Wood Pellets Biomass Boilers Market by Type (Fully Automated Biomass Boiler, Combined Heat and Power (CHP) Biomass Systems, Semi-automated Industrial Biomass Boilers, and Others), Application (Residential and Commercial), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032

Wood Pellets Biomass Boilers Overview

Wood pellets biomass boilers represent a mature and widely available renewable energy technology that has gained prominence as an efficient alternative to conventional heating systems. These boilers leverage advancements in pellet combustion and automation to provide cost-effective heating solutions, especially in areas without access to natural gas. This technology involves the use of natural wood residue pellets, a byproduct of the wood industry, to produce heat for home heating systems.

With a focus on hot-water-heated facilities where natural gas is unavailable, wood pellet boilers are recognized for their energy efficiency, environmental benefits, and potential cost savings of up to 30% on heating bills. Advances in pellet combustion and control automation have positioned wood-pellet-fired biomass boilers as a promising technology. Overall, wood pellets biomass boilers present a smart and sustainable solution for reducing dependence on conventional heating methods while offering long-term cost benefits for homeowners.

Global Wood Pellets Biomass Boilers Market Analysis

The global wood pellets biomass boilers market size was $4,637.0 million in 2022 and is predicted to grow with a CAGR of 14.3%, by generating a revenue of $17,410.2 million by 2032.

Source: Research Dive Analysis

Growing Demand for Energy Efficiency with the Use of Renewable Energy Sources to Drive Market Growth

Wood pellets biomass boilers have gained significant traction in the market due to several driving factors that make them an attractive choice for heating systems. For instance, wood pellets used in biomass boilers, are derived from wood waste making them a renewable energy source. This aspect aligns with the global push for sustainable practices and the transition towards renewable energy. The reliance on biomass fuels contributes to the reduction of carbon emissions and supports environmental conservation efforts. Wood pellet boilers are recognized for their low carbon footprint.

The combustion of wood pellets results in carbon dioxide emissions equivalent to the amount absorbed during the growth of trees. This makes wood pellet boilers an environmentally friendly heating solution, aligning with the increasing focus on cleaner and greener technologies to combat climate change. Furthermore, wood pellet boilers boast energy efficiency, requiring minimal user input. The inclusion of self-cleaning systems in most boilers enhances operational efficiency. These factors are anticipated to boost the wood pellets biomass boilers market share in the coming years.

Space Limitation and High Initial Cost to Restrain the Market Growth

One significant restraint for biomass boilers is the requirement for more space compared to traditional gas or oil boilers. The larger system size, coupled with the need for additional space to store biomass fuel, such as wood pellets, can pose challenges for installations in properties with limited space. This constraint may limit the feasibility of biomass boilers in urban or compact settings where space is minimal.

In addition, the initial investment for biomass boilers, including the purchase and installation, is higher when compared to traditional gas or oil boilers. Domestic biomass boilers can start at around £10,000, and commercial boilers can be considerably more expensive. Although the Renewable Heat Incentive (RHI) helps offset this initial cost, the upfront expenses may still act as a deterrent for potential adopters. These factors are anticipated to restrain the wood pellets biomass boilers market growth in the coming years.

Rising Global Energy Demand and Sustainable Business Practices to Drive Excellent Opportunities

The continuous increase in global energy demand, driven by industrialization and improved living standards, provides a significant opportunity for wood pellets biomass boilers. As traditional fossil fuels contribute to environmental damage, the emphasis on clean and green energy solutions opens avenues for biomass as a viable alternative. Growing concerns about climate change and environmental impact prompt a shift towards renewable energy sources. Biomass, including wood pellets, emerges as a renewable and sustainable fuel option, capable of meeting specific heating and energy needs.

With biomass holding a substantial share (10–14%) in the global energy load and serving as the primary energy feedstock in remote and rural areas of developing countries, there is a significant opportunity for biomass boilers to play a crucial role in meeting energy demands. As the majority of the world's population is expected to reside in developing countries by 2050, wood pellets biomass boilers are anticipated to become integral to energy solutions in these regions. In addition, companies seeking green and sustainable practices are increasingly turning to biomass and biofuels to mitigate their environmental impact. This presents a market opportunity for biomass boiler manufacturers to cater to large national and international companies aiming for clean and renewable energy solutions. These factors are anticipated to present excellent opportunities for the companies operating in the wood pellets biomass boilers industry.

