The global biomass pellets market size is predicted to garner significant growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is estimated to cross a valuation of USD 10,872 million in 2023. It is likely to hit a valuation of USD 20,409.2 million by 2033. The market is projected to exhibit an impressive CAGR of 6.7% from 2023 to 2033.
Biomass pellets are widely utilized type of wood pellets. Biomass pellets are expected to hold 70 to 75% market share for wood pellets worldwide. The increasing global warming has environmental degradation, which is boosting awareness about adopting sustainable approaches.
Consistent consumer shift toward biodegradable products is expected to substantially promote biomass pellets market growth.
The combined efforts of businesses, governments, and consumers to reduce greenhouse gas emissions are rising. The carbon dioxide generated by burning biomass pellets gets absorbed by the growing biomass feedstock.
Biomass pellets are a potential solution for mitigating climate change. They help in reducing air pollution, which promotes their adoption. Governments across various nations are providing subsidies and incentives to boost biomass pellets usage.
The increasing renewable energy targets further to augment their demand. The increasing adoption of biomass pellets for clean energy production is likely to boost market growth.
Biomass pellets are versatile and find applications across several industries. They are used in power generation, commercial and residential heating, and other sectors. They have excellent combustion properties and high energy contents.
They are an efficient and convenient energy source. All these factors boost their demand for automated and modernized heating applications across residential and commercial sectors. Globally surging energy demands are likely to boost biomass pellets market growth.
Attributes | Details |
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Biomass Pellets Market Share (2022) | USD 10,189.32 million |
Biomass Pellets Market Share (2023) | USD 10,872.0 million |
Biomass Pellets Market Share (2033) | USD 20,409.2 million |
Biomass Pellets Market Share (2023 to 2033) | 6.7% |
Collective Value Share: Top 3 Countries (2023) | 48.4% |
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Between 2018 and 2022, the demand for biodegradable pellets expanded at 2.7% CAGR. The consistent shift from conventional sources of energy to eco-friendly sources has been observed during this period.
A key market trend is the growing public awareness about the importance of environmental conservation. Renewable energy sources such as wind, biofuels, and solar are witnessing considerably high demand due to this shift. Clean energy demand is rising at never-before-seen rates, particularly in developed regions such as North America and Europe.
Iising environmental concerns catapult the trend in emerging regions such as East Asia and South Asia Pacific. These regions have been exhibiting impressive growth potential. As per Future Market Insights, these regions might emerge as dominant in renewable energy generation in the future.
Consistent growth in nations, including India, China, Japan, and other South East Asia countries is expected to create a conducive growth environment for the biomass pallets market. Considering the aforementioned factors, the demand for biomass pellets is likely to secure a CAGR of 6.7% between 2023 and 2033.
Considering the benefits offered by biomass, biomass pellets are an important energy source. Biomass pellets are renewable, carbon neutral, and importantly, they are widely available. Due to these factors, governments of most countries have offered several schemes and subsidies.
These schemes and subsidies promote the application of energy derived from biomass, such as biomass pellets. For instance,
The Biomass Thermal Utilization Act (BTU Act) of 2019 in North America aims to recognize and promote the environmental and economic benefits of biomass-derived fuels and energy sources. This act provides 15% to 30% credit for clean wood heating systems for domestic and commercial applications.
The Ministry of New and Renewable Energy in India implemented Biomass Power and Cogeneration program. The core objective of this initiative is to promote the use of biomass pellets.
It also promotes using conventional fuels such as coal for the generation of energy. This initiative is implemented for cogeneration in sugar mills and thermal power plants in India, among others.
The Indian Renewable Energy Development Agency (IREDA) provides loans and favourable subsidies for setting up biomass power and bagasse cogeneration projects further. These policies are expected to encourage the application of biomass pellets.
Biomass pellets derived from wood or sawdust are highly preferred by industrialists. The competition for wood is intense, and the availability of good quality wood is debatable.
