Wood Pellet Fuel Market: Current Analysis and Forecast (2021-2027)

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Emphasis on Feedstock (Forest Wood & Waste, Agriculture Residue, Others); Heating Application (Free Standing Pellet Stove, Pellet Stove Inserts, Pellet Boilers); Application (CHP/District Heating, Power Plants, Residential Heating, Commercial Heating); Region/Country

Published:

Nov-2021

Pages:

282

Table:

57

Figure:

146

Report ID:

UMEP21511

Geography:

Clear
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Report Description
Table of content
Research Methodology

Report Description

Wood Pellet Fuel Market 2
Wood Pellet Fuel Market 2

Wood Pellet Fuel Market is expected to exceed the market valuation of more than US$ ~18 billion in 2027 and is expected to grow at a significant CAGR of ~9.5% during the forecast period (2021-2027). Wood pellets are small 10-20 mm long small cylindrical pieces with diameters that vary from 5 to 10 mm which are produced from fine-ground wood bark. They are usually used a fuels and can be automatically fed into the burner thanks to their small and fixed form. On the other hand, energy is consumed in the drying process and in grinding wood barks used for making wood pellets. Overall the ratio of output energy to input energy is relatively high in wood pellets than wood chips, but wood pellets can be efficiently used in residential houses and be burnt efficiently in relatively small stoves. The energy efficiency of wood pellet production system must be improved to reduce their greenhouse gas (GHG) emission for expanding the use of wood pellets as a major source of energy.

The pandemic had severe effects on the wood pellet market and the general economy as it disrupted employment, shipping, financial markets and other industries. When comparing trends and operations from before and after covid-19 of the wood pellet market, all economic, environmental and social conditions were considered. Covid-19 effected the number of skilled employees available, transportation of products and industries along the supply chain. However, the overall employment fell drastically, the employment in the pellet industry continued to grow. This is because for the rising popularity of wood based bioenergy and also proves that the supply chain can be maintained despite a major global economic disruption. Analysts are also expecting a growth in the post pandemic recovery of biomass energy. Building trust through effective participation represents a challenge for enhancing resilience of this and other wood-based supply chains.

Percentage Use of Wood Pellets in Different Regions, 2018

Wood Pellet Fuel Market 3
Wood Pellet Fuel Market 3

Andritz AG, Energex, Rentech, Inc., The Westervelt Company, Enito Singpellet Pte Ltd., F.E. Wood & Sons, Enviva LP, Pinnacle Renewable Energy Group, Wood Pellet Energy (UK) LTD, and German Pellets GmbH are some of the prominent players operating in the Wood Pellet Fuel Market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Feedstock, Forest Wood & Waste segment holds the major share”

Based on feedstock, the Wood Pellet Fuel market is segmented into Forest Wood & Waste, Agriculture Residue and Others. Amongst Feedstock, the Forest Wood & Waste segment of the market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 growing at a CAGR of XX% from 2021-2027. Premium grade pellet fuel contains less than 1% ash content and is usually produced from hardwood or softwood sawdust containing no tree bark. Ash content varies in premium fuels from about 0.3% in some western softwoods to about 0.7% in eastern hardwoods. Premium pellets, which make up over 95% of current pellet production, and can generally be burned in stoves.

“Amongst Heating Application, Free Standing Pellet Stove Segment holds the major share”

Based on Heating Application, the Wood Pellet Fuel Market is segmented into Free Standing Pellet Stove, Pellet Stove Inserts and Pellet Boilers. Amongst Heating Application, Free Standing Pellet Stove segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analyzed period. Free standing heating stoves need to be filled with pellets and set the thermostat. A mechanical auger deposits the pellets into a burn pot in which they are incinerated at a high temperature which creates no vent clogging creosote and very little ash or emissions which keeps both indoor and outdoor air cleaner. Free standing pellet stoves are twice as efficient as the old wood stoves in warming the space and are vastly more efficient than fireplaces.

“Amongst Application, Residential Heating segment holds the major share”

Based on Application, the Wood Pellet Fuel market is segmented into CHP/District Heating, Power Plants, Residential Heating and Commercial Heating. Amongst application, the Residential Heating segment of the market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 growing at a CAGR of XX% from 2021-2027. A good rule of thumb is that a stove rated 60,000 British Thermal Units (Btu) can heat a 2,000 square foot home, while the stove rates at 42,000 Btu can heat a 1,300 square foot space. When one is choosing a wood or pellet burning appliance, it’s important to select the one that is properly sized for the space to be heated.

