Industrial Wood Pellet Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Industrial Wood Pellet Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Industrial Wood Pellet Market

The industrial wood pellet market size was valued at USD 5.42 billion in 2019, and the market is now projected to grow from USD 11.97 billion in 2032, exhibiting a CAGR of 8.84% during the forecast period of 2020-2027.

The industrial wood pellet market growth process was significantly affected by the COVID-19 pandemic, which led to a personnel shortage and frozen forest management. Declines in wood product availability and supply chain disruptions impacted forest-based industries such as paper and wood. Reduced sawmilling activity further strained the raw material supply for pellet production. Despite these challenges, demand for wood pellets and pulp for sanitary purposes is expected to aid recovery post-pandemic. The crisis highlights vulnerabilities and opportunities for growth in the industry.

Global industrial wood pellets market share is growing, especially in the power segment due to high fuel prices and low cost of production. Some of the power plants in Europe and North America are replacing coal with biomass to achieve renewable energy goals. This shift advanced by government policies that have encouraged the need for sustainable energy has been key to increasing the use of pellets. Another favourable factor in the market is that the feedstock for pellet fuel production is easily and widely available. The demand for wood pellets is expected to grow gradually given that renewable energy is expected to rise steadily.

Furthermore, factors such as the rising population, growth in industries, and development in infrastructures of various countries have contributed towards increased power demand internationally. In response to this need, the regions are growing power generation capacity with special emphasis on renewable energy products because of the strict carbon emission standards. Wood pellets are gaining interest as a sustainable energy supply to fight weather exchange and reduce GHG emissions. Europe's electricity consumption exemplifies this fashion, growing from three,395 TWh in 2017 to 3,410 TWh in 2018. This change helps to promote the implementation of climate treaty regimes such as the Kyoto process.

Comprehensive Analysis of Industrial Wood Pellet Market

The industrial wood pellet market and power & energy industry is rising at an exponential rate due to its market segmentation. This market expansion effectively provides a detailed regional assessments considering the dominant supply and demand forces that impact the power & energy industry. These segmentations are methodically segregated by feedstocks and by applications. The feedstock includes, Forest Wastes, Agricultural Waste and Others. The application includes, Power Generation and Combined Heat and Power [CHP].

Europe dominated the global pellet market in 2019, consuming 13.20 million tons of industrial pellets, with the U.K. leading at over 8 million tons. In countries like the U.K., Belgium, and the Netherlands, pellet demand is driven by large-scale power plants, as residential use remains minimal. Governments prioritize sustainable biomass for electricity to meet renewable energy targets. With limited domestic production, Europe heavily relies on imports, including 6.89 million tons from the U.S. in 2019. This underscores the region’s dependence on global supply chains.

The top players in the market play a crucial role in the power & energy industry assuring industrial prospectus growth and setting market standards. These players include, Drax Group (U.K), Enviva (U.S.), Pinnacle Renewable Energy Group (Canada), The Westervelt Company (U.S.), Fram Renewable Fuels LLC (U.S.), AS Graanul Invest (Estonia), Bluesky Biomass Georgia (U.S.), Thunderbolt Biomass Inc. (U.S.), Energex Pellet Fuel, Inc. (U.S.), and An Viet Phat Group (Vietnam). These market players provide a level-playing competitive landscape.

In October 2019, Enviva Partners LP decided to assemble a brand new production plant for wooden pellets in Lucedale, Mississippi, U.S. The organisation will invest around USD 140 million in this new plant.

Segmentation Table

Global Industrial Wood Pellet Market Scope

Study Period 2016-2027

Base Year 2019

Forecast Period 2020-2027

Growth Rate CAGR of 8.84% from 2020 to 2027

Historical Period 2016-2018

Unit Value (USD Billion) & Volume (Thousand Tons)

Segmentation By Feedstock, Application, and Region

By Feedstock

Forest Waste

Agricultural Waste

Others

By Application

Power Generation

Combined Heat & Power (CHP)

By Geography

North America (By Feedstock, Application, and Country)

The U.S.

Canada

Europe (By Feedstock, Application, and Country)

The U.K

Germany

Belgium

Denmark

Sweden

Rest of Europe

Asia Pacific (By Feedstock, Application, and Country)

China

Japan

South Korea

Rest of Asia Pacific

Rest of World (By Feedstock and Application)