Wood Pellet Market is expected to reach US$ 23,892.77 Million by 2028

Published Date: 23 Sep 2021

Report : Wood Pellet Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Application (Residential Heating, Commercial Heating, Combined Heat and Power (CHP), and Power Generation) and Geography

Growing Awareness About Use of Renewable Energy Sources to Escalate Wood Pellet Market Growth during 2020–2028

 

According to our latest market study on “Wood Pellet Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Application [Residential Heating, Commercial Heating, Combined Heat and Power (CHP), and Power Generation],” the market was valued at US$ 9,630.99 million in 2020 and is projected to reach US$ 23,892.77 million by 2028; it is expected to grow at a CAGR of 12.1% from 2020 to 2028. The report highlights key factors driving the market and prominent players along with their developments in the market.

 

Wood pellets are produced using finely ground wood bark; they are majorly used as fuel. These are extensively used in residential houses for efficient burning in smaller stoves. Wood pellets are produced from numerous wood waste products and are considered a source of renewable energy. Currently, along with residential heating, there is increased use of wood pellets for power generation across the globe. These are largely utilized globally as a fuel, which is expected to increase the demand for wood pellets in the coming years. Europe is the leading region for the consumption of wood pellets for power generation. Moreover, North America is the significant exporter of wood pellets, which is expected to increase the production facilities of wood pellets in the coming years.

 

Renewable energy plays a vital role in meeting the future energy needs in both rural and urban areas. The scarcity of resources, along with an increase in awareness about adverse environmental impacts of fossil-based products and processes, has surged the dependency on renewable energy sources such as wood pellets. The growing need for sustainable energy development is yet another factor contributing to the increased demand for wood pellets. Renewable energy resources and technologies are considered environment-friendly alternatives as they generally cause limited or no impact on the environment compared to other forms of energy sources. Further, such resources are easily available and cannot be depleted.

 

Wood pellets are categorized under renewable energy sources as they are derived from trees and are a form of biomass. Wood pellets are composed of dried and compressed wood fibers prepared from sawmill residuals, logging debris such as forest debris piles, and whole logs. According to the US Energy Information Administration, biomass is categorized as an organic material that can be effectively used as a source of energy. Several forms of biomass such as wood pellets are carbon neutral and leave a net-zero carbon footprint upon burning biomass. Moreover, the deployment of wood energy pellets instead of oil can effectively help in minimal emission of greenhouse gases into the environment. As per an article published by the Energy Pellets of America, LLC in 2018, the statistics from the US Energy Information Administration represent that biomass contributes to approximately 5% of all energy utilized in the US. From that 5%, 44% of the biomass is derived from wood and wood products such as wood energy pellets. Similarly, wood pellets are also considered as an efficient and cost-effective alternative source of energy that can be effectively deployed in numerous application bases. Hence, the demand for wood pellets is expected to rise with the growing investment in renewable energy forms.

ANDRITZ; Energex Pellet Fuel, Inc.; Enviva; New England Wood Pellet LLC; Pacific BioEnergy; Pinnacle Renewable Energy Inc; Premium Pellet Ltd.; Graanul Invest; Wood & Sons; and TANAC are among the well-established players operating in the global wood pellet market.

 

Impact of COVID-19 Pandemic on Wood Pellet Market

The ongoing COVID-19 pandemic has drastically altered the status of the chemicals & materials sector and negatively impacted the growth of the wood pellet market. The implementation of measures to combat the spread of the virus has aggravated the situation and affected the growth of several industrial sectors. The market has been impacted by the sudden distortion in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international boundaries. Disruptions in terms of sourcing of raw materials from suppliers and temporary closures of manufacturing bases due to indefinite lockdowns and temporary quarantines have impacted the growth of the market during the pandemic.

The following pointers represent the impact of COVID-19 on the wood pellet market:

  • As per a news published by Woodcote Media Ltd on July 30, a survey conducted by ENplus a certification scheme for wood pellets stated that 75% of certified producers have been negatively impacted by the COVID-19 pandemic. The companies are planning to revise the prices of wood pellets for end users. However, the same report represented that approximately 5% of respondents believe that there is a slight increase in demand for wood pellets from end users.
  • Similarly, the wood supply chain has been impacted by the pandemic, which has resulted in disruptions in raw material supply and prices.
  • The pandemic has also impacted several industries across the world, which has had a direct impact on the demand for wood pellets in the global market.

Global Wood Pellet Market Breakdown – by Region

Global Wood Pellet Market Breakdown – by Region

The report segments the global wood pellet market based on application and geography. Based on application, the market is categorized into residential heating, commercial heating, combined heat and power (CHP), and power generation. Based on geography, the market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America.

 

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