Global Industrial Wood Pellet Market Size, Share, Growth Analysis, By Feedstock, By Application(the industrial wood pellet market is segmented into power generation, and combined heat & power ) - Industry Forecast 2024-2031

Global Industrial Wood Pellet Market size was valued at USD 8.68 billion in 2022 and is poised to grow from USD 9.16 billion in 2023 to USD 14.05 billion by 2031, growing at a CAGR of 5.50% during the forecast period (2024-2031).

Wood pellets, primarily derived from compacted sawdust and related industrial byproducts such as those from wood product manufacturing, lumber milling, and furniture construction, represent the predominant form of pellet fuel. The World Bioenergy Association notes their potential to replace coal in power plants, given their energy density and low moisture content. Widely utilized in dedicated biomass energy plants, combined heat and power facilities, and other settings, industrial wood pellets offer efficient, portable, and dependable low-carbon combustion options. Furthermore, governmental efforts advocating for biofuel adoption alongside increasing environmental consciousness and the demand for clean energy are anticipated to propel the expansion of the industrial wood pellet market in the foreseeable future.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Industrial Wood Pellet Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Industrial Wood Pellet Market Segmental Analysis

Global industrial wood pellet market is segmented based on the feedstock, application, and region. Based on feedstock, the market is segmented into forest waste, and agricultural waste. Based on application, the industrial wood pellet market is segmented into power generation, and combined heat & power (CHP). Based on region, it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Drivers of the Global Industrial Wood Pellet Market

The rise in demand for wood pellets across various industries, driven by their increasing popularity as an alternative to primary fuels, serves as a key growth driver for the industrial wood pellet market. This surge in demand is fueled by the escalating prices of primary fuel sources. Additionally, the cost-effectiveness of pellet production and the ready availability of pellet fuel feedstock further contribute to heightened consumption of the product within the industrial sector.

Restraints in the Global Industrial Wood Pellet Market

The expansion of government certification criteria for exporting goods to diverse countries, particularly those in Europe where renewable energy production is mandatory under various policies, is impeding market growth. This increase in certification requirements poses challenges for businesses aiming to export their goods, as compliance with renewable energy standards becomes essential, adding complexity and potential costs to the exporting process.

Market Trends of the Global Industrial Wood Pellet Market

The escalating demand for electricity is driven by several key factors including population growth, rising living standards, a thriving industrial sector, and infrastructure expansion in developing countries. This surge in demand necessitates the augmentation of power generation capacity through the installation of new plants and the expansion of existing ones.