Biomass Boiler Market to Reach US$ 27.0 Billion by 2035 with 13.3% CAGR, Powered by Global Clean Energy Shift - TMR Analysis

Biomass Boiler Market Size Outlook 2035

The global biomass boiler market reached US$ 6.8 billion in 2024 and is projected to grow significantly to US$ 27.0 billion by 2035, registering a strong CAGR of 13.3% from 2025 to 2035. Key players shaping the market include ANDRITZ, Babcock & Wilcox, Thermax, and Doosan. Europe led the industry in 2024 with a 38% revenue share, while woody biomass emerged as the dominant feedstock type, accounting for 50% of the market during the same year.

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Market Overview

Biomass boilers use organic materials such as wood pellets, chips, agricultural residues, and energy crops to generate heat and power for residential, commercial, and industrial applications. As a renewable, low-emission energy source, biomass heating systems have gained widespread acceptance across the Europe, Asia-Pacific, and North American regions.

Growing concerns regarding climate change, emission reduction targets, and the global push for sustainable heating technologies are accelerating adoption. Industries such as manufacturing, food processing, chemicals, and power generation are increasingly integrating biomass boilers to reduce fuel costs and cut carbon footprints.

Furthermore, the introduction of advanced automated boilers, high-efficiency combustion systems, hybrid heating setups, and smart controls is making biomass heating more accessible, efficient, and reliable.

Key Market Growth Drivers

1. Rising Focus on Decarbonization and Renewable Energy
Governments worldwide are promoting biomass-based heating as part of long-term carbon reduction strategies. Policies supporting renewable heat incentives (RHI), clean fuel subsidies, and carbon taxes on fossil fuels are accelerating market demand.

2. Cost Efficiency and Fuel Availability
Biomass is abundant and cost-effective compared to traditional fuels such as diesel, LPG, and coal. Industrial users benefit from lower operating costs, especially in regions with strong forestry and agricultural output.

3. Technological Advancements
Modern biomass boilers feature:
• Fully automated feed systems
• Low-emission combustion technology
• Smart monitoring and remote operation
• Hybrid and co-generation designs
These innovations significantly enhance efficiency and fuel utilization.

4. Strong Demand from Industrial and Commercial Sectors
Manufacturers, food processors, hospitals, educational institutions, and district heating systems prefer biomass boilers to meet sustainability goals and reduce long-term energy costs.

5. Growth in Eco-friendly Infrastructure
Green building initiatives and sustainable construction standards are fueling adoption of biomass heating solutions in the residential and commercial sectors.

Analysis of Key Players - Key Strategies

Key industry players are focused on product innovation, strategic partnerships, and geographic expansion to strengthen their market position.

1. Product Innovation
Manufacturers are launching:
• High-efficiency, low-emission biomass boilers
• Modular and compact biomass systems
• Hybrid boilers integrated with solar and heat pumps
• Intelligent combustion systems for optimized fuel usage

2. Expansion into Emerging Markets
Companies are targeting Southeast Asia, Africa, Eastern Europe, and Latin America, where biomass resources are plentiful and energy demand is rising rapidly.

3. Strategic Partnerships and Mergers
Players collaborate with:
• Renewable energy solution providers
• Local distributors and EPC contractors
• Government bodies for clean-energy deployment
These strategies help expand distribution networks and increase market share.

4. Sustainability and Certification Initiatives
Manufacturers are aligning with global standards such as:
• ISO efficiency and emission certifications
• EN 303-5 standards for biomass boilers
• Renewable Energy Directives in Europe

Analysis of Key Players in the Global Biomass Boiler Market

The global biomass boiler market is driven by leading manufacturers such as ANDRITZ, Babcock & Wilcox, Doosan Enerbility, Valmet, Siemens Energy, Thermax, Hargassner, and Viessmann. These companies continue to invest in high-efficiency combustion systems, advanced automation, and state-of-the-art emissions control technologies to align with tightening global decarbonization goals.

A growing trend among major OEMs is the expansion of service-driven business models that simplify plant operation for end users. This includes predictive maintenance, remote monitoring, and turnkey EPC offerings. In parallel, manufacturers are prioritizing fuel flexibility, system reliability, and seamless integration with combined heat and power (CHP) systems-factors that are accelerating adoption across industrial facilities and district heating networks worldwide.

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Global Biomass Boiler Market Developments

• ANDRITZ - March 2025 | EPC Delivery for Hungrana (Hungary)
ANDRITZ completed the full delivery and commissioning of a biomass power/steam plant for Hungrana, providing end-to-end design, construction, and boiler systems rated at 32 t/h of steam at 12 bar(g) and 220°C fueled by wood chips. The project underscores the shift of boiler manufacturers toward comprehensive EPC and lifecycle solutions that support industrial customers in replacing natural gas with local biomass while maintaining high steam reliability and reducing Scope 1 emissions.

