The global biomass pellet market was valued at $9.05 billion in 2021, and it is expected to reach $16.29 billion by 2030, witnessing a CAGR of 6.7% during 2021–2030. This can be ascribed to 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.
Renewable energy sources often have negligible environmental consequences when compared to other energy sources, thus these are considered as an eco-friendly solution. Moreover, the rising awareness about the negative environmental consequences of products based on fossil fuels along with the scarcity of available resources has increased the demand for biomass pellets. Since biomass pellets are made from wood, these are used as a renewable source of energy, and also, they are carbon-neutral substances, which leave zero-carbon emissions on burning.
The residential heating category, based on application, held the largest market share in 2021, owing to the favorable government regulations, which support the usage of renewable energy sources to reduce carbon emissions during the heating process. Since the cost of biomass pellets is lower as compared to other fuels, hence it has become a more cost-effective option, which also fulfills the major concern of pollution.
Nowadays, global warming becomes a major environmental concern all over the world. As a result, various international organizations are passing strict environmental regulations in an effort to reduce carbon emissions. The use of biomass pellets is cutting down the dependence on fossil fuels as well as reducing greenhouse gas emissions.
The European pellet market accounted for the highest revenue share in 2021, and it is predicted to grow at a significant CAGR over the forecast period. This growth can be ascribed to supportive government policies in favor of renewable sources of energy as well as technological developments in the sector. Moreover, the increased usage of renewable sources in power generation and the adoption of incentive and subsidy programs for consumers by European Union members are expected to promote the use of biomass pellets across the region.
On the other hand, the APAC market will grow at the highest rate during the forecast period. This can be ascribed to the strong expansion in the renewable energy industry in countries like China, Japan, and India. Furthermore, the expanding number of power plants in the region, combined with favorable government regulations surrounding power generation, and the increasing spending on green & bio-based solutions will drive the market regional growth in the coming years.
Key players operating in the biomass pellet market include Enviva Inc., AS Graanul Invest, Drax Group PLC, Buhler AG, German Pellets GmbH, Lignetics, International WoodFuels LLC, The Westervelt Company Inc., New England Wood Pellet, and Forest Energy Corporation.