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Woody Biomass Boiler Market Size & Share 2026-2035

Market Size - By Product (Stocker, Fluidized Bed), and By Application (Residential, Commercial, Industrial), Growth Forecast. The market forecasts are provided in terms of revenue (USD) & volume (Units).

Report ID: GMI9606
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Published Date: May 2026
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Report Format: PDF

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Woody Biomass Boiler Market Size

The woody biomass boiler market was estimated at USD 6.9 billion in 2025. The market is expected to grow from USD 7.6 billion in 2026 to USD 15.6 billion by 2035, at a CAGR of 8.3%, according to a recent study by Global Market Insights Inc.

Woody Biomass Boiler Market Key Takeaways

Market Size & Growth

  • 2025 Market Size: USD 6.9 Billion
  • 2026 Market Size: USD 7.6 Billion
  • 2035 Forecast Market Size: USD 15.6 Billion
  • CAGR (2026–2035): 8.3%

Regional Dominance

  • Largest Market: Europe
  • Fastest Growing Region: Asia Pacific

Key Market Drivers

  • Environmental regulations and policies.
  • Increasing focus toward decarbonization.
  • Paradigm shift toward sustainable waste management.

Challenges

  • High initial investment.

Opportunity

  • Decentralized energy generation and localized fuel utilization.
  • Integration with combined heat and power systems.
  • Advancements in combustion and emission control technologies.
  • Stable fuel economics and long-term cost predictability.

Key Players

  • Market Leader: ANDRITZ led with over 10.5% market share in 2025.
  • Leading Players: Top 5 players in this market include ANDRITZ, Valmet, Babcock & Wilcox Enterprises, VIESSMANN, Thermax Limited, which collectively held a market share of 38.5% in 2025.

The growing demand for renewable sources along with the increasing need for sustainable waste management solutions will provide favorable opportunities for industry dynamics. The development of effective solutions for flue gas treatment and filtration is supporting biomass fuel in its competitive positioning compared to other heating fuels by meeting the environmental standards. The development of district heating networks along with energy portfolio diversification will benefit the industry scenario.

Woody biomass boiler is an energy technology which uses the combustion process to create heat from organic materials made up of wood in form of chips, pellets or residuals as fuel in contrast to conventional boilers, which use fossil fuels. This kind of system is defined by its capability to incorporate sustainable sources of feedstock, automated fuel handling processes, and combustion control technology.

For instance, in 2025, Gren invested in the development of a 50 MW biomass boiler plant to strengthen Riga’s district heating infrastructure and accelerate the transition toward renewable energy. Located conveniently next to the company’s existing biomass CHP plant, this project will facilitate efficient operations and guarantee continuous production of heat energy. This move will help decrease the reliance on foreign fuel sources, thereby guaranteeing sustainable energy supply at lower costs.

Woody Biomass Boiler Market Research Report

Woody Biomass Boiler Market Trends

The industry is bolstered by government initiatives and favorable policies meant to lower carbon emission and encourage the use of clean energy. Improvements in technology regarding conversion and increasing use of biomass in industries will drive business expansion. Moreover, these systems become more popular in construction and manufacturing industries, where they are applied in production of bio-products, and this will escalate the growth of the boiler market.

Woody Biomass Boiler Market Analysis

Woody Biomass Boiler Market Size, By Product, 2023 – 2035 (USD Billion)

The fluidized bed woody biomass boiler market will reach over USD 10 billion by 2035. These units represent highly sophisticated combustion technology that can provide efficient fuel combustion for various types of biomasses. In addition, the working principle of these systems is based on the suspension of biomass particles in a bed of inert matter using air flow, which allows the creation of a fluid-like condition.

Woody Biomass Boiler Market Revenue Share, By Application, 2025

The industrial woody biomass boiler market holds a share of 47.7% in 2025. These plants are used to produce steam and heating processes that are essential in large-scale activities and represent a renewable source that is used in place of coal, oil, and gas plants. Performance, efficiency, and fuel flexibility are among the concerns of industrial consumers, making biomass boilers an important part of energy diversification plans. Increasing urban waste-to-energy initiatives in line with expansion of heat network zoning policies will amplify the demand of these units.

U.S. Woody Biomass Boiler Market Size, 2023 - 2035 (USD Million)

U.S. woody biomass boiler market was estimated at USD 670.9 million in 2025. The increasing inclination toward biomass co-firing and conversion as methods for shifting to renewable energy sources will boost the industry potential. In addition, developing integrated biomass supply chains that include collection channels, storage and transport mechanisms will guarantee a reliable source of biomass energy, will boosting product penetration.

For instance, in May 2026, Advanced Woody Biomass Alliance marks a strategic initiative to unify stakeholders across the global woody biomass ecosystem, strengthening collaboration among participants in power generation, advanced fuels, industrial applications, and carbon management. Evolving from the US Industrial Pellet Association, the platform reflects the sector’s transition toward diversified, high-value renewable carbon solutions. The alliance is focused on shaping supportive policy environments, enhancing industry coordination, and accelerating investment flows to scale deployment internationally.

The surging emphasis on decarbonization coupled with stringent government regulations aimed at reducing greenhouse gas emissions will enhance the Europe woody biomass boiler industry. Evolving from the US Industrial Pellet Association, the platform reflects the sector’s transition toward diversified, high-value renewable carbon solutions. The alliance is focused on shaping supportive policy environments, enhancing industry coordination, and accelerating investment flows to scale deployment internationally.

