Global wood pellet market forecast to reach US$14.47 billion in 2024

The global wood pellet market could reach US$14.47 billion in 2024, according to the Global Wood Pellet Market (by Applications, Grades & Region): Insights & Forecast with Potential Impact of COVID-19 (2020-2024) report.

Factors expected to drive the market include increasing consumption of wood pellets, growing concerns pertaining to climate change, expanding urbanization, a spiking focus on renewable energy sources, and price instability of crude oil.

The market, however, could be challenged by high certification criteria and possible occupational health and safety concerns.

The global wood pellet market is segmented according to applications and grades. In the basis of application, the global pellet market can be bifurcated into heat (residential and commercial), power and combined heat and power (CHP). According to the grade, the global wood pellet market can be categorized into utility, premium and standard wood pellet. The market is further divided into production and consumption in terms of volume.

Europe is recognized as the fastest growing market due to an increased consumption of wood pellets for power generation among various industries across developed regions, including the U.K., Italy, Germany, France, and Belgium, as well as escalating cost of fossil fuels including natural gas and coal, growing demand for heating applications from both residential and industrial sectors, and increasing replacement of coal-fired power plants with pellet-based plants.

COVID-19 has also disrupted the business environment, affecting wood pellet production and consumption, which is expected to negatively impact the growth of the global wood pellet market during the forecasted period.