Published: October 2022 | Report Code: 10537 | Available Format: PDF
The global biomass pellet market size stood at $9.05 billion in 2021, and it is projected to grow at a CAGR of 6.75% during 2021–2030, to reach $16.29 billion by 2030. The growing awareness about the benefits of using biofuels and other renewable energy sources for residential, commercial, and industrial heating and power generation applications among consumers is a major factor driving the growth of the market. Moreover, the rising government initiatives to promote renewable energy sources, increasing demand for low-carbon fuel, and easy availability of raw materials are some other factors that bolster the demand for biomass pellets.
Global warming is a major environmental concern all over the world. Several national and international organizations are enacting tough environmental rules in an attempt to reduce carbon emissions. The use of biomass pellets provides an efficient alternative for reducing global dependence on fossil fuels and lowering greenhouse gas emissions in the environment.
The wood sawdust category, based on source, is dominating the market, with the market share of more than 50% in 2021, and it is expected to grow at a substantial CAGR during the forecast period. For companies looking for inexpensive solutions to recycle their waste materials, wood sawdust has become more important. This is used as a raw material to produce solid fuel with low moisture content.
Sawdust for biomass appears to be the cheapest and most profitable source of renewable energy. Pellets made from biomass offer a solution to the increasing pollution issue and have the potential to be an important source of energy in the upcoming years. As a result, wood sawdust can be burned to produce steam that can be used in power generation and supplying heat to commercial and residential spaces. Thus, this factor is expected to increase the market for wood sawdust-based pellets over the forecast period.
The residential heating application category accounted for the largest revenue, in 2021, and it is projected to grow at a CAGR of more than 7%, during the forecast period. Favorable government regulations encouraging the adoption of efficient technologies such as pellet stoves instead of coal to reduce emissions from domestic coals are boosting their demand in residential heating applications, which, in turn, fuels the growth of the biomass pellet market.
Whereas, the commercial heating category is projected to grow at the highest rate over the forecast period, owing to the growing usage of biomass pellets for heating applications in office buildings, government authority buildings, educational institutions, and other commercial buildings. The biomass pellets are convenient & easy to use and they require very less space for bulk storage. Thus, these benefits of biomass pellets are expected to boost the growth of the market in this category during the forecast period.
The demand for renewable energy sources like biomass pellets has increased, due to the depleting fossil fuel resources and growing awareness of the harmful environmental effects of products and processes based on fossil fuels. Also, the rising need for sustainable energy development is expected to drive the demand for biomass pellets.
In comparison to other energy sources, renewable energy sources and technologies typically have little to no environmental effects. For this reason, they are regarded as environmentally friendly options. Biomass pellets are classified as renewable energy sources, as they are produced from wood. These pellets are made of entire logs, sawmill residues, and heaps of forest waste, along with dried and compressed wood fibers. Also, biomass is an organic resource that may be efficiently used as a source of energy, and it is carbon neutral, which leaves net-zero-carbon emissions on burning.
Report Attribute | Details |
Historical Years |
2017-2021 |
Forecast Years |
2022-2030 |
Market Size in 2021 |
$9.05 Billion |
Revenue Forecast in 2030 |
$16.29 Billion |
Growth Rate |
6.75% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Segmentation Analysis of Countries; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Source; By Application; By Region |
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Europe dominates the biomass pellet market, with a market share of around 30% in 2021, and the regional market is expected to grow at a significant CAGR over the forecast period. This growth can be attributed to the surging demand for biomass pellets in power generation along with favorable government policies in support of renewable sources of energy across the region. Moreover, the rising technological advancements in the sector are expected to increase the demand for biomass pellets in the coming years.
Wood pellets are used to generate electricity in combined heat and power (CHP) and specialized power plants; hence, biomass pallets are widely employed in Europe. These pellets are used for home heating (65%), commercial heating (23%), and CHP heating (12%). According to the Europe Pellet Council, the overall production of biomass pellets increased to 26.1 million tons in 2018 from 24 million tons in 2017. So the market for biomass pellets is projected to expand, as a result of the rising wood pellet consumption across the region.
The North American market accounts for the second-largest revenue share. This is attributed to the strict environmental restrictions, increasing demand for biomass pellets in the industrial sector, and escalating concerns about global warming in the region. Furthermore, the rapid depletion of fossil fuels and the rising need for greenhouse gas reductions are providing potential opportunities to market players in North America.
The other hand, the APAC market is expected to grow at the highest CAGR during the forecast period, owing to the rapid growth in the renewable energy sector in countries such as Japan, China, and India. Moreover, the rising number of power plants along with favorable government policies regarding power generation is projected to fuel demand for biomass pellets in the coming years. Furthermore, the increasing spending on green and bio-based solutions in emerging countries such as China and India is expected to create ample opportunities for industry players.
The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.
Based on Source
Based on Application
Geographical Analysis
The biomass pellet market size stood at $9.05 Billion in 2021.
During 2021–2030, the growth rate of the biomass pellet market will be around 6.75%.
Residential Heating is the largest application area in the biomass pellet market.
The major drivers of the biomass pellet market include the rising public awareness about the benefits of using renewable sources of energy like biomass pellets in commercial, residential, and industrial heating and power generation applications.
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