Wood Pellets Market Size, Share, Trends, Industry Analysis Report: By Application (Heat, CHP, and Power), End User, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Description

List of Tables

The global wood pellets market size is expected to reach USD 16.85 billion by 2034, according to a new study by Polaris Market Research. The report "Global Wood Pellets Market Size, Share, Trends, Industry Analysis Report: By Application (Heat, CHP, and Power), End User, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025 - 2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.

Wood pellets are compacted biomass fuels made primarily from sawdust, wood shavings, and agricultural residues, offering a high-energy, low-emission alternative to fossil fuels. The wood pellets market growth is driven by increasing demand for renewable energy, stringent environmental regulations, and the shift toward carbon-neutral energy solutions. Industrial and residential sectors are accelerating market due to their efficiency in heating and power generation. This growth is further influenced by rising investments in biomass energy infrastructure, technological advancements in pellet production, and government policies promoting sustainable energy sources.

Wood pellets market demand is surging as industries seek cost-effective and eco-friendly alternatives to coal and natural gas. Power plants are increasingly co-firing wood pellets with coal to reduce carbon emissions, which is contributing to market that show a growing share of bioenergy in global energy consumption. Residential adoption is also rising, fueled by government incentives for biomass heating solutions and advancements in pellet stove technologies. The surge in research and development aimed at enhancing pellet combustion efficiency, storage stability, and moisture resistance, drives the market.

The wood pellets market opportunity is expanding with advancements in supply chain optimization, including improved pellet storage, transportation, and distribution networks. Increased production capacities and strategic investments by key industry players are ensuring stability while the international trade of wood pellets continues to rise. The integration of artificial intelligence in pellet quality assessment and automated manufacturing processes is optimizing production efficiency. Sustainability concerns are prompting companies to focus on certified sourcing and carbon offset programs, further aligning with regulatory frameworks. The market is poised for continued acceleration, driven by increasing global emphasis on decarbonization and energy diversification.

Wood Pellets Market Report Highlights

In terms of application, the heating segment accounted for the largest market share in 2024 due to the rising demand for biomass-based heating solutions in residential, commercial, and industrial applications.
Based on end user, the industrial segment dominated the market in 2024 due to the widespread utilization of wood pellets in manufacturing, food processing, and heavy industries for heat and power applications.
In 2024, Europe accounted for the largest wood pellets market share due to stringent carbon reduction policies, high adoption of biomass heating systems, and strong government incentives promoting renewable energy.
The wood pellets market in Asia Pacific is expected to witness the highest CAGR over the forecast period due to rising energy security concerns, increasing investments in renewable power generation, and supportive government policies.
Some of the global key market players are Drax Group Plc; Energex; Enviva LP; Galaxy wood pellet company; Georgia Biomass, LLC; Groupe Savoie Inc.; Hanwha Corporation; Pinnacle Renewable Energy Inc.; SINGPELLET Pte. Ltd.; The Westervelt Company, Inc.; United Company; and Wood Pellet Energy Ltd.

Polaris Market Research has segmented the wood pellets market report based on application, end user, and region:

By Application Outlook (Revenue USD Billion 2020 - 2034)

Heat
CHP
Power

By End User Outlook (Revenue USD Billion 2020 - 2034)

Residential
Commercial
Industrial

By Regional Outlook (Revenue USD Billion 2020 - 2034)

North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America

Product Code: PM3421

1. Introduction

1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
1.2. Stakeholders

2. Executive Summary

2.1. Market Highlights

3. Research Methodology

3.1. Overview
- 3.1.1. Data Mining
3.2. Data Sources
- 3.2.1. Primary Sources
- 3.2.2. Secondary Sources

4. Global Wood Pellets Market Insights

4.1. Wood Pellets Market - Market Snapshot
4.2. Wood Pellets Market Dynamics
- 4.2.1. Drivers and Opportunities
  - 4.2.1.1. Rising Demand for Renewable Energy
  - 4.2.1.2. Government Policies & Incentives
- 4.2.2. Restraints and Challenges
  - 4.2.2.1. High Cost
4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
4.4. PESTEL Analysis
4.5. Wood Pellets Market Application Trends
4.6. Value Chain Analysis

