바이오매스 연료(목재 펠릿 및 팜 핵각(PKS)) 시장 규모, 점유율, 성장 및 산업 분석 : 유형별, 용도별, 지역별 인사이트 및 예측(2026-2034년)

Growth Factors of biomass fuel (wood pellets and palm kernel shell (PKS)) Market

The global biomass fuel (wood pellets and palm kernel shell (PKS)) market was valued at USD 20.42 billion in 2025 and is projected to grow to USD 22.43 billion in 2026, reaching USD 42.80 billion by 2034. The market is expanding due to rising renewable energy adoption, decarbonization policies, and increased demand from industrial and transportation sectors.

Biomass fuel, including wood pellets and PKS, plays a central role in carbon-neutral energy systems. Technologies such as biomass energy with carbon capture and storage (BECCS) are gaining traction as they enable renewable power generation while supporting carbon removal goals. Agricultural residues, forestry byproducts, and municipal solid waste are increasingly utilized as feedstock sources.

Market Dynamics

Market Drivers

The growing demand for renewable energy is a primary driver. By 2030, renewable fuels are expected to represent 5.5% of total energy consumption across industry, buildings, and transportation sectors. China, Brazil, Europe, India, and the U.S. account for more than two-thirds of projected renewable fuel growth.

The transportation sector is witnessing increased adoption of bioethanol, biodiesel, and sustainable aviation fuel. The European Union's Green Deal promotes carbon-neutral transport policies, while Annex IX quotas support biomass-based fuels. Industries such as cement, steel, chemicals, and paper are shifting toward biomass fuel to reduce emissions.

Market Restraints

Despite strong demand, high capital expenditure (CAPEX) and operational expenditure (OPEX) restrain market growth. Biomass plants require costly infrastructure, including boilers, gasifiers, and feedstock handling units. Feedstock transportation and storage add further costs due to biomass's low energy density and bulky nature.

Solar and wind energy offer lower operating costs and faster scalability, making biomass comparatively less attractive in certain regions without strong subsidies.

Market Opportunities

Waste-to-energy initiatives present significant opportunities. According to the U.S. Energy Information Administration (October 2024), 85 pounds out of every 100 pounds of municipal solid waste (MSW) in the U.S. can be burned to generate electricity. Waste-to-energy facilities reduce waste volume by approximately 87%, converting 2,000 pounds of waste into 300-600 pounds of ash. These initiatives are expanding across North America, Europe, and Asia Pacific.

Market Challenges

Limited feedstock availability and inconsistent supply chains pose challenges. Biomass resources such as agricultural waste and wood residues are seasonal and region-specific. In many developing regions, the absence of organized collection and transport systems increases procurement costs and material degradation risks.

Segmentation Analysis

By Feedstock

Wood pellets dominate the market, holding 86.37% market share in 2026. They are widely used in residential heating, industrial heating, and power generation. Europe, Japan, and South Korea provide subsidies and renewable incentives supporting wood pellet adoption.

Palm kernel shell (PKS) is projected to grow at a CAGR of 8.59% through the forecast period. PKS is a cost-effective byproduct of palm oil production in Malaysia, Indonesia, and Thailand.

By Combustion Method

Direct combustion leads the segment with 56.29% market share in 2026. Technologies such as stoker boilers and fluidized bed boilers make this method widely adopted for electricity and combined heat and power generation.

Biomass pyrolysis is projected to grow at a CAGR of 9.33%, driven by demand for bio-oil, biochar, and syngas for industrial and transportation applications.

By Application

The industrial segment accounted for 42.87% market share in 2026, driven by carbon reduction mandates. Industries are replacing coal, oil, and natural gas with biomass fuel for heat and power generation.

The residential segment holds 28.27% share, supported by demand for decentralized and cost-effective heating systems.

Regional Outlook

Europe

Europe led the market with USD 12.48 billion in 2025 and USD 13.87 billion in 2026, accounting for 60.41% share in 2024. The region is projected to maintain dominance through 2034. The U.K., Germany, and France recorded USD 3.46 billion, USD 1.97 billion, and USD 1.38 billion respectively in 2026.

North America

North America reached USD 2.88 billion in 2025, with the U.S. market valued at USD 2.78 billion in 2025. The region is supported by renewable fuel standards and federal funding initiatives, including a USD 15 million DOE program for hydrogen production from biomass.

Asia Pacific

Asia Pacific recorded USD 4.07 billion in 2025. China, Japan, and South Korea reached USD 1.4 billion, USD 0.65 billion, and USD 1.17 billion respectively in 2026.

