Home > Pressrelease > Wood Pellets Market size to surpass USD 52 billion by 2032
Wood Pellets Market size to surpass USD 52 billion by 2032
- Published Date: December 6, 2022
Wood Pellets Market size is anticipated to be valued at over USD 52 billion by 2032, as per a recent research report announced by Global Market Insights Inc.
Rising energy consumption in the Asia Pacific is expected to drive product demand throughout the forecast timeframe. The main reason for this is the region's expanding population and increasing urbanization rate. Additionally, growing industrial and transportation sectors across the region has necessitated energy use in recent years which is positively contributing to the revenue expansion. Furthermore, recent trends for outdoor cooking and outdoor kitchens in developed North American and European countries are projected to proliferate the adoption of wood pellets, functioning as a significant driving force for revenue growth.
Lack of product awareness in undeveloped countries may hinder industry expansion
Although the wood pellets market is gaining traction among end-user industries for heating applications, a lack of product knowledge in emerging economies may impede the business. However, with the growing shift towards clean energy, there is a significant potential in emerging countries of Asia, Africa, and Latin America to produce biomass pellets from accessible agro and forest leftovers for use in heating, power, and cooking, which will promote product demand in the coming years.
Lower ash level to bolster the adoption of standard-grade wood pellets
Based on grade, wood pellets market from the standard-grade segment is expected to expand at over 15.5% CAGR through 2032, suggests the report. Standard-grade wood pellets typically have an ash level of less than 3%, making them ideal for heating purposes. However, the standard grade's bulk density is relatively lower than that of the premium grade, which lowers its substantial utilization in end-user industries. The product's widespread use in heating applications for residential and commercial sectors will promote segment growth during the forecast period.
Escalating environmental concerns to drive product demand in residential applications
Speaking of the application spectrum, wood pellets market value from residential application is anticipated to surpass USD 25 billion by 2032. The primary factor driving the segment's growth is the expanding use of wood pellets for heating applications such as pellet stoves, kitchen appliances, small boilers, etc. in several developed nations. Moreover, the product is gaining traction owing to its lower ash content. The demand for products in this segment will be further fueled by the increasing use of high-quality heating fuel and rising concerns about carbon impact.
Browse key industry insights spread across 220 pages with 285 market data tables and 32 figures & charts from the report “Wood Pellets Market Size By Grade (Premium, Standard, Utility), By Application (Residential, Commercial, Industrial, Animal Bedding) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Landscape & Forecast, 2023 – 2032”, in detail along with the table of contents:
Rising focus on renewable energy sources across Europe to propel regional revenue share
Europe wood pellets market is estimated to grow at more than 18% growth rate and be worth over USD 43 billion by the end of 2032. The increasing product demand in the utilities and energy sectors has contributed to the regional growth in recent years. Furthermore, the growing emphasis on renewable energy source installations across the region is likely to offer significant growth potential for industry participants operating in the wood pellets business during the projected timeline.
Strategic partnerships to define the competitive landscape of the industry
Stora Enso Oyj, LP, Pacific BioEnergy, Drax Group plc, Ecowood Pellets, AS Graanul Invest, Svenska Cellulosa Aktiebolaget (SCA), Enviva Partners, InstantHeat Wood Pellets Inc., German Pellets GmbH are the leading companies engaged in the global wood pellets market. These firms typically engage in strategic activities such as partnerships and service portfolio expansions to consolidate their business dominance.