Global biomass pellet market expected to grow at CAGR 11% between 2015-2020
The global biomass pellet market was valued at $6.9 billion (€6.17bn) in 2014 and it is expected to grow with a CAGR of 11.1% during the 2015-2020 period, a study published by P&S Market Research says.
The increased level of investments in the biomass industry has propelled the technological advancement, and there has been a recent upsurge worldwide in co-firing of biomass with coal, since it is a carbon neutral fuel, which helps to reduce emissions from thermal power plants.
The increased demand for the adoption of biomass-based power generation, along with traditional methods of power generation using fossil fuels is responsible for fuelling the growth of the global biomass pellets market.
Europe accounted for the largest share of the global biomass pellet market with 18.14 billion tonnes consumed in 2014.
The major reasons behind growth of the market in the region were low greenhouse gas emission from biomass and increased government initiatives for renewable technologies.
The market in Europe is expected to maintain its growth rate, mainly driven by various subsidies and legislation.
The power sector application segment is expected to witness the fastest growth (12.4% CAGR) during 2015-2020 in the global market.
Based on application, the heat sector segment held the largest market size, with approximately 14.5 billion tonnes volume in 2014, and it is expected to reach 27.5 million tonnes by 2020, growing with a CAGR of 8.7% during the period 2015-2020.
In 2014, North America accounted for the second largest share in the global biomass pellet market, in terms of value and volume.
The major reasons behind growth of the market in the region were increasing demand of biomass pellets in industrial sector, strict environmental regulations, and increasing concern for global warming.
Therefore, the high rate of depletion of fossil fuels and increasing demand for the reduction of greenhouse gases are indirectly creating ample opportunities for the growth of the North American market.