Rest of the World

The rest of the world market was valued at USD 0.99 billion in 2025, driven by energy security initiatives and abundant agricultural residues.

Competitive Landscape

The market is fragmented with key players including Iwatani Corporation, Enviva Inc., Drax Global, CM Biomass, Hanwa Co., BIO ENECO SDN. BHD., Graanul Invest, and Segezha Group. In November 2024, JFE Shoji Group and BIO ENECO signed a 150,000-tonne annual PKS supply agreement for 15 years. In 2025, global investment in biofuels is expected to exceed USD 16 billion, with low-emission fuel funding projected to reach USD 25 billion.

The biomass fuel (wood pellets and palm kernel shell (PKS)) market is expected to continue expanding from USD 20.42 billion in 2025 to USD 42.80 billion by 2034, driven by policy support, industrial decarbonization, and renewable energy demand.

Conclusion

The global biomass fuel (wood pellets and palm kernel shell (PKS)) market is set to expand from USD 20.42 billion in 2025 to USD 22.43 billion in 2026, reaching USD 42.80 billion by 2034, reflecting strong long-term growth momentum. Europe remains dominant with USD 12.48 billion in 2025, while industrial applications account for 42.87% share in 2026. Wood pellets lead with 86.37% market share, supported by renewable energy mandates and decarbonization policies. Increasing investments exceeding USD 16 billion in 2025 toward biofuels further strengthen the market outlook through 2034.

Segmentation By Feedstock

• Wood Pellets
• Palm Kernel Shell (PKS)
• Others

By Combustion Method

• Direct Combustion
• Gasification
• Pyrolysis
• Others

By Application

• Industrial
• Transportation
• Commercial
• Residential
• Others

By Region

• North America (By Feedstock, By Combustion Method, By Application, and By Country)
  • U.S.
  • Canada
• Europe (By Feedstock, By Combustion Method, By Application, and By Country)
  • Italy
  • Germany
  • France
  • Denmark
  • Netherlands
  • Sweden
  • Belgium
  • Austria
  • U.K.
  • Rest of Europe
• Asia Pacific (By Feedstock, By Combustion Method, By Application, and By Country)
  • China
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Rest of the World (By Feedstock, By Combustion Method, By Application)

Table of Content

1. Introduction

• 1.1. Research Scope
• 1.2. Market Segmentation
• 1.3. Research Methodology
• 1.4. Definitions & Assumptions

2. Executive Summary

3. Market Dynamics

• 3.1. Market Drivers
• 3.2. Market Restraints
• 3.3. Market Opportunities

4. Key Insights

• 4.1. Key Emerging Trends - For Major Countries
• 4.2. Latest Technological Advancements
• 4.3. Insight on Regulatory Landscape
• 4.4. Porters Five Forces Analysis
• 4.5. Impact of Tariffs on the Global Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market
• 4.6. Biomass Fuel Production, by Major Countries
  • 4.6.1. Wood Pellets Production, by Country
  • 4.6.2. Palm Kernel Shell (PKS) Production, by Country
• 4.7. Import-Export Statistics, by Major Countries
• 4.8. Supply and Demand Analysis
• 4.9. Biomass Fuels Pricing Analysis, by Major Countries

5. Global Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market (Thousand Tons, USD Billion) Analysis, Insights, and Forecast, 2021-2034

• 5.1. Key Findings
• 5.2. Market Analysis, Insights, and Forecast - By Feedstock
  • 5.2.1. Wood Pellets
  • 5.2.2. Palm Kernel Shell (PKS)
  • 5.2.3. Others
• 5.3. Market Analysis, Insights, and Forecast - By Combustion Method
  • 5.3.1. Direct Combustion
  • 5.3.2. Gasification
  • 5.3.3. Pyrolysis
  • 5.3.4. Others
• 5.4. Market Analysis, Insights, and Forecast - By Application
  • 5.4.1. Industrial
  • 5.4.2. Transportation
  • 5.4.3. Commercial
  • 5.4.4. Residential
  • 5.4.5. Others
• 5.5. Market Analysis, Insights, and Forecast - By Region
  • 5.5.1. North America
  • 5.5.2. Europe
  • 5.5.3. Asia Pacific
  • 5.5.4. Rest of the World

6. North America Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market (Thousand Tons, USD Billion) Analysis, Insights, and Forecast, 2021-2034

