Global Industrial Biomass Boiler Market (2025-2033)

Market Overview

The industrial biomass boiler market is witnessing robust growth due to the rising demand for sustainable energy solutions across industries. Biomass boilers utilize organic materials like wood pellets, agricultural residues, and energy crops to generate heat and power, reducing dependence on fossil fuels. Government initiatives promoting renewable energy, such as the EU’s Renewable Energy Directive (RED II) and India’s National Bio-Energy Mission, are accelerating the adoption of biomass-based heating solutions. Industries like food processing, chemicals, and pulp & paper are increasingly integrating biomass boilers to cut carbon emissions and achieve energy cost savings. With corporate sustainability goals becoming a priority, the demand for industrial biomass boilers is set to surge.

Technological advancements and efficiency improvements in biomass combustion systems are driving market expansion. Modern biomass boilers now feature automated feeding, real-time monitoring, and low-emission designs, making them more competitive with traditional fossil fuel systems. Companies such as Hurst Boiler & Welding Co., VYNCKE, and ETA Heiztechnik are continuously innovating to enhance energy efficiency and operational reliability. For example, Unilever’s biomass boiler installation in South Africa significantly reduced its reliance on coal-based energy. Additionally, industries in Europe and North America are exploring hybrid biomass boiler systems, integrating them with existing energy infrastructure for enhanced performance.

The Asia-Pacific region is emerging as a key market, driven by rapid industrialization and stringent emissions regulations. Countries like China, India, and Japan are investing in biomass-based energy infrastructure to tackle energy security concerns and carbon neutrality targets. However, challenges such as fuel supply chain constraints and initial capital investment continue to impact market growth. Nevertheless, with increasing incentives and technological innovations, the industrial biomass boiler market is poised for long-term expansion.

Market Dynamics and Growth Prospects

The global Industrial Biomass Boiler market size reached US$11.51 Billion in 2023. MEA (Market Estimation Analysis) expects the market to reach US$30.24 Billion by 2033, exhibiting a growth rate (CAGR) of 10.06% during 2025-2033.

The industrial biomass boiler market is witnessing significant growth, driven by rising demand for sustainable energy solutions, stringent environmental regulations, and increasing adoption of biomass as a cost-effective alternative to fossil fuels. Advancements in boiler efficiency, automation, and feedstock flexibility are further fueling market expansion. Growing investments in renewable energy infrastructure and government incentives for decarbonization are creating lucrative opportunities for industry players.

Key Market Trends Shaping the Industry

Advancements in Biomass Boiler Efficiency and Automation

The industrial biomass boiler market is evolving rapidly, with manufacturers introducing cutting-edge technologies to improve efficiency and reduce emissions. Today’s biomass boilers are equipped with smart automation systems, AI-powered fuel optimization, and advanced combustion techniques, allowing industries to generate cleaner energy with minimal waste. Companies like VYNCKE incorporated advanced automation and control mechanisms, enabling efficient combustion of various fuels. By integrating these technologies, VYNCKE's biomass boilers achieve thermal efficiencies above 80%, making them a competitive alternative to conventional energy systems. These improvements are particularly beneficial for energy-intensive industries, where reliability and cost savings are top priorities. As businesses continue to prioritize sustainable energy solutions, advanced biomass boiler systems are becoming a preferred choice across various sectors.

Integration with Hybrid and Co-Firing Systems

Industries looking for a cost-effective transition to renewable energy are increasingly adopting hybrid biomass boilers that integrate with their existing coal or gas-based infrastructure. Co-firing technology, which allows both biomass and conventional fuels to be burned together, is gaining popularity in industries like power generation, food processing, and chemicals, where energy demand remains high. Countries such as Germany and Japan are actively promoting biomass co-firing initiatives to phase out coal while maintaining energy security. This hybrid approach helps businesses reduce carbon footprints without requiring a complete overhaul of their existing energy systems. As industries seek flexible and scalable solutions, hybrid biomass systems are expected to play a key role in the global energy transition.

