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Biomass Fired Boiler Market

The market for Biomass Fired Boiler was estimated at $7.6 billion in 2025; it is anticipated to increase to $11.4 billion by 2030, with projections indicating growth to around $17.1 billion by 2035.

Report ID:DS2401055
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Power Generation
Biomass Fired Boiler
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Market Data
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Table of Contents

Global Biomass Fired Boiler Market Outlook

Revenue, 2025

$7.6B

Forecast, 2035

$17.1B

CAGR, 2026 - 2035

8.4%

The Biomass Fired Boiler industry revenue is expected to be around $7.6 billion in 2026 and expected to showcase growth with 8.4% CAGR between 2026 and 2035. Building on this trajectory, the Biomass Fired Boiler market has become a central pillar in global decarbonization strategies, driven by tightening emissions regulations, energy security concerns, corporate net-zero commitments, and robust policy incentives for renewable heating solutions. Heating and power generation applications collectively account for 77.8% of industry demand, underscoring the importance of biomass boiler systems in supplying reliable heat and power to industrial plants, commercial complexes, and district heating networks. Within the technology landscape, fixed type Biomass Fired Boiler installations dominated with approximately $5.97 billion in revenue in 2025, supported by proven boiler efficiency, long operating lifetimes, and compatibility with existing steam and hot-water infrastructure. Ongoing investments in industrial biomass boilers and biomass power generation plants highlight the market’s resilience against fossil fuel price volatility and its strategic role in supporting sustainable energy infrastructure and carbon emissions reduction across both developed and emerging economies.

A Biomass Fired Boiler is a combustion-based thermal system that converts solid biomass fuels such as wood pellet fuel, wood chips, and agricultural residues into useful heat and steam, integrating advanced combustion control, automated fuel handling, and flue-gas cleaning to deliver high boiler efficiency with low emissions. These systems are deployed across a broad spectrum of applications, with heating and power generation remaining the core segments, complemented by combined heat and power (CHP) projects, industrial process steam supply, and community-scale district heating schemes. Recent market trends include the modernization of legacy boiler fleets with high-efficiency biomass boiler technologies, the integration of digital monitoring and remote diagnostics, greater use of standardized biomass fuels to improve reliability, and the expansion of decentralized biomass power generation solutions, all of which are reinforcing the long-term demand outlook for Biomass Fired Boiler installations.

Biomass Fired Boiler market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Biomass Fired Boiler Market Outlook

Market Key Insights

  • The Biomass Fired Boiler market is projected to grow from $7.6 billion in 2025 to $17.1 billion in 2035. This represents a CAGR of 8.4%, reflecting rising demand across Power Generation, Heating, and Industrial Process.

  • ANDRITZ, Babcock & Wilcox, and Thermax are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Biomass Fired Boiler market and are expected to observe the growth CAGR of 6.1% to 8.8% between 2025 and 2030.

  • Emerging markets including Indonesia, South Africa and Brazil are expected to observe highest growth with CAGR ranging between 8.1% to 10.5%.

  • Transition like Adoption of Advanced Combustion Technologies is expected to add $898 million to the Biomass Fired Boiler market growth by 2030.

  • The Biomass Fired Boiler market is set to add $9.5 billion between 2025 and 2035, with manufacturer targeting Heating & Industrial Process Application projected to gain a larger market share.

  • With

    rising demand for renewable energy sources, and

    Advancements in Boiler Efficiency, Biomass Fired Boiler market to expand 124% between 2025 and 2035.

biomass fired boiler market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Biomass Fired Boiler - Country Share Analysis

Opportunities in the Biomass Fired Boiler

Growing off-grid commerce across African mining, agribusiness, and hospitality sites is also creating a niche for Portable Biomass Fired Boiler units displacing diesel for heat. The portable segment of the biomass boiler market, valued at $1.66 billion in 2025 and projected to reach $2.61 billion by 2030 with 9.45% CAGR, is expected to grow fastest in these regions. Containerised systems offering reliable steam generation, simple maintenance, and locally sourced biomass fuels address energy security, cost stability, and sustainability requirements.

