Bioheaters Market Size (2023-2030)

The Global Bioheaters Market was estimated to be worth USD 7.38 Billion in 2022 and is anticipated to reach a value of USD 11.29 Billion by 2030, growing at a fast CAGR of 5.46% during the forecast period 2023-2030.

Bioheaters are biodegradable heaters that utilize biological processes or materials to generate heat. These heaters utilize renewable sources of energy and act as an environment-friendly alternative against conventional fossil-fuel-based heating technology methods. Further, these bioheaters use organic materials that undergo combustion to generate heat. Moreover, it utilizes organic materials such as wood pellets, agricultural residues, animal waste, and other residual materials that can be used for residential, commercial, and industrial heating purposes. Furthermore, increasing demand for renewable energy has boosted the market for bioheaters in the market as it helps in reducing greenhouse gas emissions, which are released during the electricity generation process. Moreover, some of the most common forms of bioheaters include biomass heaters, biogas heaters, biofuel heaters, and others that utilize organic materials to generate electricity and heat for various purposes.

Global Bioheaters Market Drivers:

Shifting demand towards renewable sources of energy drives the market for bioheaters.

Renewable energy plays a crucial role in reducing environmental degradation and promoting sustainability. Due to the increase in greenhouse gas emissions during the combustion process, manufacturers and consumers shifted their preference for green technologies such as bioheaters. These heaters offer a renewable and low-carbon alternative to fossil fuel technologies as it utilizes organic materials to produce heat and electricity. Moreover, they help to reduce CO2 emissions and other forms of pollutants during the heating process. Additionally, bioheaters offer carbon neutrality as it uses organic materials such as agricultural residues that store carbon release. That is, as bioheaters burn biomass, the stored carbon releases carbon dioxide, and then this carbon is reabsorbed by the new plant growth that makes bioheaters a carbon-neutral alternative against conventional heating methods. Furthermore, by utilizing renewable energy sources bioheaters helps in mitigating climate change and provide a sustainable option to manufacturers and consumers.

Government support has bolstered the market demand for bioheaters.

Governments of all countries are making constant efforts to introduce and implement renewable energy policies that benefit the producers and manufacturers of bioheaters. These include support in the form of tariffs, investments, tax credits, grants, subsidies, renewable energy targets, and others. For instance, in September 2021, USDA (US Department of Agriculture) invested $464 million in renewable energy infrastructure to help rural communities, agricultural producers, and small businesses in the region lower their energy costs and improve efficiency. The program provided funding to install renewable energy systems that contribute towards energy efficiency. Similarly, in February 2023, the Government of India announced an investment of $4.3 billion in clean energy projects in the Ladakh region. It aims to develop solar projects and become a leader in green hydrogen production that helps to curb climate change and contribute towards green technology. These efforts by governments contribute towards the market growth of heaters.

Global Bioheaters Market Challenges:

Sourcing difficulties and installation costs can hamper the market growth for bioheaters. Bioheaters utilize natural sources such as biomass, which is difficult due to transportation issues as transporting wet biomass from the plantation to the production area becomes unfavourable for further production and also results in increased transportation costs.

Furthermore, the absence of a proper conversion facility, core technology, and equipment storage act as a technical barrier in manufacturing bioheaters.

Global Bioheaters Market Opportunities:

The Global Bioheaters Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, an increase in green technology adoption by producers and manufacturers and rising government support in the form of subsidies and tax incentives for heater producers and small businesses are predicted to develop the market for Bioheaters and enhance its future growth opportunities.

COVID-19 Impact on the Global Bioheaters Market:

The pandemic had a mixed impact on the heaters market. As the nation witnessed a global lockdown resulting in restrictions on movement and trade disruptions, the demand for bioheaters declined in the market. Further, labour shortages and unavailability of required components for producing and maintaining heaters, led to delays in installations at project sites, resulting in delays in the working process of various industries. On the other hand, due to changing work environments, consumers shifted their demand towards energy-efficient technologies that offered less power consumption and less economic burden on them. These include an increase in demand for bioheaters in residential spaces for heating and cooling purposes. Furthermore, bioheaters were also used in the healthcare industry to provide heat to medical devices such as fluid warming equipment, sterilization devices, and insufflation and ablation devices.

