바이오매스 펫렛 시장 보고서 : 동향, 예측, 경쟁 분석(-2031년)

The future of the global biomass pellet market looks promising with opportunities in the power generation, industrial heating, and residential heating markets. The global biomass pellet market is expected to reach an estimated $9.7 billion by 2031 with a CAGR of 5.3% from 2025 to 2031. The major drivers for this market are the high demand for renewable resources, growing concerns about global warming, and rising energy consumption worldwide.

• Lucintel forecasts that, within the type category, wood pellets will remain the largest segment over the forecast period due to its increasing demand in the residential and commercial heating markets for wood pellets.
• Within the application category, power generation will remain the largest segment over the forecast period.
• In terms of regions, Europe will remain the largest region over the forecast period due to growing incentives from the government to use renewable energy projects in the region.

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Emerging Trends in the Biomass Pellet Market

The industry is being reshaped through emerging trends that define what is happening in the biomass pellet market, which is evolving rapidly. These trends include technological advancements, changes in policy frameworks, and shifts in consumer preferences, among others. As a result of the rising demand for green power worldwide, biomass pellet producers are now emphasizing sustainable development, as well as effectiveness and efficiency in their operations.

• Technological Innovations in Pellet Production: Technological innovation plays a significant role in improving production efficiency and the quality parameters of such products. The durability and energy density of biomass pellets have been enhanced by advances in pelletizing technologies, such as high-pressure pellet mills and improved drying techniques. Additionally, these innovations have resulted in lower production costs, making biomass pellets more competitive with traditional fossil fuels. Consequently, the market for biomass pellets is expanding due to technological advancements that enable producers to meet the rising demand for renewable energy while adhering to quality and sustainability standards.
• Increasing Adoption of Biomass Co-Firing in Power Plants: A means of decreasing CO2 emissions is co-firing biomass pellets with coal in power plants (Baker et al., 2017). Europe and Asia are two regions where this trend is especially pronounced due to coal remaining their primary source of energy. Biomass pellets can be integrated into existing coal-fired power plants, leading to significantly reduced carbon footprints for energy providers without major infrastructure changes. This method also reduces the economic burden by slowly shifting towards renewable sources of electricity generation while maintaining security in the electric supply. It is projected that there will be an increased uptake of biomass co-firing, hence driving demand for biomass pellets.
• Expanding Biomass Pellet Export Market: The worldwide biomass pellet market is expanding its export activities, mainly from North America and Southeast Asia to Europe and Asia. This is driven by the growing demand for renewable energy in countries like Japan, South Korea, and the EU as they seek to reduce greenhouse gas emissions by minimizing their dependence on fossil fuels. Exporters are investing in large production facilities and improving supply chain logistics to meet the increasing global demand. This trend has created a larger global biomass pellet market, generating new opportunities for producers while also contributing to the growth of renewable energy markets globally.
• Government Incentives and Policy Support: The growth of the biomass pellet market rides on government incentives and policy support. Different governments are offering subsidies, tax incentives, and regulatory frameworks that promote the production and use of biomass pellets. These policies aim at reducing greenhouse gas (GHG) emissions, supporting rural economies, and encouraging the transition to renewable sources of power. Thus, government support has increased the uptake of biomass pellets in both industrial sectors and residential homes. This trend is expected to continue as governments worldwide prioritize sustainable energy options to meet their climate goals.

The emerging trends in the biomass pellet market are driving technological innovation, expanding market opportunities, and enhancing sustainable practices, thus reshaping the industry. These trends position biomass pellets as a major player in the global energy transition by offering an alternative to conventional fossil fuels. These shifts will speed up the adoption of biomass pellets as the market evolves, leading to a more sustainable and carbon-neutral energy landscape.

Recent Developments in the Biomass Pellet Market

In the last year, a great deal of dynamism and innovation has occurred in the market for biomass pellets, largely driven by global efforts to switch to renewable sources of energy and reduce carbon emissions. These developments include changes in production methods, expansion in market coverage, more government support, and increases across various sectors. These trends imply that they will significantly influence the future of the industry and make it an important component of the global energy mix.

