Mar 15,2021/IndustryNewsGlobal/ The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Wood Pellet Market.
It was estimated prior to this unanticipated outbreak that the Wood Pellet was expected to grow at a CAGR of 10.5% during the forecast period. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Wood pellets are the biofuels that are manufactured by the process of crushing and densifying waste wood including industrial byproducts such as forestry wastes, old paper, and forestry residues. Wood pellets have come a long way as promising renewable energy sources, which substitute coal and natural gas in various industrial sectors, owing to their low cost and reduced carbon emission. The easy availability of wood pellet feedstock and low cost of production has immensely contributed towards its higher consumption, especially in the industrial sector.
Increasing consciousness towards the use of renewable energy sources for space heating in residential and commercial heating, along with the increasing adoption of recyclable and eco-friendly energy sources for power generation are the prime factors that are contributing to the demand for wood pellets. The clean-burning and cost-effective fuel option for heating needs for households is another factor that is driving the demand for wood pellets.
This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market.
Based on the grade type, the market is segmented as premium, standard, and utility. The utility grade segment held the largest share of the market in 2019, and is expected to register the fastest growth during the forecast period. The utility grade segment is mainly driven by its low bulk density compared to that of premium grade wood pellets. The utility grade wood pellets provide benefits for space utilization to the industrial sector and due to this factor the usage of utility grade wood pellets has been growing for the industrial heating applications.
Based on the application type, the wood pellet market is segmented as residential, commercial, industrial, and animal bedding. The residential segment held the largest share of the market in 2019. Increasing consumption of wood pellets in North America and major European countries, owing to the growing initiatives to increase dependency on renewable energy sources for reducing carbon emission is the major factor behind the growth of the segment.
In terms of regions, Europe is estimated to be the largest market during the forecast period, with France, Germany, Russia, and the United Kingdom being the major countries with promising growth opportunities. The growth of the region’s market is mainly driven by the growing initiatives towards replacement of coal-fired power plants with pellet-based power plants, along with the growing focus on renewable energy sources in the region to reduce carbon emissions.
Some of the major wood pellet manufacturers are-