New report predicts major market growth for biomass boilers between 2016 and 2025
A new Transparency Market Research report suggests the global market for biomass boilers is expected to grow from $68.2 billion (US) in 2015 to $193.1 billion by 2025, resulting in a compound annual growth rate (CAGR) of 11%.
The report, titled ‘Biomass Boiler Market – Global & U.K. Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2022’ makes some big suggestions. In particular, expects regulatory support for alternative fuel boilers will increase interest and therefore investment in the upcoming years.
Biomass boilers are an eco-friendly and more cost-effective alternative to a modern fossil fuel heating systems. They typically burn wood pellets and wood chips to generate heat and energy. Typically, large commercial buildings, such as hotels, educational establishments and hospitals use them.
Generally, biomass boilers are more popular in areas with a limited gas mains supply. As a result, they are maybe best in in rural locations.
A wide array of possible fuels
Biomass boilers can use many different types of fuel. This includes agricultural, human and forest waste, energy crops and biogas. Therefore, owners can decide what to use for their heating. Wood remains the most popular choice though.
In the UK, it will be Government support and new initiatives such as the Renewable Heat Incentive (RHI) scheme, in addition to tax and feed-in tariffs (FITs) incentives, which will propel the market between 2016 and 2025.
The report states that limited advancement to overcome supplier challenges of storage and stocking could be a factor which will negatively effect the global market.
Three groups make up the biomass boiler market:
- Residential
- Commercial
- Industrial
The commercial sector has been the market leader for a number of years. Consequently, this is expected to continue between now and 2025.
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