The Global Wood Pellets Biomass Boilers Market Projected to Grow at a CAGR of 14.3% and Generate a Revenue of $17,410.2 million by 2032

The global wood pellets biomass boilers market is predicted to be valued at $17,410.2 million by 2032, surging from $4,637.0 million in 2022, at a noteworthy CAGR of 14.3%.

Global Wood Pellets Biomass Boilers Market Analysis

Biomass, derived from organic matter such as wood, plant materials, and agricultural residues, has emerged as a significant source for renewable energy. In the context of the growing need for sustainable energy solutions, the wood pellets biomass boiler industry has gained prominence. Unlike traditional methods of burning organic matter for warmth or cooking, industry has revolutionized biomass utilization by compressing materials into energy-dense pellets. This process enables the efficient utilization of biomass for large-scale heating and renewable bioenergy generation.

The wood pellets biomass boiler industry is witnessing a surge in demand and growth, driven by several key factors shaping the renewable energy landscape. Biomass boilers utilize organic materials like wood pellets, providing a renewable and sustainable heat source. The industry addresses the global push towards cleaner energy alternatives, reducing reliance on fossil fuels. In addition, Biomass boilers, including wood pellet systems, offer versatility and can be easily retrofitted into existing heating systems or integrated into new ones. This adaptability makes them an attractive choice for residential, commercial, and industrial applications.

Also, the combustion of biomass in these boilers contributes to lower carbon emissions compared to conventional fossil fuel systems. Governments and businesses are increasingly focused on achieving carbon reduction targets, driving the adoption of biomass boilers. Government initiatives, such as the Renewable Heat Incentive (RHI), play a pivotal role in incentivizing the adoption of biomass boilers. These factors are anticipated to boost the wood pellets biomass market growth in the coming years.

Biomass boilers are reliant on wood pellets, wood chips, or logs, owing to which industry can face challenges in urban areas where logistics of transporting and storing biomass materials such as wood pellets is more complex specially in densely populated regions. In addition, biomass boilers can be more expensive to install compared to traditional fossil fuel boilers. The upfront investment includes not only the cost of the boiler itself but also the expenses related to the fuel storage container and any required modifications to accommodate the system. These factors are predicted to restrain the wood pellets biomass boilers market demand in the coming years.

Ongoing advancements in biomass boiler technology, such as fully automated systems and improved efficiency is estimated to generate excellent opportunities in the coming years. These technological innovations enhance the overall performance and appeal of wood pellet biomass boilers. Also, stringent regulations and climate policies aimed at reducing greenhouse gas emissions create a favorable regulatory environment for biomass energy. Governments worldwide are encouraging the transition to cleaner energy sources, boosting the biomass boiler industry.

In addition, wood pellets biomass boilers industry promotes the utilization of waste wood, sawdust, and other biomass materials that would otherwise contribute to landfills. This aligns with the principles of a circular economy, where waste is transformed into a valuable resource. Biomass boilers, especially those using wood pellets, can result in significant fuel cost savings. Businesses and homeowners switching from traditional fossil fuels to biomass can experience reductions ranging from 30% to 80%, enhancing the economic appeal of biomass systems.

Global Wood Pellets Biomass Boilers Market, Segmentation

The wood pellets biomass boilers market is segmented on the basis of type, application, and region.

Type

The type segment is classified into fully automated biomass boiler, combined heat and power (CHP) biomass systems, semi-automated industrial biomass boilers, and others. Among these, the fully automated biomass boiler sub-segment is anticipated to be the fastest growing during the forecast period. Automated biomass boilers are designed to operate with high efficiency. They can optimize fuel combustion and heat transfer processes, ensuring that the maximum amount of energy is extracted from the biomass fuel. Many automated biomass boilers come equipped with remote monitoring and control capabilities. This allows operators to monitor the system, adjust settings, and address issues from a distance, improving overall system management and responsiveness. The automated control systems in these boilers are often programmed to operate at peak efficiency, leading to energy savings. These boilers can modulate their output based on the heating demand, preventing unnecessary fuel consumption during periods of lower demand. These factors are anticipated to boost fully automated biomass boilers market share in the coming years.

Application

The application segment is classified into residential and commercial. Among these, the commercial sub-segment is anticipated to be the fastest growing during the forecast period.  Wood pellets biomass boilers find various applications in the commercial sector due to their versatility and environmental benefits. This is because the wood pellet biomass boilers are used to provide space heating in commercial buildings such as offices, warehouses, schools, and healthcare facilities. They can be integrated with existing heating systems or installed as standalone units. In addition, the wood pellets biomass boilers can be utilized for hot water production, meeting the needs of commercial kitchens, laundries, and other facilities requiring a reliable and efficient hot water supply.

Also, some commercial activities, especially in industries like food processing or manufacturing, require specific process temperatures. Wood pellet biomass boilers can be tailored to meet these requirements, providing process heat for various applications. As wood pellets are made from sustainably sourced biomass, it makes these boilers a renewable and environmentally friendly energy source. Hence, the use of wood pellets biomass boilers aligns with sustainability goals and reduces dependence on fossil fuels. These factors are predicted to drive the wood pellets biomass boilers market demand in the commercial sector during the forecast period.

Region

Based on region, the wood pellets biomass boilers market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Among these, the Asia-Pacific is anticipated to be the fastest-growing region during the forecast period. The demand for wood pellets biomass boilers in the Asia-Pacific countries, particularly Japan and South Korea is increasing at a rapid pace. This is because both Japan and South Korea are actively pursuing carbon-neutral energy goals. Biomass, including wood pellets, is considered carbon-neutral under United Nations carbon accounting rules. In addition, large subsidies for biomass in Japan have driven significant imports of wood pellets. The Japanese government's feed-in tariff (FIT) scheme, introduced in 2012, incentivized biomass power plants. Generous subsidies have also led to a surge in demand for wood pellets in South Korea.

Furthermore, Japan and South Korea imported a combined 6 million metric tons of wood pellets in 2021. The majority of Japan's wood pellets are sourced from overseas, with Vietnam and Canada being the main suppliers. South Korea imports most of its wood pellets from Vietnamese acacia plantations. This reliance on imports indicates a high demand for wood pellets in these countries. Major companies like Drax and Enviva are eyeing Japan for growth, with plans to establish a presence and supply significant amounts of wood pellets. Enviva, a major U.S. pellet producer, has secured contracts to provide Japan with substantial quantities of pellets in November 2023. Drax and Enviva's interest in the Japanese market is anticipated to boost the wood pellets biomass boilers demand in these countries.

Key Players in the Global Wood Pellets Biomass Boilers Market

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.