Biomass Pellets Market to Grow by 6.6% as Consumers Seek Sustainable Sources of Energy: Report

The global biomass pellets market is estimated to expand at 6.6% CAGR over the forecast period between 2022 and 2032, finds Future Market Insights (FMI) in a recent market analysis report. As per the study, the demand in the domestic sector is expected to pick up in the coming years.

Prices of conventional energy have reached new highs and they are expected to rise considerably in the coming years as a result of decreasing availability of resources. As a result, the rate of demand for crude oil has surpassed the rate of supply.

Owing to consistent rise in prices of conventional sources of energy manufacturers are compelled to adopt alternatives solutions in order to maintain their margins and remain competitive in market. This is expected to be one of key factors promoting the sales of biomass pellets over the forecast period.

Moreover, to meet the surging demand for carbon emission, governments are imposing stringent regulation and guidelines on manufacturing units. Adherence to this guideline is compelling manufacturers to adopt renewable sources of energy instead of conventional sources in order to fulfil the energy demand and regulations. Biomass pellets have emerged as a primary choice for manufacturers as they can replace coal easily.

However, high quality biomass pellets are manufactured using wood sawdust. Availability of high quality wood sawdust is still a primary concern for biomass pellets manufacturers, which controls the production and hampers the growth of overall market.

“Rising prices of conventional sources of energy is compelling manufacturers to shift from conventional to eco-friendly solutions, which is encouraging the sales of biomass pellets for industrial heating,” says an FMI analyst.

Key Takeaways:

• Global biomass pellet market is expected to reach a value of over US$ 19.4 Bn by the end of the forecast period, growing at a CAGR of 6.6% over the forecast period.
• Wood sawdust is the most preferred source for the manufacturing of biomass pellets for industrial use.
• Demand for agriculture residue is growing at much faster rate as compared to others owing to growing focus on sustainability.
• Owing to high replicability of biomass pellets for coal in boilers, they are extensively used for industrial heating applications.
• Europe is expected to be the dominant region in terms of consumption of biomass pellets.