Biomass Pellets Market Outlook- 2022-2029
[251 Pages Report] The global biomass pellets market is projected to witness growth at a CAGR of 6.8% during the forecast period 2022-2029. Increasing demand for wood biomass pellets is the major factor accelerating the growth in the market.
Biomass Pellets Market Size in 2021
US$ 10.63 Bn
Biomass Pellets Market Size in 2022
US$ 11.36 Bn
Biomass Pellets Market Size in 2029
US$ 17.94 Bn
Biomass Pellets Historical CAGR (2014-2021)
Biomass Pellets Value-based CAGR (2022-2029)
Ongoing expansion of manufacturing industries such as chemicals, power generation, and others is propelling the demand for biomass pellets worldwide. Growing emphasis on reducing the carbon footprint, coupled with increasing need for renewable energy, will boost the sales of biomass pellets.
On account of this, the global biomass pellets market size is expected to reach US$ 17.94 Bn by the end of 2029. Regionally, Europe is expected to vanguard the sales in the the global biomass pellets market, accounting for over 60.7% of the total market share through 2029.
2014-2021 Biomass Pellets Market Outlook in Comparison to 2022-2029 Growth Forecast
As per Future Market Insights (FMI), the sales in global biomass pellets market surpassed US$ 10.63 Bn in 2021. With increasing demand from power generation, mining, and other manufacturing industries, the sales are expected to nearly double between 2022 and 2029.
Increasing utilization of biomass pellets in coal-fired boilers in industries, and in commercial and domestic heating applications will surge the demand in the market. Several government regulations imposed to curb the carbon footprint are favouring the consumption of biomass pellets.
Subsequently, several manufacturing industries are replacing fossil fuel with biomass pellets to adhere to the stringent regulations imposed by governments worldwide. As bio-fuels are more efficient and facilitate optimal generation of renewable energy, utilization of bio-fuels such as biomass pellets is gaining traction.
With the expansion of several manufacturing industries, the demand for biomass pellets is expected to increase significantly over the forthcoming years.
What are the Key Factors Driving the Biomass Pellets Market?
“Biomass Pellets as Fuel to Replace Coal-Based Boilers”
Biomass pellets are an excellent renewable energy resource used as a fuel for heating applications. Several manufacturing industries using coal-based boilers are inclining towards using biomass pellets to co-fire with coal for heating to reduce carbon emission.
With increasing use of biomass pellets instead of coal-based boilers, key players are expected to witness lucrative opportunities in the biomass pellets market.
“Need for Biomass Feedstock to Drive the Growth in Biomass Pellets Market”
With extensive agricultural and forestry activities, there is surplus availability of biomass in the form of agricultural residue and forest waste.
As agriculture is considered to be one of the largest domains across the globe, need for biomass pellets and wood biomass pellets is expected to increase over the forecast period.
Due to agriculture being one of the largest sector, availability of feedstock for biomass pellet production is driving the growth in the market.
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Why is Demand for Biomass Pellets Increasing in the U.K.?
“Inclination for Renewable Energy Resources such as Wood Biomass Pellets to Boost the U.K. Market
Over the past years, Europe has been one of the most prominent regions in terms of the production and consumption of biomass pellets. As per FMI, the U.K. is expected to lead the the Europe biomass pellets market.
Over 60.7% of overall biomass pellets sales are concentrated in Europe. Expansion of manufacturing industries such as chemical, power generation and others will fuel the growth in the market.
Besides this, increasing sustainability concerns in the country are compelling end users to adopt renewable energy resources such as biomass pellets and wood biomass pellets as fuel.
On account of these factors, the demand for biomass pellets and wood biomass pellets will increase in the U.K.
Why is China Considered the Most Lucrative Biomass Pellets Market?
“China to Witness Robust Growth Amid Surging Carbon Footprints”
China is expected to witness the fastest growth in the East Asia biomass pellets market. The demand for biomass pellets in China is expected to surge on the back of increasing stringent norms in order to curb carbon footprint.
