Global biomass boiler market to grow at 18.1% CAGR during 2016-24

biomass-energy

Global biomass boiler market will expand at a remarkable 18.1 percent CAGR from 2016 to 2024, says a new report from Transparency Market Research.

The market had a valuation of US$2,426.5 mn in 2015 and is expected to rise toUS$10,752.4 mn in 2024.

The rising awareness regarding the use of biomass as a suitable low-carbon and sustainable alternative to fossil fuels such as coal for the generation of power and heat is the key driver of the global biomass boiler market.

Developed as well as developing economies across the globe have ramped up their efforts for reducing greenhouse gas emissions, of which finding ways of minimizing reliance on fossil fuels and switching to carbon-neutral fuels such as biomass is an important step. This trend has led to an increased adoption of small- and large-scale biomass boilers across the globe, chiefly for the generation of heat and power across businesses, households, and communities.

In the highly fragmented competitive landscape of the global biomass boilers market, none of the leading companies accounted for a share of over 10 percent in the overall market in 2014, the report said.

The top six companies in the market, including Baxi Group, ETA Heiztechnik, Polytechnik Group, and Babcock & Wilcox Enterprises collectively accounted for a relatively moderate 40 percent share in the global market in the said year. The remaining 59 percent share was held by a fragmented chain of suppliers across the globe.

Europe is presently the dominant regional market for biomass boilers, accounting for a share of over 67 percent in the overall revenues of the global market in 2015. The regional market is expected to expand at a nearly 18 percent CAGR from 2016 to 2024 and retain its dominant position in the global market over the next few years as well.

In terms of the key varieties of feedstock used to fuel biomass boilers, the segment of woody biomass leads, holding a share of nearly 77 percent of the overall market in 2015.

Over the years of their use across the industrial and domestic sectors, it has been found that biomass boilers can provide an array of economic and environmental benefits. The renewable and low carbon nature of biomass has compelled the increased installation of biomass boilers across developed as well as developing countries across the globe.

Several government policies that aim at increasing the share of renewables in their individual energy mixes, as a step ahead in achieving the carbon emission regulation targets, are playing a key role in fortifying this trend.

Encouraging regulatory frameworks and government grants and incentive programs that provide investment subsidies and tax benefits to industries using renewables are also playing a key role in encouraging biomass heating companies and utilities to switch to biomass on an increased level.

Furthermore, the propositions of granting feed-in tariffs (FIT) and tax incentives across countries such as India, Scotland, Japan, and Australia are also expected to encourage an increased number of investors to enter into the biomass boilers market in the next few years.

The key challenges for the growth of the global biomass boilers market are the several issues associated with the supply, handling, transport, and storage of biomass. Additionally, decrease in the overall efficiency of biomass with time, emission of pollutants, ash deposition, and impacts of carbon burnout are some of the key technical issues related to biomass boilers.

The high moisture content of certain biomass feedstock also poses many challenges related to their transport and storage on a larger level. The high costs incurred in transportation and storage of biomass with high moisture content can outweigh the value of biomass to a significant level as biomass fuels have low-energy densities compared to fossil fuels.

These factors are expected to refrain the large-scale adoption of biomass for energy and heat production to the certain level in the next few years. Nevertheless, programs such as the Renewable Heat Incentive (RHI), which provides financial support to non-domestic generators of renewable heat across several European countries, are expected to provide long-term support for the biomass boilers market in the future.

Source: Transparency Market Research

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