North America Wood Pellet Market
North America comprises economies such as the US, Canada, and Mexico. In 2018, the US Environmental Protection Agency (EPA) announced that burning wood, along with different forms of biomass, would be categorized as carbon neutral as the carbon released into the environment, is “balanced out” by planting new trees to reabsorb it. Since then, the wood pellet industry has witnessed rapid growth with increased exports. However, most production plants are relatively small and dependent on sawmill residues for fiber. Further, most of the pellets produced in the US are consumed domestically and are exported to the offshore market. On contrary, pellets produced in Canada are shipped across the world. Therefore, the wood pellet industry in North America is growing rapidly. The growth of the wood pellet market in the region is driven by the increasing cost of fossil energy. Also, the regional price competitiveness for propane and residential heating oil coupled with the rapid replacement of conventional burners to enhance feed-in is propelling the market growth. The Pellet Fuels Institute (PFI) represents a trade association, which keeps the interest of wood pellets manufacturers operating in the US and the companies and organizations that support them. Additionally, the PFI is committed to creating awareness related to the benefits of using wood pellets in heating homes and industrial purposes. As reported by North American Wood Fiber Review, there is an upsurge in wood pellet production in both the Southern US and British Columbia owing to the increased export from North America to Europe. The expanding demand for wood bioenergy from European and Asian countries is met by increasing the amount of production.
North America is one of the worst-affected economies due to the COVID-19 pandemic. The US has reported the highest number of confirmed cases. The unprecedented rise in number of COVID-19 cases across the US and Canada, and the subsequent lockdown of manufacturing facilities have negatively influenced the growth of the various markets in these countries. As of August 2021, the US registered 36,266,840 cases with 631,757 deaths. The significant disruption in manufacturing facilities, along with raw material sourcing, has had a negative impact on the demand for wood pellet in the country. In the same way, the pandemic had an intense impact on the Canadian economy. However, the market is reviving on account of significant measures taken by the government such as vaccination drives. As per an article published by the National Center for Biotechnology Information (NCBI) in 2020, the global public health bodies and governments have implemented several strategies as well as issued advisories to promote health and hygiene, social distancing strategies, and other such guidelines to prevent the spread of SARS-CoV-2. Amid the economic recovery, several industrial sectors are strategically focused on investing in sustainable sources to align with greener future.
Strategic insights for the North America Wood Pellet provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 809.22 Million |
| Market Size by 2028 | US$ 1,839.74 Million |
| Global CAGR (2021 - 2028) | 12.4% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Application
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The geographic scope of the North America Wood Pellet refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.
The wood pellet market in North America is expected to grow from US$ 809.22 million in 2021 to US$ 1,839.74 million by 2028; it is estimated to grow at a CAGR of 12.4% from 2021 to 2028. Rising demand for wood pellets from power generation industry; with the growing focus on sustainability, the demand for biomass pellets such as wood pellets has increased considerably. Wood pellets can be significantly used to produce power in a similar way to using coal as a base material, which helps to transform the existing coal power stations into renewable bioenergy sources. Further, such pellets possess the required density and are in uniform shape, which eases their transportation and storage. The demand for wood pellets has substantially risen for power generation applications across several countries. An article published by the US Energy Information Administration in June 2021 states that the use of wood pellets is rising across the electricity generation sector in many developed economies to avoid carbon dioxide emissions from fossil fuel use. Also, India’s Intended Nationally Determined Contributions (INDC), provided to the United Nations Framework Convention on Climate Change (UNFCCC), highlights that it is imperative to increase biomass installed production capacity to 10 GW by 2022 from the present capacity of 4.4 GW, including expansion of production capacity of wood pellets. This would work in line with the overall objective of increasing the dependency upon non-fossil fuel-based electricity generation capacity to 40% in India’s electricity mix by 2030. Electricity generation using wood pellets and/or co-firing of wood pellets with coal is aimed at meeting the Renewable Purchase Obligation (RPO) targets stated by State Electricity Regulatory Commissions (SERCs) in states where there are limited solar and wind facilities and possess extensive availability of agricultural and forestry residues. Similarly, the demand for wood pellets is expected to expand with the growing focus on renewable energy sources. This is bolstering the growth of the wood pellet market.
Based on application, the market is segmented into residential heating, commercial heating, CHP (combined heat and power), and power generation. In 2020, the residential heating segment held the largest share North America wood pellet market.
A few major primary and secondary sources referred to for preparing this report on the wood pellet market in North America are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are ANDRITZ, Energex Pellet Fuel, Inc., Enviva Lp, Graanul Invest, New England Wood Pellet, Pacific Bioenergy, Pinnacle Renewable Energy Inc, Premium Pellet Ltd, TANAC, and Wood & Sons among others.
The North America Wood Pellet Market is valued at US$ 809.22 Million in 2021, it is projected to reach US$ 1,839.74 Million by 2028.
As per our report North America Wood Pellet Market, the market size is valued at US$ 809.22 Million in 2021, projecting it to reach US$ 1,839.74 Million by 2028. This translates to a CAGR of approximately 12.4% during the forecast period.
The North America Wood Pellet Market report typically cover these key segments-
The historic period, base year, and forecast period can vary slightly depending on the specific market research report. However, for the North America Wood Pellet Market report:
The North America Wood Pellet Market is populated by several key players, each contributing to its growth and innovation. Some of the major players include:
The North America Wood Pellet Market report is valuable for diverse stakeholders, including:
Essentially, anyone involved in or considering involvement in the North America Wood Pellet Market value chain can benefit from the information contained in a comprehensive market report.
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