 Global Wood Pellets Biomass Boilers Market Share, by Type, 2022

Source: Research Dive Analysis

The fully automated biomass boiler sub-segment accounted for the highest market share in 2022. Fully automated biomass boilers are equipped with automated fuel feeding systems, eliminating the need for manual loading of wood pellets. This convenience allows for continuous operation without frequent human intervention. In addition, the fully automated wood pellets biomass boilers feature automatic ignition systems, ensuring a hassle-free startup. Users do not need to manually ignite the pellets, streamlining the heating process.

Also, many fully automated biomass boilers come with self-cleaning mechanisms, such as automatic ash removal systems. This feature reduces the need for frequent maintenance and ensures optimal efficiency over an extended period. Advanced automated systems often include remote monitoring and diagnostics capabilities. This allows users or technicians to assess the boiler's performance, identify issues, and conduct maintenance remotely, minimizing downtime.

Global Wood Pellets Biomass Boilers Market Share, by Application, 2022

Source: Research Dive Analysis

The residential sub-segment of wood pellets biomass boilers industry accounted for the highest market share in 2022. The wood pellets biomass boilers market demand is growing in residential sector owing to its reduced environmental impact & local and regional availability. This is because biomass boilers burning wood pellets produce lower carbon emissions compared to fossil fuels. This environmentally friendly characteristic appeals to homeowners seeking greener heating options.

Furthermore, wood pellets are often produced locally or regionally, reducing the need for long-distance transportation. This not only supports local economies but also minimizes the carbon footprint associated with fuel transport. Availability and sourcing locally contribute to the widespread adoption of wood pellets biomass boilers across residential applications.

Global Wood Pellets Biomass Boilers Market Size & Forecast, by Region, 2022-2032 ($Million)

Source: Research Dive Analysis

The Europe wood pellets biomass boilers market generated the highest revenue in 2022. European countries have set ambitious renewable energy targets to combat climate change and reduce dependence on fossil fuels. Biomass, including wood pellets, is recognized as a sustainable and renewable energy source. The European Union (EU) and individual member states have implemented policies and incentives to encourage the adoption of biomass technologies, fostering a favorable environment for wood pellet biomass boilers. For instance, from 3 January 2023, the Polish Clean Air program is extended and revised with allocation of PLN 103 billion.

The program provides subsidies for energy efficiency retrofits of residential buildings and the replacement of solid fuel heating sources. Similarly, in Romania, the households can take advantage of support provided by the government for home renovation aiming at energy efficiency including the installation of pellet boilers. The grant could cover up to 60% of the costs. In addition, Europe has well-established biomass supply chains, including the production and distribution of wood pellets. The availability of a reliable and sustainable supply chain makes it easier for consumers to access wood pellets for their biomass boilers. This infrastructure supports the growth of the biomass heating sector. These factors are anticipated to drive the Europe wood pellets biomass boilers market demand in the coming years.

Competitive Scenario in the Global Wood Pellets Biomass Boilers Market

New Contract and business expansion are common strategies followed by major market players. For instance, in December 2023, Sumitomo SHI FW (SFW), a leading company that aims at decarbonization, has successfully secured a contract to supply a biomass-fueled Circulating Fluidized Bed (CFB) boiler for a cutting-edge combined heat and power (CHP) plant project in South Korea. This initiative aims to replace an outdated coal-fired plant, significantly reducing carbon emissions by an estimated 400,000 tons annually. The contract includes the Design and Supply (D&S) of a biomass-fueled CFB boiler with an impressive 173 MW thermal capacity. SFW will provide crucial technical advisory services along with auxiliary equipment. The state-of-the-art CFB technology enables the plant to generate 25 MW of electricity and 225 tons of process steam per hour.

Source: Research Dive Analysis

Some of the leading wood pellets biomass boilers market players are Thermax Limited, Babcock & Wilcox Enterprises, Inc., ANDRITZ, Drax, Hurst Boiler & Welding Co, Inc., Woodco, Viessmann, John Cockerill, Forbes Marshall, and Schmid AG energy solutions.

1.  Research Methodology

1.1.  Desk Research
1.2.  Real time insights and validation
1.3.  Forecast model
1.4.  Assumptions and forecast parameters
1.5.  Market size estimation

1.5.1.  Top-down approach
1.5.2.  Bottom-up approach

2.  Report Scope

2.1.  Market definition
2.2.  Key objectives of the study
2.3.  Market segmentation

3.  Executive Summary

4.  Market Overview

4.1.  Introduction
4.2.  Growth impact forces

4.2.1.  Drivers
4.2.2.  Restraints
4.2.3.  Opportunities

4.3.  Market value chain analysis

4.3.1.  List of raw material suppliers
4.3.2.  List of manufacturers 
4.3.3.  List of distributors

4.4.  Innovation & sustainability matrices

4.4.1.  Technology matrix
4.4.2.  Regulatory matrix

4.5.  Porter’s five forces analysis

4.5.1.  Bargaining power of suppliers
4.5.2.  Bargaining power of consumers
4.5.3.  Threat of substitutes
4.5.4.  Threat of new entrants
4.5.5.  Competitive Rivalry Intensity

