Wood Pellets Market Projected To Reach USD 20.5 Billion By 2032 | Rising Demand For Renewable Energy Drives Market Growth

Austin, Dec. 20, 2024 (GLOBE NEWSWIRE) -- The SNS Insider report indicates that, “ The Wood Pellets Market is projected to reach a valuation of USD 20.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2032. ”

Key Trends Fueling the Wood Pellets Market

Wood pellets demand is rising due to its carbon-neutral characteristics and high energy contents, wood pellets have been more frequently applied in power generation and heating. They are one of the most important components of biomass energy plants, which are essential for efforts to reduce fossil fuel dependency and carbon reduction targets.

Cost-effective, easy to handle, and environmentally friendly, it is not surprising that wood pellets are favored over traditional fuels for residential heating. The increasing interest in sustainable alternative fuels in the industrial sector is driving demand for wood pellets, in addition to heating. Renewables and energy transition play a major role in the growth of the wood pellet market in developed countries, as well as in developing countries.

In addition to this, the growing need for bioenergy in nations determined to adhere to strict climate objectives by decreasing greenhouse gas emissions is boosting the market views. Wood pellets are increasingly viewed as a sustainable replacement for coal at power plants, with governments encouraging the use of biomass via policies and regulations.

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Key Companies:

• Energex (Premium Wood Pellets, Heating Pellets)
• Enviva LP (Enviva Premium Pellets, Enviva Wood Pellets)
• Graanul Invest (Premium Wood Pellets, Industrial Pellets)
• Drax Biomass (Drax Wood Pellets, Compressed Wood Pellets)
• Pinnacle (Pinnacle Wood Pellets, Pinnacle Premium Pellets)
• Sinclar Group Forest Products (Premium Pellets, Standard Pellets)
• Lauzon (Lauzon Pellets, Industrial Pellets)
• Wood Pellet Energy (UK) Ltd. (Eco Pellets, Premium Pellets)
• United Company (Biomass Pellets, Wood Pellets)
• Highland Pellets LLC (Highland Premium Pellets, Industrial Pellets)
• ProPellets Austria GmbH (Premium Pellets, Premium Wood Fuel Pellets)
• Forest Fuels (Wood Pellets, Premium Pellets)
• BioEnergy USA (Wood Pellets, Premium Heating Pellets)
• Pinnacle Renewable Energy Inc. (Premium Wood Pellets, Industrial Pellets)
• Stora Enso (Wood Pellets, Biomass Pellets)
• Lignetics (Lignetics Wood Pellets, Lignetics Premium Pellets)
• Bionergy Corporation (Wood Pellets, Premium Fuel Pellets)
• The Westervelt Company (Premium Wood Pellets, Industrial Pellets)
• Green Circle Bio Energy (Green Circle Premium Pellets, Bulk Pellets)
• Viridis Energy Inc. (Viridis Premium Pellets, Viridis Biomass Pellets)

Wood Pellets Market Report Scope:

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Innovations in Wood Pellet Production

The wood pellet industry continues to evolve, engineering new processes to drive quality and throughput. Trends such as new manufacturing technologies, like high-efficiency drying and pelleting methods, are shaping the future of wood pellet production by optimizing manufacturing efficiencies, lowering total production costs, and enhancing product characteristics.

Moreover, innovations in raw material sourcing and production processes are allowing manufacturers to produce wood pellets from wider sustainable resource bases like agricultural residues and forest swamps. The progress will not only increase the base of raw materials but also make wood pellets a complementary sustainable and cost-effective energy source.

Specialized industrial fuel pellets are expected to accelerate their adoption in industrial applications, due to higher energy density and lower ash content. Such breakthroughs are allowing original equipment manufacturers (OEMs) to achieve the growing demand for improved and eco-friendly energy solutions in certain regions, including Europe, North America, and Asia-Pacific.

Wood Pellets for Industrial and Commercial Use: The Rising Trend

Wood pellets are gaining popularity in both industrial and commercial applications, where they are used as a cleaner and more sustainable fuel compared to coal. The demand for industrial-scale wood pellet use is particularly strong in Europe, where several power plants have switched from coal to biomass. This shift is part of broader efforts to transition to more sustainable energy systems.

The increasing use of wood pellets in large-scale combined heat and power (CHP) plants is also supporting market growth. CHP plants, which simultaneously generate heat and electricity from renewable sources, offer enhanced efficiency and lower emissions compared to conventional power plants. This trend is expected to expand as more countries adopt renewable energy policies and focus on reducing carbon emissions.

Which End-Use Segment Led the Market in 2023?

The industrial heating segment held the largest market share, contributing to approximately 47% of the global wood pellet market revenue in 2023. Industrial heating, including the use of wood pellets in large-scale boilers and combined heat and power (CHP) plants, remains a key driver of the market. Wood pellets are used in various industries such as food processing, pulp and paper, and manufacturing, where they provide a cleaner and more sustainable energy source for heating.

The push for renewable energy alternatives in industries and power generation, particularly in countries with stringent emissions regulations, is anticipated to further increase the demand for wood pellets in industrial heating applications.

Which Region Dominated the Market in 2023?

Europe held the largest market share in 2023, accounting for over 57% of the global wood pellet market revenue. The region's dominance is attributed to its strong commitment to renewable energy policies and its advanced infrastructure for biomass energy production. Countries such as Sweden, Germany, and the United Kingdom have adopted ambitious climate goals, promoting the use of wood pellets as a primary renewable energy source in heating and power generation.

The European Union has also implemented policies supporting the use of biomass, including incentives for businesses and homeowners to switch to wood pellet-based heating systems. The region's well-established supply chain and extensive pellet production infrastructure contribute to its dominant position in the global market.

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Recent Developments in the Wood Pellets Market

• In 2023: Enviva Partners, one of the largest producers of industrial wood pellets, announced the expansion of its pellet production capacity in the United States. The company plans to build additional pellet plants to meet the growing demand from European and Asian markets, further reinforcing its position as a key player in the global wood pellet supply chain.
• In 2023: Drax Group, a leading player in the UK's renewable energy market, completed the construction of a new biomass-fired power plant in the United Kingdom. The facility, which uses wood pellets as a primary fuel source, is expected to supply electricity to over 2 million households, helping the country meet its renewable energy targets.

Table of Contents – Major Key Points

1. Introduction

• Market Definition
• Scope (Inclusion and Exclusions)
• Research Assumptions

2. Executive Summary

• Market Overview
• Regional Synopsis
• Competitive Summary

3. Research Methodology

• Top-Down Approach
• Bottom-up Approach
• Data Validation
• Primary Interviews

4. Market Dynamics Impact Analysis

• Market Driving Factors Analysis
• PESTLE Analysis
• Porter's Five Forces Model

5. Statistical Insights and Trends Reporting

• By Production Capacity and Utilization, by Country, By Type, 2023
• Feedstock Prices, by Country, By Type, 2023
• Regulatory Impact, by l Country, By Type, 2023.
• Environmental Metrics: Emissions Data, Waste Management Practices, and Sustainability Initiatives, by Region
• Innovation and R&D, Application, 2023

6. Competitive Landscape

• List of Major Companies, By Region
• Market Share Analysis, By Region
• By Application Benchmarking
• Strategic Initiatives
• Technological Advancements
• Market Positioning and Branding

7. Wood Pellets Market Segmentation, By Application

8. Wood Pellets Market Segmentation, by End-Use

9. Regional Analysis

10. Company Profiles

11. Use Cases and Best Practices

12. Conclusion

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