Biomass Boiler Market Size - By Feedstock, By Product, By Application, Growth Forecast, 2025 - 2034

Biomass Boiler Market Size

The global biomass boiler market was valued at USD 13.4 billion in 2024. The market is expected to grow from USD 14.9 billion in 2025 to USD 30.9 billion in 2034, at a CAGR of 8.4%.
 

• The global shift toward clean energy, increasingly stringent emissions regulations along with the growing need to repurpose agricultural and industrial waste will elevate the business landscape. In regions prioritizing energy security and carbon neutrality, biomass systems are emerging as a practical solution to meet sustainability goals while reducing reliance on fossil fuels.
   
• A biomass boiler is a heating system that utilizes organic materials and biomass, as fuel to generate heat and hot water. Essentially, it functions comparable to a traditional boiler but employs renewable resources instead of fossil fuels, thereby enhancing biomass boiler market momentum.
   
• The stricter environmental regulations in conjunction with global transition toward renewable energy sources will strengthen the business demand. Manufacturers of biomass boilers are experiencing growing interest from industries prioritizing sustainability and waste to energy initiatives. Moreover, integration of AI for automated combustion optimization will fuel the product growth.
   
• Rising development of modular biomass boiler units and advancements in fluidized bed combustion systems in tandem with growing demand for low Nox biomass boilers will foster the industry dynamics. Additionally, incentives including feed-in tariffs, tax benefits, renewable energy targets, and grant programs will significantly boost the market growth.
   
• For illustration, Canada’s Green Buildings Strategy, launched in 2023, exemplifies proactive policy support aimed at reducing energy costs, generating employment, and advancing climate action. By promoting energy-efficient technologies and sustainable construction practices, the initiative highlights the growing global shift toward resilient and eco-friendly infrastructure.
   
• The biomass boiler market was valued at USD 9.3 billion in 2021 and grew at a CAGR of approximately 10% through 2024. The surging focus on clean power technologies along with flourishing real estate sector has enhanced the demand for the boiler market.
   
• The increasing emphasis on achieving decarbonization targets and optimizing energy efficiency, coupled with technological advancements, has significantly enhanced the performance, reliability, and versatility of biomass boilers. These improvements are driving broader development across residential, commercial, and industrial sectors, aligning sustainability goals and operational needs.
   
• For instance, in 2024, the EPA mandated coal and gas power plants to implement Carbon Capture and Storage (CCS) technologies. Coal plants must achieve a 90% emission reduction by 2032, and gas plants by 2035. Compliance begins in June 2025, marking a pivotal shift in regulatory expectations. This move compels energy producers to accelerate clean technology adoption and infrastructure upgrades.
   
• The growing increase of fossil fuel prices combined with the stern pressure on businesses to comply with environmental policies are incentivizing the use of biomass technologies. The increase in high pressure biomass boiler demand in line with the use of carbon capture in biomass boiler exhaust systems will fuel the business potential.
   
• In 2025, federal clean energy policies backed by a historic USD 235 billion investment have accelerated industrial growth, attracted private capital and upgraded energy infrastructure. These initiatives are driving clean technology innovation, enabling sustainable manufacturing, and preparing industries for long-term competitiveness in a low-carbon economy.
   

Biomass Boiler Market Trends

• The global shift toward decarbonization, fueled by stringent government regulations aimed at reducing greenhouse gas emissions, will enhance the business landscape. Furthermore, rising consumer awareness of energy efficiency in line with rising emphasis on cost-effective heating solutions will positively elevate the industry momentum.
   
• Sustainable solutions and strategic investments in renewable energy infrastructure, including biomass heating technologies, are reshaping the biomass boiler market dynamics. The abundant biomass feedstock coupled with strong public-private support initiatives will bolster the industry trajectory.
   
• For citation, in 2025, the U.S. Department of Agriculture (USDA) has proposed a new investment of USD 6 billion in order to growth of clean energy across rural America. It will be implemented using the Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs. This initiative plays a pivotal role in optimizing energy costs, strengthening rural infrastructure, and accelerating the transition toward a more resilient & sustainable energy ecosystem.
   
• Integrating digital and automation technologies into biomass boilers enhances operational control, enables predictive maintenance, and optimizes energy usage making them increasingly attractive to end users seeking efficiency and reliability. Furthermore, rising consumer awareness of the environmental impact of energy consumption is expected to drive industry expansion, reinforcing the shift toward sustainable energy solutions.
   
