ID: MRFR/CnM/6700-HCR | February 2021 | Region: Global | 140 pages
Global Biomass Pellet Market accounted for USD 8.7 billion in 2019, registering a CAGR of over 8.1% during the forecast period.
Biomass pellets are biofuels made from compressed organic matter or biomass. Biomass pellets are produced through various sources such as industrial waste, agriculture residue, virgin lumber, food waste, and others. Biomass pellets are of different types such as wood pellets, agri-pellets, and torrefied pellets, among which the demand for wood pellets is the highest across various end-use industries.
In recent years, as part of an effort to increase the renewable energy source while declining fossil fuel consumption, many countries are shifting toward biomass pellets for heat and power generation. This prevailing trend of using a renewable and clean source of energy is fueling the growth of the global biomass pellets market. The biomass pellets have low moisture content, which provides high burning efficiency and has lower density as compared to biomass briquettes, which is expected to boost its demand across various end-use industries. Due to the strict environmental policies over the Co2 emission in European and the Americas, the industrialists are inclining toward clean sources for energy generation, which is expected to provide strong growth impetus to the players operating in the global market during the forecast period.
The demand-supply deficit is expected to hamper the market growth during the forecast period, as pellets are required to be preserved, which escalates high concerns for both the manufacturers and the suppliers, as bio-pellets consists of low moisture content.
Drax Group plc (UK), Enviva (US), German Pellets GmbH (Germany), AS Graanul Invest (Estonia), Pinnacle Renewable Energy Inc (Canada), Lignetics (US), Zilkha Biomass Energy (US), Premium Pellets Ltd (Canada), Fram Fuels (US), Abellon CleanEnergy Limited (India), Ecostan (India), JP Green Fuels (India), The Westervelt Company, Inc (US), Forest Energy Corporation (US), and New England Wood Pellet (US).
Global Biomass Pellets Market Share, by Application (2019)
Source: MRFR Analysis
The global biomass pellets market outlook has been reviewed with respect to five regions, namely Asia-Pacific, the Middle East & Africa, North America, Europe, and Latin America.
Europe is projected to be the dominant market for biomass pellets, where the demand for wood pellets is growing at a significant rate. The stringent government regulations to reduce greenhouse gas (GHG) emission are increasing the preference for biomass pellets in the region.
The biomass pellets market in Asia-Pacific is expected to witness the fastest growth due to the increasing use of biomass pellets in the industrial heating sector, where the biomass is co-fired with coal to produce heat. As these fuels can be derived by recycling wastes, it compels the governments to invest more in the sector. China and Thailand are the major exporters of wood pellets in the region.
The prime driver of the biomass pellets market in North American is the high consumption of wood pellets in residential heating and commercial heating. For instance, the consumption of wood pellet in residential heating in Canada was 300,000 tons in 2016.
The markets in Latin America and the Middle East & Africa are expected to witness a slow growth during the review period, with United company leading the market in the Middle East & Africa region which has an annual production capacity of 70000 tons for wood pellets, which has a share of over 30% in the regional biomass pellets market.
The global biomass pellets market has been segmented based on source, type, application, and region.
The global biomass pellets market, by source, has been divided into industrial waste, agricultural waste, energy crops, food waste, virgin lumber, and others. Among these, the agriculture and the industrial waste segments held the largest market shares in 2019.
The types of biomass pellets covered under the scope of the report are wood pellets, agri-pellets, torrified pellets, and others.
Power generation, industrial heating, residential heating, and others are the applications studied for the global biomass pellets market. The power industry held the largest market share in 2018 and is expected to dominate during the forecast period.
Frequently Asked Questions (FAQ) :
The biomass pellets market valuation was USD 8.7 billion in 2018.
The CAGR would be 9% during the forecast period of 2019 to 2025.
The biomass pellets market would grow with the fastest speed in the Asia Pacific region.
The high consumption of wood pellets in residential heating and commercial heating projects can trigger market growth.
China and Thailand are the major exporters.