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2024

Wood Pellets Biomass Boilers Market

Wood Pellets Biomass Boilers Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

EP : Green/Alternative/ Renewable Energy

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Author's: Supriya Bhosale | Surya Sanka
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Wood Pellets Biomass Boilers Market Research, 2032

The global wood pellets biomass boilers market size was valued at $4.6 billion in 2022, and is projected to reach $17.4 billion by 2032, growing at a CAGR of 14.3% from 2023 to 2032. Wood pellets biomass boilers are heating systems that utilize compressed wood pellets as a renewable and carbon-neutral fuel source for generating heat. These boilers differ from traditional oil, gas, or even other biomass boilers in their reliance on small, compressed wood pellets as a primary fuel. The pellets are typically made from waste wood materials, providing an environmentally friendly solution that contributes to reducing carbon emissions. In recent years, wood pellet biomass boilers have emerged as a viable and sustainable alternative for residential and industrial heating needs.

Wood Pellets Biomass Boilers Market

The wood pellet biomass boilers market demand has gained attention as countries like Japan and South Korea actively pursue carbon-neutral energy goals. This push toward sustainability has led to an increased demand for wood pellet boilers, especially considering their potential cost savings and eligibility for Renewable Heat Incentive (RHI) payments.

The installation costs of wood pellet boilers vary, ranging from £4,000 to £21,000, depending on the chosen system and size. This industry has seen advancements, making these boilers less of a hassle than other biomass alternatives, such as wood chip or log boilers. Moreover, wood pellet boilers provide advantages such as reduced CO2 output, eligibility for Renewable Heat Incentive (RHI) payments, and significant savings compared to electric storage heaters and coal heating. In addition, wood pellets biomass boilers industry has found applications in various sectors, including home heating, industrial boiler fuels, and power generation through thermal and gasification methods. These factors are anticipated to drive the wood pellets biomass boilers market growth during the forecast period.

The upfront cost and installation expenses associated with wood pellets biomass boilers tend to be higher compared to traditional fossil fuel boilers. Also, these boilers demand more frequent maintenance compared to their fossil fuel counterparts due to the residue left behind by biomass fuels, such as ash and soot. This increased maintenance requirement can be perceived as a drawback, impacting user convenience. In addition, biomass heating systems necessitate more storage space than traditional central heating systems. The need for a substantial area for fuel storage and chimney installation can be a limiting factor, particularly for properties with space constraints. These factors are anticipated to restrain the wood pellets biomass boilers demand in the coming years.

Growing awareness and emphasis on renewable energy solutions, coupled with environmental concerns is driving the demand for wood pellets biomass boilers as an eco-friendly heating option. This is because biomass fuels, particularly wood pellets are more cost-effective than traditional fossil fuels. In addition, the global shift towards carbon neutrality and sustainability presents a significant opportunity for biomass boilers to position itself as an environmentally responsible heating solution.

Also, biomass fuels can be sourced locally which helps in reducing transportation costs and supporting local economies. Thus, emphasizing the local sourcing aspect can attract consumers and businesses looking to contribute to regional economic development, which is anticipated to have a positive impact on the wood pellets biomass boilers market forecast. Also, biomass boilers are durable and boast a long lifespan with proper maintenance. In addition, the wood pellets biomass boilers can be used for various residential and commercial applications. This versatility of biomass boilers positions them as a flexible solution adaptable to different settings.

The key players profiled in this report include Thermax Limited, Babcock & Wilcox Enterprises, Inc., ANDRITZ, Drax, Hurst Boiler & Welding Co, Inc., Woodco, Viessmann, John Cockerill, Forbes Marshall, and Schmid AG energy solutions. New contracts, funding,  and business expansion are common strategies followed by major market players.  In June 2023, the U.S. Forest Service, part of the USDA, announced a significant investment of $43 million in 123 projects aimed at advancing wood products and renewable wood energy economies. The funding is allocated through the Community Wood Grants and Wood Innovations Grants programs, key components of the Biden-Harris Administration's commitment to supporting rural communities and addressing environmental challenges. The projects funded by the grants will focus on expanding and upgrading wood energy systems, retrofitting wood product manufacturing facilities, and developing markets for innovative uses of mass timber and renewable wood energy. This will in turn drive the demand for wood pellets biomass boilers in the coming years.

The wood pellets biomass boilers market analysis is provided on the basis of type, application, and region. By type, the market is bifurcated into fully automated biomass boiler, combined heat and power (CHP) biomass systems, semi-automated industrial biomass boilers, and others. By application, the market is classified into residential and commercial. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The wood pellets biomass boilers market is segmented into Type and Application.

Wood Pellets Biomass Boilers Market by Type

By type, the fully automated biomass boiler sub-segment dominated the global market in 2022. Fully automated biomass boilers represent a significant advancement in renewable energy technology, offering a range of advantages and opportunities for users. These automated systems are designed to efficiently and autonomously convert biomass fuels into heat, providing a sustainable alternative to traditional fossil fuel boilers. Fully automated biomass boilers ensure consistent and reliable performance as they are programmed to handle fuel feeding, combustion, and heat distribution automatically. This is because Automated systems often employ advanced control mechanisms, optimizing the combustion process for increased energy efficiency and reduced waste.

