Wood Pellet Market Size (2024 - 2029)

The market size of the Wood Pellet industry is projected to grow substantially in the coming years, primarily driven by increasing demand for wood pellets in clean energy generation, particularly in Europe. However, the adoption of alternative renewable energy sources like solar photovoltaic, wind energy, and geothermal globally could potentially impede market growth. Despite this, technological advancements have enabled wood pellets to act as a coal-like fuel, opening up opportunities for market expansion, especially in the Asia-Pacific region, which houses the highest number of coal power plants globally. Europe, with its significant wood pellet production, is expected to hold a significant market share.

Home Market Analysis Energy & Power Research Fuels Research Wood Pellet Research Wood Pellet Market Market Size

Market Size of Wood Pellet Industry

Wood Pellet Market Summary
Study Period 2019-2029
Market Size (2024) USD 13.89 Billion
Market Size (2029) USD 19.61 Billion
CAGR (2024 - 2029) 7.15 %
Fastest Growing Market Asia-Pacific
Largest Market Europe

Major Players

Wood Pellet Market Major Players

*Disclaimer: Major Players sorted in no particular order
setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Wood Pellet Market Analysis

The Wood Pellet Market size is estimated at USD 13.89 billion in 2024, and is expected to reach USD 19.61 billion by 2029, growing at a CAGR of 7.15% during the forecast period (2024-2029).

Over the medium period, the primary drivers for the market include increasing demand for wood pellets in clean energy generation, especially in the European region.

On the other hand, the adoption and increasing deployment of alternative renewable energy sources such as solar photovoltaic, wind energy, and geothermal in various parts of the world is likely to hinder market growth during the forecast period.

Nevertheless, as per the World Bioenergy Association, wood pellets have the potential to replace coal in power generation facilities. With technology development in recent years, wood pellets have undergone thermal upgrading through various processes like torrefaction, hydrothermal carbonization, and steam explosion. The thermal upgrading enables wood pellets to act as a fuel with coal properties. The Asia-Pacific region, with the world's highest number of coal power plants, is expected to be an opportunity for the market to grow in the future.

With a significant production of wood pellets during 2022, Europe was expected to have a significant share of the market during the forecast period.

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 wood pellet market is segmented by application and geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). By application, the market is segmented into heating and power generation. The report also covers the market size and forecasts for the wood pallet market across major regions. 

For each segment, the market sizing and forecasts have been done based on revenue (USD).

Application
Heating
Power Generation
Geography
North America
United States of America
Canada
Rest of the North America
Europe
France
Italy
Germany
United Kingdom
Spain
Nordic Countries
Turkey
Russia
Rest of the Europe
Asia-Pacific
China
India
Indonesia
Japan
South Korea
Malaysia
Thailand
Vietnam
Rest of the Asia-Pacific
South America
Brazil
Argentina
Colombia
Rest of the South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Nigeria
Qatar
Egypt
Rest of the Middle-East and Africa

Wood Pellet Market Size Summary

The Wood Pellet Market is projected to experience substantial growth in the coming years. The primary drivers for this expansion include the increasing demand for wood pellets in clean energy generation, particularly in Europe. However, the market's growth may be hampered by the rising adoption of other renewable energy sources like solar photovoltaic, wind energy, and geothermal. Despite this, wood pellets have the potential to replace coal in power generation facilities, offering a significant opportunity for market growth, especially in the Asia-Pacific region, which houses the highest number of coal power plants globally. In terms of market trends, the heating application of wood pellets is expected to dominate the market. Wood pellets, primarily produced from wood residues and agricultural by-products, are used extensively in residential and commercial sectors for various purposes, including food preparation, cooking, grilling, and heating. Their cost-effectiveness has made them a popular choice in these sectors. Furthermore, as a renewable energy source, wood pellets have received subsidies and incentives from governments worldwide, further boosting their demand. The European market, in particular, is expected to dominate the global wood pellet market due to the region's significant demand for wood pellets.

Explore More

Wood Pellet Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Application

      1. 1.1.1 Heating

      2. 1.1.2 Power Generation

    2. 1.2 Geography

      1. 1.2.1 North America

        1. 1.2.1.1 United States of America

        2. 1.2.1.2 Canada

        3. 1.2.1.3 Rest of the North America

      2. 1.2.2 Europe

        1. 1.2.2.1 France

        2. 1.2.2.2 Italy

        3. 1.2.2.3 Germany

        4. 1.2.2.4 United Kingdom

        5. 1.2.2.5 Spain

        6. 1.2.2.6 Nordic Countries

        7. 1.2.2.7 Turkey

        8. 1.2.2.8 Russia

        9. 1.2.2.9 Rest of the Europe

      3. 1.2.3 Asia-Pacific

        1. 1.2.3.1 China

        2. 1.2.3.2 India

        3. 1.2.3.3 Indonesia

        4. 1.2.3.4 Japan

        5. 1.2.3.5 South Korea

        6. 1.2.3.6 Malaysia

        7. 1.2.3.7 Thailand

        8. 1.2.3.8 Vietnam

        9. 1.2.3.9 Rest of the Asia-Pacific

      4. 1.2.4 South America

        1. 1.2.4.1 Brazil

        2. 1.2.4.2 Argentina

        3. 1.2.4.3 Colombia

        4. 1.2.4.4 Rest of the South America

      5. 1.2.5 Middle-East and Africa

        1. 1.2.5.1 Saudi Arabia

        2. 1.2.5.2 United Arab Emirates

        3. 1.2.5.3 South Africa

        4. 1.2.5.4 Nigeria

        5. 1.2.5.5 Qatar

        6. 1.2.5.6 Egypt

        7. 1.2.5.7 Rest of the Middle-East and Africa

Wood Pellet Market Size FAQs

The Wood Pellet Market size is expected to reach USD 13.89 billion in 2024 and grow at a CAGR of 7.15% to reach USD 19.61 billion by 2029.

In 2024, the Wood Pellet Market size is expected to reach USD 13.89 billion.

Wood Pellet Market Report Snapshots

Wood Pellets Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)