Wood Pellet Market Size Analysis
According to a recent survey conducted by ChemView Consulting, the Global Wood Pellet Market grew at a CAGR of 7.8% between 2017-2021 and is estimated to be US$ 7,742.3Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 8.9% and is expected to reach a valuation of US$ 18,161.4Mn by 2032 end.
Wood pellets are eco-friendly, renewable, sustainable, and clean biomass. The market for wood pellets is rising due to the increased need for renewable energy worldwide to limit the use of fossil fuels that contribute to global warming. Throughout the projection period, this is anticipated to aid in the industry’s expansion.
RISING DEMAND FOR CARBON-NEUTRAL AND SUSTAINABLE FUEL CONTINUES TO BOLSTER THE WOOD PELLETS MARKET
The need for wood pellets in the industrial sector is increasing as pellet-based power plant becomes a preferred substitute for coal-based power plants. Additionally, governments all over the world are eager to promote the use of renewable energy in the transportation, industrial, and residential sectors.
Consumers in industrialized nations like Europe are more environmentally conscious, which continues to explain why they are relying more and more on renewable energy sources. In underdeveloped countries, there is increasing interest in using bio-based energy sources to generate electricity. Rising energy consumption and accommodative government policies are cited as the cause.
The industrial sector is using more wood pellets, which has significantly decreased greenhouse gas emissions. The striking increase should be credited to ongoing advancements in combustion technology.
LOW AWARENESS LEVELS AND AVAILABILITY OF ALTERNATIVES OF WOOD PELLETS HINDERING GROWTH
While there are many reasons for promoting cell line development, there are also some barriers, such as a lack of understanding of wood pellets, the availability of substitutes, and the application of regulations.
During the projection period, the market expansion is anticipated to be hampered by the growing acceptance and deployment of alternative renewable energy sources, including solar photovoltaic, wind energy, and geothermal, in various areas worldwide. Additionally, it is anticipated that the operational and mandatory compliance issues related to wood pellets would pose more and more of a hurdle to the growth rate throughout the forecast period.
INCREASED SUPPORT FROM BIOMASS BOILER GRANTS PRESENTS LUCRATIVE OPPORTUNITIES FOR WOOD PELLETS
Recent advancements in wood pellet boiler technology have been major motivators for market participants in the industry. Wood pellet boilers with self-cleaning systems that require little human involvement are becoming more widely available from manufacturers. Even though these boilers are becoming increasingly popular, they still need regular maintenance to function at their best.
To increase boiler sales, businesses on the global market are raising knowledge of the environmentally friendly benefits of biomass boilers and the affordability of wood pellets. In addition, the leading companies are concentrating on drawing customers’ attention and educating them about biomass boiler grants to support the customers’ investment.
Market Segments Covered in Report
By Region and Country:
Which end-use industry shows a higher implementation in the wood pellets market?
Residential generates $3.5 billion in revenue and is anticipated to expand significantly throughout the projected period. Due to qualities like being environmentally friendly, purifying, sustainable, etc., wood pellets are becoming increasingly popular among household users. In addition to being used as cat litter and horse bedding, wood pellets are frequently used for home heating and cooking.
Why is Heating Segment increasing in demand in the anticipated period?
Over the projection period, the heating application is anticipated to increase at a CAGR of 5.9%. Numerous nations have created regulations and initiatives regarding the use of wood pellets for heating purposes. One of the main causes affecting the inevitable increase in the growth rate is the growing demand for wood pellets in the commercial and residential heating sectors, compelling producers to create them in enormous quantities.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
The key players in the global wood pellets business have been regularly engaging in mergers and acquisitions to maintain profitability and competitiveness while gaining a strong presence in the market. The manufacturers of wood pellets have amassed a sizable client base by using premium packaging to increase brand recognition and diversify their brand portfolio. These actors also work with a larger network of distributors and OEMs in the sector and law enforcement organizations.
The key developments in the Global Wood Pellet Market:
A list of some of the key suppliers present in the market are:
Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2032|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Application, End-Use, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Frequently Asked Questions
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 8.9%.
Rising demand for carbon-neutral and sustainable fuel continues to bolster the wood pellets market.
Major global Wood Pellet Market players are Energex, Enviva LP, Graanul Invest, Drax Biomass, Pinnacle, Sinclar Group Forest Products, Lauzon, Wood Pellet Energy (UK) Ltd., United Company, Highland Pellets LLC, Groupe Savoie Inc., I.C.S. (Lacroix) Lumber Inc., Vermont Wood Pellet Company, AVPGroup, Farm Fuels.
Low awareness levels and the availability of alternatives to wood pellets hinder the growth
Europe is expected to account for the largest market revenue share in the Global Wood Pellet market.
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