The global wood pellets market size was valued at USD 7.67 billion in 2017 and is expected to register a CAGR of 9.2% over the forecast period. Increasing awareness regarding the use of renewable energy sources for power generation is likely to augment the demand for wood pellets over the forecast period. Product quality and costs are dependent on the prices of raw materials obtained from the timber industry and forests
In addition, the nature of wood pellets is similar to fossil fuels with the significant advantage of reduced GHG and carbon dioxide emissions, which majorly contributes to its application in heating, fuel, and power generation. Demand for wood pellets in commercial heating is expected to witness a significant growth owing to broadened application areas including federal or municipal buildings, office buildings, educational facilities, and other commercial buildings. In addition, availability of the bulk fuel supply and advanced technologies, such as pellet stoves, in the European and North American countries is projected to augment the segment growth.
Regional Insights
North America is expected to witness a CAGR of 8.5% on account of the presence of price competitiveness with propane and residential heating oil coupled with increasing replacement of traditional burners for improving automatic feed-in and comfort. Favorable climatic conditions in these regions are also boosting the product demand.
Europe is the largest market, in terms of volume, as well as revenue. Growing product penetration in the residential heating applications in countries, such as Germany, Italy, Austria, and France, drives the regional market. In addition, subsidies offered by local and federal governments in some member states of the region for using wood pellets in residential heating is projected to complement market growth.
Asia Pacific market is estimated to witness the fastest growth at a CAGR of 11.0% from 2018 to 2025 owing to the favorable policies in China, Japan, and South Korea regarding CHP and power generation. In addition, the rapid growth of the renewable energy sector in China coupled with the rising number of power plants in the country is projected to fuel the market demand.
The demand for wood pellets in Central & South America is primarily generated from the residential and commercial segments. Growing product usage in heating applications in the residential and commercial buildings is also expected to contribute to the industry growth.
Wood Pellets Market Share Insights
Some of the key companies in this market are Drax Group PLC; THE WESTERVELT COMPANY, INC.; Georgia Biomass, LLC; Pinnacle Renewable Energy, Inc.; and Vermont Wood Pellet Co. Large-scale companies aim at expanding their manufacturing facilities in developing economies where the raw material is available in abundance. They also invest more in R&D to improve the manufacturing processes and offer high-quality products. Majority of these companies are regional or local and focus on reducing their manufacturing costs and broadening customer base by serving industrial applications.
Table of Contents
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
1.3. List of Data Sources
Chapter 2. Executive Summary
2.1. Market snapshot
Chapter 3. Wood Pellets Market Variables, Trends & Scope
3.1. Market Segmentation
3.2. Wood pellets – Value chain analysis
3.3. Raw material trend
3.3.1 Factors affecting the quality of wood pellets:
3.3.1.1 Moisture Content
3.3.1.2 Particle Density
3.3.1.3 Mechanical Durability
3.3.1.4 Bulk Density and Pellet Size
3.3.1.5 Heating Value
3.4. Technology overview
3.4.1 Chippers & Hammer Mills:
3.4.2 Dryers:
3.4.3 The Pellet Mill:
3.4.4 Cooling and Storage:
3.4.5 Bagging or Bulk:
3.5. Regulatory framework
3.6. Wood pellets manufacturing: Risk analysis
3.6.1 Wood Pellets Manufacturing Economics
3.7. Wood pellets – Market dynamics
3.7.1 Market Driver Analysis
3.7.1.1 Need for cleaner and renewable sources of power generation
3.7.1.2 Government policies and global agreements in support of renewable sources of energy
3.7.2 Market restraint Analysis
3.7.2.1 Global climate change leading to warm winters
3.7.2.2 Harmful effects of wood pellet manufacturing to human health
3.8. Wood pellets – Porter’s analysis
3.9. Wood pellets – PESTEL analysis
Chapter 4. Wood Pellets: Application Estimates & Trend Analysis
4.1. Wood pellets market: Application movement analysis, 2017 & 2025
4.2. Power plants
4.2.1 Market estimates and forecasts in power plants, 2014 – 2025 (Kilotons) (USD Million)
4.3. Residential heating
4.3.1 Market estimates and forecasts in residential heating, 2014 – 2025 (Kilotons) (USD Million)
4.4. Commercial heating
4.4.1 Market estimates and forecasts in commercial heating, 2014 – 2025 (Kilotons) (USD Million)
4.5. Combined Heat and Power (CHP)
4.5.1 Market estimates and forecasts in CHP, 2014 – 2025 (Kilotons) (USD Million)
Chapter 5. Wood Pellets: Regional Estimates & Trend Analysis
5.1. Wood pellets market: Regional movement analysis, 2017 & 2025
5.2. North America
5.2.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.2.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.2.3 U.S.
5.2.3.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.2.3.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.2.4 Canada
5.2.4.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.2.4.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.2.5 Mexico
5.2.5.1 Market estimates and forecasts, 2014 – 2025 (tons) (USD Thousand)
5.2.5.2 Market estimates and forecasts, by application, 2014 – 2025 (tons) (USD Thousand)
5.3. Europe
5.3.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.3.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.3.3 Germany
5.3.3.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.3.3.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.3.4 U.K.
5.3.4.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.3.4.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.4. Asia Pacific
5.4.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.4.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.4.3 China
5.4.3.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.4.3.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.4.4 India
5.4.4.1 Market estimates and forecasts, 2014 – 2025 (tons) (USD Thousand)
5.4.4.2 Market estimates and forecasts, by application, 2014 – 2025 (tons) (USD Thousand)
5.4.5 Japan
5.4.5.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.4.5.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.5. Central & South America
5.5.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.5.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.5.3 Brazil
5.5.3.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.5.3.2 Market estimates and forecasts, by application, 2014 – 2025 (tons) (USD Thousand)
5.6. Middle East & Africa
5.6.1 Market estimates and forecasts, 2014 – 2025 (Kilotons) (USD Million)
5.6.2 Market estimates and forecasts, by application, 2014 – 2025 (Kilotons) (USD Million)
5.6.3 Egypt
5.6.3.1 Market estimates and forecasts, 2014 – 2025 (tons) (USD thousand)
