Biomass Pellets Market: Global Industry Analysis and Forecast (2024-2030)

Biomass Pellets Market Definition:

Biomass pellets are a type of biofuel made from organic materials like sawdust and wood waste. Biomass is defined as organic materials that can be used as a source of energy. Biomass pellets are a clean-burning, renewable, and cost-effective fuel that minimizes pollutant emissions while increasing the thermal value of biomass waste.

 

Further, the Biomass Pellets market is segmented by Source, Application, and geography. On the basis of Source, the Biomass Pellets market is segmented under Wood Sawdust, Industrial Waste(Crop stalk, Straw Material, Rice Husk, Cotton stalk, Coffee Husk, Alfalfa straw, others)  Energy crops, Agriculture residues (Sawmill residue, branches, bark, leaves, other), and Others. Based on the Application, the Biomass Pellets market is segmented under Building heating (Industrial heating, commercial heating, residential heating), Power generation (power plant, wind& turbine, other), Animal bedding, and others.  By geography, the market covers the following Regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

To get more Insights: Request Free Sample Report

 

Biomass Pellets Market Dynamics:

Market challenges: Biomass has a low energy density, therefore acquiring land for harvesting and storage is difficult. As a result, Biomass pre-treatment technologies have additional expenses that small-scale fuel companies and scattered farmers may not be able to afford. Wood pellets, on the other hand, are a renewable energy carrier made from wood sawdust or other ground woody materials. To reduce greenhouse gas emissions from electricity generation, they are founded on coal-based power plants and mono-fired in converted coal power plants. However, the high cost of biomass pellets' raw materials, such as wood pallets, may hinder the market's growth.

 

Covid-19 impact: Because of the decline in overall product demand, the sudden beginning of the COVID-19 pandemic has had a negative impact on the biomass pellets market. Government regulations and the temporary shutdown of manufacturing bases have had a major effect on the biomass pellets market. End-user sectors such as power generation, industrial heating, commercial and domestic heating, and others were forced to close. As a result, it had an impact on the biomass pellet market.

 

Market Restraints: The Biomass Pellets market is constrained by costly extraction processes, high raw material costs, and poor product quality. During the forecast period, however, players will be offered lucrative business prospects as favorable government policies and regulations shift their focus to the adoption of non-conventional and renewable energy sources to develop.

 

Market Drivers:

 

Treetops, coconut shells, palm kernel shells, and fruit bunches are all used to manufacture biomass pellets. They are the most essential long-term source of energy as fossil fuel sources decrease and carbon emission regulations increase. To reduce carbon emissions from factories, biomass pellets are utilized in coal-fired boilers. Biomass pellets have several advantages, including ease of storage and transportation, low carbon emissions, and efficient, reliable, and scalable combustion. These pellets are getting a lot of popularity among end-users who want to reduce carbon emissions while also increasing their financial status.

 

Biomass pellets, such as those produced from agricultural residues, are renewable energy sources that generate both heat and electrical energy. As a result, new companies centered on energy production from renewable sources. Biomass pellets are the most important source of power and the primary source of thermal energy generation.

 

Increased crop productivity and associated wood residue availability are helped by the surplus availability of biomass feedstock from agriculture residues. In 2030-31, biomass availability is expected to increase to 283 million tonnes. In 2030-31, the associated CO2 mitigation potential from coal replacement is expected to be 209 million tonnes, which is diverted for power generation. As a result, biomass pellets are forecast to rise in the near future due to the surplus supply of biomass from agricultural residue.

 

Biomass Pellets Market Segment Analysis:

By Source, in 2023, the biomass pellets market was dominated by wood sawdust. For companies to build low–cost methods of recycling their waste materials, wood sawdust has become increasingly significant. It's a raw material made from wood chips or wood trash that's used to make solid fuel with low moisture. Biomass wood sawdust seems to be the most cost-effective and inexpensive renewable energy source. Biomass pellets are a potential future energy source and a solution to the country's growing pollution problem. As a result, wood sawdust can be burned to generate steam, which can be used to generate power and supply heat to businesses and homes, boosting the market for biomass pellets.

 

Biomass pellets are made from agricultural waste such as straws, husks, and other materials. The significant amount of lignin and cellulose in these agricultural residues helps in the binding of the pellets together. Agricultural residues are a sustainable and renewable resource that can be used to generate energy without environmental pollution.

 

 

By Application, Due to increased awareness for renewable energy sources for residential, commercial, and industrial heating, the building heating segment dominated the biomass pellets market in 2023 and is expected to rise at a CAGR of 9.2 % from 2024 to 2030. Bio-pellets can be used to replace coal or fossil fuels in co-firing industrial heating systems, lowering energy costs. Cordwood, agriculture residues, corn kernels, cherry pits, wood chips, and wood pellets manufactured from compressed sawdust are all examples of biomass heating fuels. total all country pellet use increased to 15.9 million in 2021 from 14.3 million in 202in 0 for residential heating and 6.1 million in 2021 from 5.5 million in 2020 for commercial heating. As a result, the market for biomass pellets used in building heating is expected to grow.

 

Biomass Pellets Market Regional Insights:

In 2023, Europe dominated the biomass pellets market with 30% share. Wood pellets are used in combined heat and power (CHP) and dedicated power plants to generate electricity, hence biomass pallet is widely used in Europe. In the region, wood pellets are used for residential heating (65%), commercial heating (23%), and CHP heat generation (12%). Also, due to the increased usage of biomass pellets in various industrial heating sectors, the Asia-Pacific growth over the forecast period at the highest rate in the market.

 

The biomass pellets market in the United States is expected to grow by 5.1 %  in volume year over year in 2022, reaching a total market valuation of US$ 1.527.8 million by the end of the year. The United States is a major buyer of biomass pellets. In terms of energy usage, it was among the top three developed economies. As a result, individuals in the United States are fully aware of growing environmental concerns and their negative effects. As a result, the country's demand for renewable energy sources is likely to rise. The US government is also introducing numerous programs to encourage the adoption of environmentally friendly solutions in the country, which is expected to boost biomass pellet demand throughout the forecast period.

 

Biomass Pellets Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Global Biomass Pellets market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Biomass Pellets market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Biomass Pellets Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Biomass Pellets market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Biomass Pellets market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Biomass Pellets market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Global Biomass Pellets market. The report also analyses if the Global Biomass Pellets market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Biomass Pellets market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Biomass Pellets market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Biomass Pellets market is aided by legal factors.

 

Biomass Pellets Market Scope:

Biomass Pellets Market
Market Size in 2023	USD 22.51 Bn.
Market Size in 2030	USD 46.73 Bn.
CAGR (2024-2030)	11%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Source Wood Sawdust Industrial Waste Energy Crops Agriculture Residue Others
	by Application Building Heating Power Generation Animal Bedding Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Biomass Pellets Market Key Players: 

• Drax Group (UK)
• Enviva Partners (US)
• German Pellets GmbH (Germany)
• Pinnacle Renewable Energy (Canada)
• Abellon CleanEnergy Limited (India)
• Fram Fuels (US)
• Ecostan (India)
• AS Granul Invest (Estonia)
• Magnetics (USA)
• Jaypee Green Fuels (India)
• Westervelt Company (US)
• New England Wood Pellet( US)