Global Industrial Wood Pellet Market Overview
The key driver impacting the industrial wood pellet market is the rising environmental concerns over carbon emissions and increasing wood pellet consumption globally. For instance, as per the European Pellet Council, The global consumption of wood pellets reached 35 million tonnes in 2018, or +14% than its level of 2017. Including China, it would have an overall total of 52.746.706 tonnes. Europe is the largest pellet consumer globally, with 27 million tonnes of pellets being consumed every year. In 2018, the EU28 observed substantial growth of about 2 million tonnes, with the industrial use of pellets being led by the U.K. Europe, with a total production volume of about 20,1 million tonnes (16,9 million for the EU28), it solely supplies 74% of its pellet use (65% for EU28). The largest pellet-fired power plant is the DRAX power plant in the U.K alone utilizes 4.5 million tonnes of pellets annually for generating renewable electricity. The pellets used at DRAX minimizes CO2 emissions by 80% when compared to coal alone. Moreover, the growing demand for these pellets from various end-user industries contributes to market growth in the forecast period. Whereas with regards to volume, the market was calculated XX Kilo Tons in 2020 and foreseen to grow with a CAGR of XX% during 2021-2027.
According to Value Market Research, the global Industrial wood pellet market size was valued at around USD 5750 in 2020 and is estimated to grow at a CAGR of about 8.25% during the forecast period 2021 to 2027.
The increasing initiatives from governments towards adopting biofuels worldwide promoting biofuel to reduce carbon emissions among industries worldwide are estimated to augment industrial wood pellet demand in the forecast period. For instance, in May 2018, the Indian government approved the National Policy on Biofuels, intending to promote the use of biofuels. In 2019, the Environmental Protection Agency (EPA) intended to augment the advanced biofuel mandate in 2020 (+0.6 bln L) and maintain biodiesel sub-mandate in 2021. However, fulfilling certification criteria may hamper the market in the long run. Also, a gradual reduction in sawmill residue is negatively impacting the market growth. The current industry trends, such as favorable government initiatives and global agreements supporting renewable sources of energy and high demand for electricity in the industrial sector, are expected to provide market players with new market opportunities.
The industrial wood pellet market is vast, with many local and global players. The industrial wood pellet market is extensive, with many local and international players. The key leaders follow different strategies to advance their market position, such as extending product portfolio, amalgamation, contracts, product upgrades, and acquisitions, to enlarge their market share across the globe. For instance, in July 2019, Pinnacle Renewable Energy did a limited partnership contract with Tolko Industries Ltd. to construct a new industrial wood pellet production facility in Alberta. The significant players studied in the report are Drax Group (U.K), Pinnacle Renewable Energy Group, Fram Renewables Fuels LLC, Thunderbolt Biomass Inc., Bluesky Biomass, An Viet Phat Group, Enviva, The Westervelt Company, AS Graanul Invest, An Viet Phat Group, and Others.
In this research report, the industrial wood pellet market is segmented by application, feedstock, and region.
Analysis by Application:
By applications, the report is categorized into power generation, combined heat & power (CHP). The power generation sector dominates the application segment with over 55% share in 2020. It is due to the rising demand Clean combustion of wood pellets contributes to its application in pellet stoves and pellet fireplaces. Moreover, the favorable government policies related to the usage of efficient and effective technologies such as pellet stoves rather than coal for minimizing the emissions from domestic coal and wood heating devices contribute to the high demand from power generation applications in the forecast period.
Analysis by Feedstock:
By Feedstock, the report is categorized into forest waste, agriculture waste, and others. Agriculture waste dominates the feedstock segment with over 30% share in 2020. It is due to the growth in agricultural production and the subsequent need to search for alternative uses of the generated wastes. Moreover, agricultural waste is economical, clean, and easy to operate and agricultural waste has high ash content, contribute to the high demand for parabolic trough technology in the forecast period.
Analysis by Region:
In the regional outlook of the global industrial wood pellet market, the Europe region dominates globally with a 35% market share during the forecast period. It is due to the high consumption of pellet-based energy in the U.K. Moreover, the high demand from large-scale power plants in countries including the U.K., Belgium, and the Netherlands contributes to its growth across Europe.
Market Segmentation covered in the Report:
- Power Generation
- Combine Heat & Power (CHP)
- Forest Waste
- Agriculture Waste
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.