Growth Opportunities in Europe and Asia-Pacific

In Europe, the Biomass Fired Boiler segment is driven by strict decarbonization targets, carbon pricing, and renewable heating directives, making heating and combined heat and power for district heating networks the most influential applications. Top opportunities lie in retrofitting aging coal plants with high-efficiency biomass fired solutions, deploying industrial biomass boilers in food, paper, and chemicals, and standardizing modular boilers for municipal heat projects. Competition is intense between large pan-European OEMs and agile local engineering contractors, with differentiation increasingly based on fuel-flexible combustion systems, low NOx design, and digital performance monitoring. Investors should prioritize countries with mature carbon markets and stable heat tariffs, positioning offerings around lifecycle cost reduction, security of fuel supply, and guaranteed emissions compliance within the regional biomass boiler market.
In Asia-Pacific, the Biomass Fired Boiler market is primarily shaped by rapid industrialization, energy security concerns, and government incentives for agricultural waste utilization, making power generation and industrial process steam the dominant applications. Key opportunities include utility-scale biomass power plants using agro-residues, high-pressure boilers for sugar, rice, and palm industries, and small to mid-capacity units for captive power in manufacturing clusters. Competitive dynamics feature a mix of regional OEMs, local fabricators, and EPC firms, with success depending on robust fuel-handling design, high availability under variable feedstock, and strong after-sales service networks. Strategic focus should be on tailoring boiler designs to local biomass supply chains, offering flexible financing or BOO/BOOT models, and positioning solutions as cost-effective alternatives to coal under tightening emissions norms and evolving renewable heating and clean industrial energy policies.

Market Dynamics and Supply Chain

01

Driver: Renewable Energy Policies and Growing Industrial Shift Away From Fossil Fuel Boilers

Supportive renewable energy policies are also a major driver for biomass fired boilers, as governments introduce incentives, subsidies, and carbon reduction mandates. Feed in tariffs, renewable heat incentives, and emission trading schemes encourage utilities and industries to adopt biomass based steam and heat generation. Separately, industries are also actively shifting away from fossil fuel boilers to reduce carbon footprints and exposure to fuel price volatility. Sectors such as pulp and paper, food processing, and chemicals are also replacing coal and oil boilers with biomass fired systems using agricultural and wood residues. also advances in combustion control and emission reduction technologies further improve compliance. Together, regulatory support and industrial decarbonization strategies are also accelerating investments in biomass fired boiler installations across power generation and process heating applications globally.
Technological progress in fluidized bed biomass fired boilers is also a key market driver. Modern bubbling and circulating fluidized bed designs offer higher thermal efficiency, improved combustion stability, and lower emissions compared to traditional grate boilers. These systems can also handle a wide range of biomass fuels, including low grade residues and mixed waste streams. Enhanced automation, real time monitoring, and advanced ash handling systems reduce maintenance and operational downtime. As industries seek reliable and efficient renewable energy solutions, improved boiler performance and fuel flexibility are also driving increased adoption of advanced biomass fired boiler technologies.
02

Restraint: High Feedstock Costs and Supply Chain Variability Limit Biomass Boiler Adoption

One major restraint for biomass fired boilers is the high and volatile cost of biomass feedstock combined with inconsistent supply chains. Biomass fuels such as wood pellets, agricultural residues, and energy crops are subject to seasonal availability and price fluctuations. For example, utilities and industrial boiler operators may delay converting from fossil fuels when feedstock costs spike, shrinking short-term demand. Inconsistent regional supply can also increase storage and logistics expenses, reducing project viability. These factors constrain revenue growth for boiler manufacturers and slow market expansion in regions without reliable biomass infrastructure.
03

Opportunity: Biomass fired boiler district heating in Northern Chinese cities and Biomass fired boiler process heat for European food manufacturers

Rapid expansion of district heating in Northern Chinese cities is opening an opportunity for large-scale Biomass Fired Boiler installations replacing coal units. Municipal utilities are seeking low-ash, high-efficiency boiler islands integrated with thermal storage to stabilise networks and cut winter smog. Fixed units serving district heating grids will grow faster than smaller commercial systems, supported by subsidies, emissions reduction targets, and co-firing of agricultural residues. Strategic joint ventures with local engineering firms can unlock standardised, pre-certified boiler packages for city clusters.
Industrial decarbonisation policies and high gas prices are driving demand for Biomass Fired Boiler solutions in European food processing, where steam generation and process heat are critical. Fixed industrial biomass boiler systems, already a $5.97 billion global segment in 2025 and forecast to reach $8.81 billion by 2030 at 8.1% CAGR, will dominate this niche. Innovations in automated fuel handling, low-NOx combustion, and pellet fuel flexibility create untapped potential for turnkey renewable heating systems in medium-sized dairies, breweries, and bakeries.
04

Challenge: Stringent Emission Regulations and High Installation Costs Slow Market Growth

Biomass fired boilers face stringent environmental regulations related to particulate matter and NOx emissions, increasing compliance and equipment costs. Advanced emission control systems are often required to meet local air quality standards, especially in urban and industrial zones. These added costs can deter small and medium enterprises from adopting biomass boiler solutions, reducing overall demand. Additionally, high upfront capital expenditures for boiler installation, site preparation, and integration with existing systems make alternative technologies more attractive. Together, regulatory compliance burdens and installation costs are slowing market adoption and tempering investment in new biomass boiler projects.