China is expected to be one of the prominent hubs of industries that use coal-based boilers. This is anticipated to create growth opportunities for biomass pellets that can be used as a replacement or co-fired with coal in these industries.
Besides China, South Korea and Japan are among the key countries leading the growth in East Asia biomass pellet market. As per FMI, East Asia will account for over 11.3% of global sales through 2029.
How will the U.S. Biomass Pellet Market Fare?
“Sales of Wood Sawdust-Derived Biomass Pellets to Remain High in the U.S”
In the U.S., agriculture, manufacturing, and power generation industries contribute to the major part of GDP in the country. With expansion of these industries, along with growing inclination towards renewable energy resources, demand for biomass pellets is expected to increase through 2029.
As manufacturing industries continue to use wood sawdust, derived from biomass pellet, sales are expected to soar in the U.S. Various industries are replacing coal-based boilers with wood sawdust biomass pellets to reduce carbon emissions, which is expected to boost the market.
Consequently, government policies regarding the use of renewable energy resources to achieve sustainability goals is another factor fuelling the growth in the U.S. market.
For instance, the Biomass Thermal Utilization Act (BTU Act) of 2019 in North America is focusing on promoting the environmental benefits of biomass-derived fuels and energy sources.
The act provides 15% to 30% credit for clean wood heating systems for domestic and commercial applications. To adhere to the regulatory policies, industrialists are using biomass pellets to reduce their cost expenditure.
Why is Wood Sawdust the Most Preferred Source for Biomass Pellets?
“Wood Sawdust Sales to Outpace the Demand for Agricultural Residue”
In terms of source, FMI estimates wood sawdust is the prominent source of biomass pellet production. Sales of biomass pellets in this segment are projected to increase at a considerable pace over the forecast period.
Government policies regarding carbon emissions are changing across the globe to achieve sustainability goals and improve sustainable development. They have become stricter towards the quantity of carbon emitted from industries.
As a consequence, industrialists are using biomass pellets in co-firing applications to reduce carbon emissions and to reduce the cost expenditure over fuels. Hence, wood sawdust is expected to remain the primary source for the production of biomass pellets.
Which is the Chief Application in Biomass Pellets Market?
“Industrial Heating and Power Generation to Remain Primary Biomass Pellets End-User”
The expansion of manufacturing industries and the industrial sector will increase the demand for renewable energy resources. Hence, countries such as the U.S., the U.K., and India are inclining towards using biomass pellets as a replacement to coal-based boilers.
Besides this, for industrial heating, biomass pellets have multiple applications and are cost-effective. Hence, emerging economies such as India, South Korea, and Japan are using biomass pellets for power generation.
As per FMI, application of biomass pellets in power generation and industrial heating will collectively account for the largest share in the global market.
Top companies operating in the global biomass pellets market are trying to expand and grow in the biomass pellets market through strategic steps of development. Some of the leading players are also participating actively in the trade of biomass pellets to reach international markets, and develop by acquiring a diverse clientele worldwide. For instance:
- In December 2021, Drax Group plc., announced plans to double its biomass pellet production to 8 million metric tons per year by 2030. The company also announced commissioning is nearly complete at its facility in Demopolis, Alabama.
- In October 2021, India’s leading power giant NTPC ordered over 9,30,000 Tonnes of biomass pellets for co-firing in power plants that will help improve air quality.
Scope of Report
Historical Data Available for
US$ Bn for Value
Key Regions Covered
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and MEA
Key Countries Covered
United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.
Key Market Segments Covered
Source, End Use, and Region
Key Companies Profiled
Available upon Request
Biomass Pellets Market by Category
- Agricultural Residue
- Wood Sawdust
- Power Generation
- Industrial Heating
- Commercial and Domestic Heating
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan (APEJ)
- Middle East & Africa