According to the latest report published by Credence Research, Inc. “Global Wood Pellets Market – Growth, Future Prospects and Competitive Analysis, 2018-2026,” the global wood pellets market was valued at 28,408.9 Kilo Tons in 2017, expected to grow at a CAGR of 6.6% from 2018 to 2026.
Browse the full report Global Wood Pellets Market – Growth, Future Prospects and Competitive Analysis, 2018-2026 report at https://www.credenceresearch.com/report/wood-pellets-market
Wood pellets are a renewable energy carrier that is produced from sawdust and other wood materials. The production of wood pellets experienced a steady growth over the past decade driven by growing demand for wood pellets as a cleaner source of energy. The trend is notably visible in the developed nations such as U.K., Germany, France, U.S. and Canada among others. However, emerging nations such as China, India, and Japan are expected to drive the future growth of the wood pellets market on account of rising inclination of these countries towards renewable energy sources.
Growing demand for renewable energy is a major factor driving demand for wood pellets. The power sector is going through a steady transition from traditional thermal power generating sources towards cleaner modes of energy. Renewable energy targets set by countries indicate the promising growth of the renewable energy sector in the coming years. Renewable sources of energy include wind, sunlight, wood residues geothermal heat and waves. The share of renewable energy was approximately 9% in 2010, which is expected to reach close to 23% by 2021. Wood pellets are considered to be a suitable alternative to conventional fossil fuels. Low carbon dioxide (CO2) emissions, and low costs are some of the factors that make wood pellets superior compared to the other sources of energy. Rising support from governments of several countries is another factor responsible for the promising growth of the wood pellets market.
Based on end-use, the heat generation sector accounted for the dominant share in 2017. Unpredictable risks and severe price rises portray the markets for fossil fuels, due to which consumers are shifting towards the consumption of wood pellets for heating purposes, as these are considered to be cheaper compared to conventional fossil fuels. Further, wood pellet boilers and pellet stoves can effectively transform more than 90% of the energy stored inside the fuel into usable heat. Wood pellets are also less expensive compared to heating oil, electric resistant heat or propane. However, the power generation segment is expected to display a higher growth rate during the forecast period. Based on application, the market for wood pellets is classified into pellet stove inserts, pellet boilers and free standing pellet stoves. Pellet boilers are energy efficient as they have a self-cleaning system inside them, which makes them a preferable choice among consumers.
Based on geography, Europe dominated the global wood pellets market in 2017 followed by North America. Germany, U.K., and France are the frontrunners to the growth of the wood pellets industry in Europe. The renewable energy industry in the European Union (EU) has set a target to increase the share of renewable energy to 20% by 2020. Further, the EU countries have adopted national renewable energy action plans, which includes sectorial targets for heating & cooling, electricity and transport, planned use of co-operation mechanisms and planned policy measures among others. These factors are driving the growth of the wood pellets market in Europe. However, Asia Pacific is expected to display a higher growth rate during the forecast period. China, Japan and India are expected to lead the market during the forecast period from 2018 to 2026. High population in the region, coupled with high presence of several industries have raised the incidences of industrial pollution, thereby harming the environment. Due to these factors, regulatory bodies and manufacturers are involved in the process of shifting towards renewable source of energy.
Key players operating in the global wood pellets market include Agon Biomass, A.G. Graanul Invest, Drax Biomass, Enviva Partners LP, German Pellets GmbH, Pinnacle Renewable Energy, Inc., Premium Pellet Ltd, Rentech Inc., Viridis Energy Inc., and Zilkha Biomass Energy LLC among others.