BIOHEATERS MARKET REPORT COVERAGE:

Global Bioheaters Market Segmentation: By Type

• Biomass-Based Heaters

• Biogas-Based Heaters

• Biofuel-Based Heaters

Based on market segmentation by type, biomass-based heaters occupy the highest share of the market. Bio-mass heaters utilize organic materials such as wood pellets, agricultural waste, and animal waste for generating heat. These heaters are extensively used for commercial, residential, and industrial heating purposes. Furthermore, wood pellet heaters are made of wood residues that help in generating heat without harming the environment and hence are widely demanded in industries for heating purposes.

The biofuel heaters segment is the fastest-growing segment during the forecast period. Due to the increasing demand for energy-efficient and sustainable fuel from the automotive industry, there is an increase in demand for biofuel heaters in vehicles. These heaters utilize liquid or gaseous biofuel and provide warmth and comfort to the passengers by supplying heat in the cabin. Further, they are integrated into the car’s heating, ventilating, and air-conditioning system for distributing heat throughout the interior of the vehicle. Moreover, these heaters help in reducing carbon emissions and contribute towards sustainable transportation.

The bio-gas heaters segment occupies a significant market share. These heaters utilize biogas that is generated from animal manure and food waste. Further, biogas heaters are increasingly used for agricultural heating purposes such as heat for barns, livestock housing, greenhouse operations, and others. Moreover, these heaters are witnessing an increased demand from the hospitality industry such as in hotels and restaurants for various heating purposes.

Global Bioheaters Market Segmentation: By Application

• Commercial

• Residential

• Industrial

Based on market segmentation by application, the industrial segment occupies the largest share of the market. Bioheaters are widely used in industries for manufacturing facilities, warehouses, and process heatings for providing high-temperature heating to industries. Moreover, industries such as food processing, textile manufacturing, chemical production, and metalworking industries use bioheaters as a renewable alternative that helps in reducing greenhouse gas emissions during the production process.  The commercial segment is the fastest-growing segment during the forecast period. Bioheaters are used for large spaces in commercial settings in spaces such as offices, hotels, restaurants, retail spaces, and others. Moreover, these bioheaters are used for centralized heating systems and boilers that provide heat to the entire building.The residential segment occupies a significant market share. Bioheaters are used for space heating, water heating, or for powering heating systems in residential settings. These are used to meet the heating needs for fireplaces, small stoves, boilers, and other systems for heating purposes.

Global Bioheaters Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, North America occupies the highest share of the market. Rising awareness towards sustainability and climate change mitigation is fuelling the market growth for bioheaters in the region. Due to increasing demand for renewable and sustainable technologies, countries such as USA and Canada have implemented various renewable energy policies and targets that promote the adoption of green technology. These include the Renewable Portfolio Standard (RPS) and Renewable Fuel Standards (RFS), which support the usage of bioheaters in the region. Moreover, the increase in greenhouse gas emissions has induced countries to adopt heaters as a sustainable alternative to conventional heating systems and thus contributing to environmental sustainability. The Asia-Pacific region is anticipated to be the fastest-growing region during the forecast period. The abundance of biomass resources for bioheating purposes such as agricultural residues, animal waste, water, and sewage waste, and increasing support from the government in the form of financial incentives is creating a favourable business environment for bioheaters manufacturers in the region.

Global Bioheaters Market Key Players:

1. Alfaflame Bioheating Systems

2. FLINT LAB Inc

3. Rex Nordic group

4. Antti Fi

5. Mepu Oy

6. Thermax

7. Andritz

8. Justsen Energiteknik

9. Miyo Technology Co.Ltd