Market study: Global biomass pellet market to grow by annual 10% until 2020
The global biomass pellets market was valued at $4.52 billion (€4.05bn) in 2014 and is forecast to reach $8.34 billion in 2020, a new market study says.
According to research carried out by Zion Research, the biomass pellet market is expected to grow at a compound annual growth rate (CAGR) of 10.9% between 2015 and 2020.
Biomass pellets are mainly used as a heating fuel, and their use in different residential and industrial applications such as pellet stoves or boilers over old-style wood-fired equipment has increased significantly over the past few years.
Biomass pellets are normally obtained from various sources including the timber industry, sawdust, sugarcane crop, woody plants, and switch grass, among others.
The global biomass pellets market can be classified into two application segments, namely residential applications and industrial applications.
The industrial sector is leading the market, accounting for more than 55% in 2014, but the residential segment is expected to witness rapid growth rate compared through forecast period.
Biomass is the only renewable energy source that is independent on the weather and is available at all times, which has resulted in growing demand for biomass pellets across the globe.
The demand for a consistent energy supply is growing worldwide due to the increasing global population and urbanisation.
The global biomass pellets market is dominated by the Europe, Middle East, and Africa (EMEA) region with a share of more than 42% of total market in 2014.
Biomass pellet demand in the EMEA region is expected to grow at a rapid pace during the forecast period.
The region is followed by the Americas and Asia-Pacific respectively, with Brazil and the US as the major biomass pellet producing countries in America with huge installed capacity of biomass power plants.
Asia-Pacific, however is expected to be the fastest growing market for biomass pallets during the forecast period.
The biomass pellets market is highly competitive, with a number of well-established global vendors, such as Energex Corp., Forest Energy Corp., Helius Energy, New England Wood Pellet, and Woodstone, dominating the segment.