Biomass Boiler Market Size & Share Analysis - Growth Trends and Forecast (2027 - 2032)

Market Trends and Insights

Industrial Heat Decarbonization and Fossil-Fuel Substitution

Industrial process heat accounts for 20% of global energy-related carbon dioxide emissions.^[1] Biomass boilers are one of the commercially established options for high-temperature heat where electrification is less suitable. The International Energy Agency expects industrial renewable heat consumption to increase nearly 50% between 2025 and 2030, with bioenergy remaining the largest renewable heat source. This supports procurement in the biomass boiler market by manufacturers with direct-emission reduction targets. DS Smith activated a EUR 90 million biomass boiler at its Rouen paper mill in June 2025, supported by EUR 15 million from ADEME, and expects annual carbon dioxide reductions of 99,000 tons.^[2] In China, biomass boiler steam cost averaged CNY 144 per ton in 2025, compared with CNY 333 per ton for gas boilers, strengthening the case for fuel substitution when gas supplies tighten.^[3]

Renewable Heat Incentives and Carbon Pricing

Financial support remains important for the biomass boiler market where biomass equipment competes with gas boilers that have lower initial costs. Great Britain’s Non-Domestic Renewable Heat Incentive generated 120.2 TWh by March 2025.^[4] Solid biomass boilers represented 77% of the program’s 22,703 accredited installations, while annual payments exceeded GBP 1 billion in 2024 to 2025. The program closed to new applicants in 2023, which leaves the United Kingdom without a successor mechanism from 2026. France relaunched the Biomasse Chaleur Industrie Agriculture Tertiaire (BCIAT) industrial biomass heat grant program in April 2025, and grants may exceed EUR 30 million per project. Carbon pricing and grant support together can shorten the payback period for industrial projects in the biomass boiler market.

CHP and District-Heating Modernization

District-heating systems in Northern and Central Europe are replacing coal-based heat with biomass combined heat and power facilities. Fortum committed EUR 85 million to convert its Zabrze plant in Poland from coal to biomass and refuse-derived fuel. Sumitomo SHI FW will convert the Częstochowa circulating fluidized bed boiler from 70% coal firing to 100% certified biomass under a EUR 100 million project. Such projects can provide heat and power from a single fuel input while expanding biomass boiler market opportunities for municipal utilities. Gren contracted a 50 MW biomass boiler plant for Riga district heating in March 2025, with commissioning planned for spring 2027. Coal conversion activity therefore expands the addressable opportunity for the biomass boiler market beyond stand-alone industrial heat.

Digital Combustion Optimization and Predictive Maintenance

Biomass fuels vary in moisture, calorific value, and composition over time. Digital controls help biomass boiler market operators manage this variability without compromising combustion stability or emission performance. A 2025 Engineering study reported that an MFRNet framework can reconstruct combustion conditions in an industrial-scale biomass grate furnace with lower computing requirements. Sumitomo SHI FW deployed its IZANA analytics platform at Alva’s Keljonlahti circulating fluidized bed boiler in Finland during November 2025. The system supports fouling management, leakage detection, and combustion optimization during the transition from peat to biomass. These services give OEMs recurring revenue and make operational data a stronger part of competition in the biomass boiler market.

Biomass Collection, Aggregation, And Preprocessing

Feedstock supply chains remain a structural challenge for the biomass boiler market, especially outside Scandinavia and Central Europe. Organized wood-fuel systems are less developed in many regions with large agricultural residue supplies. Fuel collection, aggregation, drying, and preprocessing can require investment alongside biomass boiler market equipment. This increases upfront funding needs and can lengthen the time needed to reach financial close. Seasonal availability and uneven fuel quality also affect delivered fuel costs. Portable preprocessing depots may reduce supply-chain costs, but this approach remains uncommon on a commercial scale.

Emissions Control, Ash Handling, And Aftermarket Services

Tightening nitrogen oxide and particulate limits add capital and operating requirements for biomass boiler projects in Europe and China. A 2025 scientific study found that biomass co-firing in industrial circulating fluidized bed boilers can increase fine-ash adhesion, requiring more soot blowing and bed management than coal firing. Full biomass operation can require flue-gas recirculation, selective catalytic or non-catalytic reduction systems, and bicarbonate injection. These additions broaden engineering, procurement, and construction scope in the biomass boiler market. Germany’s national rules also require detailed ash management and characterization practices. Higher maintenance needs during the first 3 to 5 years can create unplanned outages and weaken expected project returns.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Biomass Boiler Market Segment Analysis

Grate-fired systems held 46.7% of the biomass boiler market share in 2026. Their installed base is broad across industrial steam, utilities, and district-heating applications. They can process bark, wood chips, and agricultural residues with limited preprocessing. This capability supports reliable operation where fuel quality varies. The biomass boiler market benefits from replacement and upgrading demand in established industrial and district-heating applications.

