstock to biomass boiler facilities is crucial for uninterrupted operations, necessitating efficient storage solutions and logistical planning to mitigate supply chain disruptions. Improving transportation networks, including roads, railways, and ports, can enhance biomass logistics, reduce transportation costs, and increase accessibility to biomass resources.
Opportunities
- Advancements in boiler technology
- Integrating with existing systems
- Collaborating with industries
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Using diverse biomass sources - Biomass boilers can utilize a wide range of organic materials such as wood chips, agricultural residues, and energy crops, providing flexibility in fuel selection based on regional availability and economic viability. This diversity in biomass sources reduces dependency on specific feedstocks, mitigating supply chain risks and ensuring a more stable market outlook.
The ability to utilize diverse biomass sources enhances the sustainability profile of biomass boiler systems, as it encourages the utilization of waste materials and byproducts, thereby reducing environmental impact and promoting circular economy principles. Research and development efforts focused on optimizing combustion processes for various biomass feedstocks enable the development of more efficient and adaptable biomass boiler systems.
Biomass Boiler Market Competitive Landscape Analysis
Biomass Boiler Market is witnessing strong competition as manufacturers focus on energy-efficient, sustainable, and high-capacity boilers for industrial, commercial, and residential applications. Nearly 62% of leading players adopt integrated strategies involving partnerships and collaboration with energy companies, technology integrators, and distributors, while 38% emphasize R&D-driven innovation. This approach ensures steady growth across renewable energy and industrial sectors.
Market Structure and Concentration
The market demonstrates a semi-consolidated structure, with around 55% of share held by global biomass boiler manufacturers and 45% by regional or specialized firms. Larger companies pursue merger activities and international expansion, while smaller players differentiate through technology and efficiency-level innovation. This balance sustains competitive intensity and supports continuous growth in biomass boiler solutions.
Brand and Channel Strategies
Approximately 65% of sales are generated through direct contracts with power plants, industrial facilities, and commercial establishments, while 35% flow via distributors, system integrators, and EPC contractors. Companies strengthen strategies by enhancing brand recognition and fostering collaboration with energy sector stakeholders. This approach drives regional expansion and ensures sustainable growth in biomass boiler adoption.
Innovation Drivers and Technological Advancements
Close to 70% of manufacturers invest in high-efficiency combustion systems, emission control technologies, and automation solutions. These technological advancements improve operational efficiency, sustainability, and regulatory compliance. R&D-led innovation combined with strategic partnerships accelerates product development, strengthens competitiveness, and drives measurable growth in the biomass boiler market.
Regional Momentum and Expansion
North America and Europe together account for nearly 57% of the market share, supported by advanced renewable energy infrastructure and industrial expansion. Asia-Pacific represents around 40%, driven by growing industrialization and government incentives for sustainable energy. Companies adopt regional strategies and collaboration with local distributors to enhance market presence, ensuring sustained growth.
Future Outlook
The market is projected to grow over 6% annually, fueled by increasing demand for renewable energy and energy-efficient boiler solutions. Companies will focus on merger initiatives, strategic partnerships, and continuous innovation. With ongoing technological advancements and regional expansion, the biomass boiler sector demonstrates a promising future outlook.
Key players in Biomass Boiler Market include
- Innasol Limited
- WDS Green Energy Limited
- AbioNova
- Babcock & Wilcox
- Dongfang Electric
- Mitsubishi Hitachi Power Sytems
- Harbin Electric
- Doosan Heavy Industries
- Bharat Heavy Electricals
- Ansaldo
- Siemens
- Thermax
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Feedstock Type
- Market Snapshot, By Product Type
- Market Snapshot, By Fuel Type
- Market Snapshot, By End-Use
- Market Snapshot, By Region
- Biomass Boiler Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Better biomass boiler technology
- Energy security needs
- Carbon emission targets rising
- Plenty of biomass available
- Restraints
- Biomass quality and availability varies
- Biomass boiler systems not easily scalable
- Transportation and storage issues
- Opportunities
- Advancements in boiler technology
- Integrating with existing systems
- Collaborating with industries
- Using diverse biomass sources
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Biomass Boiler Market, By Feedstock Type, 2021 - 2031 (USD Million)
- Woody Biomass
- Agriculture & Forest Residues
- Biogas & Energy Crops
- Urban Residues
- Biomass Boiler Market, By Product Type, 2021 - 2031 (USD Million)
- Stoker Boilers
- Bubbling Fluidized Bed (BFB) Boilers
- Circulating Fluidized Bed (CFB) Boilers
- Biomass Boiler Market, By Fuel Type, 2021 - 2031 (USD Million)
- Wood Chips
- Wood Pellets
- Agricultural Residues
- Forestry Residues
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Biomass Boiler Market, By End-Use, 2021 - 2031 (USD Million)
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Power Generation
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Industrial Process Heat
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District Heating
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Residential Heating
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Institutional Heating
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- Biomass Boiler Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Biomass Boiler Market, By Feedstock Type, 2021 - 2031 (USD Million)
- Competitive Landscape Analysis
- Company Profiles
- Innasol Limited
- WDS Green Energy Limited
- AbioNova
- Babcock & Wilcox
- Dongfang Electric
- Mitsubishi Hitachi Power Sytems
- Harbin Electric
- Doosan Heavy Industries
- Bharat Heavy Electricals
- Ansaldo
- Siemens
- Thermax
- Company Profiles
- Analyst Views
- Future Outlook of the Market