Future Market Insights’ latest report on the global market for wood pellets reveals that by the end of 2027, close to 35% of global wood pellet sales will be accounted by their end-use in industrial pellet co-firing.
In the report, titled ‘Wood Pellet Market: Global Market Analysis 2012–2016 and Forecast 2012–2027’, the market is expected to reach US$9.204.9 million by the end of 2017. The report further projects that global sales of wood pellets will soar at a CAGR of 8.7% to bring in over US$21.1 million by the end of 2027.
The report also reveals that in 2016, approximately 37.5 million t of wood pellets were sold across the globe. Increasing investments in new technologies & pelleting machines, coupled with higher demand for wood pellets in electricity generation, are some of the prominent trends influencing the growth of global wood pellets market during the forecast period. Apart from industrial co-firing, the market is also expected to witness higher traction in end-use offerings such as use of pellets in residential and commercial heating and industrial pellet end-use in CHP/district heating.
Wood pellet market: key drivers
According to the report, increasing consumption of wood pellets is triggered by promotion of reusing agricultural produce or forest wood in industrial processes. North America’s climate change concerns are compelling the region’s wood pellet manufacturers towards resource & feedstock optimisation. Meanwhile, wood pellets are successfully replacing fossil fuels such as charcoal in specific heating applications. The report reveals that 1 t of wood pellets have the potential to provide raw thermal energy equivalent to that of 2.8 barrels of crude oil.
In the future, wood pellets are also expected to be in great demand for their low carbon emission properties, compared to fossil fuels. However, the market’s robust growth is likely to be restrained by inability of pellet manufacturers in fulfilling certification criteria, and the gradual reduction in sawmill residue caused by technological intervention in sawing industries. Electricity generation, however, is observed as a lucrative opportunity for boosting the use of wood pellets.
Western Europe – lucrative region for growth of wood pellets market
The report also reveals that in 2017 and beyond, around 70% of the global market sales will be concentrated in Western Europe. Although, towards the end of 2027, Western Europe’s market share is poised to witness a dip, while Eastern Europe, Japan and Asia-Pacific excluding Japan (APEJ) regions will witness a significant rise in their market share. Some of the key excerpts of the report include:
- Throughout the forecast period, over half of the market’s value will be accounted by forest & wood waste feedstock.
- In 2016, an estimated 8.6 million t of wood pellets were consumed by free standing pellet stove application.
- The global market for wood pellets is also expected to witness sizeable growth in terms of volume, registering a CAGR of 8.5% through 2027.
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/18072017/demand-for-wood-pellets-in-co-firing-to-increase-in-next-ten-years/