Industrial Wood Pellet Market Size to Surpass USD 7.69 Billion by 2027 | exhibiting a CAGR of 8.56%
Fortune Business Insights
7 min read
Fortune Business Insights
According to Fortune Business Insights, the global Industrial Wood Pellet market size is projected to grow from USD 5.54 Billion in 2019 to USD 7.69 Billion in 2027, at CAGR of 8.56% during forecast period.
Pune, India, Oct. 17, 2023 (GLOBE NEWSWIRE) -- The global industrialwood pellet market size is set to flourish stoked by the increased demand for clean energy, observes Fortune Business Insights™ in a report, titled, “Industrial Wood Pellet Market Size, Share & COVID-19 Impact Analysis By Feedstock (Forest Wastes, Agricultural Waste, and Others), By Application (Power Generation, and Combined Heat and Power [CHP]), and Regional Forecast, 2020-2027.” The market size was USD 5.54 billion in 2019 and is anticipated to reach USD 7.69 billion by 2027, exhibiting a CAGR of 8.56% during the forecast period.
Industry Developments:
In October 2018, Pinnacle Renewable Holdings Inc. announced that it had completed the acquisition of a 70% share in an industrial wood pellet production facility located in Aliceville, Alabama from the Westervelt Company.
In December 2019, Enviva LP, one of the largest producers of wood pellets, received the approval of a permit for the construction of a wood pellet facility in Sumter County. The permit was approved by the Alabama Department of Environmental Management (ADEM).
Industrial Wood Pellet Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Forest Wastes, Agricultural Waste, and Others), By Application (Power Generation, and Combined Heat and Power [CHP]) And Regional
Growth Drivers
Rising Concerns Regarding Increasing Carbon Emissions to Drive Growth
Indoor Monitors to Stimulate Market Growth
Drivers & Restraints:
Rising Concerns Regarding Increasing Carbon Emissions to Drive Growth
As per a report published by Statista on the global climate change, in 2019, the earth’s surface temperature was nearly 0.95 °C warmer than the total average temperature of the 20th century. Rising concerns regarding the increasing carbon emission are estimated to drive the industrial wood pellet market growth. In addition, the increasing demand for these pellets from various end-user industries is projected to further enhance their growth. However, stringent sustainability certification criteria from governments may hinder the demand.
Covid-19 Impact:
Widespread Shutdowns to Adversely Affect the Energy Sector amid COVID-19
COVID-19 has been a leading disruptor of the global market for energy in 2020. Several businesses stumbled upon the outbreak due to widespread lockdowns and production shutdowns. In May 2020, the future value of crude oil reached the zero mark. Leading industry players are working closely with governments to strategize their way out of the crisis. At Fortune Business Insights, our team of experts is closely analyzing the current situation to help you resolve the latest issues.
The report comprises insights on the revenue generated by key market players, which we have availed through secondary sources such as company websites, corporate filings, annual reports, and investor presentations. Our next step included tracking and analyzing competitive developments of these players such as partnerships, mergers & acquisitions, new product launches, and research & development activities. We have also conducted extensive interviews with key industry experts, such as CEOs, VPs, directors, and executives. Top-down and bottom-up procedures were used to arrive at the overall size of the market.
Segmentation Analysis:
Forest Waste Segment to Dominate the Market
Based on the feedstock, the forest waste segment is estimated to dominate the market with a share of 92.1% in 2019 as by-products from actively managed forests are the primary source of producing industrial wood pellets. A large portion of these by-products comes from traditional forestry operations such as sawmills and finished wood products manufacturing.
Regional Insights:
High Consumption of Pellet-based Energy to Help Europe Dominate
Europe is projected to dominate the global industrial wood pellet market with a value of USD 2.76 billion in 2019. The highest consumption of pellet-based energy at nearly 8 million tonnes in the U.K. is a major factor driving the growth of wood pellets in the region. In addition, the high demand from large-scale power plants in countries including the U.K., Belgium, and the Netherlands is anticipated to strengthen the demand in the region.
The market in Asia Pacific is estimated to flourish in the forecast timeline. This region is expected to hold a considerable industrial wood pellet market share in the foreseeable years. The rapidly increasing demand for wood pellets from China, South Korea, and Japan is the major factor driving their growth in the region.
Introduction of New Products to Aid Key Players in Business Expansion
Key players operating in the global market are focused on expanding their production capacities. They are doing so by introducing new plants or expanding the existing ones. For instance, in July 2019, Pinnacle Renewable Energy entered into a limited partnership agreement with Tolko Industries Ltd. in order to build a new industrial wood pellet production facility in High Level, Alberta.
A List of Key Manufacturers Operating in the Global Market:
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