With the continued increase in the relevance of the climate crisis, sustainable heating systems are gaining attraction and understanding the market dynamics for innovative solutions such as a pyrolysis system is crucial. With Pyronet's plan to enter the heating system market with a climate-positive solution, an assessment of the market potential had to be done in order to confirm a success for its business in the future.

The work employs a multi-faceted approach including main customer segment calculations, such as single and multi-family homes as well as broad market calculations. i.e. residential buildings and farms in the said region. Furthermore, a partial PESTEL analysis was conducted with secondary data from prior research focusing on political, economic, and legal factors. Lastly, by conducting three interviews valuable insights from industry close and experienced experts were collected.

Key findings indicate that Austria has been leading in biomass heating system adaptation. Followed by Germany and Switzerland respectively. Similarly, we also notice stringent environmental regulations in the region. In particular, in Germany, wherein customers are required by law to switch to sustainable heating systems. Whereas in Austria and Switzerland, the respective governments promote the use of sustainable heating systems with the help of subsidies and lenient legislation. Furthermore, this work identifies significant market opportunities for Pyronet. The analysis, however, highlights potential challenges. Although, subsidies are available for customers who need to switch to eco-friendly heating systems, they are often insufficient to reduce the initial costs. Key takeaways for Pyronet are the low-level of awareness for their solution which poses an urgency for a marketing plan, the growth in the biochar market that could lead to a long-term decrease in the biochar price, thus, diminishing profit and compensation, an expected increase in the carbon credit price that might make up for the losses form biochar, and the SOM size of approximately 10,350 buildings p.a.