The global Biomass Boiler Market is gaining strong momentum as industries and governments accelerate their transition toward low-carbon energy systems. Valued at US$ 6.8 billion in 2024, the market is projected to reach US$ 27.0 billion by 2035, expanding at a robust CAGR of 13.3% from 2025 to 2035. This rapid growth reflects rising investments in renewable heating technologies, supportive policy frameworks, and the urgent need to decarbonize industrial and residential heat generation.

Access key findings and insights from our Report in this sample – https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=14657

Market Overview

Biomass boilers use organic materials such as wood pellets, agricultural residues, and forestry waste to generate heat and power. They are increasingly viewed as a practical and scalable alternative to fossil-fuel-based boilers, especially in sectors where electrification of heat remains challenging. The market encompasses a wide range of applications, from small residential heating systems to large-scale industrial boilers and district heating networks. Growing awareness of circular economy principles and the utilization of waste biomass further strengthens the market’s appeal.

Market Size and Growth

The impressive growth trajectory of the biomass boiler market is driven by rising energy demand, volatility in fossil fuel prices, and global commitments to carbon neutrality. Governments across Europe, Asia-Pacific, and North America are offering subsidies, feed-in tariffs, and tax incentives to encourage biomass-based heating solutions. Industrial users, in particular, are adopting biomass boilers to reduce carbon footprints while maintaining reliable thermal energy supply, contributing significantly to market expansion through 2035.

Market Segmentation

The market is segmented by fuel type, capacity, application, and end user. By fuel type, wood pellets and wood chips dominate due to their high energy density and established supply chains, while agricultural residues are gaining traction in agrarian economies. Capacity-wise, medium- and large-scale boilers account for a substantial share, driven by industrial and district heating demand. In terms of application, industrial process heating and combined heat and power (CHP) systems represent high-growth segments, supported by efficiency and cost advantages.

Regional Analysis

Europe remains the leading region, supported by stringent emissions regulations, mature biomass supply chains, and strong adoption of district heating systems. Asia-Pacific is expected to witness the fastest growth, fueled by rapid industrialization, increasing energy demand, and government-led renewable energy targets in countries such as China and India. North America is also expanding steadily, driven by industrial decarbonization initiatives and growing interest in CHP solutions, while emerging markets in Latin America and Africa present long-term growth opportunities.

Market Drivers and Challenges

Key drivers include decarbonization targets, rising fossil fuel costs, and technological advancements that improve efficiency and emissions performance. However, the market faces challenges such as high initial capital costs, biomass fuel supply logistics, and competition from alternative renewable heating technologies. Ensuring sustainable biomass sourcing and addressing public concerns around emissions remain critical for long-term growth.

Market Trends

Major trends shaping the market include fuel flexibility, automation, and digitalization. Advanced control systems, remote monitoring, and predictive maintenance are enhancing operational reliability and reducing downtime. Integration of biomass boilers with CHP systems is gaining popularity, allowing users to maximize energy efficiency and economic returns.

Competitive Landscape

The biomass boiler industry features prominent players such as ANDRITZ, Babcock & Wilcox, Doosan Enerbility, Valmet, Siemens Energy, Thermax, Hargassner, and Viessmann. These companies are investing heavily in high-efficiency combustion technologies, advanced emissions control systems, and automation to meet tightening decarbonization standards. Many are also expanding service-based business models, including turnkey EPC solutions, remote monitoring, and lifecycle services, to simplify operations for customers.

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

Contact:

Transparency Market Research Inc.

CORPORATE HEADQUARTER DOWNTOWN,

1000 N. West Street,

Suite 1200, Wilmington, Delaware 19801 USA

Tel: +1-518-618-1030

USA – Canada Toll Free: 866-552-3453