Wooden Pellets - Size & Forecasting To 2023
The global wood pellet market is estimated to be worth of USD 21.65 Billion in 2032 and is growing at a CAGR of 9.23% during the forecast period from 2023 to 2032. Wood pellets are fuel-grade compressed wood particles. Pellets are already widely utilized in various nations, but their popularity is expanding as the cost of primary fuels rises and concerns about global climate change is growing. Pellets are produced from wood; therefore, they share the same benefits as firewood in that they are a low-cost, locally available fuel source. Due to its extremely low ash and moisture content, wood pellets burn hot and efficiently. Ash content in fuel pellets is restricted to 1% (Premium-grade) to 3% (Standard). Regular firewood has more ash owing to the presence of bark. Additionally tiny and manageable are wood pellets. There is no bark and very little dust. When fuel is required, hoppers with feed screws in many pellet-burning stoves automatically feed the pellets into the fire. Wood and wood pellets contribute no carbon to global climate change. When the wood was growing within the tree, it absorbed all the carbon dioxide that is produced when it is burned. Particularly in several European nations where there are carbon emission regulations, this quality is a major benefit.
The high density and high energy content per unit volume of pellets over unprocessed biomass are two major benefits. Costs associated with usage, handling, storage, and transportation are considerably decreased as a result. Their ability to be made with uniform qualities is another benefit. Because boilers, stoves, or pellet burners may be built taking into consideration the conventional fuel qualities, this improves their utility.
The growing global need for renewable energy is driving the market for wood pellets since they are a clean, ecologically friendly, sustainable, and renewable biomass, which helps to minimize the use of fossil fuels that contribute to global warming. Over the course of the projection period, this is anticipated to aid in the industry's expansion. Rising demand from the international market is a major driver of increased wood pellet production in the United States. Some nations import wood pellets from the United States because they are unable to meet their own demand for them using their own industry infrastructure and forest biomass for energy generation.
Pellet producers can purchase wood biomass directly from individual landowners through loggers or indirectly through wood traders. Mill residuals, which are byproducts from other forestry industries like paper and sawmills, are another source of wood fibre for manufacturers of wood pellets. In this supply model, transportation expenses are often the biggest cost factor for mill residuals since they are more affordable than pulpwood and roundwood.
One of the critical obstacles connected with the wood pellets sector is the lack of integration related to sustainability criteria for biomass products across different nations. Several European countries have implemented their own mechanisms to control the production of biomass products, including legislation or voluntary agreements with the industry. Despite the fact that several governments have established sustainability criteria for biomass and renewable energy sources, the industry will face considerable difficulties in the years to come owing to a lack of honesty regarding sustainability standards.
GLOBAL Wood Pellet Market – MARKET SIZE & FORECAST TO 2032
Some key players of the market are Avpgroup, Drax biomass, Energex, Enviva Lp, Farm fuels, Graanul invest, Groupesavoie inc., Highland pellets LLC, I.C.S. (Lacroix) lumber inc., Lauzon, Sinclar group forest products, United group,Vermont wood pellet company, Wood pellet energy (uk) ltd, and others.
Based on grade type, the market is segregated into premium, standard, and utility.The utility subsegment is anticipate to held a notable share in the market owing to the expanding use of wood pelletsfor utility purposes in many electrical applications. The utility product is becoming more and more popular in importantEuropean and Asian Pacific industrial sectors, which suggests that it might acquire major momentum in thisforecasting period.
On the basis of type, the market is categorized into forest residues, wastes wood, recycled wood, other.
Among these, forest residues subsegment is anticipated to held a notable share in the market. The popularity of forestresources is increasing as firms in the wood pellets industry vary their feedstock by using fire-damaged trees inaddition to sawmill wastes and shavings. The use of these tactics by stakeholders in important locations to increasetheir production quantities is gaining popularity.
Based on end use, the market is segregated into residential, commercial, industrial, and animal bedding.Among these, the residential subsegment is expected to held a notable share in the market. Wood pellets arebecoming increasingly popular among home users due to benefits such as being green, purifying, and long-lasting. Inaddition to being used as cat litter and horse bedding, wood pellets are frequently utilized for heating and cooking inhomes. However, the commercial subsegment is predicted to develop somewhat throughout the projection period.
Gas, oil, and power are ecologically unfriendly alternatives to wood pellets. Fossil fuels are now the most popular fuelsused in commercial greenhouses, which results in higher heating costs and serious environmental effects.
On the basis of application type, the market is divided into heating, power generation, and combined heat & power(CHP)Among these the heating subsegment is anticipated to held a significant share in the market. Many countries haveimplemented wood pellet guidelines and programmes for heating uses. One of the main causes affecting theinevitable increase in the growth rate is the rising demand for wood pellets in the commercial and residential heatingsectors, which is compelling producers to create them in enormous quantities.
Based on region, the Wood Pellet Market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. In 2022, the Europe accounted for the significant share xx.xx% in the global Wood Pellet Market. This region was valued at USD xx.xx million in 2022, and it is projected to grow at a CAGR of xx.xx% during the forecast period, reaching USD xx.xx million by 2032.
North America region is predicted to show a lucrative growth in this forecast period owing to the rising residential demand in the U.S. The regional price competition with propane and domestic heating oil, as well as the rising replacement of conventional burners for improved automatic feed-in and comfort, are the key drivers driving demand for wood pellets in North America. Additionally, the Canadian wood pellet market has expanded significantly in recent years, largely due to increased use in the domestic heating and power plant sectors.
However, the European region is also anticipated to held a notable share in the market. Europe is the area with the highest usage of wood pellets for electricity generation. Due to government incentives offered for the use of renewable energy sources, it is predicted that the demand for wood pellets would rise throughout the projection period. And Due to the growing number of power plants in the region, it is anticipated that the demand for wood pellets used to fuel power plants for the production of electricity would increase significantly.