Woody Biomass Boiler Market Share

The competitive landscape of the woody biomass boiler industry is becoming more inclined towards technology innovation to meet the changing demands for energy efficiency and sustainability. The manufacturing firms have been concentrating on designing new combustion technologies, which ensure efficient fuel burning while maintaining steady thermal output for different kinds of biomass. The firms started giving special attention to improving the efficiency of boilers through better heat exchange methods and air control technologies.

Woody Biomass Boiler Market Companies

Major players operating in the woody biomass boiler industry are:

  • ANDRITZ

  • ARITERM

  • Babcock & Wilcox Enterprises

  • DP CleanTech

  • Forbes Marshall

  • Hoval

  • Hurst Boiler & Welding Co.

  • John Cockerill

  • John Wood Group PLC

  • Prime Thermals

  • Schmid Energy Solutions

  • Sofinter S.p.a

  • Sugimat

  • TESPL

  • Thermax Limited

  • Thermodyne Boilers

  • Valmet

  • VIESSMANN

  • Windhager

  • Woodco

Woody Biomass Boiler Industry News

  • In February 2026, Valmet came into collaboration with Veolia for executing a state-of-the-art heat recovery process at the EC4 co-generation plant through the installation of an efficient fluidized bed biomass boiler system. It includes the use of flue gas condensation along with integrated automation to achieve optimum heat recovery. This is in line with the strategy of Veolia for decarbonizing through increasing renewable heat production without any increase in biomass fuel.

  • In March 2025, ANDRITZ has successfully commissioned a biomass power plant for Hungrana, Hungary’s leading sugar producer, reinforcing its capabilities in turnkey project execution. The corporation provided the entire solution including the design, fabrication, installation of the boilers, and the required civil works. The plant allows the firm to become more sustainable since it will be able to use renewable energy rather than relying on natural gas. Moreover, this plant can produce 32 tons of steam per hour from wood chips.

The woody biomass boiler market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and volume (Units) from 2022 to 2035, for the following segments:

Market, By Product

  • Stocker

  • Fluidized bed

Market, By Application

  • Residential

  • Commercial

  • Industrial

The above information has been provided for the following region & countries:

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • France

    • UK

    • Poland

    • Italy

    • Spain

    • Austria

    • Germany

    • Sweden

    • Russia

  • Asia Pacific

    • China

    • India

    • Philippines

    • Japan

    • South Korea

    • Australia

    • Indonesia

  • Middle East & Africa

    • Oman

    • Saudi Arabia

    • Iran

    • UAE

    • Nigeria

    • South Africa

  • Latin America

    • Argentina

    • Chile

    • Brazil

Authors:  Ankit Gupta, Piyush Agarwal

Research methodology, data sources & validation process

This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.

Our 6-step research process

  1. 1. Research design & analyst oversight

    At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.

    Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.

  2. 2. Primary research

    Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.

  3. 3. Data mining & market analysis

    Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.

  4. 4. Market sizing

    Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.

  5. 5. Forecast model & key assumptions

    Every forecast includes explicit documentation of:

    • ✓ Key growth drivers and their assumed impact

    • ✓ Restraining factors and mitigation scenarios

    • ✓ Regulatory assumptions and policy change risk

    • ✓ Technology adoption curve parameter

    • ✓ Macroeconomic assumptions (GDP growth, inflation, currency)

    • ✓ Competitive dynamics and market entry/exit expectations

  6. 6. Validation & quality assurance

    The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.

    Our triple-layer validation process ensures maximum data reliability:

    • ✓ Statistical Validation

    • ✓ Expert Validation

    • ✓ Market Reality Check

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Verified data sources

  • Trade publications

    Security & defense sector journals and trade press

  • Industry databases

    Proprietary and third-party market databases

  • Regulatory filings

    Government procurement records and policy documents

  • Academic research

    University studies and specialist institution reports

  • Company reports

    Annual reports, investor presentations, and filings

  • Expert interviews

    C-suite, procurement leads, and technical specialists

  • GMI archive

    13,000+ published studies across 30+ industry verticals

  • Trade data

    Import/export volumes, HS codes, and customs records

Parameters studied & evaluated

Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →

Frequently Asked Question(FAQ) :
How big is the woody biomass boiler market?
The woody biomass boiler market size was estimated at USD 6.9 billion in 2025 and is expected to reach USD 7.6 billion in 2026.
What is the 2035 forecast for the woody biomass boiler market?
The market is projected to reach USD 15.6 billion by 2035, growing at a CAGR of 8.3% from 2026 to 2035.
Which region dominates the woody biomass boiler market?
Europe currently holds the largest share of the woody biomass boiler market in 2025.
Which region is expected to grow the fastest in the woody biomass boiler market?
Asia Pacific is projected to be the fastest-growing region during the forecast period.
Who are the major players in woody biomass boiler market?
Some of the major players in woody biomass boiler market include ANDRITZ, Valmet, Babcock & Wilcox Enterprises, VIESSMANN, Thermax Limited, which collectively held 38.5% market share in 2025.
Woody Biomass Boiler Market Scope
  • Woody Biomass Boiler Market Size

  • Woody Biomass Boiler Market Trends

  • Woody Biomass Boiler Market Analysis

  • Woody Biomass Boiler Market Share

Authors:  Ankit Gupta, Piyush Agarwal
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Premium Report Details:

Base Year: 2025

Companies Profiled: 20

Tables & Figures: 60

Countries Covered: 27

Pages: 150

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