Wood Pellets Market size worth over $19 billion by 2025
Published Date: October 10, 2019 Authors: Kiran Pulidindi, Soumalya Chakraborty
According to a new research report by Global Market Insights, Inc., the Wood Pellets Market size is estimated to surpass USD 19 billion by 2025. Increasing energy consumption in South Korea will be the key reason behind the product development throughout study period.
The country majorly imports coal and petroleum based fuel due to inefficient domestic sources. In 2017, South Korea has been eighth largest consumer of energy sources across the world. Further, the country is also advancing its manufacturing of semiconductor, electronics, petrochemical, shipbuilding, etc. due to rising demand from the export markets. Government efforts to increase dependency on renewable energy sources will create industry growth in coming years. For instance, Korean government has announced to expand the share of renewable energy generation from 7% in 2018 to 20% by the end of 2030.
Unfavorable policies related to coal-fired plants in Canada will have positive impact on industry
Government of Canada has amended new regulations related to greenhouse gases in order to replace coal fired plants. Currently, coal-fired electricity accounts for more than 70% of the GHG emission from electricity sector in Canada. This initiative will cut down the carbon emission by approximately 12 million tons and will increase the consumption from non-emitting sources by 2030. Thus, rising government efforts to reduce low carbon emission will create demand for the renewable energy sources in Canada, which will propel the wood pellets market demand in the coming years.
Challenges in implementing standards for wood pellets will hamper industry growth
The key restraint for the wood pellets market is integrating sustainability standards present across different countries. Many countries like UK, the Netherlands, Belgium, Denmark, South Korea, etc. have implemented sustainability criteria for using biomass for electricity generation or heating purpose. However, key initiatives such as Sustainable Biomass Program (SBP) certification schemes will have positive impact on the industry. Such programs will establish a harmonized system, which will be used to meet sustainability criteria among all the countries in future.
Browse key industry insights spread across 200 pages with 295 market data tables & 25 figures & charts from the report, “Wood Pellets Market By Grade (Premium, Standard, Utility), By Application (Residential, Commercial, Industrial, Animal Bedding), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 - 2025” in detail along with the table of contents:
Standard grade will have considerable growth throughout study period. This product can be used for the heating applications of residential building, public buildings, small & large-scale electrical utility plants, etc. The product possess ash content (<2%) and moisture content (<10%) and also generates very fine particles similar to utility grade. This product will have significant share in the residential application owing to its key property of low ash content.
Industrial heating segment will hold more than 30% of the overall wood pellets market share throughout study period. Rising consumption for the energy in emerging economies along with growing focus on bio based products for electricity generation will be key reasons behind the segment’s growth.
North America will lead wood pellet consumption
North America will showcase significant growth in the market owing to growing consumption of the product for residential heating applications. In U.S., the key reasons behind the usage of the product is its price competitiveness compared to propane and heating oil used in residential sector. Further, incentives related to usage of biomass products in commercial and residential sector will also boost the wood pallet market in the country.
Long term agreements with end-users are defining market competition
The key players involved in wood pellets industry Drax Group, AS Graanul Invest, AMP Clean Energy, The Westervelt Company, German Pellets GmbH, etc. Long term supply agreements with end-users will enhance the competitiveness of these industry players. For instance, in January 2019, Pacific BioEnergy entered into strategic agreement with two Japanese power producers for supplying wood pellets by 2022.