Global wood pellet fuel market stood at USD10,533.55 million in 2021 and is anticipated to project robust growth in the forecast period with a CAGR of 7.73%, owing to rising demand for eco-friendly alternatives to non-renewable fuels, etc.

The term "wood pellet fuel" refers to biofuels made from compressed wood fibers. Pellets can be made from a variety of biomass sources, including industrial waste and byproducts, food waste, agricultural waste, energy crops, and untreated lumber. For uses such as heating, cooking, boilers, and power plants, wood pellets can be used in place of charcoal, firewood, oil, and gas.

European Green Deal

The European Green Deal, approved by the European Commission in 2020, is a set of policy initiatives aimed at achieving carbon neutrality for the European Union (EU) by 2050. Furthermore, an impact-evaluation proposal has been made to increase the EU's greenhouse gas emission reduction target for 2030 to at least 50% and up to 55% compared to 1990. The plan is to assess each existing law for climate implications and to enact new legislation on the circular economy, building renovation, biodiversity, farming, innovation, and carbon footprint reduction. The European Commission's climate change program, which was released in 2020, aims to make Europe a net-zero emitter of greenhouse gases by 2050, demonstrating that economies can thrive without utilizing additional resources. As a result, long-term use of wood pellets can help to reduce greenhouse gas emissions.

Research and Development

Environmental Product Declaration for Wooden Pellets is a project aimed at assisting the supply chain in making informed decisions about the impact of acquiring and specifying wood pellets. It also emphasizes the wood pellet fuel's renewable, biodegradable, reused, and recyclable qualities. Pellet Design System is another project looking at wood pellet fuel. This study aims to improve understanding of the links between wood pellet design and performance and the total unit load in order to achieve even greater resource efficiency in the future. Such studies and advances are aimed at improving the design and application of wood pellets. Ongoing optimizations are expected to boost wood pellet fuel sales and consumption, favorably impacting the global wood pellet fuel market in the coming years.

Pellet Stoves

In many ways, the pellet stove is the apex of household wood combustion innovation, combining traditional wood heat with automation and convenience. In the early 1980s, this appliance and its one-of-a-kind fuel were developed in the United States. Pellet stoves are more efficient than cordwood stoves because they use a low-moisture fuel and have automatic controls that keep the combustion atmosphere optimal, resulting in fewer emissions per unit of heat output. The introduction of pellet stoves has aided the expansion of the global wood pellet fuel market.

Bioenergy Innovations

In the context of global warming and contributing to the reduction of dependency on fossil fuels, modern wood pellet heating systems for space heating of detached houses have become a new technological alternative in many countries of the world. In recent years, such systems have shown to be more cost-effective in terms of total lifecycle heating expenses for consumers than oil-fired and electric boiler systems. However, market acceptance of this technology has been slow to date. Furthermore, due to global environmental concerns, the spread of hardwood pellet fuel is projected to continue. As a result, the adoption of wood pellet fuel in the coming years is expected to be positively influenced.


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Market Segmentation

The global wood pellet fuel market is segmented based on feedstock, heating application, application, region and company. Based on feedstock, the market is further fragmented into Forest Wood & Waste, Agriculture Residue, and Others {Bark, Twigs, Gardening Waste, etc.}. Based on the Method of Heating Application, the market is segmented into (Free Standing Pellet Stove, Pellet Stove Inserts, and Pellet Boilers). Based on application, the market is further fragmented into (CHP/District Heating, Power Plants, Residential Heating, and Commercial Heating). On the basis of regional distribution, the market is divided into Europe, Asia-Pacific, North America, and the Rest of the World. The market size of the United States was USD711.25 million in 2021.

Company Profiles

Wood Pellet Energy UK (LTD), Drax Group Plc, Enviva, German Pellets GmbH, Stora Enso Oyj, Pacific BioEnergy, Wood & Sons, Land Energy Girvan Limited, AS Graanul Invest are among the major market players in the global platform that lead the market growth of the global wood pellet fuel.

Attribute

Details

Market Size Value in 2021

USD10,533.55 million 

Revenue Forecast in 2027

USD16,789.59 million

United States Market Size Value in 2021

USD711.25 million

Growth Rate

7.73%

Base Year

2021

Historical Years

2017 – 2020

Estimated Year

2022

Forecast Period

2023 – 2027

Quantitative Units

Revenue in (USD million), and CAGR for 2017-2021 and 2022-2027

Report Coverage

·         Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

·         Feedstock

·         Heating Application

·         Application

·         Region

Feedstock Scope

Forest Wood & Waste, Agriculture Residue, and Others {Bark, Twigs, Gardening Waste, etc.}

Key Companies Profiled

Wood Pellet Energy UK (LTD), Drax Group Plc, Enviva, German Pellets GmbH, Stora Enso Oyj, Pacific BioEnergy, Wood & Sons, Land Energy Girvan Limited, AS Graanul Invest, Energex American Inc, An Viet Phat Group (AVP Group)

Customization Scope

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Delivery Format

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Report Scope:

In this report, Global Wood Pellet Fuel has been segmented into following categories, in addition to the industry trends which have also been detailed below:

·         Wood Pellet Fuel Market, By Feedstock:

o    Forest Wood & Waste  

o