The global biomass pellets market size was US$ 16.74 billion in 2021. The global biomass pellets market is forecast to grow to US$ 30.1 billion by 2030 by growing at a compound annual growth rate (CAGR) of 11.1% during the forecast period from 2022 to 2030.

Biomass pellets are biomass fuel obtained from commercial grasses, wood wastes, agricultural biomass, and forestry residues.

Factors Influencing the Market

The growing adoption of biomass pellets as a co-firing fuel for coal-based boilers is driving the growth of the biomass palettes market. In addition, rising efforts from industries to reduce carbon emission is forecast to benefit the global biomass pellets market.

Growing population and industrialization will escalate the growth of the biomass pellets market globally.

Growing initiatives from government bodies to promote clean, low-cost biomass pellets will propel the global biomass pellets market forward. In addition, favorable subsidies and incentives declared by governments will contribute to the growth of the market.

The availability of a huge amount of biomass feedstock will benefit the overall market. Unlike non-renewable resources, biomass pellets have the capacity to cater to the soaring demands of the population. As a result, the global biomass pellets market will grow significantly during the study period.

The active contribution of industry players will be another prominent reason behind the market gaining traction during the study period.

COVID-19 Impact Analysis

The sudden onset of the COVID-19 pandemic has negatively influenced the global biomass pellets market, owing to the decline in the overall product demand. The regulations imposed by governments and the temporary shutdown of manufacturing bases have significantly affected the biomass pellets market. In addition, end-user industries like Power Generation, Industrial Heating, Commercial & Domestic Heating, and others had to halt the operations. As a result, it ultimately influenced the global biomass pellets market.

Regional Analysis

The global biomass pellets market is forecast to witness significant growth in Europe due to stringent regulations mandating the use of renewable fuel. Moreover, North America and the Asia-Pacific will emerge as the leading markets due to the presence of prominent end-ser industries. In Asia-Pacific, countries like China and Japan are forecast to grow at the fastest rate due to the growing demand for renewable products. In addition, the growing population and favourable government policies to promote sustainable products are likely to benefit the regional biomass pellets market.

Competitors in the Market

Drax Biomass Inc.
Enviva Partners
German Pellets GmBH
Pinnacle Renewable Energy Inc.
Abellon CleanEnergy Limited
Energex
Internation WoodFuels, LLC
Helius Energy Ltd.
Other Prominent Players
Market Segmentation

The global biomass pellets market segmentation focuses on Source, Application, Type, End-Use, and Region.

Based on Source

Agricultural Residue
Wood Sawdust
Others
Based on Application

Feed
Civil Fuels
Industrial Fuel
Others
Based on Type

Wood Pellets
Fuel Pellets
Based on End-Use Industry

Power Generation
Industrial Heating
Commercial & Domestic Heating
Others
Based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America