Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The Biomass Pellets Market is characterized by a dynamic interplay of factors that shape its trajectory, reflecting the evolving landscape of renewable energy and sustainable practices. Understanding these market dynamics is crucial for industry participants to navigate challenges and seize opportunities effectively. Here's a concise overview in paragraph form with a pointer format:
The Biomass Pellets Market is closely connected to the need for renewable energy. As more people around the world become aware of climate change and care for our environment, they are asking for ways to make energy better with less harm. Pellets from wood and other natural waste are used as a key renewable energy source. This helps to lower greenhouse gas emissions.
The use of biomass pellets for energy is encouraged by government policies and rewards, which greatly affects how markets work. Subsidies, tax credits and goals for renewable energy encourage both makers of goods and people who buy them to put money into making biomass pellets. The rules and laws really matter in making market patterns and helping the biomass pellets business grow.
Better technology in making biomass pellets makes them work better, lowers the price and raises quality. Better ways to make pellets help the process go more smoothly, making biomass pellets stronger in the energy business. Technology keeps getting better, which changes how markets work by reducing the cost of making pellets and using more types of material to make them.
The amount of food that's made from stuff like leftover wood, waste from farming and special crops for energy can affect how the market works. Biomass pellets are better for the environment because they use nature-friendly ways to get resources and low cost plant materials. The market reacts well to efforts that boost the use of good feedstock management and create dedicated plantations for biomass.
Biomass pellets can help reduce carbon emissions in energy production. They are green if made and sourced properly. The market pays attention to how much damage different energy sources can do. Biomass pellets are seen as a good way for us to have better, cleaner and less harmful energy use in the future.
Biomass pellets are mixed into wider energy market changes, such as the shift to smaller and more spread out power systems. Biomass pellets can be used for heating homes, industry and making power. This fits well with how energy is changing in the market. Joining with smart power systems and new energy ideas makes biomass pellets even more important in the market.
The Biomass Pellets Market is affected by world trade rules. Getting and moving pellets around the globe is very important for this industry. Different areas affect how much and what kind of biomass is sent or brought in to meet the need for renewable energy. Making supply chains work better and more reliably influences how markets behave. This stresses the importance of having good logistics setup already in place.
Market dynamics are shaped by competitive pricing strategies and cost competitiveness relative to other energy sources. Biomass pellet producers need to balance the costs of feedstock, production, and transportation to remain competitive in the energy market. Price fluctuations, influenced by feedstock availability and market demand, impact the overall dynamics of the biomass pellets sector.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Source, Type, Application, and Region |
Biomass Pellets Market Highlights:
Global Biomass Pellets Market Overview
Biomass Pellets Market Size was valued at USD 6.5 Billion in 2022. The Biomass Pellets market industry is projected to grow from USD 6.9 Billion in 2023 to USD 10.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). Due to their high burning efficiency, low moisture content, and decreased density, wood pellets are in great demand across a variety of end uses sectors, contributing to the growing need for renewable energy, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Biomass Pellets Market Trends
- Government initiatives encouraging biomass growth is driving the market growth
Given the advantages provided by biomass, biomass pellets are a significant source of energy. In addition to being renewable and carbon neutral, biomass pellets are also easily accessible. These factors have led to numerous programs and subsidies being granted by most governments. These programs and financial aid encourage the use of energy made from biomass, such as biomass pellets. In North America, for instance, the Biomass Thermal Utilization Act (BTU Act) of 2019 aims to acknowledge and promote the economic and environmental advantages of fuels and energy sources derived from biomass. This law offers home and business applications using clean wood heating systems a 15% to 30% rebate.
In India, the Biomass Power and Cogeneration initiative was put into place by the Ministry of New and Renewable Energy. This project's main goal is to encourage the usage of biomass pellets. It also encourages the production of energy using conventional fuels like coal. In India, among other places, this effort is used for cogeneration in sugar refineries and thermal power plants. The establishment of biomass power and bagasse cogeneration projects is facilitated by loans and advantageous subsidies from the Indian Renewable Energy Development Agency (IREDA). It is anticipated that these policies will promote the use of biomass pellets.
Demand for renewable energy sources has increased significantly, which is one of the main drivers fueling market expansion. Because of this, many businesses in the electricity sector are moving toward using these pellets. Regulatory agencies and international organizations from all over the world are concentrating on the adoption of rigorous environmental restrictions in response to growing worries about warming. As a result, biomass pellets are emerging as one of the crucial effective options that might aid in lessening the dependence on fossil fuels. In addition, these pellets are considered a viable option for reducing emissions of greenhouse gases. Thus, driving the Biomass Pellets market revenue.
Biomass Pellets Market Segment Insights
Biomass Pellets Source Insights
The 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 market as it did in 2022. Agriculture has a large GDP contribution in nations like Brazil, India, and others. In these nations, crop residue is abundant and widely available. The manufacturing of biomass pellets uses this surplus. Pellets made from agricultural waste, or biomass, are becoming more popular.