4.6.  PESTLE analysis

4.6.1.  Political
4.6.2.  Economical
4.6.3.  Social
4.6.4.  Technological
4.6.5.  Legal
4.6.6.  Environmental

4.7.  Impact of COVID-19 on wood pellets biomass boilers market

4.7.1.  Pre-covid market scenario
4.7.2.  Post-covid market scenario

5.  Wood Pellets Biomass Boilers Market Analysis, By Type

5.1.  Overview
5.2.  Fully Automated Biomass Boiler

5.2.1.  Definition, key trends, growth factors, and opportunities
5.2.2.  Market size analysis, by region, 2022-2032
5.2.3.  Market share analysis, by country, 2022-2032

5.3.  Combined Heat and Power (CHP) Biomass Systems

5.3.1.  Definition, key trends, growth factors, and opportunities
5.3.2.  Market size analysis, by region, 2022-2032
5.3.3.  Market share analysis, by country, 2022-2032

5.4.  Semi-automated Industrial Biomass Boilers

5.4.1.  Definition, key trends, growth factors, and opportunities
5.4.2.  Market size analysis, by region, 2022-2032
5.4.3.  Market share analysis, by country, 2022-2032

5.5.  Others

5.5.1.  Definition, key trends, growth factors, and opportunities
5.5.2.  Market size analysis, by region, 2022-2032
5.5.3.  Market share analysis, by country, 2022-2032

5.6.  Research Dive Exclusive Insights

5.6.1.  Market attractiveness
5.6.2.  Competition heatmap

6.  Wood Pellets Biomass Boilers Market Analysis, by Application

6.1.  Overview
6.2.  Residential 

6.2.1.  Definition, key trends, growth factors, and opportunities
6.2.2.  Market size analysis, by region, 2022-2032
6.2.3.  Market share analysis, by country, 2022-2032

6.3.  Commercial

6.3.1.  Definition, key trends, growth factors, and opportunities
6.3.2.  Market size analysis, by region, 2022-2032
6.3.3.  Market share analysis, by country, 2022-2032

