About the Report
The market for wood pellets witnessed a massive slowdown in its progress as a result of the spread of the Covid-19 pandemic across the globe. The level of demand declined to the extreme level due to lockdown creating hurdles for the key players operating in this market. However as recovery commences in 2021, major players are recuperating their positions through production expansion, capacity utilization, and online selling in 2021 keeping in view the covid-19 norms.
Recognized companies such as Enviva Partners LP, Pinnacle Renewable Energy Inc., Wood Pellet Energy (UK) LTD, Andritz AG, Energex, and Georgia Biomass, LLC and others are focusing on the incorporation of tactics including partnership agreements, sales contracts, strategic alliances, diversifications, innovative launches, mergers & acquisitions, research and developments, technological upliftments, product line extensions, hiring technical expertise, joint ventures, collaborations, product approvals, etc for gaining a competitive edge over others in the market.
For instance, in August 2020, Enviva Partners, LP, a leading global energy company specializing in sustainable wood bioenergy, announced the acquisition of a world-class wood pellet production plant in Waycross, Georgia. Enviva now has nine wood pellet production plants and five deep-water export terminals across Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi, and Florida.
The Waycross plant has a production capacity of approximately 800,000 metric tons per year. After this acquisition, Enviva’s total annual wood pellet production capacity will touch approximately 4.9 million metric tons and the Waycross plant is now called, “Enviva Pellets Waycross.”
In terms of growth, the European region is projected to the dominant market during the forecast period owing to the widespread adoption in power boilers and residential heating segments. Asia Pacific region is expected to be lucrative owing to the rapid construction of power plants and the emergence of the renewable energy sector. Other regions are expected to witness decent growth levels in the wood pellets market during the forecast period.
Wood Pellets Market Demonstrates Astounding Growth, Invigorated by Heightened Demand in Commercial & Residential Heating
The global wood pellets market is buckling up on the back of grave environmental concerns and rising government incentives towards sustainability. Having surpassed revenues, the market is poised for stupendous growth at approximately 11% CAGR through the forecast period (2021-2031).
The prodigious demand in the commercial & residential heating segment is compelling manufacturers to churn out wood pellets extensively through 2031. Moreover, consumption of wood pellets in co-firing continues to witness prolific growth. Agricultural residue and wood waste remain the prominent sources of wood pellets, in view of easy availability and lower production cost.
Demand for Carbon Neutral and Sustainable Fuel Continues to Bolster Wood Pellets Market Growth
The pellet-based power plant is gaining traction as a preferred alternative to the coal-based power plants, thereby accentuating the need for wood pellets in the industrial sector. Moreover, governments worldwide are keen on driving the adoption of renewable energy in the residential, transportation, and industrial sector.
Consumers in developed regions such as Europe have greater environmental sentience, which continues to account for their increasing reliance on renewable sources. Bio-based energy sources are gathering impetus in developing countries, for electricity generation. The reason is attributed to rising energy consumption and favorable government policies.
A significant reduction in the emission of greenhouse gases is increasing the consumption of wood pellets in the industrial sector. Continued innovations in combustion technology are to be accredited for the impressive growth of the wood pellets market.
Europe to Capture Major Chunk of Revenue Share, Asia Pacific Closing In
Wood pellets have witnessed widespread adoption in power boilers and residential heating segments across Europe. The regional market is fuelled by enhanced product penetration in countries such as France, Austria, Italy and Germany. Moreover, European Union’s stringent regulations against carbon emissions are pushing the sales of wood pellets.
On the other hand, Asia Pacific will register noteworthy growth during the projection period. The profuse regional growth is underpinned by the emerging renewable energy sector in countries such as China, South Korea, India and Japan. Moreover, the rapid construction of power plants is contributing to the growth of wood pellets market in Asia Pacific.
Prominent Manufactures Expedite Capacity Expansion to Maintain Hegemony
The competitive landscape of global wood pellets market is highly fragmented in nature. Detailed profiles of leading players are included in this report covering their recent developments, key offerings, short-term and long-term strategies. Some of the leading manufacturers of wood pellets include, Enviva Partners LP, Pinnacle Renewable Energy Inc., Wood Pellet Energy (UK) LTD, Andritz AG, Energex, and Georgia Biomass, LLC.
Key players are accelerating their capacity expansion efforts in a bid to sustain global leadership. In order to revamp their repository, they are entering strategic agreements with raw material suppliers such as Swedish softwood lumber suppliers. This move is projected to boost the production capacity of leading manufacturers. In view of respiratory problems caused by wood dust, some players are innovating novel manufacturing processes by escalating R&D activities.
Product and cost differentiation remain the key strategic focus of leading players in global wood pellets market. Key manufacturers must realign their strategies as per shifting consumer preferences to ensure enhanced product penetration, geographical expansion and increased market share.
Wood Pellets Market: Segmentation
The global wood pellets market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to readers.
By Feedstock
- Forest and Wood Waste Resources
- Agricultural Residue and Waste
- Food Waste
- Virgin Lumber
- Energy Crops
By End-use Industry
- Residential/Commercial Heating
- CHP/District Heating
- Co-firing
By Region
- North America
- Latin America
- Europe
- MEA
- Asia Pacific
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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