Wood Pellets Market Size and Growth Rate:
According to the research report, the Wood Pellets Market is expected to grow at a CAGR of 14.10% from 2015 to 2023 and market opportunities are expected to reach USD 20 billion in 2023. The increase in financial incentives of several federal agencies in North America and the low cost of raw materials for the production of wood pellets are the main factors that determine the market growth.
Wood Pellets Market Drivers and Restraints:
Increasing consciousness regarding the use of renewable energy sources for power generation is likely to enlarge the demand for wood pellets over the forecast period. Product quality and costs are reliant on on the prices of raw materials obtained from the timber industry and forests. The industry is observing growth on account of increased consumer awareness concerning the product benefits, such as complete combustion, cleaner burning fuel as linked to fossil fuels, and reduction in Greenhouse Gas (GHG) emissions.
Augmented government spending on renewable energy for power generation is expected to rouse market development. Growing demand for cleaner and renewable sources for power generation owing to unpredictability in fossil fuel prices is also anticipated to propel the product demand.
Several policies and agreements, such as the Kyoto Protocol, the Paris Agreement of COP21, and the American Clean Energy and Security Act, are projected to drive the product demand. In addition, growing R&D activities to develop innovative manufacturing procedures for wood pellets are projected to have a positive effect on the market growth.
The global wood pellet fuel market is divided based on feedstock, heating application, application, and geography. On the base of feedstock, market is categorized into forest wood & waste, agriculture residue, and others. Based on its heating application, it is divided into free standing pellet stoves, pellet stove inserts, and pellet boilers. The application of this market is forked into industrial pellet for CHP/district heating, industrial pellet for co-firing, pellet for heating residential & commercial, and others.
Wood Pellets Market Application Insights:
The main applications of wood pellets are for heating and power plants. The heating applications sector had a significant market share in 2016 and is expected to dominate the general market in terms of sales throughout the forecast period. It is expected that the wide use of wood pellets to heat industrial and residential facilities will boost the growth of the segment in the coming years. The growing popularity of wood pellets in advanced countries such as Canada is expected to further increase the demand. Recent advances in wood pellet manufacturing processes have improved the production of commercial biomass, which increases its demand in heating applications. In addition, the adjustment of these manufacturing units is less capital intensive than that of wind and solar energy, which has stimulated the use of wood pellets for heating.
Wood Pellets Market – Regional Presence:
North America is the important region for wood pellets. Some stiff regulations related to emission norms have fuelled this regional market. The rising financial incentives by various federal agencies in North America, numerous favourable government policies, and the low cost of raw materials for making wood pellets are the main factors driving this market. The considerable demand for wood pellets from the US has also fuelled this regional market.
Some of the Promising Companies Leading the Wood Pellets Market:
- Drax Biomass Inc
- Rentech, Inc
- Enviva Partners, LP
- German Pellets GmbH
- Viridis Energy Inc
- AS Graanul Invest
- Pinnacle Renewable Energy Inc
- Lignetics Of Idaho, Inc
- Zilkha Biomass Energy, LLC
- Land Energy Girvan Limited
The Research Report Segment the Wood Pellets Market into the following sub-segments:
Wood Pellets Market – By Product:
- Forest Wood & Waste
- Agriculture Residue
Wood Pellets Market – By Application:
- Industrial Pellet for CHP/District Heating
- Industrial Pellet for Co-firing
- Pellet for Heating Residential/ Commercial
Wood Pellets Market – By Geographical Segmentation:
- North America
- United Kingdom
- South Korea
- Latin America
- Middle-East & Africa
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