Growing Government Support and Carbon Reduction Policies

With governments worldwide ramping up climate action policies, industrial biomass boilers are seeing increased adoption across various sectors. Regulations such as the EU’s Renewable Energy Directive (RED II), India’s National Bio-Energy Mission, and the U.S. Renewable Heat Incentive (RHI) are providing strong financial and regulatory support for biomass-based heating solutions. Additionally, large corporations in industries like pulp & paper, pharmaceuticals, and textiles are aligning their operations with net-zero carbon goals, driving demand for biomass boilers. Many governments are also offering grants, tax incentives, and carbon credits to encourage businesses to shift away from fossil fuels. As sustainability commitments continue to shape industrial strategies, biomass boilers are emerging as a key solution in achieving low-carbon energy production.

Segmentation and Market Insights

MEA provides an estimation of each segment of the global Industrial Biomass Boiler market, along with forecasts at the global, regional, and country levels from 2025-2033. Our excel has categorized the market based on feedstock, capacity, application, and type.

• By Feedstock

  Woody biomass is a key player in the transition toward renewable energy due to its carbon-neutral properties. It consists of wood waste materials that can be efficiently utilized in various biomass energy technologies. Examples include forestry residues from logging and forest management, mill residues such as sawdust and wood chips from wood processing plants, and dedicated energy crops like fast-growing trees cultivated specifically for bioenergy. Additionally, chemical recovery fuels from the pulp and paper industry are widely used for co-generation, providing both heat and electricity. Many pulp and paper mills burn waste timber as a cost-effective and eco-friendly alternative to fossil fuels, supporting sustainable industrial operations. 

  Agricultural biomass plays a crucial role in sustainable energy production, using crop residues and farm waste to fuel biomass boilers. Common sources include corn stalks, wheat straw, waste fibers, and fruit shells, all of which can be processed into bioenergy. A great example is the Four Corners Biogas Project in the western United States, where livestock and farm waste are converted into biogas, generating approximately 1 megawatt (MW) of electricity. This amount of energy can power thousands of homes and businesses while significantly reducing carbon emissions. The use of agricultural residues in biomass energy systems not only helps in waste management but also contributes to the circular economy by repurposing organic materials into clean energy solutions.

  Urban residue is an increasingly important feedstock for biomass boilers, offering a sustainable way to repurpose residential, commercial, and municipal waste. These sources include yard waste, construction wood debris, and municipal solid waste (MSW), which can be processed into biomass fuel. Many industrial biomass boilers are designed to efficiently convert these organic materials into heat and power, provided they can be broken down into usable biofuels. Municipal recycling programs are playing a vital role in collecting and processing urban organic waste, reducing landfill dependency and supporting clean energy initiatives. By leveraging urban biomass resources, industries and municipalities can create a reliable and renewable energy supply while minimizing environmental impact.

• By Capacity

  Biomass boilers in the 2-10 MW range are suited to small-scale industrial and commercial applications. An example includes a 10 MW biomass boiler using low-grade wood chips and composting residues to produce 10 tons per hour (tph) of saturated process steam for a potato processing industry. These boilers are frequently employed in smaller manufacturing facilities, commercial buildings, and district heating systems, providing efficient and sustainable heating solutions.

  The 10-25 MW segment is expected to see considerable growth, driven by increased adoption in medium-sized industries and power plants. These boilers strike a balance between capacity and versatility, making them appropriate for a variety of applications, including combined heat and power (CHP) production. Industries that require a moderate amount of power and heat frequently use them for tasks like process heating and electricity generation.

  The 25-50 MW segment is expected to gain traction due to its suitability for large-scale industrial applications and district heating systems. These high-capacity boilers are appropriate for applications requiring substantial heat and power, such as large manufacturing plants, power generation facilities, and district heating networks. Their capacity makes them an excellent choice for applications requiring both efficiency and considerable output.

