The global biomass pellets market was valued at €4.05 billion in 2014 and is forecast to reach €7.47 billion in 2020. According to researches, the wood pellet market is expected to grow at a compound annual growth rate (CAGR) of 10.9% between 2015 and 2020.
Wood pellets are mainly used as a heating fuel, and their use in different residential and industrial applications such as pellet stoves or boilers over old-style wood-fired equipment has increased significantly over the past few years. Wood pellets are normally obtained from various sources including the timber industry, wood logs, sawdust, sugarcane crop, woody plants, and switch grass, among others.
The global wood pellets market can be classified into two application segments, namely residential applications and industrial applications. The industrial sector is leading the market, accounting for more than 55% in 2014, but the residential segment is expected to witness rapid growth rate compared through forecast period. Biomass is the only renewable energy source that is independent on the weather and is available at all times, which has resulted in growing demand for wood pellets across the globe. The demand for a consistent energy supply is growing worldwide due to the increasing global population and urbanization.
The global wood pellets market is dominated by the Europe, Middle East, and Africa (EMEA) region with a share of more than 42% of total market in 2014. Wood pellet demand in the EMEA region is expected to grow at a rapid pace during the forecast period.
The region is followed by the Americas and Asia-Pacific respectively, with Brazil and the US as the major wood pellet producing countries in America with huge installed capacity of biomass power plants. Asia-Pacific, however is expected to be the fastest growing market for wood pallets during the forecast period.