• Expansion of Production Capacity: The most notable development in the market is the worldwide extension of capacity for producing biomass pellets. Some major producers from North America, Europe, or Asia have invested in new plants or have upgraded their existing ones to meet the increasing demand for biomass pellets. As a result, there is an increase in demand for renewable energy as well as growing export markets, particularly in Europe and Asia. This has led to more robust supply chains, which can cater to rising international demand, positioning biomass pellets as major players in renewable energy sources.
• Technological Advancements in Pellet Production: Innovations used during the production process have played a significant role in enhancing the efficiency and quality of biomass pellets. Modernization, such as advanced drying systems, high-pressure pellet mills, and automation, has reduced production costs while increasing fuel density in biomass pellets (Russo 6). These improvements enable producers to expand their operations while ensuring sustainability through environmentally friendly manufacturing processes with low carbon intensity levels (Russo 7). Technological innovations are essential for companies specializing in biomass pellets to outcompete conventional fuels and drive broader adoption across industries.
• Increased Governmental Support and Incentives: Governments worldwide continue to offer incentives, subsidies, and favorable regulations in support of the biomass pellet market. Policies aimed at reducing greenhouse gas emissions while embracing renewable energy have introduced tax waivers, grants, and subsidies for the production and use of biomass pellets. This facilitates industry growth by lowering adoption costs for customers and industries. Consequently, this results in a shift towards biomass energy, hastening global sustainability goals and reducing dependence on fossil fuels.
• Rising Demand in Industrial Applications: The demand for biomass pellets has surged, particularly in industrial sectors such as manufacturing and power generation. Biomass pellets are becoming increasingly popular as a renewable alternative to coal in co-firing processes, helping industries reduce their carbon footprints (Russo 3). The shift towards sustainable energy sources within the industrial sector is driving demand for biomass pellets, leading to more large-scale projects and long-term contracts (Russo 5). This increasing demand is not only boosting market growth but also reinforcing the role of biomass pellets in achieving carbon neutrality.

Recent developments in the biomass pellet market, such as expansion in production capacity, technological improvements, enhanced government support, rising industrial demand, and increased exports, are driving the market toward maturity through collective efforts.

Strategic Growth Opportunities for Biomass Pellet Market

Driven by the global shift towards renewable energy sources and sustainability, several strategic growth opportunities are available for biomass pellets across different applications. These include power generation, residential heating, industrial processes, and transportation, among others. As industries and consumers work towards minimizing their carbon footprints, compressed wood pellets present an economically viable alternative to fossil fuels.

• Power Generation: The use of co-firing coal with biomass pellets offers significant growth opportunities, especially within the power generation sector. Governments and utilities are already embracing biomass pellets as a renewable fuel alternative to oil due to their environmental benefits. Biomass pellets are seen as a scalable alternative for sustainable energy solutions, and the power generation industry will continue to shift toward biomass fuel through regulatory frameworks and incentives that favor renewable energy. This will stimulate demand for biomass pellets in the coming years.
• Residential Heating: Regions with cold climates and high heating demands provide good prospects for residential heating using wood pellets. Consumers prefer environmentally friendly alternatives such as wood pellet stoves and boilers, which are replacing gas or oil heaters in homes. This growth opportunity is supported by government incentives and increasing awareness about the environmental benefits of using biomass fuels for heating purposes. As more households switch to biomass pellet heating systems, the market is expected to expand, increasing pellet consumption.
• Industrial Applications: Biomass pellets are increasingly being used in industries as a substitute for coal and other fossil fuels. Industries such as manufacturing, cement production, and food processing are adopting biomass pellets to lower their greenhouse gas emissions and enhance sustainability. The need to comply with regulations and meet consumer demand for environmentally friendly products is driving this growth opportunity. Therefore, the adoption of biomass pellets by industries is expected to accelerate, creating new market opportunities for advanced biomass technologies and infrastructure.
• Transportation Fuels: Using biomass pellets as feedstock for biofuels in transportation presents an emerging growth opportunity. The transport industry is seeking ways to minimize its carbon footprint, and renewable fuels derived from biomass are considered a viable alternative to conventional fossil fuels. Technological advancements in biomass conversion, coupled with rising investments in biofuel production facilities, support this opportunity. The rise of renewable transportation fuel markets has increased demand for biomass pellets, contributing to market growth.

The strategic growth opportunities within the biomass pellet market, such as power generation, residential heating, industrial applications, transportation fuels, and export market expansion, have driven its growth over time. These opportunities position biomass pellets as a vital component of the global transition to renewable energy, aiding in the achievement of sustainability goals and offering a scalable, environmentally friendly alternative to traditional fossil fuels.

Biomass Pellet Market Driver and Challenges

The biomass pellet market is influenced by several drivers and challenges that shape its growth and development. Key drivers include technological advancements, increasing demand for renewable energy, government incentives, environmental concerns, and raw material availability. Conversely, the market also faces challenges such as high production costs and inefficiencies in the supply chain system, which may hinder its progress, as well as competition from other renewable energy sources and unclear policies.

