Biomass boilers rely on wood gasification, a technology that has been around since the 1800s. Such boilers had their water tank heated by burning either wood in various forms, or other biomass waste, at very high temperatures. In accordance with worldwide agreed carbon neutrality targets, oil boilers are being phased out and as a result, biomass boilers have been receiving greater consideration as viable alternatives.
Biomass boilers are seeing an increase in volume and value sales in 2022, compared to the year before. BSRIA has researched and analysed specific European markets where biomass boilers are prevalent; these include Austria, Czechia, France, Germany, Italy, Poland, Romania and Switzerland. We recorded a biomass boilers volume increase of over 11% in 2022, compared to 2021. Growth rates are growing in volume and value, in the forecast years, up to 2026. The CAGR (2021-2026) is calculated at 9.7% with the volume of biomass boilers exceeding 400K units by 2026.
In the researched countries, pellets, wood chips, and wood logs are the types of fuel used in this heating sector.
Europe is a global leader in biomass boilers, with market growth of approximately 10% within all major global regions. Despite the Russia-Ukraine war, the European biomass boiler market is still expected to grow, but at a slower rate than pre-war estimates. The main drivers for this growth are Europe’s environmental policies aiming to decarbonise heating, the lower cost of biomass fuels compared to electricity, and roaring natural gas price rates. Financial incentives are in place with numerous schemes and grants available in European countries; therefore, government legislations have been promoting biomass boilers.
Bioenergy can play an important part in achieving the European emissions targets by 2030 and beyond. Using sustainable fuel options such as agricultural residues, by-products, and suitable waste , could significantly support the decarbonisation of heating. France, Germany, and Poland are among the European champions of utilising biomass for heating in Europe. Poland maintains its leading position among the selected European markets in biomass boiler volume figures. Further, we note the French market almost doubling in volume from 2020 to 2021, with biomass boilers continuing to receive financial support by a few incentive schemes. Germany’s sales grew by 50% whilst showing great potential to stay the course due to its favourable geographic conditions, landscape, and climate.
Therefore, this channel is expected to continue growing, particularly while traditional fossil-fuel boilers are being phased out. However, despite biomass boilers being a good replacement to oil boilers, they might themselves be displaced by heat pumps, which are getting more and more established in Europe. Heat pumps are increasingly preferred and installed (with certain countries recording substantial volume figures). This growing popularity could hinder the development of biomass boilers, depending on factors such as efficiency, performance, and maintenance teething issues among others.
Within Europe, renewable energy sources account for more than half of the energy consumption and biomass constitutes one of the main energy sources. The sector is proving to be a fast-growing area in heating, amidst decarbonisation policies directing the course of Europe.
BSRIA’s biomass boilers overview focuses on the state of the biomass boilers’ market, looking at the current biomass boiler market size segmentation, drivers, and post-COVID-19 5-year forecast to 2026.