Product Code: GVR-2-68038-745-2
Wood Pellets Market Growth & Trends:
The global wood pellets market size is expected to reach USD 13.38 billion by 2030, exhibiting a revenue-based CAGR of 5.5% during the forecast period, according to a new report by Grand View Research, Inc. The demand for wood pellets is expected to witness significant growth over the forecast period, owing to the rising global demand for renewable energy to reduce the usage of fossil fuels that contributes to global warming.
The 2018 adoption of the "Clean Air" program is also driving the usage of wood pellets in the residential sector. As it provides subsidies and low-cost loans for energy-efficiency improvements to single-family homes, has attracted applicants looking to replace their existing heating systems with wood pellets-fed systems.
The commercial heating industry, a huge potential market for pellets, is already showing some exciting advances in Eastern Europe and is expected to continually grow the demand for wood pellets in the commercial sector during the forecast period. They can generate enormous amounts of potable or non-potable hot water for use in big central heating systems for providing process heat during a specific phase of a manufacturing procedure.
As the global electricity demand is rising, new power generation facilities are being established, along with capacity enhancements of the existing ones. Companies are opting for renewable sources to generate electricity owing to stringent implementation of regulations related to carbon emissions which will be driving the demand for wood pellets during the forecast period.
Enviva being one of the biggest wood pellet manufacturers worldwide, in April 2022, declared that it would spend about $250 million in Bond, Mississippi to construct a new wood pellet manufacturing facility. The plant is a crucial part of the company's growth strategy, which aims to double production capacity over the next five years from the present 6.2 million metric tons annually to roughly 13 million metric tons annually.
Wood Pellets Market Report Highlights:
- The growing demand for heating in wood pellets is likely to drive its growth at a CAGR of 5.9% over the forecast period. The rising global demand for renewable energy is driving the demand for wood pellets to reduce the usage of fossil fuels that contributes to global warming. Additionally, the usage of wood pellets is increasing worldwide to meet Kyoto Protocol commitments as well as their beneficial attributes like low manufacturing costs and easy availability of pellet fuel feedstock have also contributed to their increased consumption in the global industrial sector
- Heating application segment is expected to reach USD 8.02 billion in revenue by 2030, owing to various government policies such as European Union (EU) laws encouraging the use of renewable energy for heating applications in commercial as well as industrial end-use for power generation and heating applications
- The residential end-use segment is anticipated to dominate the market accounting for 45.0% of the market in 2021, owing to the increasing usage of wood pellets in residential homes for efficient combustion in smaller stoves for heating and cooking as a result of the subsidies provided by the government
- U.S. accounted for a revenue share of 86.2% of North America in 2021, owing to the increasing demand for wood pellets in the United States as a result of its primary usage for residential heating, with some commercial heat and CHP applications. Wood pellets are used to heat about 80,000 houses in the United States, in freestanding stoves, fireplace inserts, and even furnaces
- Key industry players are undertaking mergers and collaborations to expand their reach and increase production capacity, thereby advancing their market share. Additionally, prominent suppliers are focusing on research & development activities to reduce operational costs; maximize the efficiency of production and storage and enhance the quality of products to maintain their position in the market
Table of Contents
Chapter 1. Methodology and Scope
- 1.1. Market Segmentation & Scope
- 1.2. Assumptions
- 1.3. Information Procurement
- 1.3.1. Purchased Database
- 1.3.2. GVR's Internal Database
- 1.3.3. Secondary Sources
- 1.3.4. Third-Party Perspectives
- 1.3.5. Primary Research
- 1.4. Information Analysis
- 1.4.1. Data Analysis Models
- 1.5. Market Formulation & Data Visualization
- 1.6. Data Validation & Publishing
Chapter 2. Wood Pellets Market Variables, Trends & Scope
- 2.1. Market Lineage Outlook
- 2.1.1. Global Wood Pellets Market Outlook
- 2.2. Penetration & Growth Prospect Mapping
- 2.3. Wood Pellets Value Chain Analysis
- 2.4. Technology Overview
- 2.5. Regulatory Framework
- 2.6. Wood Pellets Market Dynamics
- 2.6.1. Market driver analysis
- 2.6.1.1. Increasing Global Demand for Renewable Energy
- 2.6.1.2. Surging Consumption of Electricity Worldwide
- 2.6.2. Market restraint analysis
- 2.6.2.1. Impact of the Russia-Ukraine War
- 2.7. Wood Pellets Industry Analysis - Porter's
- 2.7.1. Supplier Power
- 2.7.2. Buyer Power
- 2.7.3. Substitution Threat
- 2.7.4. Threat of New Entrants
- 2.7.5. Competitive Rivalry
- 2.8. Wood Pellets Industry Analysis - PESTEL
- 2.8.1. Political Landscape
- 2.8.2. Economic Landscape
- 2.8.3. Social Landscape
- 2.8.4. Technology Landscape
- 2.8.5. Environmental Landscape
- 2.8.6. Legal Landscape
Chapter 3. Wood Pellets Market: Application Estimates & Trend Analysis
- 3.1. Wood Pellets - Application Movement Analysis & Market Share, 2021 & 2030
- 3.2. Market Size & Forecasts and Trend Analysis, 2017 to 2030 for the following
- 3.2.1. Heating
- 3.2.1.1. Wood pellets market estimates and forecasts, by heating, 2017 - 2030 (Kilotons) (USD Million)
- 3.2.2. Power Generation
- 3.2.2.1. Wood pellets market estimates and forecasts, by power generation, 2017 - 2030 (Kilotons) (USD Million)
- 3.2.3. CHP
- 3.2.3.1. Wood pellets market estimates and forecasts, by CHP, 2017 - 2030 (Kilotons) (USD Million)
Chapter 4. Wood Pellets Market: End-Use Estimates & Trend Analysis
- 4.1. Wood Pellets- End-Use Movement Analysis & Market Share, 2021 & 2030
- 4.2. Market Size & Forecasts and Trend Analysis, 2017 to 2030 for the following:
- 4.2.1. Residential
- 4.2.1.1. Wood pellets market estimates and forecasts, by residential end-use, 2017 - 2030 (Million Units) (USD Million)
- 4.2.2. Commercial
- 4.2.2.1. Wood pellets market estimates and forecasts, by commercial end-use, 2017 - 2030 (Kilotons) (USD Million)
- 4.2.3. Industrial
- 4.2.3.1. Wood pellets market estimates and forecasts, by industrial end-
use, 2017 - 2030 (Kilotons) (USD Million)
Chapter 5. Wood Pellets Market: Regional Estimates & Trend Analysis
- 5.1. Wood Pellets Market: Regional Movement Analysis, 2021 & 2030
- 5.2. North America
- 5.2.1. U.S.