6.4.  Research Dive Exclusive Insights

6.4.1.  Market attractiveness
6.4.2.  Competition heatmap

7.  Wood Pellets Biomass Boilers Market, by Region

7.1.  North America

7.1.1.  U.S.

7.1.1.1.  Market size analysis, by Type, 2022-2032
7.1.1.2.  Market size analysis, by Application, 2022-2032

7.1.2.  Canada

7.1.2.1.  Market size analysis, by Type, 2022-2032
7.1.2.2.  Market size analysis, by Application, 2022-2032

7.1.3.  Mexico

7.1.3.1.  Market size analysis, by Type, 2022-2032
7.1.3.2.  Market size analysis, by Application, 2022-2032

7.1.4.  Research Dive Exclusive Insights

7.1.4.1.  Market attractiveness
7.1.4.2.  Competition heatmap

7.2.  Europe

7.2.1.  Germany 

7.2.1.1.  Market size analysis, by Type, 2022-2032
7.2.1.2.  Market size analysis, by Application, 2022-2032

7.2.2.  UK

7.2.2.1.  Market size analysis, by Type, 2022-2032
7.2.2.2.  Market size analysis, by Application, 2022-2032

7.2.3.  France

7.2.3.1.  Market size analysis, by Type, 2022-2032
7.2.3.2.  Market size analysis, by Application, 2022-2032

7.2.4.  Netherlands

7.2.4.1.  Market size analysis, by Type, 2022-2032
7.2.4.2.  Market size analysis, by Application, 2022-2032

7.2.5.  Italy

7.2.5.1.  Market size analysis, by Type, 2022-2032
7.2.5.2.  Market size analysis, by Application, 2022-2032

7.2.6.  Rest of Europe

7.2.6.1.  Market size analysis, by Type, 2022-2032
7.2.6.2.  Market size analysis, by Application, 2022-2032

7.2.7.  Research Dive Exclusive Insights

7.2.7.1.  Market attractiveness
7.2.7.2.  Competition heatmap

7.3.  Asia-Pacific

7.3.1.  China

7.3.1.1.  Market size analysis, by Type, 2022-2032
7.3.1.2.  Market size analysis, by Application, 2022-2032

7.3.2.  Japan 

7.3.2.1.  Market size analysis, by Type, 2022-2032
7.3.2.2.  Market size analysis, by Application, 2022-2032

7.3.3.  India

7.3.3.1.  Market size analysis, by Type, 2022-2032
7.3.3.2.  Market size analysis, by Application, 2022-2032

7.3.4.  South Korea

7.3.4.1.  Market size analysis, by Type, 2022-2032
7.3.4.2.  Market size analysis, by Application, 2022-2032

7.3.5.  Australia

7.3.5.1.  Market size analysis, by Type, 2022-2032
7.3.5.2.  Market size analysis, by Application, 2022-2032

7.3.6.  Rest of Asia-Pacific

7.3.6.1.  Market size analysis, by Type, 2022-2032
7.3.6.2.  Market size analysis, by Application, 2022-2032

7.3.7.  Research Dive Exclusive Insights

7.3.7.1.  Market attractiveness
7.3.7.2.  Competition heatmap

7.4.  LAMEA

7.4.1.  Brazil

7.4.1.1.  Market size analysis, by Type, 2022-2032
7.4.1.2.  Market size analysis, by Application, 2022-2032

7.4.2.  United Arab Emirates

7.4.2.1.  Market size analysis, by Type, 2022-2032
7.4.2.2.  Market size analysis, by Application, 2022-2032

7.4.3.  Saudi Arabia

7.4.3.1.  Market size analysis, by Type, 2022-2032
7.4.3.2.  Market size analysis, by Application, 2022-2032

7.4.4.  South Africa

7.4.4.1.  Market size analysis, by Type, 2022-2032
7.4.4.2.  Market size analysis, by Application, 2022-2032

7.4.5.  Rest of LAMEA

7.4.5.1.  Market size analysis, by Type, 2022-2032
7.4.5.2.  Market size analysis, by Application, 2022-2032

7.4.6.  Research Dive Exclusive Insights

7.4.6.1.  Market attractiveness
7.4.6.2.  Competition heatmap

8.  Competitive Landscape

8.1.  Top winning strategies, 2022

8.1.1.  By strategy
8.1.2.  By year

8.2.  Strategic overview

8.3.  Market share analysis, 2022

9.  Company Profiles

9.1.  Thermax Limited

9.1.1.  Overview
9.1.2.  Business segments
9.1.3.  Product portfolio
9.1.4.  Financial performance
9.1.5.  Recent developments
9.1.6.  SWOT analysis

9.2.  Babcock & Wilcox Enterprises, Inc.

9.2.1.  Overview
9.2.2.  Business segments
9.2.3.  Product portfolio
9.2.4.  Financial performance
9.2.5.  Recent developments
9.2.6.  SWOT analysis

9.3.  ANDRITZ

9.3.1.  Overview
9.3.2.  Business segments
9.3.3.  Product portfolio
9.3.4.  Financial performance
9.3.5.  Recent developments
9.3.6.  SWOT analysis

9.4.  Drax

9.4.1.  Overview
9.4.2.  Business segments
9.4.3.  Product portfolio
9.4.4.  Financial performance
9.4.5.  Recent developments
9.4.6.  SWOT analysis

9.5.  Hurst Boiler & Welding Co, Inc.

9.5.1.  Overview
9.5.2.  Business segments
9.5.3.  Product portfolio
9.5.4.  Financial performance
9.5.5.  Recent developments
9.5.6.  SWOT analysis

9.6.  Woodco

9.6.1.  Overview
9.6.2.  Business segments
9.6.3.  Product portfolio
9.6.4.  Financial performance
9.6.5.  Recent developments
9.6.6.  SWOT analysis

9.7.  Viessmann

9.7.1.  Overview
9.7.2.  Business segments
9.7.3.  Product portfolio
9.7.4.  Financial performance
9.7.5.  Recent developments
9.7.6.  SWOT analysis

9.8.  John Cockerill

9.8.1.  Overview
9.8.2.  Business segments
9.8.3.  Product portfolio
9.8.4.  Financial performance
9.8.5.  Recent developments
9.8.6.  SWOT analysis

9.9.  Forbes Marshall

9.9.1.  Overview
9.9.2.  Business segments
9.9.3.  Product portfolio
9.9.4.  Financial performance
9.9.5.  Recent developments
9.9.6.  SWOT analysis

9.10.  Schmid AG energy solutions

9.10.1.  Overview
9.10.2.  Business segments
9.10.3.  Product portfolio
9.10.4.  Financial performance
9.10.5.  Recent developments
9.10.6.  SWOT analysis

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