Global Wood Pellets Market by Application (Residential Heating, CHP Heating, Commercial Heating, Power Plants) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2019, the global wood pellets market was valued at USD 8.88 million. It is projected to grow at a 9.4% revenue-based CAGR over the forecast period. The demand will rise due to growing awareness about the benefits of using renewable energy sources for space heating, both residential and commercial. Wood pellets are completely combustible while being burned, which provides more heat than other biomass fuels. Clean combustion of wood pellets is a key ingredient in pellet stoves, pellet fireplaces, and the tax incentives and tax benefits associated with renewable energy.

Due to the increasing number of power stations in the country, the demand for wood pellets to fuel power plants is expected to grow significantly. China has outlawed the use of coal-fired boilers within the East and Guangdong regions. Market growth is expected to be driven by the low price of the product in these regions.

Market growth is expected to be driven by the rising demand for wood pellets in the power generation industry. The market will be boosted by increasing awareness about the benefits of using renewable energy sources for power generation and the high combustion of wood chips.

Market expansion is expected to be driven by favorable government initiatives and international agreements supporting renewable energy sources. Different countries offer subsidies and incentives to wood pellets users for heating purposes. The Domestic Renewable Heat Incentive (Domestic RHI), a scheme to promote the use of renewable heat, was launched by the UK government.

To improve the efficiency of wood pellet manufacturing, market players engage in R&D. To achieve high yield and low fuel consumption, new designs are being created for pellet mills. To produce high-calorie wood pellets, extensive research is underway. These factors will have a positive impact on the market's growth in the near future.

Application Insights

The wood pellet market can be divided by application into residential heating and commercial heating as well as power plants and Combined Heat and Power. Wood pellets can be used in pellet stoves or pellet fireplaces due to their clean combustion. This drives its demand in heating and power generation. The residential heating market is expected to be driven by favorable government policies that encourage efficient technologies like pellet stoves over coal, which reduce the emissions from domestic coal, and wood heating devices. The demand will also be driven by automation in pellet stoves such as the automatic feeding system.

Wood pellets are used for electricity generation in coal-based power stations. They are co-fired with coal to reduce Greenhouse Gas (GHG), emissions. Wood pellets are easily adaptable to automated combustion systems in coal fired power plants, which will drive their demand. This is due to growing adoption of wool pellets in space heating in commercial buildings, federal and municipal buildings, offices, educational facilities, and other commercial buildings. Wood pellets are easy to use and convenient. They can also be bulk stored in smaller spaces, which will increase their demand from the commercial heating segment.

Regional Insights

Europe holds a substantial market share of 77.8%, in terms of volume, in 2019. Wood pellets are expected to see significant growth due to a variety of market factors, including increased demand in power generation and incentives from the EU member states during the forecast period.

Wood pellets are being demanded in North America due to their low prices and high comfort. Over the forecast period, the region is expected to experience a favorable climate for heating residential and commercial buildings.

Asia Pacific will see a 14.4% CAGR between 2020 and 2027, thanks to favorable policies implemented by the Japanese, South Korean, and Chinese governments regarding power generation, CHP, and other energy-related issues. The increasing demand for wood pellets in the region is expected to be driven by the rapid development of renewable energy sectors in India, Japan and China.

The emerging regions of South America and Central America have high manufacturing potential. This region is home to more than one-fourth the entire forest and half the tropical forests in the world, which provides essential environmental services for the country and the world. A growing forest sector will increase the availability of raw materials, which in turn will aid in the production of pellets.

Market Share in Wood Pellets

Canfor, Schweighofer and Stora Enso are key players in the market. They position their products to be used by important coal-based power generator companies like Vattenfall, E.ON and Npower through long-term contracts.

The small-scale players are focused on a specific country or region and compete based on raw material availability and transport facilities. They compete on the basis regional demand and their penetration into regional markets. Many regional players are now looking to expand their business by becoming distribution partners for global players.

The Report Covers Certain Segments

This report forecasts market share, revenue growth, at the global, regional and country level, and analyzes industry trends for each sub-segment from 2016-2027. Up Market Research segmented the global market for wood pellets based on region and application.

• Application Outlook (Volume of Kilotons; Revenue USD Millions, 2016-2027)

  • Power plants

  • Residential Heating

  • Commercial Heating

  • Combined Heat and Power (CHP).

• Regional Outlook (Volume of Kilotons; Revenue USD Millions, 2016-2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Egypt

These are the most frequently asked questions about this report

b. Global wood pellets market was valued at USD 8,882.0 millions in 2019, and is forecast to grow to USD 9,652.9million in 2020.

b. Global wood pellets market will grow at a 9.4% compounded annual rate between 2020 and 2027, reaching USD 18,218.6 millions in 2027.

b. With a market share of 85.9%, Europe was the dominant player in wood pellets. The demand will rise due to growing awareness about the benefits of using renewable energy sources for heating space in commercial and residential heating.

b. Canfor, Schweighofer and Stora Enso are some of the key players in the wood pellets industry.

b. The market for wood pellets is growing because of the clean combustion of wood pellets, which allows it to be used in pellet stoves and fireplaces. There are also tax benefits and incentives that go along with using renewable energy and energy efficiency.

Up Market Research published a new report titled “Wood Pellets Market research report which is segmented by Application (Residential Heating, CHP Heating, Commercial Heating, Power Plants), By Players/Companies Pacific BioEnergy, Stora Enso, Enviva LP, Schweighofer, Canfor, Drax Group Plc, Pinnacle Renewable Energy Group”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Wood Pellets Market Report Segments:

The market is segmented by Application (Residential Heating, CHP Heating, Commercial Heating, Power Plants).

Wood Pellets Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Wood Pellets Market

Overview of the regional outlook of the Wood Pellets Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Wood Pellets Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Wood Pellets Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Residential Heating

                2. CHP Heating

                3. Commercial Heating

                4. Power Plants

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Wood Pellets Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Wood Pellets Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.