Biomass Pellets Market By Source (Agricultural residue and waste, Forest and wood waste, Virgin lumber, Food waste, Energy crops, Others) , By Application (Heating, Power generation, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Biomass Pellets Market
The biomass pellets market was valued at $9.5 billion in 2023 and is projected to reach $16.0 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033.
A biomass pellet is a form of biofuel produced from organic matter or biomass, including wood waste and sawdust. Upon combustion, biomass pellets emit 80% less carbon dioxide than coal and contain low quantities of chlorine, sulfur, and nitrogen. The pellets are acquiring traction in recent times as they are clean-burning, economical, and sustainable fuels. They reducepollutant emissions while boosting the thermal value of biomass waste. Moreover, the pellets do not contribute to global warming, as the liberation of greenhouse gases from them is significantly low. These pellets are rapidly replacing coal in power plants, heat boilers, and stoves.
Surge in the implementation of favorable policies and incentives by government, such as the Biomass Crop Assistance Program in the U.S., is a key driver of the biomass pellets market. In addition, advancements in technology have scaled up the production of pellets, offering them the benefit of cost-competitiveness and boosting their adoption. In recent times, the torrefaction of biomass pellets is trending in the power generation sector. The process involves heating biomass in a low-oxygen environment that alters its chemical composition for improved fuel properties of the pellets.
However, volatility in the availability of feedstock leads to instability in the market. Moreover, the market faces stringent competition from traditional fuel sources during times of low oil & gas prices. Despite the efficiency challenges, key players in the market are striving to introduce ingenious technologies which promote the expansion of the market. For instance, in April 2022, California Pellet Mill Company in the U.S. unveiled Twin Track wood pelleting technology. This is an innovative approach which elevates the efficiency of wood pellet mills by boosting the mill throughput, lowering energy consumption, and assuring constant pellet quality. The mechanism of the technology involves moving the pellets with a single, energy-efficient, and lengthy push per die revolution.
Segment ReviewThe biomass pellets market is segmented into source, application, and region. On the basis of source, the market is divided into agricultural residue & waste, forest & wood waste, virgin lumber, food waste, energy crops, and others. As per application, it is classified into heating, power generation, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of source, the forest & wood waste segment is expected to lead throughout the forecast period.
As per application, the power generation segment is anticipated to be the highest shareholder during the forecast period.
Region wise, Asia-Pacific is predicted to be the highest revenue generator by 2033.
Competition AnalysisThe major players operating in the global biomass pellets market include Enviva, Inc., Drax Group plc, Forest Energy Corporation, Energex Corporation, Buhler AG, JP Green Fuels, Ecostan Biofuel, Zilkha Biomass Fuels, Fram Fuels, and Sumitomo Corporation. These players have adopted various key developmental strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the market.
Key Market SegmentsBy SourceAgricultural residue and waste
Forest and wood waste
Virgin lumber
Food waste
Energy crops
Others
By ApplicationHeating
Power generation
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market Players
Enviva, Inc.
Drax Group plc
Forest Energy Corporation
Energex Corporation
Buhler AG
JP Green Fuels
Ecostan Biofuel
Zilkha Biomass Fuels
Fram Fuels
Sumitomo Corporation