Wood Pellets Market Forecast, Industry Outlook Analysis Report, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Wood Pellets Market


The global Wood Pellets market size is projected to reach US$ 16.94 billion by 2026, from US$ 9.99 billion in 2020, at a CAGR of 9.2% during 2021-2026. Increasing awareness regarding the use of renewable energy sources for power generation is likely to augment the demand for wood pellets over the forecast period. Product quality and costs are dependent on the prices of raw materials obtained from the timber industry and forests.

Factors affecting the product quality include calorific value, Moisture Content (MC), amount of fines, particle density, mechanical durability, ash melting point, and ash content. The industry is witnessing growth on account of increased consumer awareness regarding the product benefits, such as complete combustion, cleaner burning fuel as compared to fossil fuels, and reduction in Greenhouse Gas (GHG) emissions.

On the other hand, the wood pellets market may witness sluggish growth on account of health effects caused by it, which include constitute round-the-clock noise pollution, release of particulate matter in the air, fires and spontaneous explosions when subjected to high temperature in the storage facilities. In addition, exposure to wood dust generated during the manufacturing process can cause respiratory problems, such as asthma and lung cancer, allergic reactions, irritation to skin, and nasal cancer.

Since the manufacturing process also creates wood dust, which has various harmful effects including as respiratory problems, key companies are focusing on R&D for the development of novel processes for the production of wood pellets with low moisture and high heating value. This factor is projected to augment the growth of the global market over the next few years.

Market Segmentation, Outlook & Viewpoint: Global Wood Pellets Market

Application Market Segmentation & Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  
Power Plants
  
Residential Heating
  
Commercial Heating
  
Combined Heat and Power (CHP)

Key Players, Recent Developments & Regional Insights: Global Wood Pellets Market

The residential heating segment accounted for over 45% of the global market share on account of increasing penetration of wood pellets in the European and American economies for space heating during winters. In addition, simple pellet heating technology coupled with minimum operation and maintenance requirements is expected to aid the market growth. Power plant was the second-largest application segment owing to the ability of the product to replace fossil fuels as it is eco-friendly, sustainable, and carbon neutral.

In addition, the nature of wood pellets is similar to fossil fuels with the significant advantage of reduced GHG and carbon dioxide emissions, which majorly contributes to its application in heating, fuel, and power generation. Demand for wood pellets in commercial heating is expected to witness a significant growth owing to broadened application areas including federal or municipal buildings, office buildings, educational facilities, and other commercial buildings. In addition, availability of the bulk fuel supply and advanced technologies, such as pellet stoves, in the European and North American countries is projected to augment the segment growth.

Regional Insights

North America is expected to witness a CAGR of 8.5% on account of the presence of price competitiveness with propane and residential heating oil coupled with increasing replacement of traditional burners for improving automatic feed-in and comfort. Favorable climatic conditions in these regions are also boosting the product demand.
Europe is the largest market, in terms of volume, as well as revenue. Growing product penetration in the residential heating applications in countries, such as Germany, Italy, Austria, and France, drives the regional market. In addition, subsidies offered by local and federal governments in some member states of the region for using wood pellets in residential heating is projected to complement market growth.

Asia Pacific market is estimated to witness the fastest growth at a CAGR of 11.0% from 2018 to 2025 owing to the favorable policies in China, Japan, and South Korea regarding CHP and power generation. In addition, the rapid growth of the renewable energy sector in China coupled with the rising number of power plants in the country is projected to fuel the market demand.

The demand for wood pellets in Central & South America is primarily generated from the residential and commercial segments. Growing product usage in heating applications in the residential and commercial buildings is also expected to contribute to the industry growth.

Wood Pellets Market Share Insights

Some of the key companies in this market are Drax Group PLC; THE WESTERVELT COMPANY, INC.; Georgia Biomass, LLC; Pinnacle Renewable Energy, Inc.; and Vermont Wood Pellet Co. Large-scale companies aim at expanding their manufacturing facilities in developing economies where the raw material is available in abundance. They also invest more in R&D to improve the manufacturing processes and offer high-quality products. Majority of these companies are regional or local and focus on reducing their manufacturing costs and broadening customer base by serving industrial applications.

Key Insights Covered: Global Wood Pellets Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Wood Pellets industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Wood Pellets industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Wood Pellets industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Wood Pellets industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Wood Pellets industry.

Research Methodology: Global Wood Pellets Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other