• For instance, in 2025, the EA-SAS Boiler system introduced digital twin technology to biomass boiler operations, enabling real-time data analysis and simulation for optimal combustion control. This innovation enhances fuel efficiency, reduces emissions, and supports predictive maintenance marking a significant leap in automation and sustainability for biomass heating systems.
   
• Using a wider range of fuels including algae, energy crops, and organic waste is making biomass boilers more practical in different regions. At the same time, partnerships between farmers and energy producers are helping turn crop and animal waste into fuel, supporting local economies and better land use.
   
• Biomass boilers are playing a growing role in strengthening local energy security and supporting rural economic development. Global energy systems face volatility, these boilers offer a stable, locally sourced alternative that reduces reliance on imported fuels and escalate decentralized energy generation.
   
• For instance, in 2024, Canada invested USD 6.6 million to advance bioenergy, biofuels, and biomaterials through BIC. This initiative promotes sustainable technologies, boosts industrial growth, and strengthens a low-carbon economy using agricultural residues and enhanced biomass production.
   

Biomass Boiler Market Analysis

• Based on feedstock, the industry is segmented into woody biomass, agricultural waste, industrial waste, urban residue and others. The woody biomass segment dominated the biomass boiler market accounting for 49.9% share in 2024 and is expected to grow at a CAGR of over 8% through 2034.
   
• The readily available biomass resources within local regions reduce reliance on external fuel supplies and cut transportation expenses, thereby facilitating wider adoption across key sectors. The proactive implementation of policies and incentives supporting biomass will enhance growth opportunities. Furthermore, growing preference for these boilers in cold climate zones will encourage the product demand.
   
• The agricultural waste biomass boiler market is projected to reach over USD 3 billion by 2034. The use of modern technology, mainly highly efficient combustion systems and automated fuel handling, is improving boiler functionality while simultaneously minimizing their complexity, which will drive the industry forward.
   
• For instance, the U.S. Department of Energy invested USD 23.4 million to advance carbon management technologies, strengthening university and business-led projects that enhance carbon capture, reduce industrial emissions, and accelerate the transition to cleaner energy in line with national climate goals.
   
• The industrial waste biomass boiler market is expected to grow at a CAGR of over 7.5% through 2034. Advancements in fuel processing technology and state-of-the-art emissions control systems have significantly boosted the efficiency of biomass boilers while ensuring compliance with stringent environmental standards.
   
• The urban residue biomass boiler has a market share of 9.7% in 2024. The rollout of supportive policies and financial incentives aimed at advancing renewable heating technologies in commercial facilities is set to accelerate market momentum and drive sectoral growth.
   
• In 2024, the Government of Canada committed USD 12.5 million to six cutting-edge clean technology projects in British Columbia, advancing efforts to reduce industrial emissions. As part of the Energy Innovation Program, this investment focuses on carbon capture, utilization, and storage, as well as clean fuels and industrial fuel-switching initiatives.
   

• Based on product, the industry is divided into stocker and fluidized bed biomass boilers. The fluidized bed segment holds 71.8% market share in 2024 with over 8.5% CAGR through 2034. The accelerating shift from fossil fuels to biomass enabled by compatibility with existing infrastructure is set to redefine the industry trajectory.
   
• Stocker biomass boilers market was estimated at USD 2.3 billion in 2024. Their growing integration with combined heat and power systems enabling simultaneous generation of electricity and heat is unlocking new opportunities, enhancing energy efficiency, and driving more effective utilization of biomass resources.
   
• For instance, in 2024, the UK’s Energy Security Bill introduced zoning regulations for district heating networks to accelerate low-carbon heat deployment. Backed by the Climate Change Committee’s projection that heat networks could supply 18% of national heat demand by 2050, this move supports energy system maturity and sustainable infrastructure development.
   

• The U.S. dominated the diesel gensets market in North America with around 86.4% share in 2024 and generated USD 1.2 billion in revenue. Rising demand for efficient, low-cost alternatives is accelerating the shift from fossil fuels to clean energy will propel the business expansion. Surge in green building initiatives will additionally improve the business scenario.
   