• By Application:

  Combined heat and power (CHP), also known as cogeneration, involves the simultaneous production of electricity and heat from a single fuel source, such as biomass. Biomass-fueled CHP systems integrate biomass receiving and feedstock preparation, energy conversion, and power and heat production. Direct firing of solid fuel biomass in a boiler to raise high-pressure steam is the most common CHP configuration. For example, the combined heat and power (CHP) boiler at Simpson Tacoma Kraft generates an average thermal load of 760,000 lbs per hour of steam. These systems can achieve efficiencies of approximately 80%, significantly higher than electricity-only systems.

  The pulp and paper industry relies on boilers for various purposes, including drying pulp material, supplying power, and providing thermal heat. Boilers play an integral role in pulp, paper, and wood processing by providing essential steam and power for plant operations. Paper mills use boilers to generate steam, which is utilized for various processes throughout the paper production. For instance, Verso Paper Corp completed a $45 million renewable-energy project at its pulp and paper mill in Quinnesec, Mich, which enables it to deliver an additional 28 MW of green energy for mill consumption.

  Biomass-fired boilers are a sustainable and efficient technology for generating electricity. These boilers use organic waste as the primary fuel, which is gasified and burned at high temperatures to produce steam. The steam then drives a turbine generator rotor, producing electricity. The Four Corners Biogas Project in the western United States uses farm and livestock waste to create biogas, which is then converted into approximately 1 megawatt (MW) of electricity, enough to meet the energy needs of thousands of homes and businesses while reducing carbon emissions.

  Sawmills are increasingly utilizing biomass boilers to aid in the drying process of lumber. The biomass used is mainly bark recovered from logs consumed in the sawmill for lumber production, ensuring that 100 percent of every tree is used. As a result of transitioning from oil to biomass, JDI has reduced oil consumption by 11.5 million liters a year and lowered its manufacturing costs. F.H. Stoltze Land and Lumber in Columbia Falls has a biomass power plant within the mill that produces 2.5 megawatts of power.

  Biomass steam boilers are becoming increasingly popular in the brewing industry due to their cost-effectiveness, energy efficiency, and environmental friendliness. These boilers offer cost savings and greater energy efficiency compared to traditional fossil fuels. Estrella Galicia announced a new biomass boiler to generate thermal energy at its brewery, operating using renewable materials from vegetable origins. Alaskan Brewing Co. has installed a unique boiler system, designed to utilize brewery waste, and cut fuel costs at the same time, where a high-pressure, firebox biomass boiler furnace now burns the company’s spent grain into steam, powering the majority of the brewery’s day-to-day operations.

  Industrial biomass boilers are versatile and utilized across various sectors for heating, evaporation, or power. These include the food processing industry, where organic waste is converted into biomass energy to meet heat demands and recycle resources. They are also prevalent in energy-intensive industries like pharmaceuticals, chemicals, and medicine, providing a cheaper and less polluting alternative to traditional thermal power. Moreover, biomass boilers play a role in textile production, providing heat for fiber handling, dyeing, and drying processes, reducing costs and pollution.

• By Type:

  Stoker boilers are designed to burn solid fuels like coal, wood, or biomass on a grate, making them suitable for various applications with thermal capacities below 50 MW. A traveling grate spreader stoker is commonly used for most applications. The design of the stoker allows for installation without a basement and under low-set boilers already in place. For example, a boiler uses a travelling grate, spreader stoker design to feed and burn coal.

  Fluidized bed combustion (FBC) is a technology used to burn solid fuels by suspending fuel particles in a hot, bubbling bed of ash and other materials like sand or limestone. Fluidized bed boilers are commonly used in power plants and industrial processes for efficient combustion of solid fuels, offering flexibility in fuel choices and low pollutant emissions. Fluidized-bed boilers are frequently recommended for biomass fuel, which is burned within a hot bed of inert particles, typically sand. Boiler engineers can select from two main types of fluidized-bed boilers: bubbling fluidized bed (BFB) and circulating fluidized bed (CFB).

