The "Global Wood Pellet Market - Forecasts from 2022 to 2027" report has been added to ResearchAndMarkets.com's offering.
The Global Wood Pellet market was valued at US$11.622 billion in 2020 and is expected to grow at a CAGR of 14.49% over the forecast period to reach a total market size of US$29.964 billion in 2027.
- German Pellets GmbH
- Pinnacle Renewable Energy Inc
- Enviva LP
- Wood & Sons
- Drax Group plc
- AS Graanul Invest
- Stora Enso
- Svenska Cellulosa Aktiebolaget SCA (publ)
- The Brookridge Group
Wood pellets are renewable energy carriers. These are produced from sawdust or other ground woody materials. According to international standards, product requirements for energy density, moisture, abrasion resistance, particle size, and shape for wood pellets are defined, turning wood pellets into a commodity. As such, standardized wood pellets offer promising properties for large-scale production.
With the rising production of wood pellets, there has been a significant rise in the trade flows of wood pellets across the globe. There are different applications of wood pellets that are boosting their demand worldwide. For example, wood pellets are widely used as a convenient solid biofuel in automatic stoves and boilers in the domestic heating sector. Wood pellets reduce greenhouse gas (GHG) emissions from electricity generation when co-fired in coal-based power plants. Industrial wood pellets are used as a substitute for coal in power plants while premium pellets are used in pellet boilers and pellet stoves for heating.
Wood pellets have emerged as a viable and promising renewable energy source as a replacement for coal, especially in Europe and North America. The pellet market has been witnessing tremendous growth worldwide over the past few years, with increasing demand for both industrial applications in large-scale power plants and small-scale applications in residential heating systems.
The market for wood pellets is gaining remarkable traction since they have low carbon footprints. As such, growing concerns regarding environmental sustainability across the globe is the major factor behind the growing demand for wood pellets, which is driving the global market growth.
Governments from various countries, as well as global organizations, are constantly taking the necessary steps and measures to achieve their set target for reducing carbon footprints or greenhouse gas (GHG) emissions. Limited availability of non-renewable resources and their adverse impact on the environment have made it necessary for the world economy to switch to alternative power sources without harming the environment. Governments across the globe have set their targets aimed at moving towards different renewable energy sources.
Austria, for example, has set a goal of achieving 100 percent renewable electricity by 2030. France has committed to cutting its greenhouse gas (GHG) emissions and going 'carbon-neutral' by 2050 in line with the 2015 Paris Climate Agreement. The Philippines has pledged to reduce carbon emissions from the transportation, energy, waste, forestry, and industry sectors by 70% by 2030.
The escalating environmental concerns about greenhouse gas emissions (GHGs) in different countries have made biomass fuels popular. In recent years, significant progress has been made in logistics and advancements in combustion technology, which has further boosted the growth of the global wood pellet market.
The use of wood pellets as fuel has gained widespread adoption for heating homes and power boilers, especially in the European region. The easy availability of raw materials such as timber and compacted sawdust, coupled with the low production cost, are some of the factors which are also contributing to the robust rise in demand for wood pellets, thereby driving the market growth.
The global wood pellet market players are actively engaged in R&D activities so as to increase the efficiency of the wood pellet manufacturing process and gain a competitive edge over their rivals. As such, new and advanced designs for pellet mills are being developed so as to obtain a high yield with optimum fuel input. Furthermore, extensive research is being carried out to produce wood pellets with a high-calorific value from the available feedstock. All these factors are anticipated to fuel the growth of the global wood pellet market during the next five years.
Europe is the largest consumer and the largest producer of wood pellet
By geography, the global wood pellets market has been segmented into five major regional markets - North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). In 2019, Europe accounted for the major share in the global wood pellets market According to the USDA (United States Department of Agriculture) Foreign Agricultural Service's Global Agricultural Information Network, the EU (European Union) consumed an estimated 27.35 million metric tons of wood pellets in 2018, from 24.15 million tonnes in the previous year.
- Residential and Commercial
- North America
- United States
- South America
- The United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
For more information about this report visit https://www.researchandmarkets.com/r/9x3gzb-wood?w=4
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