Wood Pellets Market, by Grade (Premium, Standard, and Utility), Applications (Residential, Commercial, Industrial, and Animal Bedding), End-Users (Industrial, Household, Furniture, and Construction), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2025

The global wood pellets market is expected to grow in the forecasted period due to increasing awareness about the usage of renewable energies for space heating, residential and commercial heating. A space heater is a tool used to heat a single or small location such as residential and commercial building. Relevant heating is used to warm many connected areas, which includes the rooms of a house. Space heaters are powered by burnable gasoline which includes natural gasoline, propane, gasoline oil, or wood pellets.

Wood Pellets Market, Analysis:

Wood pellet is a solid fuel produced through densification and crushing of waste wood including industrial by-products such as old paper, forestry waste, and forestry residue. Wood pellets can be used as a substitute for fossil fuels because they are environment- friendly, viable, and carbon neutral which means zero carbon dioxide emissions.

Increasing awareness regarding renewable energy resources are expected to drive the global wood pellets market:

Increasing demand from the power generation industry will drive the market growth over the projected period. Rising awareness regarding the usage of renewable energy sources for power generation along with increasing wood pellet combustion is likely to increase demand for the global wood pellets market in the forecast period.

Fulfilling Certification Criteria is anticipated to restrain the growth of the global natural gas liquid market:

Government certification is a valuable way to ensure the customers that the wood pellets are made from renewable sources. Higher certification criteria are a key limiting factor for manufacturers especially when it comes to exporting wood pellets to foreign countries. For example, standards set by the Sustainable Forestry Initiative and the Forest Stewardship Council (North American certification organizations) restricts the growth of the North American wood pellet market. Thus, this factor is anticipated to hamper the growth of global wood pellets market.

Environmental concerns are anticipated to create enormous opportunities for the global natural gas liquid market:

Increasing awareness regarding environmental issues relating to greenhouse gas emissions is estimated to facilitate growth opportunities for the global wood pellets market. Compared to other greenhouse gases and fossil fuels, wood pellets emit lower carbon levels. In addition, another key factor expected to increase future growth prospect over the forecast period is the easy availability of raw materials.

Wood Pellets Market, by Grade:

Premium grade will be the most lucrative till 2025

By grade, the global wood pellets market is divided into premium, standard, and utility. Out of these, premium grade is anticipated to hold the largest market shares as it has major beneficial factors such as small ash content (about 1%), low humidity content (about 8%), and very poor fines relative to other classes.

Wood Pellets Market, by Applications:

Residential sector will be the most lucrative till 2025

By applications, the global wood pellets market is segmented into residential, commercial, industrial, and animal bedding. Amongst these, residential sector is expected to dominate the market shares due to growing product consumption in North America and major European countries. Major initiatives are taken in both of these regions to increase reliance on renewable energies to reduce carbon emissions.

Wood Pellets Market, by End-Users:

Industrial sector is projected to be the fastest growing till 2025

By end-users, the global wood pellets market is classified into industrial, household, furniture, and construction. Out of these, industrial sector is expected to dominate the market shares as wood pellets are extremely dense and can be generated with a low moisture content that helps them to burn with a very high efficiency of combustion.

Wood Pellets Market, by Region:

Europe will have lucrative opportunities for the market investors

The global wood pellets market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions. North America is expected to dominate the market shares and continue to lead in the predicted period. This is due to implementation of many stiff emission standard regulations in this region. Europe is expected to be the fastest growing region due to increase usage of wood pellets to produce electrical energy.

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Key Participants in the Global Wood Pellets Market:

Merger & acquisition and advanced product development are the frequent strategies followed by the market players

Some of the key players in the global wood pellets market are Wood Pellet Energy LTD, Energex, Rentech Inc., Pinnacle Renewable Energy Inc., The Westervelt Company Inc.,Alliance Pellet Machinery, Georgia Biomass LLC, German Pellets GmbH, F.E. Wood & Sons, Enviva, and others.

Market players prefer inorganic growth strategies to expand into local markets. The global wood pellets market players are emphasizing more on merger & acquisition and advanced product development. These are the frequent strategies followed by established organizations. To emphasize more on the competitor analysis of market players, the Porter’s five force model is explained in the report.

Source: Research Dive Analysis