• North American biomass boiler market is projected to grow at a CAGR of over 7% till 2034. This growth is driven by a strong push toward integrating biomass-fueled combined heat and power systems and implementing carbon reduction strategies, which are expanding both adoption and market visibility.
   
• For instance, in 2025, Canada and Manitoba jointly invested USD 10.5 million i.e. USD 7.9 million federally and USD 2.6 million provincially to strengthen low and middle income households adopt energy efficient heating. The initiative aims to cut energy costs, improve comfort, and support climate goals.
   
• The Europe biomass boiler market was valued at USD 8.3 billion in 2024. Growing emphasis on reducing greenhouse gas emissions, coupled with sustained investment in sustainable heating technologies, is reshaping the industry landscape. These systems are gaining traction across residential, commercial, and industrial sectors due to their cost-effectiveness, energy efficiency, and environmental benefits.
   
• For illustration, in 2025, the European Commission introduced the Clean Industrial Deal to simultaneously enhance industrial competitiveness and advance decarbonization. The initiative aims to build a sustainable, low-carbon industrial base by leveraging clean technologies and supportive regulatory frameworks. It reinforces Europe’s strategic position in clean manufacturing and innovation.
   
• The Asia Pacific biomass boiler market is set to reach over USD 8 billion by 2034. Robust expansion of climate smart agriculture tied to bioenergy systems in conjunction with rural energy access programs will foster the industry outlook. Moreover, development of corrosion resistant boilers will enhance the product demand across the region.
   
• For citation, in 2024, Australia has introduced an industrial policy aimed at leveraging its domestic resources to advance a cleaner energy future. This approach reflects a strategic alignment with proactive industrial models, such as California’s, emphasizing innovation and sustainability. The policy highlights Australia’s intent to position itself as a global leader in clean energy manufacturing and industrial transformation.
   
• The Middle East & Africa biomass boiler market will be driven by the heightened focus on energy conservation and reducing fossil fuel dependence, sustainable heating technologies. Furthermore, government-led initiatives and resource assessments aiming to harness agricultural residues will positively sway the industry growth.
   
• For citation, in 2024, the UAE announced a strategic investment of USD 54.5 billion over the next six years to scale up sustainable energy infrastructure in response to rising demand and to accelerate its net-zero emissions target by 2050. Unveiled by the Minister of Energy and Infrastructure, the plan marks a major milestone in the country’s clean energy transition.
   
• The Latin America biomass boiler industry will grow at a rate of over 7.5% through 2034. The government policies fostering clean energy coupled with the rising need for heating solutions with high energy efficiency in agro-industrial processing will proliferate the industry outlook.
   
• In 2024, Brazil unveiled its National Energy Transition Policy, targeting USD 400 billion in green investments over the next decade. The initiative is designed to accelerate clean energy deployment, foster sustainable industrial development, and drive environmental innovation. Through this strategic framework, Brazil aims to position itself as a global frontrunner in renewable energy and climate leadership.
   

Biomass Boiler Market Share

• The top 5 players, including ANDRITZ Group, DP CleanTech, Viessmann, Babcock & Wilcox Enterprises and Hurst Boiler & Welding together hold a share of about 40% in the biomass boiler industry. The market remains dynamic, driven by innovation in combustion systems, fuel flexibility, and enhanced service offerings that cater to evolving energy and sustainability needs.
   
• Thermax differentiates itself in the market through continuous technological innovation, strategically aligning its solutions with evolving industry demands across the region to expand its service portfolio and maintain competitive advantage. Furthermore, by integrating advanced, adaptive technologies, Thermax enhances operational efficiency and delivers greater value to its industrial clients.
   
• Over the past three years, the biomass boiler industry has shown steady and resilient growth despite global uncertainties. The post-pandemic recovery in 2022 revived interest in sustainable heating. By 2023, stabilized supply chains and rising energy costs drove adoption across agriculture and processing sectors. In 2024, infrastructure expansion in emerging economies and growing emphasis on energy independence further accelerated deployment, positioning biomass boilers as a key solution in the clean energy transition.
   
• Babcock & Wilcox is a key player in the biomass boiler market, known for delivering robust and scalable energy solutions tailored to industrial steam generation and waste-to-energy applications. The company emphasizes clean combustion and fuel flexibility, supporting a wide range of biomass sources including agricultural and forestry residues.
   