“Europe represents one of the largest markets of Wood Pellet Fuel market”

For a better understanding of the market dynamics of the Wood Pellet Fuel market, a detailed analysis was conducted for different regions across India including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), Rest of World. Europe dominated the market and grabbed around XX% market share owing to increasing urbanization and use of renewable energy in the region.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
  • The study comprehensively covers the market across different segments
  • Deep dive regional level analysis of the industry

Customization Options:

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1.1.Market Definitions
1.2.Limitation
1.3.Stake Holders
1.4.Currency used in Report

 

2.1.Research Process of the Wood Pellet Fuel Market
2.2.Research Methodology of the Wood Pellet Fuel Market
2.3.Forecasting Method
2.4.Respondent Profile
2.5.Main Objective of the Wood Pellet Fuel Market Study

 

3MARKET SYNOPSIS
4EXECUTIVE SUMMARY

 

5WOOD PELLET FUEL MARKET COVID-19 IMPACT

 

6WOOD PELLET FUEL MARKET REVENUE (USD BN), 2019-2027F

 

7.1.Forest Wood & Waste
7.2.Agriculture Residue
7.3.Others

 

8.1.Free Standing Pellet Stove
8.2.Pellet Stove Inserts
8.3.Pellet Boilers
9.1.CHP/District Heating
9.2.Power Plants
9.3.Residential Heating
9.4.Commercial Heating

 

10.1.NORTH AMERICA WOOD PELLET FUEL MARKET
 10.1.1.United States of America
 10.1.2.Canada
 10.1.3.Rest of North America
10.2.EUROPE WOOD PELLET FUEL MARKET
 10.2.1.United Kingdom
 10.2.2.Germany
 10.2.3.France
 10.2.4.Spain 
 10.2.5.Italy
 10.2.6.Rest of Europe
10.3.ASIA-PACIFIC WOOD PELLET FUEL MARKET
 10.3.1.China
 10.3.2.Japan
 10.3.3.India
 10.3.4.Australia
 10.3.5.Rest of Asia-Pacific
10.4.REST OF THE WORLD WOOD PELLET FUEL MARKET

 

11.1.Drivers
11.2.Challenges
11.3.Impact Analysis
12WOOD PELLET FUEL MARKET OPPORTUNITIES

 

13WOOD PELLET FUEL MARKET TRENDS
14LEGAL AND REGULATORY FRAMEWORK
15.1.Demand Side Analysis
15.2.Supply Side Analysis
 15.2.1.Top Product Launches
 15.2.2.Top Business Partnerships
 15.2.3.Top Business Expansions, Investments and Divestitures
 15.2.4. Top Merger and Acquisitions

 

16VALUE CHAIN ANALYSIS

 

17.1.Competitive Landscape
 17.1.1.Company Shares, By Revenue

 

18.1.Andritz AG
18.2.Energex
18.3.Rentech, Inc.
18.4.The Westervelt Company
18.5.Enito Singpellet Pte Ltd.
18.6.F.E. Wood & Sons
18.7.Enviva LP
18.8.Pinnacle Renewable Energy Group
18.9.Wood Pellet Energy (UK) LTD
18.10.German Pellets GmbH
19DISCLAIMER

 

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Wood Pellet Fuel market were the three major steps undertaken to create and analyze the adoption of Wood Pellet Fuel in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Wood Pellet Fuel market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Wood Pellet Fuel through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Wood Pellet Fuel Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as Feedstock, Heating Application, Application. Further country-level analyses were conducted to evaluate the overall adoption of Wood Pellet Fuel in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Wood Pellet Fuel. Further, we conducted factor analysis using dependent and independent variables such as increasing awareness about renewable energy and increasing energy demand. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Wood Pellet Fuel sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Wood Pellet Fuel market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (US$) and the adoption rate of Wood Pellet Fuel across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Wood Pellet Fuel market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Wood Pellet Fuel Market 1
Wood Pellet Fuel Market 1

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Wood Pellet Fuel market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and their type of the Wood Pellet Fuel market.

The main objective of the Wood Pellet Fuel Market Study

The current & future market trends of Wood Pellet Fuel were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Wood Pellet Fuel in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of type and their subtypes
  • Define and analysis of the regulatory framework for the Wood Pellet Fuel industry
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
  • Analyze the current and forecast market size of the Wood Pellet Fuel market for the major region
  • Major regions studied in the report include North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), Rest of World
  • Company profiles of the Wood Pellet Fuel market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Deep dive regional level analysis of the industry