Get Accurate Forecasts and Data

Our meticulously designed Excel sheet provides detailed forecasts and estimations for the industrial biomass boiler market. With segmentation across feedstock, capacity, application, type, and regions, our data enables businesses to identify opportunities, analyze trends, and strategize effectively in this dynamic market.

Regional Market Highlights

In North America, Industrial boiler market is experiencing growth. This growth is driven by energy efficiency demands, the need to lower carbon emissions, and government initiatives. Most US homes use either furnaces or boilers for heating. Natural gas furnaces are the most common, with exceptions in the "hot-humid" southeastern region, where electric furnaces are more popular. Key players in the North American residential boiler market include PB Heat, Lennox International, HTP, and Bradford White Corporation.

Europe's building sector relies significantly on gas, accounting for 40% of the EU’s energy demand and 36% of its energy-related greenhouse gas emissions, mainly due to the prevalence of over 90 million gas and oil boilers. As a result, many European countries are phasing out fossil fuel boilers. Most dwellings in Europe are heated with natural gas boilers, although biomass systems are also common as secondary heating sources. There are 23 million heat pumps in Europe; most are aerial heat pumps used for both heating and cooling. The EU is promoting a shift to heat pumps to reduce greenhouse gas emissions. In Austria, for example, the Wienerberger brickworks replaced a gas-fired boiler with an industrial-scale heat pump, reducing its energy bill by around 425,000 euros per year.

The Asia Pacific industrial boiler market is expanding rapidly due to abundant biomass resources, supportive government policies, and rising industrial demand for renewable energy. China leads with large-scale biomass power plants, like the Nanjing Biomass Power Plant, utilizing agricultural residues and wood waste. India promotes biomass energy through initiatives like SATAT, with states like Punjab and Haryana investing in paddy straw-based biomass plants. Japan is adopting biomass co-firing in coal plants, as seen in the Hibikinada Biomass Power Plant, while Southeast Asian nations like Indonesia, Malaysia, and Thailand use palm oil waste, rice husks, and wood chips for energy generation. With strong policy support and resource availability, the region is poised for significant biomass energy growth.

The Latin America industrial boilers market is expected to grow, driven by demand for high-capacity pressure boilers and the replacement of existing boilers with advanced solutions. The agriculture, mining, food, and beverage sectors are significant contributors to this market. In Latin America, geothermal energy is being explored to decarbonize the electricity grid, heat and cool buildings, and support industrial processes. An ATTSU electric steam boiler with 2700 kW electric power was supplied to a thermosolar plant in Latin America, producing 4,000 kg/h at 12 bars. The South America's Electric Boilers Market is anticipated to grow significantly, with Brazil as the largest market contributor.

The demand for boilers in the Middle East and Africa region is driven by the oil and gas, chemicals, and food processing industries, along with increasing industrialization and investments in the oil and gas sector. High-pressure and high-temperature steam boilers are used in crude oil separation plants and water distillation units. Countries in this region are also focusing on energy-efficient boiler systems to reduce operational costs and environmental impact.

SEGMENTS COVERED

By Feedstock

• Woody Biomass

• Agriculture Biomass

• Urban Residue

By Capacity

• 2-10 MW

• 10- 25 MW

• 25- 50 MW

By Application

• Combined Heat and Power (CHP) Production

• Pulp & Paper

• Power Generation

• Sawmill

• Brewery

• Other Applications

By Type

• Stoker boilers

• Fluidized bed boilers

By Region

• North America

  • The United States

  • Canada

• Europe

  • Germany

  • The United Kingdom

  • France

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Poland

  • Belgium

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Thailand

  • Singapore

  • Rest of Asia-Pacific

• Latin America

  • Brazil

  • Mexico

  • Argentina

  • Rest of Latin America

• Middle East and Africa

  • Saudi Arabia

  • Turkey

  • United Arab Emirates (UAE)

  • South Africa

  • Rest of Middle East and Africa