South America Biomass Pellets Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, Segmentation by Source, End User, and Region

  • South America Biomass Pellets Market was valued at USD 2.17 billion in 2023. The South America Biomass Pellets Market size is estimated to grow at a CAGR of 2.9 % over the forecast period

  • Format : PDF | Report ID : SMR_869

South America Biomass Pellets Market Definition:

Biomass pellets are a type of biofuel generated from organic matter such as wood waste and sawdust. Biomass can simply be defined as organic matter that is used as a source of energy. Biomass pellets are a low-cost, clean-burning, and renewable fuel source. It reduces pollutant emissions while also increasing the thermal value of biomass waste during heating. Further, the South America Biomass Pellets market is segmented by Source, End-Use and geography. On the basis of Source, the South America Biomass Pellets market is segmented under Agriculture Residue, Wood Sawdust, and Other. Based on the End-Use, the market is segmented under the Power generation, Industrial heating, Commercial and domestic heating, and Other. By geography, the market covers the major countries in South America i.e., Brazil, Columbia, Venezuela, Chile, and Rest of South America For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

South America Biomass Pellets Market

 

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South America Biomass Pellets  COVID 19 Insights:

In 2021, the COVID-19 outbreak will have a significant impact on the biomass pellets market. As a result of the significant increase in Covid-19 cases in the south America region, as well as strict lockdowns and limitations, demand for biomass pellets has decreased in various end-use sectors. In early 2021, a series of government initiatives aimed at promoting economic development re-ignited demand. Once the crisis is resolved, industrial production and economic growth are expected to return to normal. In the future years, this will assist the biomass pellets market's huge growth.

 

South America Biomass Pellets  Market Dynamics:

Market Drive  

Considering the benefits of biomass, biomass pellets can become one of the most important sources of energy. Pellets made from biomass are sustainable, carbon-neutral, and, most significantly, abundantly available. As a result of these considerations, governments in most south America regions have implemented a variety of schemes and subsidies to encourage the use of biomass-derived energy, such as biomass pellets.

 

A growing public awareness of the importance of environmental conservation is a major driver of the trend. As a result of this shift, biofuels and other renewable energy sources such as wind and solar have seen a significant increase in demand.

 

Market Opportunity

The demand for biomass pellets is driven by an increase in demand for low-carbon fuels, government initiatives for renewable energy, easy availability of raw materials, and the rapid depletion of fossil fuels. 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 variables all contribute to the market's growth.

 

Treetops coconut shells, palm kernel shells, and fruit bunches are all used to produce 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 traction among end-users who want to reduce carbon emissions while also improving their financial situation.

 

Brazil is a major player in the wood pellet sector. Even though sugarcane bagasse provides the majority of its energy, the potential for producing wood pellets from manufacturing companies and forests has not been entirely out. As a result, the production of wood pellets is expected to increase in the future. There is also legislation requiring farmers to manage their waste, which is a huge boost to the country's future wood pellet production.

 

Chile’s Long-term wood pellet production has a big potential in this country. Chile's future potential for wood pellet production is highly promising, with over 40 million cubic meters of industrial wood annually. Because a lot of firewood is used for heating in the winter, wood pellet burners are needed to reduce the dependency on fuel. The country's major drawback is that its products have a small domestic market; as a result, the main motive for growing production levels is to export to Asian markets and beyond.

 

Market Restraints

Biomass pellets made from wood or sawdust are the most popular among industrialists in the region. Wood is in high demand, yet the availability of good quality wood is debatable. To meet their needs, several regions depend heavily on wood imports. This raises the cost of the wood and sawdust available to wood pellet makers. As a result, the cost of producing wood pellets is comparable. As a result, a shortage of wood acts as a significant restraint on the growth of the biomass pellets market, as it limits the volume of wood pellets produced and raises the end product's cost

 

South America Biomass Pellets Market Segment Analysis:

By Source,

Agriculture contributes significantly to GDP in the South American region, including Argentina, Brazil, and others. In these areas, the surplus availability of agricultural residue is extremely high, which is subsequently used to make biomass pellets

 

South America Biomass Pellets Market

 

By End Use,

 

One of the most common uses for biomass pellets is industrial heating. Biomass pellets can be used in a variety of industries, including pharma, leather, brick manufacture, thermal plants, and tire manufacturing because they can effectively replace coal in boilers. Governments are placing stricter laws and limitations on manufacturing and industrial units to control carbon emissions in order to satisfy the region's specific sustainable development goals. Manufacturers are using sustainable and environmentally friendly energy sources like biomass pellets to comply with these criteria. As a result, one of the primary drivers boosting biomass pellet demand is government pressure to reduce carbon emissions from sectors.

 

South America 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 South America market, key players in the market, particularly in this region, 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 South America Biomass Pellets market to the stakeholders in the industry. The report provides trends that are most dominant in the South America 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 South America 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 South America 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 South America 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 South America 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 South America Biomass Pellets market. The report also analyses if the South America 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 South America Biomass Pellets market. Economic variables aid in the analysis of economic performance drivers that have an impact on the South America Biomass Pellets market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the South America Biomass Pellets market is aided by legal factors.

 

South America Biomass Pellets Market Scope:

 

South America Biomass Pellets Market Scope

Market Size in 2023

USD 2.17 Bn.

Market Size in 2030

USD 2.65 Bn.

CAGR (2024-2030)

2.9%

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

Segment Scope

by Source

  • Agriculture Residue
  • Wood Sawdust
  • Other

by End-Use

  • Power generation
  • Industrial heating
  • Commercial and domestic heating
  • other

Country Scope

Brazil
 Argentina
 Rest of South America

 

South America Biomass Pellets Market Key Players:  

  • Linea Parana Madeiras LTDA (Brazil)
  • Sumitomo Corporation (Japan)
  • ANVIETPHAT (Vietnam)
  • Energex Corporation  (Canada)
  • Buhler AG (Switzerland)
  • Forest Energy Corporation
  • KAHL (Germany)


Frequently Asked Questions

The segments covered in the South America Biomass Pellets Market report are based on Source, and End User.

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • South America Biomass Pellets  Market: Target Audience
    • South America Biomass Pellets  Market: Primary Research (As per Client Requirement)
    • South America Biomass Pellets  Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Stellar Competition matrix
      • South America Stellar Competition Matrix
    • Key Players Benchmarking: - by Product, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
    • Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
    • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
    • Market Challenges
    • PESTLE Analysis
    • PORTERS Five Force Analysis
    • Value Chain Analysis
  5. South America Biomass Pellets  Market Segmentation
    • South America Biomass Pellets  Market, by Source (2023-2030)
      • Agriculture Residue
      • Wood Sawdust
      • Others
    • South America Biomass Pellets  Market, by End User (2023-2030)
      • Power generation
      • Industrial heating
      • Commercial and domestic heating
      • Others
    • South America Biomass Pellets  Market, by Country (2023-2030)
      • Brazil
      • Colombia
      • Venezuela
      • Chile
      • Rest of South America
  6. Company Profiles
    • Key Players
      • Sumitomo Corporation
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • Drax Group
      • Buhler AG
      • ANVIETPHAT
      • Enviva
      • Energex Corporation
      • Pinnacle Renewable Energy
  7. Key Findings
  8. Recommendations

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