Many countries are primarily dependent upon the imports of wood in order to meet their needs. This adds additional costs to the wood and sawdust available for manufacturers of wood pellets.
As a result, the production of wood pellets is comparably costly. Thus, a deficit in the availability of wood acts as a growth restraint for the market. It restricts the volume of wood pellets production and also increases the cost of the final product.
In countries like India, Brazil, and others, the agriculture industry contributes significantly toward GDP. The surplus availability of agricultural residue is considerably high in these countries.
This surplus is used for the production of biomass pellets. Biomass pellets manufactured using agricultural residue are gaining traction. The segment is anticipated to record a monumental CAGR of 24.0%. It is the notable rate among all sources worldwide in the forecast period.
The industrial heating segment is anticipated to account for nearly 36.3% of the total market share. Industrial heating is one of the chief applications of biomass pellets.
Technically, biomass pellets can be used in any industry. Pharmaceuticals, leather, brick manufacturing, thermal plants, and tire manufacturing are a few industries. They can be used efficiently as a replacement for coal in boilers.
Governments are emphasizing meeting country-specific sustainable development goals. Governments are imposing strict laws and restrictions on industries and manufacturing units, limiting their carbon emissions.
To comply with these regulations, manufacturers are employing renewable and environment-friendly energy sources such as biomass pellets. As a result, government pressure to reduce carbon emissions is likely to biomass pellet demand uptick.
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The United States biomass pellets market is anticipated to capture a 69.7% market share in 2023. It is anticipated to generate more than USD 1.5 billion in revenue by 2023 end. The United States is one of the key consumers of biomass pellets. It ranked among the top 3 developed economies in terms of energy consumption.
The people living in the United States are aware of rising environmental concerns and their adverse effects. Consequently, the demand for renewable sources of energy is expected to surge in the country.
The country’s government is also launching various programs to promote the use of eco-friendly solutions. This is expected to bolster the demand for biomass pellets over the forecast period.
The United Kingdom is a predominant consumer of biomass pellets. The region is anticipated to capture a 6% market share in 2023. The country is expected to consume nearly 40% of biomass pellets produced in Europe. Stringent regulations are implemented in the country to foster environmental protection.
The United Kingdom is one of the leading countries in generating clean energy. Surging awareness among the country’s residents about renewable sources of energy is expected to be a key growth driver. Besides these, favorable government initiatives are likely to increase conducive environments for the sales of biomass pellets.
Asia Pacific is experiencing a demand spur for biomass pellets. The implementation of favorable initiatives and schemes across nations such as India and other Southeast Asia countries boosts market growth. India is anticipated to capture a 9.9% market share in 2023. The rising investments in biomass sectors, coupled with increasing industrialization stir demand for biomass pellets.
The increasing housing needs amplify energy demands, thereby creating demand for biomass pellets. The rising rural development, backed by the government’s support in developing nations across the region, aids market expansion. Furthermore, the increasing clean energy demand and generation are expected to create growth avenues for the market players.
Leading manufacturers of biomass pellets are laying emphasis on research and development activities. They are focusing on differentiation and innovations in biomass pellets to strengthen their product portfolios. They are focusing on launching products that comply with changing consumer interests, depending upon various factors.
The key players may form strategic partnerships and collaborations to tap into new markets. The entrance of new players is likely to uplift market growth. The new and existing market players are likely to expand their distribution networks to cater to the growing demand.
Attribute | Details |
---|---|
Forecast Period | 2023 to 2033 |
Historical Data Available for | 2018 to 2022 |
Market Analysis | USD million for Value and KT for Volume |
Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa |
Key Segments Covered | Source, End-use, and Region |
Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is projected to be valued at USD 20,409.2 million by 2033.
A CAGR of 6.7% is expected to be achieved in the market through 2033.
A market share of 69.7% is predicted for the United States.
Drax, Rentech Inc., and Enviva Inc. are the top players operating in the market.
The top 3 countries are expected to hold 48.4% market share.
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