Supply Chain Landscape

1

Biomass Fuel Prep

ANDRITZAmec Foster Wheeler
2

Biomass Fired Boiler

Babcock & WilcoxIHI Corporation
3

Installation Services

ThermaxANDRITZ
4

End-Use Applications

Biomass power generation plantsIndustrial steam and heatDistrict heating and CHP
Biomass Fired Boiler - Supply Chain

Use Cases of Biomass Fired Boiler in Power Generation & Industrial Process

Power Generation : Biomass fired boilers are widely used in power generation to produce renewable electricity from agricultural residues, wood chips, and forestry waste. In this application, high pressure biomass fired boilers such as bubbling fluidized bed and circulating fluidized bed boilers are most commonly deployed by independent power producers and utility companies. These boilers efficiently convert diverse biomass fuels into steam for driving turbines while maintaining stable combustion. Their fuel flexibility supports reliable base load power generation and reduces dependence on fossil fuels. Biomass fired boilers also help power plants comply with renewable energy targets and carbon reduction policies.
Heating : In heating applications, biomass fired boilers are extensively used for district heating systems, commercial buildings, and institutional facilities. Fixed grate and moving grate biomass boilers are typically preferred by municipalities, hospitals, and residential complexes due to their simple operation and high thermal efficiency. These boilers provide consistent heat output using locally sourced biomass fuels, lowering heating costs and emissions. Their integration into district heating networks enables centralized heat supply with reduced fuel transport requirements. Biomass fired boilers support sustainable heating solutions while improving energy security in cold climate regions.
Industrial Process : Biomass fired boilers play a vital role in industrial process applications by supplying steam and thermal energy to industries such as food processing, pulp and paper, textiles, and chemicals. Industries mainly adopt fluidized bed biomass boilers because they can handle variable fuel quality and deliver precise temperature control. These boilers support continuous industrial operations while reducing reliance on coal or oil based systems. Using biomass residues generated onsite further improves cost efficiency. Biomass fired boilers help industries lower operating expenses, meet environmental regulations, and enhance sustainability across energy intensive production processes.

Recent Developments

Recent developments in the biomass fired boiler market show rising adoption of high efficiency fluidized bed combustion systems and renewable heat solutions driven by decarbonization goals. A key trend is integration of advanced emission control technologies to meet stricter air quality standards and improve boiler performance with low carbon fuel sources such as wood pellets and agricultural residues. Utilities and industrial users are investing in sustainable steam generation equipment to replace fossil fuel boilers, enhancing energy security while aligning with global renewable energy and carbon reduction strategies.

November 2025 : International technology group ANDRITZ announced the acquisition of Allen-Sherman-Hoff, a U.S. company specializing in ash handling systems widely used in biomass fired boiler facilities. This strategic acquisition expands ANDRITZ’s lifecycle services and aftermarket support for biomass fired boilers and related combustion equipment, enhancing its global market position and service offerings in sustainable boiler operations.
May 2025 : ANDRITZ was awarded a contract to supply a biomass-fired power boiler, recovery boiler, and evaporation plant to Green Bay Packaging’s pulp mill in Arkansas, USA. This project highlights ongoing demand for industrial biomass boiler systems that enhance energy self-sufficiency and reduce fossil fuel use.

Impact of Industry Transitions on the Biomass Fired Boiler Market

As a core segment of the Power Generation industry, the Biomass Fired Boiler market develops in line with broader industry shifts. Over recent years, transitions such as Adoption of Advanced Combustion Technologies and Shift Towards Sustainable Energy Sources have redefined priorities across the Power Generation sector, influencing how the Biomass Fired Boiler market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Adoption of Advanced Combustion Technologies

The rapid adoption of advanced combustion technologies, particularly fluidized bed combustion and biomass gasification, is transforming the Biomass Fired Boiler market from a niche renewable option into a high-performance, low-emission backbone for energy-intensive sectors. By enabling high thermal efficiency, reliable industrial steam generation, and consistently low NOx emissions, these industrial biomass boiler systems are directly supporting decarbonization targets in power, manufacturing, and district energy networks. This technology-driven shift is not merely incremental; it is projected to contribute an additional $898 million to Biomass Fired Boiler market growth by 2030, as end users increasingly prioritize renewable heating solutions and resilient distributed power generation assets that can meet tightening environmental regulations and total-cost-of-ownership benchmarks.
02

Shift Towards Sustainable Energy Sources

The shift toward sustainable energy sources is transforming the biomass fired boiler industry as governments and industries intensify efforts to reduce carbon emissions. Biomass boilers are increasingly replacing coal and oil based systems in power generation, district heating, and industrial steam applications. This transition is stimulating growth across the renewable energy value chain, including biomass fuel processing, pellet manufacturing, and waste to energy services. For example, agricultural and forestry sectors are generating additional revenue by supplying residues as boiler fuel. Equipment manufacturers are also investing in advanced combustion and emission control technologies to improve efficiency. Overall, the move toward sustainability is strengthening biomass energy adoption and accelerating investment in cleaner thermal energy solutions.