- 5.2.2. Canada
- 5.2.3. Mexico
- 5.3. Europe
- 5.3.1. Germany
- 5.3.2. U.K.
- 5.3.3. France
- 5.4. Asia Pacific
- 5.4.1. China
- 5.4.2. India
- 5.4.3. Japan
- 5.5. Central & South America
- 5.6. Middle East & Africa
Chapter 6. Competitive Analysis
- 6.1. Recent Developments & Impact Analysis, By Key Market Participants
- 6.2. Company/Competition Categorization
- 6.3. Vendor Landscape
- 6.4. Company Market Positioning Analysis
- 6.4.1. Private Companies
- 6.4.1.1. List of Emerging Companies and Other Geographical Presence
- 6.5. Competitive Environment
- 6.6. Strategy Framework
Chapter 7. Company Profiles
- 7.1. Energex
- 7.1.1. Company Overview
- 7.1.2. Financial Performance
- 7.1.3. Product Benchmarking
- 7.1.4. Strategic Initiatives
- 7.2. Enviva LP
- 7.2.1. Company Overview
- 7.2.2. Financial Performance
- 7.2.3. Product Benchmarking
- 7.2.4. Strategic Initiatives
- 7.3. Graanul Invest
- 7.3.1. Company Overview
- 7.3.2. Financial Performance
- 7.3.3. Product Benchmarking
- 7.3.4. Strategic Initiatives
- 7.4. Drax Biomass
- 7.4.1. Company Overview
- 7.4.2. Financial Performance
- 7.4.3. Product Benchmarking
- 7.4.4. Strategic Initiatives
- 7.5. Pinnacle
- 7.5.1. Company Overview
- 7.5.2. Financial Performance
- 7.5.3. Product Benchmarking
- 7.5.4. Strategic Initiatives
- 7.6. AVPGroup
- 7.6.1. Company Overview
- 7.6.2. Financial Performance
- 7.6.3. Product Benchmarking
- 7.6.4. Strategic Initiatives
- 7.7. Sinclar Group Forest Products
- 7.7.1. Company Overview
- 7.7.2. Financial Performance
- 7.7.3. Product Benchmarking
- 7.7.4. Strategic Initiatives
- 7.8. Lauzon
- 7.8.1. Company Overview
- 7.8.2. Financial Performance
- 7.8.3. Product Benchmarking
- 7.8.4. Strategic Initiatives
- 7.9. Wood Pellet Energy (UK) Ltd.
- 7.9.1. Company Overview
- 7.9.2. Financial Performance
- 7.9.3. Product Benchmarking
- 7.9.4. Strategic Initiatives
- 7.10. United Company
- 7.10.1. Company Overview
- 7.10.2. Financial Performance
- 7.10.3. Product Benchmarking
- 7.10.4. Strategic Initiatives
- 7.11. Highland Pellets LLC
- 7.11.1. Company Overview
- 7.11.2. Financial Performance
- 7.11.3. Product Benchmarking
- 7.11.4. Strategic Initiatives
- 7.12. Groupe Savoie Inc.
- 7.12.1. Company Overview
- 7.12.2. Financial Performance
- 7.12.3. Product Benchmarking
- 7.12.4. Strategic Initiatives
- 7.13. I.C.S. (Lacroix) Lumber Inc.
- 7.13.1. Company Overview
- 7.13.2. Financial Performance
- 7.13.3. Product Benchmarking
- 7.13.4. Strategic Initiatives
- 7.14. Vermont Wood Pellet Company
- 7.14.1. Company Overview
- 7.14.2. Financial Performance
- 7.14.3. Product Benchmarking
- 7.14.4. Strategic Initiatives
- 7.15. Farm Fuels
- 7.15.1. Company Overview
- 7.15.2. Financial Performance
- 7.15.3. Product Benchmarking
- 7.15.4. Strategic Initiatives