Wood Pellets Market
Wood Pellets Market (Application - Power Plants and Heating) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2023
Press Release :
Global Wood Pellets Market: Snapshot
Wood pellets have emerged as a viable and promising renewable energy source replacing coal in various advanced regions such as North America and Europe. The market for these biomass gained traction since they are considered to have low carbon footprints. The use of wood pellets as fuels has gained adoption for heating homes and power boilers, especially in various countries of Europe. The easy availability of raw materials such as timber and compacted sawdust and the low cost of production are key factors offering robust impetus to the wood pellets market. The mounting environmental concern about greenhouse gas emissions (GHGs) in countries such as the U.S., Canada, and Russia has made biomass fuels popular. In recent years, considerable progress made in logistics and advancement in combustion technology have boosted the wood pellets market.
The market for wood pellets is projected to expand at a CAGR of 14.10% from 2015 to 2023 and the opportunities in the market is expected to swell to US$20 bn in 2023. The rising financial incentives by various federal agencies in North America, numerous favorable government policies, and the low cost of raw materials for making wood pellets are the primary factors driving the wood pellets market.
Europe and North America Provides Lucrative Growth Avenues
Based on geography, the market is segmented into Europe, Asia Pacific, North America, Centraland South America, and the Middle East and Africa. Of these, Europe is a major market for wood pellets and led the market in 2015. The substantial demand for wood pellets from the U.K. has fuelled this regional market. The regional market is propelled by numerous government initiatives such as significant fiscal subsidies to boost the generation of renewable sources of energy. This has incentivized the use of wood pellets to produce electrical energy in this region.
North America is another prominent region for wood pellets. Several stiff regulations related to emission norms have fueled this regional market. The recent formulation of federal policies that seek to establish the carbon-neutrality of biomass is another crucial factor boosting the wood pellets market in countries such as the U.S. Furthermore, the continued expansion of wood pellet plants by several manufacturers in various cities of the U.S. is expected to boost the production of wood pellets, thereby catalyzing the regional market.
The primary applications of the wood pellets are for heating and in power plants. The heating application segment held a major market share in 2016 and is expected to lead the overall market by revenue through the forecast period. The wide application of wood pellets for heating industrial and residential establishments is expected to boost the growth of segment in the coming years. The growing popularity of pellet fuel in advanced nations such as Canada is expected to bolster the demand for wood pellets in various regions. Recent advancements in wood pellet manufacturing processes have improved the commercial production of biomass, thereby accentuating the demand for wood pellets in heating applications. Furthermore, the setting of these manufacturing units are less capital-intensive than those for wind and solar energy, which has boosted the application of wood pellets for heating applications.
Some of the major players operating in the wood pellets market are Andritz AG, Energex, Rentech, Inc., The Westervelt Company, Enito SINGPELLET Pte Ltd., F.E. Wood & Sons, Rentech, Inc., and Allance Pellet Machinery.
The global wood pellets market is likely to witness considerable growth over the period of forecast, thanks to the massive rise in demand for clean energy. Waste paper, wood chips, wood pellets, and cordwood together with several other agricultural products and by products are quite able for the generation of energy. They all form instances of biomass fuel. The most attractive feature of biomass fuel is that they are a renewable source of energy.
The dynamics of the global wood pellets market is making constant shift and is propelled by a unique yet diverse set of growth factors. These elements of growth comprise the economic environment, commodity market, weather, and policy.
Pellet fuel is cost effective and cost stable home heating alternative and is utilized all over North America at present. It is a clean burning and renewable source of fuel. As such, the global wood pellets market is anticipated to experience growth with the rising demand for renewable source of energy across the globe. Some of the benefits offered by wood pellets are
- Domestic economy
In the U.S., wood pellets find use in furnaces, fireplace inserts, freestanding stoves, and boilers. Pellet fuel is also used in large setups like prisons and schools. Such extensive use propel the global wood pellets market toward growth over the assessment period. Wood pellets in North America are made in various manufacturing facilities in the United States and Canada. These wood pellets are available for purchase from various building supply stores, nurseries, fireplace dealers, garden supply stores, and from a few discount merchandisers. These pellet fuel is a means to divert tonnes of waste from landfills and then converting them into a source of energy generation.
Many leading organisations that are found in the market are focussing on research and development activities to come up with more innovative products. This is likely to stimulate market growth.
The research study is designed to analyze the global wood pellets market. The market is calculated in terms of volume (Million Tons) and revenue (USD Million) based on the consumption of wood pellets. The market for wood pellets has been segmented on the basis of application and geography. The global wood pellets market, based on application, has been segmented into power plants and heating.
The regional segments included in this study are North America, Europe, Asia Pacific, Middle East and Africa, and Central and South America. These regional segments are further divided into country-wise sub-segments. The report provides a detailed growth forecast for the 2015-2023 period, considering 2014 as the base year. Projections have been provided for both volume (Million Tons) and revenue (USD Million), considering the consumption of wood pellets.
The report includes the key market dynamics affecting the demand for wood pellets. As a part of our market dynamics analysis, we have analyzed the market drivers, market restraints, and market opportunities. A comprehensive competitive landscape, which includes market attractiveness analysis, has also been provided in this report. The report also provides a detailed industry analysis of the global wood pellets market with the help of Porter’s Five Forces model. The Porter’s Five Forces analysis aids in understanding the five major forces that affect the industry structure and profitability of the global wood pellets market. The forces analyzed are the bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition.
The study also includes the value chain of the global wood pellets market which provides a glimpse of key suppliers, manufacturers, distribution channel as well as interaction of suppliers and buyers with end-users. The market attractiveness analysis involves benchmarking and ranking each application and region on the basis of numerous parameters. The parameters selected are likely to have a pronounced effect on the demand for each application in the current scenario as well as in the near future.
Key participants in the global wood pellets market include Andritz AG, Drax Group plc, Enito Singpellet Pte Ltd, Enviva LP, F.E. Wood & Sons, German Pellets GmbH, Georgia Biomass, LLC, Allance Pellet Machinery, The Westervelt Company, Pinnacle Renewable Energy Group, Rentech, Inc., Energex, and Wood Pellet Energy (UK) LTD. The report provides an overview of these companies, followed by their financial revenues, business strategies, and recent developments.
The global wood pellets market has been segmented as follows:
- Global Wood Pellets Market: Application Segment Analysis
- Power Plants
- Global Wood Pellets Market: Regional Segment Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of MEA
- Central and South America (CSA)
- Rest of CSA
- North America