Author: Himanshu Patni
03 December 2021
Wood Pellet Fuel Market is expected to exceed the market valuation of more than US$ ~18 billion by 2027 expanding at a reasonable CAGR of around ~9.5% during the forecast period (2021-2027). Over the past decade, the growth in the global wood pellet market has been significant. Between 2012 and 2018, the wood pellet market has seen tremendous growth rates averaging 11.6% annual growth rate, starting from 19.5 million metric tons in 2012 and reaching to about 35.4 million metric tons in 2018. The market saw a 13.3% growth between 2017 to 2018 alone. The demand of heating pellets as fuels did influence by policy, weather, and the price of other heating fuels. Government policies are supporting the use of heating pellets as they have lower carbon emission rates, support local jobs in forestry and pellet production and do not pollute with wood smoke. Wood pellets have a decided advantage over fossil fuels: They are produced from renewable materials like wood shavings and saw dust. Austria is among the most richly forested countries in Europe. Over 30 million solid cubic meters of wood grow each year. The timber stock in Austrian forests has been increasing for years despite intensive use for timber, paper manufacturing and as an energy source.
Wood pellets directly address central concerns, making wood pellets one of its kind fuels. Pellets are made from wood that is condensed under heat and pressure. The natural plant components hold pellets together with the help of natural binders (e.g., starch) and do not require glue and further binders can be added to improve the quality of pellets. Pellets commonly used in Europe have less than 10% water content and a uniform density. The energy content of wood pellets is approximately 4.6-5.1 MWh/ton. This means that 1 tone of wood pellets has energy equivalence of +/- 500 L of heating oil. When used in high-efficiency wood pellet stoves and boilers, pellets typically offer combustion efficiency of over 85%. There are even condensing pellet boiler that offer the best efficiency possible. Thanks to their excellent energy density, wood pellets are also limiting the cost of transport and storage which make them competitive compared to fossil fuel. Typically, wood pellets are stored in a silo or some type of tank. Wood pellets can conveniently be stored for years.
For a detailed analysis of the market drivers in Wood Pellet Fuel Market browse through – https://univdatos.com/report/wood-pellet-fuel-market/
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.
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. Over the time, the availability of standard fuels is expected to go up and stoves continue to improve ash tolerance.
For a detailed analysis of the Heating Application in the Wood Pellet Fuel Market browse through – https://univdatos.com/report/wood-pellet-fuel-market/
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. They cost about US$ 1,000 to US$ 5,000 depending on the style, heat output, and size and another US$ 300 or so is required for the vent pipe or chimney liner.
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. When an appliance is too big, residents tend to burn fires at a low smolder to avoid overheating, which wastes fuel and is one of the biggest causes of air pollution. On the other hand, an undersized unit will not provide sufficient heat.
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Additionally, the report provides detailed initiatives that are being taken in the field of Wood Pellet Fuel Globally. The report provides a detailed analysis of regions 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 in 2020, with XX% share.
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 make Wood Pellet Fuel as cost-effective and as widely available as possible.
Wood Pellet Fuel Market Segmentation
Market Insight, by Feedstock
Market Insight, by Heating Application
Market Insight, by Application
Market Insight, by Region
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