• ANDRITZ Group is a leading provider in the biomass boiler market, offering advanced fluidized bed technologies designed for high fuel flexibility and low emissions. Its EcoFluid and PowerFluid boilers are widely used in industrial and municipal power generation, known for their reliability and adaptability to diverse biomass sources.
   

Biomass Boiler Market Companies

• ANDRITZ reported a revenue of USD 9.02 billion in 2024, with service revenue rising to 41% of the total, up from 38% in 2023. Enhanced operational efficiency lifted the comparable EBITA margin to 8.9%, while the overall margin held steady at 8.6.
   
• Thermax posted revenue exceeding USD 1.2 billion in 2024, reflecting solid financial growth. The industrial products segment contributed over USD 350 million, highlighting the company’s expanding market presence and sustained business momentum across key sectors.
   
• Babcock & Wilcox Enterprises reported USD 717.3 million in revenue in 2024, marking steady business expansion. Operating across Renewable, Environmental, and Thermal segments, the Thermal division contributed USD 497.9 million, reinforcing the company’s strength in industrial heating and its ongoing business momentum.
   

Major players operating in the biomass boiler industry are:

• ANDRITZ Group
• ARITERM
• Babcock & Wilcox Enterprises
• Binder Energietechnik
• Cheema Boiler
• DP Cleantech
• Forbes Marshall
• Froling Boiler and Tank Construction
• Guntamatic Heiztechnik
• Hargassner
• Hoval
• Hurst Boiler & Welding
• John Cockerill
• John Wood Group
• KWB Energiesysteme
• Maxtherm Boilers
• OkoFEN
• Prime Thermals
• Schmid Energy Solutions
• Sofinter
• Sugimat
• Transparent Energy Systems
• Thermax
• Thermodyne Boiler
• Treco
• VIESSMANN
• Walchandnagar Industries
• Windhager
• Woodco
• Zhengzhou Boiler (Group)
   

Biomass Boiler Industry News

• In February 2025, ANDRITZ acquired LDX Solutions, a prominent North American provider of emission reduction technologies. This move strengthens ANDRITZ’s environmental portfolio and expands its market reach. LDX Solutions enhances clean air systems through advanced WESP and RTO technologies and supports regional service growth with over 2,000 systems installed.
   
• In April 2024, Babcock & Wilcox Renewable Service secured a contract exceeding USD 7 million to upgrade three biomass-fired boilers at a waste-to-energy facility in Southeast Asia. Building on a previous FEED study, the project will modernize pressure parts, install water-cooled wear sections, and enhance air systems resulting in improved steam output, efficiency, and reduced emissions. With growing demand for biomass energy, B&W’s expertise continues to support the long-term sustainability and performance of renewable power plants.
   
• In July 2023, Sugimat announced its partnership with Casa Alta to deliver a biomass steam boiler and hot gas generator powered by olive cake a byproduct of olive oil production. This initiative underscores Sugimat’s commitment to environmental sustainability and carbon-neutral operations. The water-tube steam boiler is specifically engineered to handle the complex combustion characteristics of olive cake, while the integrated hot gas chamber supports clean energy use across the value chain. Together, these technologies reflect a strategic move toward decarbonizing industrial processes.
   
• In August 2023, Forbes Marshall participated in Boiler World Africa 2023, an event that attracted over a thousand attendees from across the continent. Industry professionals from sectors including paper, sugar, edible oil, pharmaceuticals, metals, and tea visited the booth seeking solutions for new projects and plant revitalization. Forbes Marshall showcased its advanced steam system designs, reflecting its commitment to innovation and addressing industry challenges.
   

The biomass boiler market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & Volume (Units) from 2021 to 2034, for the following segments:

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Market, By Feedstock

• Woody biomass
• Agricultural waste
• Industrial waste
• Urban residue
• Others

Market, By Product

• Stocker
• Fluidized bed

Market, By Application

• Residential
• Commercial
• Industrial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Poland
  • Italy
  • Spain
  • Austria
  • Germany
  • Sweden
  • Russia
• Asia Pacific
  • China
  • India
  • Philippines
  • Japan
  • South Korea
  • Australia
  • Indonesia
• Middle East
  • Saudi Arabia
  • Iran
  • UAE
  • Nigeria
  • South Africa
• Latin America
  • Argentina
  • Chile
  • Brazil