Biomass Boilers Market Report 2026

The biomass boilers market size has grown rapidly in recent years. It will grow from $8.54 billion in 2025 to $9.7 billion in 2026 at a compound annual growth rate (CAGR) of 13.6%. The growth in the historic period can be attributed to expansion of renewable energy policies, increasing use of agricultural and forestry residues, adoption of biomass heating in rural areas, improvements in boiler efficiency, growth of industrial heat demand.

The biomass boilers market size is expected to see rapid growth in the next few years. It will grow to $16.01 billion in 2030 at a compound annual growth rate (CAGR) of 13.4%. The growth in the forecast period can be attributed to increasing investments in carbon-neutral heating solutions, rising adoption in commercial and industrial sectors, expansion of decentralized energy systems, growing focus on energy security, increasing integration of smart boiler controls. Major trends in the forecast period include increasing deployment of renewable heating systems, rising adoption of automated biomass combustion controls, growing demand for high-efficiency boilers, expansion of biomass-based district heating projects, enhanced focus on emission reduction technologies.

The rising demand for renewable heating solutions is expected to drive the growth of the biomass boilers market in the coming years. Renewable heating solutions utilize energy from renewable sources to provide heat for residential, commercial, or industrial applications. Biomass boilers support these solutions by offering environmentally friendly, cost-effective, and stable heat generation, while helping reduce greenhouse gas emissions, enhance energy security, and promote a transition to cleaner energy. For example, in June 2023, the New York State Energy Research and Development Authority (NYSERDA), a US-based state energy agency, reported that U.S. heat pump sales exceeded gas furnace sales for the first time, with over 4.3 million units sold compared to 3.9 million gas furnaces, reflecting a growing adoption of electric and renewable heating solutions nationwide. Consequently, the increasing demand for renewable heating solutions is boosting the biomass boiler market.

Key players in the biomass boilers market are focusing on developing and commissioning advanced biomass-fired boiler systems to enhance renewable heat generation, improve fuel efficiency, and support industrial decarbonization. Biomass boilers use organic materials such as wood chips, agricultural residues, or biofuels to produce steam and heat, providing a low-carbon alternative to fossil-fuel-based systems. These solutions help industries lower greenhouse gas emissions, reduce operating costs, and comply with stricter environmental regulations. For example, in June 2023, ANDRITZ, an Austria-based industrial machinery and process engineering company, commissioned a new biomass boiler plant for Hungrana in Hungary. The boiler generates 32 tons of steam per hour from biomass fuel and is designed to significantly cut natural gas consumption while improving energy efficiency in production processes, supporting broader adoption of biomass-powered heat generation in industrial operations.

In September 2024, Boccard, a France-based industrial engineering company, acquired Leroux & Lotz Technologies for an undisclosed amount. This acquisition allows Boccard to expand its renewable thermal energy solutions by integrating Leroux & Lotz Technologies’ expertise in biomass and waste-fired industrial boilers, combustion systems, and energy recovery technologies. Leroux & Lotz Technologies is a France-based industrial boiler manufacturer specializing in biomass boilers and solid-fuel thermal plants.

Major companies operating in the biomass boilers market are ANDRITZ AG, Thermax Limited, Babcock & Wilcox Enterprises, Inc., Aalborg Energie Technik A/S (AET), Hurst Boiler & Welding Company, Inc., Schmid Energy Solutions, Wellons, Inc., Amec Foster Wheeler plc (now part of Wood Group), Mawera Holzfeuerungsanlagen GmbH, Kohlbach Group, Jernforsen Energy AB, Lin-Ka Energy Systems A/S, IHI Corporation, Doosan Enerbility, Harbin Electric Corporation, Bharat Heavy Electricals Limited (BHEL), VAS Energy Systems GmbH, LAMBION Energy Solutions GmbH, Alstom SA, Baxi Group Limited, Nexterra Systems Corp., Energy Innovations, LLC.

Asia-Pacific was the largest region in the biomass boilers market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biomass boilers market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biomass boilers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biomass boiler market consists of sales of wood chip boilers, log boilers, biomass pellet stoves, combined heat and power (CHP) systems, and biomass district heating systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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