• ANDRITZ - May 2025 | Recovery & Power Boilers for Green Bay Packaging (USA)
ANDRITZ secured a contract to supply a recovery boiler, evaporation plant, and biomass-fired power boiler to Green Bay Packaging's pulp mill in Arkansas. These systems are engineered for high-efficiency steam generation and flue-gas treatment, demonstrating the pulp & paper sector's increasing adoption of biomass-based recovery and power boilers to strengthen circularity and energy self-sufficiency.

• Valmet - July 2025 | Large-Scale Biomass Boiler for Kraftringen Energi (Sweden)
Valmet announced a major contract to deliver a biomass boiler and flue-gas handling system to Kraftringen Energi. The investment is designed to enhance district-heating reliability by replacing fossil-based capacity. Valmet's package-featuring advanced emission controls, multi-fuel capability, and multi-year service agreements-reflects an industry trend toward bundled solutions combining equipment, emissions management, and lifecycle support.

• Hargassner - 2025 | Award-Winning Innovation & Digital Tool Launch
Hargassner announced two notable developments in 2025:
• Winning an innovation award at ENEX for the high-efficiency, low-emission Eco-HK wood chip boiler
• Launching Hargy, an AI-based support tool for installers and service partners
These developments highlight the company's push toward smart boiler systems and enhanced installer support.

Each of these companies has been evaluated in the global biomass boiler market research report based on parameters such as company overview, financial performance, business strategies, product portfolio, key business segments, and recent developments.

Market Challenges & Opportunities

Challenges

1. High Installation and Initial Investment Costs
Despite long-term savings, upfront system costs can deter small consumers.
2. Need for Skilled Technicians
Installation and maintenance require trained professionals, particularly in emerging economies.
3. Supply Chain Complexity
Seasonal variation in biomass availability can affect operational efficiency.
4. Regulatory Compliance
Stringent emission regulations require advanced combustion systems, increasing costs.

Opportunities

1. Integration with Smart Energy Solutions
IoT-enabled boilers, smart meters, and cloud-based monitoring systems enhance efficiency and safety.
2. Rising Adoption in District Heating
Cities adopting centralized heating systems present huge growth potential, especially in Europe and China.
3. Development of Advanced Pellets and Biofuels
Innovations in biomass feedstock such as torrefied pellets, briquettes, and agricultural residue blends improve performance and reduce emissions.
4. Government Subsidies for Clean Heat
Tax credits, grants, and renewable energy incentives will continue boosting installations globally.
5. Growth Across Industrial Sectors
Industries with high heat demand such as food & beverage, chemicals, paper, textiles, and cement are moving toward biomass boilers to meet ESG and sustainability goals.

Investment Landscape and ROI Outlook

The biomass boiler market presents high-growth investment potential, driven by global energy transition trends.

Investment Strengths
• Fast-growing demand for renewable heating
• Strong government support and carbon-reduction incentives
• Rising industrial adoption boosting long-term demand
• Evolution of advanced and premium biomass heating technologies

ROI Outlook

With a strong 13.3% CAGR, the biomass boiler market is forecast to deliver high returns, particularly for investments in:
• Industrial boiler manufacturing
• District heating solutions
• Automated pellet-based boilers
• Regional expansion in Asia-Pacific and Europe
Investors focusing on smart, high-efficiency boilers and clean-fuel supply chains are expected to gain early competitive advantages.

Market Segmentations

By Product Type
• Fully Automated Biomass Boilers
• Semi-Automated Biomass Boilers
• Combined Heat and Power (CHP) Biomass Systems
• Stoker Boilers
• Fluidized Bed Boilers

By Fuel Type
• Wood Pellets
• Wood Chips
• Agricultural Residues
• Energy Crops
• Others

By Application
• Residential Heating
• Commercial Heating
• Industrial Heating
• Power Generation

By End User
• Manufacturing Industries
• Food & Beverage
• Commercial Buildings
• District Heating Plants
• Others

By Region
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

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Why Buy This Report?

✔ Detailed 2035 forecast and market sizing
✔ Analysis of drivers, restraints, challenges, and opportunities
✔ Competitive landscape with key player strategies
✔ Regional and segment-level insights
✔ Business recommendations for investors and manufacturers
✔ Covers latest innovations in biomass technology and fuel advancements

FAQs

1. What will be the biomass boiler market size by 2035?
The market is projected to reach US$ 27.0 billion by 2035.

2. What is the CAGR from 2025-2035?
The market is expected to grow at 13.3% CAGR.

3. Which regions lead the biomass boiler market?
Europe and Asia-Pacific currently dominate due to strong renewable energy policies.

4. What fuel type is most commonly used?
Wood pellets and wood chips are the most widely used biomass fuels.

5. What industries drive the most demand?
Industries such as manufacturing, food processing, paper, and district heating drive major demand.

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