Drivers:

• Technological Advancements: Technological advancements have been a major factor influencing the biomass pellet market, particularly in terms of efficiency in production and quality enhancement. Developments such as high-pressure feeders, improved drying techniques, and automation have reduced production costs and increased energy density in biomass pellets. These advancements have made biomass pellets more competitive compared to traditional fossil fuels, driving market growth through economies of scale. As technology progresses, efficiency will increase, reducing the environmental impact of biomass production, and leading to expanded markets in mature segments like the wood pellet industry.
• Persistent Demand for Renewable Energy: Rising global demand for renewable energy is a key factor driving the biomass pellet market. Countries are shifting from fossil fuels to biomass pellets for clean power generation, heating, and industrial processes, in line with climate goals. Policies that support renewable energy are further promoting this trend, creating room for growth in the industry. Biomass pellets will play a crucial role in the global energy transition.
• Government Incentives and Policies: Governments' subsidies, tax benefits, and regulations are helping to promote the biomass pellet market. Policies aimed at reducing GHG emissions, supporting rural communities, and encouraging the green shift through bioresources have increased production and use. Government assistance reduces costs for consumers and industries, fostering market growth and accelerating sustainability goals.

Challenges:

• High Production Costs: The biomass pellet market faces significant challenges due to high production costs. In many cases, costs may exceed those of traditional fossil fuels, considering factors such as raw material procurement, processing, and transportation. These costs are influenced by energy prices, labor costs, and technological investments. Price-sensitive markets may struggle to adopt biomass pellets. Continued innovation and economies of scale are necessary to lower costs and make biomass pellets more competitive.
• Inefficient Supply Chain: Inefficiencies in the supply chain, including complicated logistics, late deliveries, rising costs, and product deterioration, are challenges in the biomass pellet market. These inefficiencies may impede growth by restricting access to end-users. Investments in infrastructure, logistics management, and storage solutions are essential to mitigate these issues and ensure biomass pellets remain competitive in the global energy market.
• Legal Ambiguities: In certain markets, legal regulations around biomass pellet production and use are not fully defined, creating uncertainty. Rules may vary from one region to another, making producers uncertain and delaying investments. Changes in environmental regulations, subsidies, or trade limitations could also impact market development. Cooperation between industry players and policymakers is needed to establish a framework for sustainable growth in the biomass pellet sector.

The biomass pellet market is influenced by several forces, both positive and negative. This results in a mixture of factors that require progress through technological advancements, driven by the present-day demand for renewable sources of energy (eco-electricity), as well as governmental incentive programs aimed at reducing greenhouse gas emissions associated with various economic activities. On the other hand, concerns about environmental pollution and the scarcity of biomass resources in regions where the industry is predominantly located also present challenges.

List of Biomass Pellet Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies biomass pellet companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the biomass pellet companies profiled in this report include-

• Drax Group
• Enviva
• German Pellets
• AS Graanul Invest
• Pinnacle Renewable Energy
• Lignetics
• Zilkha Biomass Energy
• Fram Fuels
• Abellon CleanEnergy
• Ecostan

Biomass Pellet by Segment

The study includes a forecast for the global biomass pellet market by source, type, application, and region.

Biomass Pellet Market by Source [Analysis by Value from 2019 to 2031]:

• Industrial Waste & Co-Product
• Agriculture Residue
• Food Waste
• Energy Crop
• Virgin Lumber
• Others

Biomass Pellet Market by Type [Analysis by Value from 2019 to 2031]:

• Wood Pellet
• Agri Pellet
• Torrefied Pellet
• Others

Biomass Pellet Market by Application [Analysis by Value from 2019 to 2031]:

• Power Generation
• Industrial Heating
• Residential Heating
• Others

Biomass Pellet Market by Region [Analysis by Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Biomass Pellet Market

The biomass pellet market has seen significant advancements globally, driven by increasing demand for renewable energy, sustainability goals, and government incentives. Technological innovations, policy support, and raised environmental awareness have led to growth in key markets like China, Germany, India, and Japan.

• United States: The U.S. has expanded its production capacity for biomass pellets due to both domestic demand and export opportunities. Government policies aimed at promoting renewable energy have focused on improving production efficiency and reducing costs. Several large-scale facilities have been constructed, particularly in the Southeast, where raw materials are abundant. This expansion has made the U.S. one of the leading exporters of biomass pellets, especially in Europe, where there is high demand for renewable energy sources.
• China: Due to strong governmental support and technological advancements, China's biomass pellet market has grown rapidly. To reduce dependence on coal and reduce air pollution, government policies have increased the adoption of biomass energy. Investments in advanced conversion technologies have also improved efficiency, allowing for high-quality biomass production.
• Germany: Germany has been a leader in integrating biomass pellets into its renewable energy grid. The use of advanced co-firing technologies that combine biomass pellets with coal in power plants has helped reduce CO2 emissions. Additionally, Germany's focus on energy efficiency has led to the development of highly efficient biomass heating systems for homes and businesses.
• India: India's demand for biomass pellets has grown due to air pollution and the government's push for cleaner energy sources. Farming is a major contributor of raw materials for pellet production. New production facilities are being built to meet the increasing demand, and government incentives encourage biomass use, particularly in rural areas.
• Japan: Japan's biomass pellet market has grown as part of its efforts to enhance energy security and sustainability. After Fukushima, Japan diversified its energy sources, with biomass playing a key role. Japan has invested in domestic production and imports of biomass pellets, mainly from Southeast Asia and North America, and has developed stringent quality standards to promote sustainability.

