Wood Pellets Biomass Boilers Market Size, Share, Trends, Growth and Forecast 2032

Wood Pellets Biomass Boilers Industry Prospective:

The global wood pellets biomass boilers market size was evaluated at $4.9 billion in 2023 and is slated to hit $17.6 billion by the end of 2032 with a CAGR of nearly 14.5% between 2024 and 2032.

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Wood Pellets Biomass Boilers Market: Overview

Wood pellet biomass boilers are eco-friendly and hence are used in heating households, various industrial units, and businesses. They make use of wood pellets, a renewable source of fuel that is manufactured from compressed sawdust & wood shavings, for producing heat for homes and industries.  

Key Insights

• As per the analysis shared by our research analyst, the global wood pellets biomass boilers market is projected to expand annually at the annual growth rate of around 14.5% over the forecast timespan (2024-2032)
• In terms of revenue, the global wood pellets biomass boilers market size was evaluated at nearly $4.9 billion in 2023 and is expected to reach $17.6 billion by 2032.
• The global wood pellets biomass boilers market is anticipated to grow rapidly over the forecast timespan owing to a rise in the cyber-terrorism activities taking place across the globe and an increase in data violations.
• In terms of type, the fully automated biomass boilers segment is slated to register the highest CAGR over the forecast period.
• Based on application, the residential segment is predicted to contribute majorly towards the global industry elevation in the upcoming years.
• Region-wise, the Asia-Pacific wood pellets biomass boilers industry is projected to register the fastest CAGR during the projected timeframe.

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Wood Pellets Biomass Boilers Market: Growth Factors

Humungous preference for sustainable energy to aggrandize the growth of the market globally over 2024-2032

Growing preference for renewable energy and the need for reducing carbon emissions are some of the factors that are likely to spur the global wood pellet boilers market trends. Moreover, wood pellet biomass boilers are cost-effective, and their production & distribution are likely to generate more jobs for locals where they are set up. These aspects are likely to crop up the expansion of the market globally. Rising automation and the need for stabilizing fuel costs can proliferate the growth of the market globally. A rise in the incentives and subsidies offered by the government is anticipated to steer the global market expansion in the years ahead. Need for high energy efficiency along with a rise in awareness about product benefits will expedite the growth of the market globally.

Wood Pellets Biomass Boilers Market: Restraints

Growing charges of installing the product can restrict the expansion of the industry globally over forecast period

Huge initial product deployment costs and fluctuations in supply as well as costs of fuel can obstruct the growth of the global wood pellet biomass boilers industry in the years ahead. Moreover, a humungous increase in maintenance charges and cut-throat competition from various heating systems such as heat pumps and electric & gas boilers are likely to cause the growth of the industry globally.  

Wood Pellets Biomass Boilers Market: Opportunities

Demand for cost reduction can open new opportunities for growth for the global market in the coming decade

Growing need for cost savings and hybrid systems can open new growth avenues for the global wood pellet biomass boilers market. Furthermore, need for proficient supply chain and distribution activities will propel the expansion of the global market. An increase in product promotions and branding activities along with the need for product parity & product differentiation will embellish the growth of the market globally.

Wood Pellets Biomass Boilers Market: Challenges

Lack of knowhow about benefits & limitations of product can result in the decline of the global industry over analysis period

Low awareness about pros & cons of wood pellets biomass boilers among the consumers can pose a huge threat to the expansion of the global wood pellets biomass boilers industry. Achieving automation and demand for environment-friendly ash handling systems can prove to be a huge challenge in the growth path of the global industry.

Wood Pellets Biomass Boilers Market: Segmentation

The global wood pellets biomass boilers market is divided into type, application, and region.                                          

Based on the type, the wood pellets biomass boilers market across the globe is bifurcated into fully automated biomass boilers, semi-automated industrial biomass boilers, and combined heat power (CHP) biomass systems segments. Additionally, the fully automated biomass boilers segment, which gained nearly 44.2% of the global market share in 2023, is set to record the highest gains during the next few years due to the ability of these products in converting biomass fuels into heat and proving to be eco-friendly combustible solutions in comparison to conventional fossil fuel boilers.

On the basis of application, the global wood pellets biomass boilers industry is divided into residential and commercial segments. Furthermore, the residential segment, which accrued about half of the global industry proceeds in 2023, is predicted to account notably for the global industry elevation in the next decade. This can be due to large-scale product penetration in the households as the former proves to be a key source of heating houses.

Wood Pellets Biomass Boilers Market: Report Scope

Wood Pellets Biomass Boilers Market: Regional Insights

Europe is forecast to maintain leadership status in the global market in the forecasting years

Europe, which led the global wood pellets biomass boilers market share in 2023, is expected to establish a strong position in the global market in the coming decade. In addition to this, the regional market surge in the next eight years can be credited to the growing focus of European countries on a slew of renewable energy projects for curtailing GHG emissions in the atmosphere. Moreover, growing awareness among the consumers about sustainable as well as renewable substitute products for heating purposes will drive the regional market trends.

Asia-Pacific wood pellets biomass boilers industry is slated to register the highest gains annually in the coming few years. The surge of the industry in the APAC region can be due to a surge in the focus of countries such as China on optimizing biomass supply chain & feedstock diversification. Favorable government schemes such as agroforestry schemes, biomass certification programs, and forest management projects by the Chinese government will drive the industry upsurge in the APAC zone. For the record, China generated nearly 2.50 trillion kilowatts of electricity from renewable sources of energy in 2021, nearly about 30% of the country’s overall power supply capacity. Such initiatives will drive the regional industry growth.

Key Developments

• In August 2022, Grant introduced the novel Grant Spira Pell condensing wood pellet boiler.
• In April 2022, CPM, a major manufacturer of pellet mills & pelleting devices, launched a new technique for enhancing the efficacy of wood pellet mills.

Wood Pellets Biomass Boilers Market: Competitive Space

The global wood pellets biomass boilers market profiles key players such as:

• Viessmann
• John Cockerill
• Thermax Limited
• Forbes Marshall
• ANDRITZ
• Drax
• Hurst Boiler & Welding Co Inc.
• Babcock & Wilcox Enterprises Inc.
• Woodco
• Schmid AG Energy Solutions

The global wood pellets biomass boilers market is segmented as follows:

By Type

• Fully Automated Biomass Boilers
• Semi-Automated Industrial Biomass Boilers
• Combined Heat Power (CHP) Biomass Systems

By Application

• Residential
•  Commercial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa