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Global Biomass Pellets Market Size was valued at USD 6.7 Billion in 2022. The Biomass Pellets market industry is projected to grow from USD 6.8 Billion in 2023 to USD 10.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2023 - 2032). Wood pellets are highly sought after across a range of end use industries because of their high burning efficiency, low moisture content, and lowered density, which helps to meet the rising global need for renewable energy, are the key market drivers enhancing the market growth.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Given the benefits that biomass offers, biomass pellets are an important source of energy. Biomass pellets are not only readily available but also renewable and carbon neutral. These elements have caused the majority of governments to offer a wide range of programs and subsidies. These initiatives and financial help promote the use of biomass-based energy sources like biomass pellets. The Biomass Thermal Utilization Act (BTU Act) of 2019, for instance, proposes to recognize and promote the financial and environmental benefits of fuels and energy sources made from biomass throughout North America. This law provides a 15% to 30% refund for residential and commercial uses employing clean wood heating systems.
The Ministry of New and Renewable Energy in India launched the Biomass Power and Cogeneration project. The primary objective of this initiative is to promote the use of biomass pellets. Additionally, it promotes the use of traditional fuels like coal in the generation of energy. This endeavor is employed for cogeneration in thermal power plants and sugar refineries, among other countries, including India. The Indian Renewable Energy Development Agency (IREDA) provides loans and favourable subsidies to help build biomass power and bagasse cogeneration projects. These regulations are expected to encourage the usage of biomass pellets.
One of the key factors boosting market expansion is the sharp rise in demand for renewable energy sources. As a result, numerous companies in the electrical industry are switching to using these pellets. In response to growing concerns about global warming, regulatory authorities and international organizations from all over the world are focusing on the adoption of tough environmental laws. As a result, biomass pellets are becoming one of the most important and practical solutions that could help reduce the reliance on fossil fuels. These pellets are also thought to be a good choice for lowering greenhouse gas emissions. Thus, driving the Biomass Pellets market revenue.
The global Biomass Pellets market segmentation, based on Source, includes industrial waste & co-product, agriculture residue, food waste, energy crops, virgin lumber, and others. During the anticipated period, the agricultural residue segment is anticipated to continue to rule the global market as it did in 2022. In countries like Brazil, India, and others, the contribution of agriculture to GDP is substantial. Crop residue is abundant and widely accessible in these countries. This surplus is utilized in the production of biomass pellets. The use of biomass—or pellets made from agricultural waste—is growing.
The global Biomass Pellets market segmentation, based on Type, includes wood pellets, agri pellets, torrefied pellets, and others. The market for biomass pellets worldwide in 2022 was dominated by the wood pellet segment. The growing demand for wood pellets in the commercial and domestic heating sectors, which is forcing producers to produce them in huge quantities, is one of the key factors influencing the unavoidable increase in the growth rate.
The global Biomass Pellets market segmentation, based on Application, includes power generation, industrial heating, residential heating, and others. The worldwide Biomass Pellets market was dominated by the power generation sector in 2022. Governments all around the world are working to transition to biomass power generation as demand rises as a result of factors including urbanization, industrialization, and population growth. Demand for biomass gasifiers is increasing as rural electrification enables decentralized energy generation, which is anticipated to boost the market during the expected period.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. Europe Biomass Pellets market dominated this market in 2022 (45.80%). Europe is the top region for wood pellet use for the production of energy. The demand for biomass pellets is anticipated to increase throughout the course of the projection period as a result of government incentives for using renewable energy sources. Further, In the European region, the German Biomass Pellets market had the biggest market share, and the U.K. Biomass Pellets market had the quickest rate of growth.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
The North America Biomass Pellets Market is expected to register significant growth from 2023 to 2032. It is projected that the demand for biomass pellets used to fuel power plants for the production of electricity would expand dramatically as a result of the area's growing number of power plants. Further, In the North American area, the U.S. Biomass Pellets market had the biggest market share, while the Canada Biomass Pellets market had the quickest rate of expansion.
The Asia Pacific Biomass Pellets market, accounted for the healthy market share in 2022. China has banned the use of coal-fired boilers in the east and in the province of Guangdong. Additionally, the low cost of pellets in the aforementioned locations is anticipated to fuel market expansion. Moreover, In the Asia-Pacific region, the Indian Biomass Pellets market had the quickest rate of growth while China's Biomass Pellets market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Biomass Pellets market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Biomass Pellets sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Biomass Pellets industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Biomass Pellets sector. Major players in the Biomass Pellets market, including Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet, are attempting to increase market demand by investing in research and development operations.
Enviva Inc. (Enviva), formerly Enviva Partners LP, is a supplier of utility-grade wood pellets. The company gathers wood fiber from renewable resources and converts it into a form that can be transported. Its products are processed woody biomass fuels in the form of wood pellets and wood chips. The company operates sizable manufacturing facilities in the Mid-Atlantic and Gulf Coast regions of the United States. Enviva also has access to waterways and railroads to transport and sell wood pellets to power facilities in the UK and Europe. Furthermore, it provides terminaling services to owners of other bulk commodities as well as independent wood pellet producers. Enviva's corporate offices are located in Bethesda, Maryland, a city in the US. In November 2021, Enviva, Inc. and J-Power, a Tokyo-based utility, decided to form a long-term collaboration for the large-scale supply of sustainable wood biomass to J-Power's coal-fired power plants in Japan from Enviva's production facilities in the Southeast of the United States.
A.P. Moller - Maersk AS (APMM) is a provider of logistics and shipping services. It manages ports and shipping containers via its subsidiaries and affiliates. The company offers used containers in addition to providing intermodal transportation for dry products, chilled freight, and special cargo. Some of APMM's key brands include Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training. The company also manufactures chilled and dry containers. The manufacturing, shipbuilding, retail, and logistics industries are served by APMM. The firm is present throughout North America, Europe, the Middle East, and Africa in addition to Asia-Pacific. APMM's headquarters are in Copenhagen, Denmark. A.P. Moller Holding's Innargi geothermal heating company near Aarhus, Denmark, will construct and manage the largest geothermal heating plant in the EU. The agreement is for a 30-year period.
· Drax Group Plc
· Enviva
· German Pellets GmbH
· AS Graanul Invest
· Pinnacle Renewable Energy Inc
· Lignetics
· Zilkha Biomass Energy
· Fram Fuels
· Abellon CleanEnergy Limited
· Ecostan
· JP Green Fuels
· The Westervelt Company, Inc
· Forest Energy Corporation
· New England Wood Pellet
February 2022: The Indian government launched the SAMARTH program. The goal of this program is to promote the utilization of biomass in thermal coal power plants. The initiative attempts to reduce air pollution and stubble burning.
April 2022: CPM unveiled Twin Track wood pellet technology. The new technology's objective is to make wood pellet mills more efficient.
· Industrial Waste & Co-product
· Agriculture Residue
· Food Waste
· Energy Crops
· Virgin Lumber
· Others
· Wood Pellets
· Agri Pellets
· Torrefied Pellets
· Others
· Power Generation
· Industrial Heating
· Residential Heating
· Others
· North America
- US
- Canada
· Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 6.7 Billion |
|
Market Size 2023 |
USD 6.8 Billion |
|
Market Size 2032 |
USD 10.7 Billion |
|
Compound Annual Growth Rate (CAGR) |
5.70% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Source, Type, Application, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet |
|
Key Market Opportunities |
Strict environmental poilicies over CO2 emission |
|
Key Market Dynamics |
The rising global demand for renewable energy, increasing production of wood pellets, and demand among various end-use industries due to its high burning efficiency, low moisture content, and lower density |
The global Biomass Pellets Market was valued at USD 6.7 billion in 2022, and it is estimated to reach USD 10.7 billion by 2032.
The global market is projected to grow at a CAGR of 5.70% during the forecast period, 2023-2032.
Europe had the largest share in the global market
The key players in the market are Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet
The Agriculture Residue Source dominated the market in 2022.
The Wood Pellets Type had the largest share in the global market.
Research on the market is done by industry professionals who provide personalized insights on the industry structure, market segmentation, Type assessment, competitive landscape (CL), along with penetration, and emerging trends. In addition to years of professional experience in their various fields and sectors, their analysis is largely based on primary interview (60%) and secondary research (40%) as well as years of professional experience. In addition, our researchers forecast the market's direction over the following seven years by examining past trends and the market's current position. Additionally, various trends of segments and categories that are geographically portrayed are studied and estimated using primary and secondary research.
The key level executives (VP, CEO, Marketing Directors, and Business Development Managers) of the major industry participants who are active and prominent as well as mid-scale businesses operating in this market were interviewed in-depth for this supply-side report by overall Global Market Research.
Extensive primary research was conducted to gain a deeper grasp of the market and industry. Both primary and secondary research, as well as years of pertinent professional experience, are used to support the analysis. By analyzing past and present market patterns, our experts were able to forecast the market's course over the following seven years. For the geographically offered categories in the list of market tables, it differs per category. In connection with the Global Market research report, we also conducted a number of primary interviews with senior level executives (VP, CEO's, Directors, Marketing Directors, Business Development Managers, CFOs, Technical Consultants, Key Opinion Leaders, Industry Experts, Decision Matrix Authorities, and other crucial individuals) of the key industry players who dominated the Global market.
The primary purpose of secondary research was to gather, identify, and validate the information necessary for the thorough, technical, market-focused, and commercial analysis of the global market. With the use of this study, it was also possible to classify and segment the market in accordance with market trends, geographic markets, and regional considerations linked to market type. Analysts have gathered data in the Distribution Channel for the study of the market from reliable sources including annual reports, journals, white papers, corporate presentations, company websites, international organizations of Energy and Power manufacturers, credible paid databases, and many others to gather reliable intel.
Both top-down and bottom-up methodologies were employed to assess the accuracy of the global market size. The market for as a whole was estimated using these methods for a number of different dependent submarkets. Secondary research was used to address the major industry players, and primary and secondary research was used to calculate their market shares in the various regions. This complete intellectual process includes reading the annual and financial reports of the top market participants and conducting in-depth interviews with top industry executives (VP, CEO, Marketing Directors, and Business Development Managers) to gain important industry insights.
Through reliable secondary sources and validated primary sources, the classification of the global markets and their geographic percentage splits were established. To obtain the final qualitative and quantitative data, all relevant variables that might have an impact on the market under investigation have been taken into consideration, inspected in great depth, verified through primary research, and assessed. This information was collected, added to, and thoroughly examined by professional analysts before being provided in this report. The process used to estimate the overall market size for this study is depicted in the following image as an example.
Report Code :
RL65241
Published on :
Sep 2023
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