Features of the Global Biomass Pellet Market

Market Size Estimates: Biomass pellet market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.

Segmentation Analysis: Biomass pellet market size by source, type, application, and region in terms of value ($B).

Regional Analysis: Biomass pellet market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different sources, types, applications, and regions for the biomass pellet market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the biomass pellet market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

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This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the biomass pellet market by source (industrial waste & co-product, agriculture residue, food waste, energy crop, virgin lumber, and others), type (wood pellet, agri pellet, torrefied pellet, and others), application (power generation, industrial heating, residential heating, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

Table of Contents

1. Executive Summary

2. Global Biomass Pellet Market : Market Dynamics

• 2.1: Introduction, Background, and Classifications
• 2.2: Supply Chain
• 2.3: Industry Drivers and Challenges

3. Market Trends and Forecast Analysis from 2019 to 2031

• 3.1. Macroeconomic Trends (2019-2024) and Forecast (2025-2031)
• 3.2. Global Biomass Pellet Market Trends (2019-2024) and Forecast (2025-2031)
• 3.3: Global Biomass Pellet Market by Source
  • 3.3.1: Industrial Waste & Co-product
  • 3.3.2: Agriculture Residue
  • 3.3.3: Food Waste
  • 3.3.4: Energy Crop
  • 3.3.5: Virgin Lumber
  • 3.3.6: Others
• 3.4: Global Biomass Pellet Market by Type
  • 3.4.1: Wood Pellet
  • 3.4.2: Agri Pellet
  • 3.4.3: Torrefied Pellet
  • 3.4.4: Others
• 3.5: Global Biomass Pellet Market by Application
  • 3.5.1: Power Generation
  • 3.5.2: Industrial Heating
  • 3.5.3: Residential Heating
  • 3.5.4: Others

4. Market Trends and Forecast Analysis by Region from 2019 to 2031

• 4.1: Global Biomass Pellet Market by Region
• 4.2: North American Biomass Pellet Market
  • 4.2.1: North American Market by Type: Wood Pellet, Agri Pellet, Torrefied Pellet, and Others
  • 4.2.2: North American Market by Application: Power Generation, Industrial Heating, Residential Heating, and Others
• 4.3: European Biomass Pellet Market
  • 4.3.1: European Market by Type: Wood Pellet, Agri Pellet, Torrefied Pellet, and Others
  • 4.3.2: European Market by Application: Power Generation, Industrial Heating, Residential Heating, and Others
• 4.4: APAC Biomass Pellet Market
  • 4.4.1: APAC Market by Type: Wood Pellet, Agri Pellet, Torrefied Pellet, and Others
  • 4.4.2: APAC Market by Application: Power Generation, Industrial Heating, Residential Heating, and Others
• 4.5: ROW Biomass Pellet Market
  • 4.5.1: ROW Market by Type: Wood Pellet, Agri Pellet, Torrefied Pellet, and Others
  • 4.5.2: ROW Market by Application: Power Generation, Industrial Heating, Residential Heating, and Others

5. Competitor Analysis

• 5.1: Product Portfolio Analysis
• 5.2: Operational Integration
• 5.3: Porter's Five Forces Analysis

6. Growth Opportunities and Strategic Analysis

• 6.1: Growth Opportunity Analysis
  • 6.1.1: Growth Opportunities for the Global Biomass Pellet Market by Source
  • 6.1.2: Growth Opportunities for the Global Biomass Pellet Market by Type
  • 6.1.3: Growth Opportunities for the Global Biomass Pellet Market by Application
  • 6.1.4: Growth Opportunities for the Global Biomass Pellet Market by Region
• 6.2: Emerging Trends in the Global Biomass Pellet Market
• 6.3: Strategic Analysis
  • 6.3.1: New Product Development
  • 6.3.2: Capacity Expansion of the Global Biomass Pellet Market
  • 6.3.3: Mergers, Acquisitions, and Joint Ventures in the Global Biomass Pellet Market
  • 6.3.4: Certification and Licensing

7. Company Profiles of Leading Players

• 7.1: Drax Group
• 7.2: Enviva
• 7.3: German Pellets
• 7.4: AS Graanul Invest
• 7.5: Pinnacle Renewable Energy
• 7.6: Lignetics
• 7.7: Zilkha Biomass Energy
• 7.8: Fram Fuels
• 7.9: Abellon CleanEnergy
• 7.10: Ecostan