Biomass Pellets Market

This law offers home and business applications using clean wood heating systems a 15% to 30% rebate.

In India, the Biomass Power and Cogeneration initiative was put into place by the Ministry of New and Renewable Energy. This project's main goal is to encourage the usage of biomass pellets. It also encourages the production of energy using conventional fuels like coal. In India, among other places, this effort is used for cogeneration in sugar refineries and thermal power plants. The establishment of biomass power and bagasse cogeneration projects is facilitated by loans and advantageous subsidies from the Indian Renewable Energy Development Agency (IREDA). It is anticipated that these policies will promote the use of biomass pellets.

Thus, driving the Biomass Pellets market revenue.

The Global Biomass Pellets Market Industry is projected to experience robust growth in the coming years. With a market value anticipated to reach 7.28 USD Billion in 2024 and further expand to 12.3 USD Billion by 2035, the industry is on a promising trajectory. The compound annual growth rate of 4.91% from 2025 to 2035 indicates a sustained interest in biomass energy solutions. This growth is likely driven by various factors, including increasing energy demands, technological advancements, and supportive government policies. The market's expansion reflects a broader shift towards sustainable energy practices globally.

Government policies and incentives are pivotal drivers of the Global Biomass Pellets Market Industry. Many countries are introducing regulations that favor the use of biomass as a renewable energy source. For example, tax credits, grants, and subsidies for biomass energy projects encourage investments in this sector. These supportive measures not only enhance the economic viability of biomass pellets but also align with global sustainability goals. As a result, the market is expected to grow at a compound annual growth rate of 4.91% from 2025 to 2035. Such policies are likely to create a favorable environment for biomass pellet production and consumption.

The Global Biomass Pellets Market Industry is experiencing a surge in demand for renewable energy sources as countries strive to reduce their carbon footprints. Governments worldwide are implementing policies and incentives to promote the use of biomass as a sustainable energy alternative. For instance, the European Union has set ambitious targets for renewable energy consumption, which has led to increased investments in biomass technologies. This shift is projected to drive the market's growth, with the industry expected to reach 7.28 USD Billion in 2024. The emphasis on renewable energy is likely to bolster the demand for biomass pellets significantly.

The versatility of biomass pellets in various applications is a notable driver of the Global Biomass Pellets Market Industry. Biomass pellets are utilized not only for electricity generation but also for heating and as a feedstock in industrial processes. This diversity allows for a broader market reach and enhances the appeal of biomass pellets across different sectors. For instance, the use of biomass pellets in residential heating systems is becoming increasingly popular due to their efficiency and lower emissions. This trend is likely to contribute to the market's growth, as more sectors recognize the benefits of integrating biomass solutions into their energy strategies.

Technological innovations in biomass processing are playing a crucial role in enhancing the efficiency and quality of biomass pellets. The Global Biomass Pellets Market Industry benefits from advancements such as improved pelletizing techniques and enhanced feedstock processing methods. These innovations not only increase the yield of pellets but also improve their energy density, making them more attractive for energy production. As a result, the market is likely to witness a steady growth trajectory, with projections indicating a market value of 12.3 USD Billion by 2035. Such advancements may also lead to lower production costs, further stimulating market expansion.

The increasing awareness of environmental sustainability among consumers and businesses is significantly influencing the Global Biomass Pellets Market Industry. As climate change concerns escalate, there is a collective push towards cleaner energy sources. Biomass pellets, being a renewable energy option, are gaining traction as a viable alternative to fossil fuels. This shift in consumer behavior is prompting industries to adopt biomass solutions, thereby driving market growth. The industry's expansion is further supported by educational campaigns highlighting the benefits of biomass energy. Consequently, the market is poised for growth, with expectations of reaching substantial figures in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Biomass Pellets market dominated this market in 2022 (45.80%). For the purpose of generating electricity, Europe is the top consuming region for wood pellets. Due to government incentives for using renewable energy sources, it is predicted that demand for biomass pellets would rise throughout the projection period. Further, the German Biomass Pellets market held the largest market share, and the U.K Biomass Pellets market was the fastest growing market in the European region

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BIOMASS PELLETS MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The North America Biomass Pellets Market is expected to register significant growth from 2023 to 2032. Due to the increasing number of power plants in the area, it is anticipated that the need for biomass pellets used to fuel power plants for the production of electricity will increase significantly. Further, the U.S. Biomass Pellets market held the largest market share, and the Canada Biomass Pellets market was the fastest growing market in the North America region.

The Asia Pacific Biomass Pellets market, accounted for the healthy market share in 2022. In the east and in the province of Guangdong, China has outlawed the use of coal-fired boilers. Additionally, market expansion is predicted to be fueled by the low cost of pellets in the aforementioned regions. Moreover, China’s Biomass Pellets market held the largest market share, and the Indian Biomass Pellets market was the fastest growing market in the Asia-Pacific region. The biomass pellets market in India is driven by increasing demand for renewable energy and government initiatives promoting sustainable fuel alternatives.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biomass Pellets market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biomass Pellets industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Biomass Pellets industry to benefit clients and increase the market sector. In recent years, the Biomass Pellets industry has offered some of the most significant advantages to medicine.

Major players in the Biomass Pellets market, including Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet, are attempting to increase market demand by investing in research and development operations.

Previously known as Enviva Partners LP, Enviva Inc (Enviva) is a provider of utility-grade wood pellets. The business collects wood fiber from natural resources and transforms it into a transportable form. Wood pellets and wood chips, which are processed forms of woody biomass fuels, make up its products. The corporation runs large-scale manufacturing facilities in the US Mid-Atlantic and Gulf Coast regions. In order to ship and sell wood pellets to power plants in the UK and Europe, Enviva also has access to rivers and railroads.

Additionally, it offers terminaling services to owners of other bulk commodities as well as to producers of wood pellets outside of its own operation. The US city of Bethesda, Maryland, is home to Enviva's headquarters. Enviva, Inc. and J-Power, a Tokyo-based utility, agreed into a long-term partnership in November 2021 for the large-scale supply of sustainable wood biomass from Enviva's production facilities in the Southeast of the United States to J-Power's coal-fired power plants in Japan.

The company A.P. Moller - Maersk AS (APMM) offers logistics and transportation services. Through its subsidiaries and affiliates, it runs ports and shipping containers. The business provides intermodal transportation and transports dry goods, refrigerated freight, special cargo, as well as sells secondhand containers. Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training are some of APMM's principal brands. Additionally, the business produces dry and chilled containers. APMM provides services to the manufacturing, shipbuilding, retail, and logistics sectors.

In addition to Asia-Pacific, the corporation is present in North America, the Middle East, Europe, and Africa. Copenhagen, Denmark serves as the home office for APMM. The largest geothermal heating plant in the EU will be developed and run by A.P. Moller Holding's Innargi geothermal heating company near Aarhus, Denmark. The arrangement is for 30 years.