Market Size of Europe Wood Pellet Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 15.65 Billion |
Market Size (2029) | USD 19.55 Billion |
CAGR (2024 - 2029) | 4.55 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Europe Wood Pellet Market Analysis
The Europe Wood Pellet Market size is estimated at USD 15.65 billion in 2024, and is expected to reach USD 19.55 billion by 2029, growing at a CAGR of 4.55% during the forecast period (2024-2029).
- Over the medium period, the increasing demand for wood pellets in clean energy generation and heat-supply applications will likely drive the European wood pellets market.
- On the other hand, the increasing competition from alternative clean energy sources and the ending of supportive government schemes for wood pellets will likely hinder market growth during the forecast period.
- Nevertheless, the emerging applications and advancements in wood pellet technology are expected to boost the market’s growth in the future.
- The United Kingdom is expected to dominate the European wood pellet market due to the increasing adoption of wood pellets for various applications.
Europe Wood Pellet Industry Segmentation
Wood pellets are renewable fuels manufactured from compressed sawdust or wood chips. They can be used to heat houses and businesses as a biomass fuel. Wood pellets can be made from forest residues and low-quality logs that can be handled as rubbish.
The European wood pellet market is segmented by application and geography. By application, the market is segmented into heating and power generation. The report also covers the market size and forecasts across major countries. For each segment, the market sizing and forecasts have been done based on revenue (USD).
Application | |
Heating | |
Power Generation |
Geography | |
Germany | |
United Kingdom | |
France | |
Netherlands | |
Belgium | |
Spain | |
Russia | |
Rest of Europe |
Europe Wood Pellet Market Size Summary
The European wood pellets market is poised for steady growth over the forecast period, driven by increasing demand for clean energy solutions and heating applications. The market is characterized by a semi-consolidated structure, with key players such as Stora Enso Oyj, Enviva Partners LP, AS Graanul Invest, Drax Group PLC, and Segezha Group PJSC playing significant roles. The United Kingdom is expected to lead the market, largely due to its extensive use of wood pellets in various applications, including residential heating and power generation. The Drax Power Station, the world's largest biomass-fired power station, exemplifies the UK's commitment to wood pellet utilization, having converted several units to run exclusively on this fuel. Despite challenges such as competition from alternative energy sources and the potential phasing out of government support, advancements in wood pellet technology and emerging applications are anticipated to bolster market growth.
The heating application segment is anticipated to dominate the European wood pellets market, with significant demand arising from countries like Germany and France. Wood pellets are increasingly used in residential and commercial heating systems, offering a cost-effective alternative to traditional fuels. The high density and low moisture content of wood pellets contribute to their efficiency and reduced emissions, making them an attractive option for consumers seeking to lower energy costs. The market's expansion is further supported by regulatory mandates and incentives from the European Commission and EU Member States, which aim to enhance the adoption of renewable energy sources. As colder seasons are expected to persist in Europe, the demand for wood pellets in heating applications is likely to continue its upward trajectory, reinforcing the market's growth prospects.
Europe Wood Pellet Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, till 2029
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Increasing Demand for Wood Pellets in Clean Energy Generation
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1.5.1.2 Heat-supply Applications
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1.5.2 Restraints
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1.5.2.1 Increasing Competition from Alternative Clean Energy Sources and Ending of Supportive Government Schemes for Wood Pellets
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1.6 Supply Chain Analysis
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1.7 Porter's Five Forces Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitute Products and Services
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1.7.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Application
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2.1.1 Heating
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2.1.2 Power Generation
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2.2 Geography
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2.2.1 Germany
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2.2.2 United Kingdom
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2.2.3 France
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2.2.4 Netherlands
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2.2.5 Belgium
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2.2.6 Spain
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2.2.7 Russia
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2.2.8 Rest of Europe
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Europe Wood Pellet Market Size FAQs
How big is the Europe Wood Pellet Market?
The Europe Wood Pellet Market size is expected to reach USD 15.65 billion in 2024 and grow at a CAGR of 4.55% to reach USD 19.55 billion by 2029.
What is the current Europe Wood Pellet Market size?
In 2024, the Europe Wood Pellet Market size is expected to reach USD 15.65 billion.