5. Global Wood Pellets Market, by Application

5.1. Key Findings
5.2. Introduction
- 5.2.1. Global Wood Pellets Market, by Application, 2020-2034 (USD Billion)
5.3. Heat
- 5.3.1. Global Wood Pellets Market, by Heat, by Region, 2020-2034 (USD Billion)
5.4. CHP
- 5.4.1. Global Wood Pellets Market, by CHP, by Region, 2020-2034 (USD Billion)
5.5. Power
- 5.5.1. Global Wood Pellets Market, by Power, by Region, 2020-2034 (USD Billion)

6. Global Wood Pellets Market, by End User

6.1. Key Findings
6.2. Introduction
- 6.2.1. Global Wood Pellets Market, by End User, 2020-2034 (USD Billion)
6.3. Residential
- 6.3.1. Global Wood Pellets Market, by Residential, by Region, 2020-2034 (USD Billion)
6.4. Commercial
- 6.4.1. Global Wood Pellets Market, by Commercial, by Region, 2020-2034 (USD Billion)
6.5. Industrial
- 6.5.1. Global Wood Pellets Market, by Industrial, by Region, 2020-2034 (USD Billion)

7. Global Wood Pellets Market, by Geography

7.1. Key Findings
7.2. Introduction
- 7.2.1. Wood Pellets Market Assessment, By Geography, 2020-2034 (USD Billion)
7.3. Wood Pellets Market - North America
- 7.3.1. North America: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
- 7.3.2. North America: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.3.3. Wood Pellets Market - U.S.
  - 7.3.3.1. U.S.: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.3.3.2. U.S.: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.3.4. Wood Pellets Market - Canada
  - 7.3.4.1. Canada: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.3.4.2. Canada: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
7.4. Wood Pellets Market - Europe
- 7.4.1. Europe: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
- 7.4.2. Europe: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.3. Wood Pellets Market - UK
  - 7.4.3.1. UK: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.3.2. UK: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.4. Wood Pellets Market - France
  - 7.4.4.1. France: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.4.2. France: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.5. Wood Pellets Market - Germany
  - 7.4.5.1. Germany: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.5.2. Germany: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.6. Wood Pellets Market - Italy
  - 7.4.6.1. Italy: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.6.2. Italy: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.7. Wood Pellets Market - Spain
  - 7.4.7.1. Spain: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.7.2. Spain: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.8. Wood Pellets Market - Netherlands
  - 7.4.8.1. Netherlands: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.8.2. Netherlands: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.9. Wood Pellets Market - Russia
  - 7.4.9.1. Russia: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.9.2. Russia: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.4.10. Wood Pellets Market - Rest of Europe
  - 7.4.10.1. Rest of Europe: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.4.10.2. Rest of Europe: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
7.5. Wood Pellets Market - Asia Pacific
- 7.5.1. Asia Pacific: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
- 7.5.2. Asia Pacific: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.3. Wood Pellets Market - China
  - 7.5.3.1. China: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.3.2. China: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.4. Wood Pellets Market - India
  - 7.5.4.1. India: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.4.2. India: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.5. Wood Pellets Market - Malaysia
  - 7.5.5.1. Malaysia: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.5.2. Malaysia: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.6. Wood Pellets Market - Japan
  - 7.5.6.1. Japan: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.6.2. Japan: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.7. Wood Pellets Market - Indonesia
  - 7.5.7.1. Indonesia: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.7.2. Indonesia: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.8. Wood Pellets Market - South Korea
  - 7.5.8.1. South Korea: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.8.2. South Korea: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.9. Wood Pellets Market - Australia
  - 7.5.9.1. Australia: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.9.2. Australia: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.5.10. Wood Pellets Market - Rest of Asia Pacific
  - 7.5.10.1. Rest of Asia Pacific: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.5.10.2. Rest of Asia Pacific: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
7.6. Wood Pellets Market - Middle East & Africa
- 7.6.1. Middle East & Africa: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
- 7.6.2. Middle East & Africa: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.6.3. Wood Pellets Market - Saudi Arabia
  - 7.6.3.1. Saudi Arabia: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.6.3.2. Saudi Arabia: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.6.4. Wood Pellets Market - UAE
  - 7.6.4.1. UAE: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.6.4.2. UAE: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.6.5. Wood Pellets Market - Israel
  - 7.6.5.1. Israel: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.6.5.2. Israel: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.6.6. Wood Pellets Market - South Africa
  - 7.6.6.1. South Africa: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.6.6.2. South Africa: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.6.7. Wood Pellets Market - Rest of Middle East & Africa
  - 7.6.7.1. Rest of Middle East & Africa: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.6.7.2. Rest of Middle East & Africa: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
7.7. Wood Pellets Market - Latin America
- 7.7.1. Latin America: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
- 7.7.2. Latin America: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.7.3. Wood Pellets Market - Mexico
  - 7.7.3.1. Mexico: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.7.3.2. Mexico: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.7.4. Wood Pellets Market - Brazil
  - 7.7.4.1. Brazil: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.7.4.2. Brazil: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.7.5. Wood Pellets Market - Argentina
  - 7.7.5.1. Argentina: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.7.5.2. Argentina: Wood Pellets Market, by End User, 2020-2034 (USD Billion)
- 7.7.6. Wood Pellets Market - Rest of Latin America
  - 7.7.6.1. Rest of Latin America: Wood Pellets Market, by Application, 2020-2034 (USD Billion)
  - 7.7.6.2. Rest of Latin America: Wood Pellets Market, by End User, 2020-2034 (USD Billion)