Biomass Pellets Type Insights
The Biomass Pellets market segmentation, based on Type, includes wood pellets, agri pellets, torrefied pellets, and others. In 2022, the wood pellets category led the world market for biomass pellets. One of the main causes impacting the unavoidable increase in the growth rate is the growing demand for wood pellets in the residential and commercial heating sectors, which is compelling producers to create them in large quantities.
Biomass Pellets Application Insights
The Biomass Pellets market segmentation, based on application, includes power generation, industrial heating, residential heating, and others. The biomass pellets market was dominated by the power generation sector in 2022. As demand increases as a result of factors like urbanization, industrialisation, and population development, governments around the world are striving to switch to biomass power generation. As rural electrification makes it possible for decentralized energy generation, which is predicted to drive the market during the forecasted period, demand for biomass gasifiers is rising.
Figure 1: Biomass Pellets Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Biomass Pellets Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Biomass Pellets market dominated this market in 2022 (45.80%). For the purpose of generating electricity, Europe is the top consuming region for wood pellets. Due to government incentives for using renewable energy sources, it is predicted that demand for biomass pellets would rise throughout the projection period. Further, the German Biomass Pellets market held the largest market share, and the U.K Biomass Pellets market was the fastest growing market in the European region
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.
Figure 2: BIOMASS PELLETS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Biomass Pellets Market is expected to register significant growth from 2023 to 2032. Due to the increasing number of power plants in the area, it is anticipated that the need for biomass pellets used to fuel power plants for the production of electricity will increase significantly. Further, the U.S. Biomass Pellets market held the largest market share, and the Canada Biomass Pellets market was the fastest growing market in the North America region.
The Asia Pacific Biomass Pellets market, accounted for the healthy market share in 2022. In the east and in the province of Guangdong, China has outlawed the use of coal-fired boilers. Additionally, market expansion is predicted to be fueled by the low cost of pellets in the aforementioned regions. Moreover, China’s Biomass Pellets market held the largest market share, and the Indian Biomass Pellets market was the fastest growing market in the Asia-Pacific region.
Biomass Pellets Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biomass Pellets market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biomass Pellets industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Biomass Pellets industry to benefit clients and increase the market sector. In recent years, the Biomass Pellets industry has offered some of the most significant advantages to medicine. 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.
Previously known as Enviva Partners LP, Enviva Inc (Enviva) is a provider of utility-grade wood pellets. The business collects wood fiber from natural resources and transforms it into a transportable form. Wood pellets and wood chips, which are processed forms of woody biomass fuels, make up its products. The corporation runs large-scale manufacturing facilities in the US Mid-Atlantic and Gulf Coast regions. In order to ship and sell wood pellets to power plants in the UK and Europe, Enviva also has access to rivers and railroads. Additionally, it offers terminaling services to owners of other bulk commodities as well as to producers of wood pellets outside of its own operation. The US city of Bethesda, Maryland, is home to Enviva's headquarters. Enviva, Inc. and J-Power, a Tokyo-based utility, agreed into a long-term partnership in November 2021 for the large-scale supply of sustainable wood biomass from Enviva's production facilities in the Southeast of the United States to J-Power's coal-fired power plants in Japan.
The company A.P. Moller - Maersk AS (APMM) offers logistics and transportation services. Through its subsidiaries and affiliates, it runs ports and shipping containers. The business provides intermodal transportation and transports dry goods, refrigerated freight, special cargo, as well as sells secondhand containers. Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training are some of APMM's principal brands. Additionally, the business produces dry and chilled containers. APMM provides services to the manufacturing, shipbuilding, retail, and logistics sectors. In addition to Asia-Pacific, the corporation is present in North America, the Middle East, Europe, and Africa. Copenhagen, Denmark serves as the home office for APMM. The largest geothermal heating plant in the EU will be developed and run by A.P. Moller Holding's Innargi geothermal heating company near Aarhus, Denmark. The arrangement is for 30 years.
Key Companies in the Biomass Pellets market include
- 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
Biomass Pellets Industry Developments
February 2022: The SAMARTH program was started by the Indian government. This program has been introduced to encourage the use of biomass in thermal coal power plants. The effort aims to cut down on stubble burning and air pollution.
April 2022: Twin Track wood pellet technology was introduced by CPM. The goal of the new technology is to increase the effectiveness of wood pellet mills.
Biomass Pellets Market Segmentation
Biomass Pellets: Source Outlook
- Industrial Waste & Co-product
- Agriculture Residue
- Food Waste
- Energy Crops
- Virgin Lumber
- Others
Biomass Pellets Type Outlook
- Wood Pellets
- Agri Pellets
- Torrefied Pellets
- Others
Biomass Pellets Application Outlook
- Power Generation
- Industrial Heating
- Residential Heating
- Others
Biomass Pellets Regional Outlook
- 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
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