• 6.1. Key Findings
• 6.2. Market Analysis, Insights, and Forecast - By Feedstock
  • 6.2.1. Wood Pellets
  • 6.2.2. Palm Kernel Shell (PKS)
  • 6.2.3. Others
• 6.3. Market Analysis, Insights, and Forecast - By Combustion Method
  • 6.3.1. Direct Combustion
  • 6.3.2. Gasification
  • 6.3.3. Pyrolysis
  • 6.3.4. Others
• 6.4. Market Analysis, Insights, and Forecast - By Application
  • 6.4.1. Industrial
  • 6.4.2. Transportation
  • 6.4.3. Commercial
  • 6.4.4. Residential
  • 6.4.5. Others
• 6.5. Market Analysis, Insights, and Forecast - By Country
  • 6.5.1. U.S.
  • 6.5.2. Canada

7. Europe Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market (Thousand Tons, USD Billion) Analysis, Insights, and Forecast, 2021-2034

• 7.1. Key Findings
• 7.2. Market Analysis, Insights, and Forecast - By Feedstock
  • 7.2.1. Wood Pellets
  • 7.2.2. Palm Kernel Shell (PKS)
  • 7.2.3. Others
• 7.3. Market Analysis, Insights, and Forecast - By Combustion Method
  • 7.3.1. Direct Combustion
  • 7.3.2. Gasification
  • 7.3.3. Pyrolysis
  • 7.3.4. Others
• 7.4. Market Analysis, Insights, and Forecast - By Application
  • 7.4.1. Industrial
  • 7.4.2. Transportation
  • 7.4.3. Commercial
  • 7.4.4. Residential
  • 7.4.5. Others
• 7.5. Market Analysis, Insights, and Forecast - By Country
  • 7.5.1. Italy
  • 7.5.2. Germany
  • 7.5.3. France
  • 7.5.4. Denmark
  • 7.5.5. Netherlands
  • 7.5.6. Sweden
  • 7.5.7. Belgium
  • 7.5.8. Austria
  • 7.5.9. U.K.
  • 7.5.10. Rest of Europe

8. Asia Pacific Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market (Thousand Tons, USD Billion) Analysis, Insights, and Forecast, 2021-2034

• 8.1. Key Findings
• 8.2. Market Analysis, Insights, and Forecast - By Feedstock
  • 8.2.1. Wood Pellets
  • 8.2.2. Palm Kernel Shell (PKS)
  • 8.2.3. Others
• 8.3. Market Analysis, Insights, and Forecast - By Combustion Method
  • 8.3.1. Direct Combustion
  • 8.3.2. Gasification
  • 8.3.3. Pyrolysis
  • 8.3.4. Others
• 8.4. Market Analysis, Insights, and Forecast - By Application
  • 8.4.1. Industrial
  • 8.4.2. Transportation
  • 8.4.3. Commercial
  • 8.4.4. Residential
  • 8.4.5. Others
• 8.5. Market Analysis, Insights, and Forecast - By Country
  • 8.5.1. China
  • 8.5.2. Japan
  • 8.5.3. South Korea
  • 8.5.4. Rest of Asia Pacific

9. Rest of the World Biomass Fuel (Wood Pellets and Palm Kernel Shell (PKS)) Market (Thousand Tons, USD Billion) Analysis, Insights, and Forecast, 2021-2034

• 9.1. Key Findings
• 9.2. Market Analysis, Insights, and Forecast - By Feedstock
  • 9.2.1. Wood Pellets
  • 9.2.2. Palm Kernel Shell (PKS)
  • 9.2.3. Others
• 9.3. Market Analysis, Insights, and Forecast - By Combustion Method
  • 9.3.1. Direct Combustion
  • 9.3.2. Gasification
  • 9.3.3. Pyrolysis
  • 9.3.4. Others
• 9.4. Market Analysis, Insights, and Forecast - By Application
  • 9.4.1. Industrial
  • 9.4.2. Transportation
  • 9.4.3. Commercial
  • 9.4.4. Residential
  • 9.4.5. Others

10. Competitive Analysis

• 10.1. Company Market Share Analysis, 2025
• 10.2. Company Profile
  • 10.2.1. Iwatani Corporation
    • 10.2.1.1. Business Overview
    • 10.2.1.2. Product and Service Offerings
    • 10.2.1.3. Recent Developments
    • 10.2.1.4. Financials (Based on Availability)

11. Similar data will be provided for the below listed companies

• 11.1. Enviva Inc.
  • 11.1.1. Drax Global
  • 11.1.2. CM Biomass
  • 11.1.3. Hanwa Co., Ltd.
  • 11.1.4. BIOENECO SDN. BHD.
  • 11.1.5. Valfei Products Inc.
  • 11.1.6. Mallard Creek Inc.
  • 11.1.7. Graanul Invest
  • 11.1.8. Segezha Group
  • 11.1.9. Energex