Wood Pellets Market Size

Wood Pellets Market Size

Wood Pellets Market size was valued at USD 12 billion in 2023 and is projected to exhibit over 17.5% CAGR from 2024 to 2032, due to the growing consumer inclination towards renewable energy sources.

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The ongoing climate change, policy transition, and market liberalization have accelerated consumer inclination toward clean energy sources with sustainable benefits. In addition, governments across developed economies, such as Europe, have been undertaking several R&D initiatives focused on reducing local air pollution and its impact on people's health, driving the expansion of RES (Renewable Energy Sources).

For instance, RES account for approximately 17% of the total energy consumption in Europe, while over 75% of clean energy research and innovation in the region is conducted by the private sector, which has increased its operating budget. The flourishing public-private partnerships and the growing emphasis on boosting the deployment of renewable energy sources globally will stimulate the demand for wood pellets over the forecast period.
 

Several governments have estimated that it may take more than a decade to totally restore the carbon emissions caused by the consumption of biofuels. Technological improvements aimed at increasing the energy density and quality of wood pellets to reduce greenhouse gas emissions during transportation and upgrading conversation technology may dramatically reduce GHG emissions. Torrefaction is another significant technical innovation that may shape the wood pellets market in the coming years.