Fluidized bed boilers are forecast to grow at a 9.6% CAGR from 2027 to 2032. They can accommodate fuel moisture between 20% and 55%, with changes in calorific value and particle size. This fuel tolerance is useful where supply depends on mixed regional biomass streams. Existing circulating fluidized bed pressure parts can sometimes remain in place during coal-to-biomass conversions. This can lower capital costs and shorten project schedules for the biomass boiler industry.

Stoker-fired technology held 41.3% of revenue in 2026. It is widely used in small- and medium-capacity industrial and district-heating facilities. Lower capital costs and straightforward operation support its position across Central Europe, Southeast Asia, and North America. Established installer networks also make the technology easier to procure and maintain. Other technology options, including pyrolysis-coupled systems, remain in early commercial deployment.

Circulating fluidized bed technology is forecast to grow at a 10.2% CAGR from 2027 to 2032. It is suited to utility-scale and industrial plants that need multi-fuel capability and strict nitrogen oxide control. Sumitomo SHI FW secured 2025 contracts to convert coal plants to certified biomass in Poland and Slovakia. A 2025 Fuel study modeled a 90 MW circulating fluidized bed plant across fuel mixes ranging from all coal to all biomasses. This flexibility supports the biomass boiler market where existing coal assets can be adapted rather than fully replaced.

Industrial process heating accounted for 38.3% of the biomass boiler market share in 2026. Continuous heat demand creates favorable operating conditions for biomass-fired systems. Ahlstrom announced a biomass boiler investment at its Rottersac food-packaging site in France during September 2025. The project is expected to reduce site emissions by 80% and save 34 kilotons of carbon dioxide each year after commissioning. Paper, packaging, food processing, and similar facilities can use captive residue streams to improve fuel security.

Combined heat and power are forecast to grow at a 10.1% CAGR from 2027 to 2032. Coal retirements in Europe and China are creating demand for integrated heat and power from biomass. The Zabrze, Częstochowa, and Riga projects show how municipal networks are moving toward renewable heat infrastructure. Commercial and institutional heating is also developing in places that maintain renewable heat incentives. The biomass boiler market also serves smaller agricultural drying and aquaculture applications.

Water-tube boilers made 62.5% of revenue in 2026. Their design supports the high-pressure and high-temperature operation required by large industrial steam and combined heat and power plants. ANDRITZ is supplying an EcoFluid bubbling fluidized bed power boiler to Green Bay Packaging’s Morrilton, Arkansas facility. The project forms part of a USD 1 billion facility investment and is targeted for commissioning in late 2027. The European Commission reported that bioenergy provides 75% of renewable heat in European Union heating and cooling. 

Fire-tube boilers serve smaller commercial and light-industrial users, generally below 10 MW. These customers often favor lower initial costs and simpler maintenance. Their share is expected to decline modestly as project activity moves toward larger, higher-pressure combined heat and power and district-heating systems. Combined-circulation and once-through systems serve narrow needs in pharmaceuticals and specialty chemicals. Water-tube systems also align more readily with digital control infrastructure used across the biomass boiler market.

Geography Analysis

APAC Biomass Boiler Market

Asia-Pacific held 39.2% of the biomass boiler market size in 2026 and is forecast to grow at a 9.9% CAGR from 2027 to 2032. The region benefits from abundant agricultural residues, industrial expansion, and government support. China incorporated biomass boilers into clean-heating programs across 88 northern cities. The country produces more than 800 million metric tons of straw each year. India is the region’s fastest-growing country, supported by sugar, ethanol, and agro-processing operations with captive residue streams.

Europe and North America Biomass Boiler Market

Europe is the second-largest regional market and has a mature installed base. The EU Emissions Trading System and national decarbonization requirements are supporting coal-to-biomass retrofits. Poland, Germany, Sweden, Finland, and the Baltic states lead procurement activity. France’s Biomass Chaleur Industrie Agriculture et Tertiaire (BCIAT) program supports industrial biomass investments through large project grants. North America is the third-largest regional market, led by the U.S. pulp, paper, and forest-products sectors, while Canada adds demand through wood-product industries in British Columbia and Ontario.

South America and MEA Biomass Boiler Market

South America is centered on Brazil, where sugarcane bagasse has long supported industrial boiler use. Argentina and Colombia offer further potential through agro-industrial development and renewable energy goals. South Africa, Kenya, Nigeria, and Egypt are primary entry points in the Middle East and Africa. Energy security is becoming as important as decarbonization in developing biomass boiler market opportunities.