8. Competitive Landscape

8.1. Expansion and Acquisition Analysis
- 8.1.1. Expansion
- 8.1.2. Acquisitions
8.2. Partnerships/Collaborations/Agreements/Exhibitions

9. Company Profiles

9.1. Drax Group Plc
- 9.1.1. Company Overview
- 9.1.2. Financial Performance
- 9.1.3. Product Benchmarking
- 9.1.4. Recent Development
9.2. Energex
- 9.2.1. Company Overview
- 9.2.2. Financial Performance
- 9.2.3. Product Benchmarking
- 9.2.4. Recent Development
9.3. Enviva LP
- 9.3.1. Company Overview
- 9.3.2. Financial Performance
- 9.3.3. Product Benchmarking
- 9.3.4. Recent Development
9.4. Galaxy wood pellet company
- 9.4.1. Company Overview
- 9.4.2. Financial Performance
- 9.4.3. Product Benchmarking
- 9.4.4. Recent Development
9.5. Georgia Biomass, LLC
- 9.5.1. Company Overview
- 9.5.2. Financial Performance
- 9.5.3. Product Benchmarking
- 9.5.4. Recent Development
9.6. Groupe Savoie Inc.
- 9.6.1. Company Overview
- 9.6.2. Financial Performance
- 9.6.3. Product Benchmarking
- 9.6.4. Recent Development
9.7. Hanwha Corporation
- 9.7.1. Company Overview
- 9.7.2. Financial Performance
- 9.7.3. Product Benchmarking
- 9.7.4. Recent Development
9.8. Pinnacle Renewable Energy Inc.
- 9.8.1. Company Overview
- 9.8.2. Financial Performance
- 9.8.3. Product Benchmarking
- 9.8.4. Recent Development
9.9. SINGPELLET Pte. Ltd.
- 9.9.1. Company Overview
- 9.9.2. Financial Performance
- 9.9.3. Product Benchmarking
- 9.9.4. Recent Development
9.10. The Westervelt Company, Inc.
- 9.10.1. Company Overview
- 9.10.2. Financial Performance
- 9.10.3. Product Benchmarking
- 9.10.4. Recent Development
9.11. United Company
- 9.11.1. Company Overview
- 9.11.2. Financial Performance
- 9.11.3. Product Benchmarking
- 9.11.4. Recent Development
9.12. Wood Pellet Energy Ltd.
- 9.12.1. Company Overview
- 9.12.2. Financial Performance
- 9.12.3. Product Benchmarking
- 9.12.4. Recent Development