Biomass is considered a carbon-neutral fuel, as the carbon dioxide released during combustion is offset by the carbon absorbed by the plants during their growth. Fully automated systems ensure cleaner combustion, contributing to lower emissions. Automated biomass boilers often integrate smart technologies, allowing for remote monitoring, control, and system optimization through digital platforms owing to which these boilers can seamlessly integrate with existing heating systems without the need for major infrastructure changes.

Wood Pellets Biomass Boilers Market by Application

By application, the residential sub-segment dominated the global wood pellets biomass boilers market share in 2022. Wood pellets biomass boilers serve as the primary heating source for residential homes. They generate hot water or steam, which is then circulated through radiators, underfloor heating systems, or air handlers to provide warmth to living spaces. These boilers can also be integrated to provide hot water for domestic use, including showers, baths, and household cleaning. This dual functionality makes them versatile and suitable for comprehensive home heating needs.

Furthermore, Wood pellet boilers can support multi-zone heating systems, allowing homeowners to control and customize the temperature in different areas of their homes independently. This zoning capability enhances comfort and energy efficiency. In addition, some advanced biomass boilers in residential applications are designed for combined heat and power generation. They produce both heat and electricity, allowing homeowners to generate their electricity while meeting heating needs. For homes in rural or off-grid areas, wood pellet biomass boilers offer an independent and sustainable heating solution. They do not rely on centralized utility services, making them suitable for areas with limited access to natural gas or electricity.

Wood Pellets Biomass Boilers Market by Region

By region, Europe dominated the global wood pellets biomass boilers market in 2022. European countries are majorly focusing on various renewable energy projects to offset carbon emission and achieve sustainability goals. Wood pellets biomass boilers play a crucial role in achieving these goals, offering a sustainable and renewable alternative for heating. The demand is driven by a collective effort to transition away from fossil fuels. The record consumption of wood pellets as large as 23.1 million metric tonnes in 2021, mainly due to increased residential use in Germany, highlights the significance of biomass boilers in meeting heating needs. Growing environmental awareness and supportive policies drive residential adoption.

Also, in France, the demand for wood pellets biomass boilers is increasing at a rapid pace in response to high fossil fuel prices. Wood pellets biomass boilers offer an economically attractive alternative, prompting homeowners to shift towards sustainable heating solutions. In addition, the positive evolution and sales growth in Mediterranean countries, particularly Italy and Spain, indicate the widespread acceptance of pellet boilers. Italy, with over two million wood pellets biomass boilers, and Spain, with 320,000 wood pellets biomass boilers, showcase the adaptability of biomass heating in different regions.

Key Takeaways for Wood Pellets Biomass Boilers Market Report

  • The report provides exclusive and comprehensive analysis of the global wood pellets biomass boilers market trends along with the market forecast.
  • The report elucidates the wood pellets biomass boilers market opportunity along with key drivers, and restraints of the market. It is a compilation of detailed information, inputs from industry participants and industry experts across the value chain, and quantitative and qualitative assessment by industry analysts.
  • Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the market for strategy building.
  • The report entailing the market analysis maps the qualitative sway of various industry factors on market segments as well as geographies.
  • The data in this report aims on market dynamics, trends, and developments affecting the wood pellets biomass boilers market statistics.

Wood Pellets Biomass Boilers Market Report Highlights

Aspects Details
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Market Size By 2032

USD 17.4 billion

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Growth Rate

CAGR of 14.3%

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Forecast period

2022 - 2032

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Report Pages

320

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By Type
  • Fully Automated Biomass Boiler
  • Combined Heat and Power (CHP) Biomass Systems
  • Semi-automated Industrial Biomass Boilers 
  • Others
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By Application
  • Residential
  • Commercial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, UK, France, Italy, Netherlands, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, United Arab Emirates, Saudi Arabia, South Africa, Rest of LAMEA)
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Key Market Players

Thermax Limited, John Cockerill, Drax, Andritz AG, Viessmann, Babcock & Wilcox Enterprises, Inc., Woodco, Hurst Boiler & Welding Co, Inc., Schmid AG energy solutions, Forbes Marshall

Author Name(s) : Supriya Bhosale | Surya Sanka
Frequently Asked Questions?

The global wood pellets biomass boilers market is primarily driven by the increasing demand for sustainable and renewable energy sources. Opportunities arise from government incentives, growing awareness regarding environmental benefits, and advancements in biomass boiler technology such as the use of automated wood pellets biomass boilers which is fostering market growth with eco-friendly heating solutions.

The major growth strategies adopted by the wood pellets biomass boilers market players are business expansion, funding, and new contracts.

Current trends influencing the wood pellets biomass boilers market include growing emphasis on renewable energy, increasing adoption of wood pellets biomass boilers in industrial and commercial sectors, technological advancements for efficiency, and supportive government policies.

Asia-Pacific will provide more business opportunities for the global wood pellets biomass boilers market in the future.

Applications such as residential heating, industrial processes, and commercial establishments are expected to drive the adoption of wood pellets biomass boilers, driven by the increasing demand for sustainable and cost-effective heating solutions.

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

The fully automated biomass boilers sub-segment of the type segment acquired the maximum share of the global wood pellets biomass boilers market in 2022.

Potential customers for the wood pellets biomass boilers market include residential users, commercial establishments, industrial facilities, and institutions seeking sustainable heating solutions to reduce environmental impact and energy costs.

The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global wood pellets biomass boilers market from 2022 to 2032 to determine the prevailing opportunities.

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Wood Pellets Biomass Boilers Market

Global Opportunity Analysis and Industry Forecast, 2023-2032