Wood Pellets Industry Overview
The global wood pellets market size was estimated at USD 8.88 billion in 2019 and is expected to register a revenue-based CAGR of 9.4% over the forecast period.
Growing consciousness regarding the use of renewable energy sources for space heating in residential and commercial heating is likely to propel the demand. Wood pellets undergo complete combustion while burning, thereby providing more heat as compared to the other biomass fuels. In addition, clean combustion of wood pellets contributes to its application in pellet stoves and pellet fireplaces along with the tax benefits and incentives associated with renewable energy and energy efficiency.
The demand for wood pellets in fueling the power plants for electricity generation is projected to witness significant growth owing to the rising number of power plants in the country. China has banned the use of coal-fired boilers in the East and Guangdong province. The low cost of the product in the aforementioned regions is also anticipated to drive the market growth in the forthcoming years.
Gather more insights about the market drivers, restrains and growth of the Global Wood Pellets Market
The rising demand for wood pellets from power generation industry is likely to drive the market growth over the forecast period. In addition, increasing awareness regarding the use of renewable energy sources for power generation coupled with the high combustion of wood pellets is likely to augment the product demand.
Favorable government initiatives and global agreements in support of renewable sources of energy are anticipated to drive the market expansion in the forthcoming years. Governments of various countries provide incentives and subsidies to consumers using wood pellets for heating applications. The UK government launched the Domestic Renewable Heat Incentive (Domestic RHI) scheme for promoting the use of renewable heat.
The market players engage in R&D activities to increase the efficiency of the wood pellet manufacturing process. New and advanced designs for pellet mills are being developed to obtain high yield with optimum fuel input. Extensive research is being carried out to achieve high calorific value wood pellets from the available feedstock. All these factors are anticipated to positively influence the growth of the market in near future.
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Wood Pellets Market Segmentation
Grand View Research has segmented the global wood pellets market on the basis of application and region:
Wood Pellets Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2027)
- Power Plants
- Residential Heating
- Commercial Heating
- Combined Heat and Power (CHP)
Wood Pellets Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2027)
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
Market Share Insights
- August 2020: Enviva Partners, LP, a leading global energy company specializing in sustainable wood bioenergy, announced the acquisition of a world-class wood pellet production plant in Waycross, Georgia.
- July 2020: A survey conducted by ENplus a certification scheme for wood pellets stated that 75% of certified producers have been negatively impacted by the COVID-19 pandemic.
Key Companies profiled:
Some prominent players in the global wood pellets market include
- Stora Enso
- Drax Group Plc.
- Enviva LP
- Pinnacle Renewable Energy Group
- Pacific BioEnergy
- Vattenfall AB
Order a free sample PDF of the Wood Pellets Market Intelligence Study, published by Grand View Research.
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