The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including Wood Pellet Market.
It was estimated prior to this unanticipated outbreak Wood Pellet Market will reach CAGR of 10.5% during the forecast period. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Wood pellet market is likely to witness an impressive CAGR of 10.5% during the forecast period. Increasing consciousness towards the use of renewable energy sources for space heating in residential and commercial heating, along with the increasing adoption of recyclable and eco-friendly energy sources for power generation are the prime factors that are contributing to the demand for wood pellets. The clean-burning and cost-effective fuel option for heating needs for households is another factor that is driving the demand for wood pellets.
Wood Pellet Market Share: By Grade Type
Based on the grade type, the market is segmented as premium, standard, and utility. The utility grade segment held the largest share of the market in 2019, and is expected to register the fastest growth during the forecast period. The utility grade segment is mainly driven by its low bulk density compared to that of premium grade wood pellets. The utility grade wood pellets provide benefits for space utilization to the industrial sector and due to this factor the usage of utility grade wood pellets has been growing for the industrial heating applications.
Wood Pellet Market Share: By Application Type
Based on the application type, the wood pellet market is segmented as residential, commercial, industrial, and animal bedding. The residential segment held the largest share of the market in 2019. Increasing consumption of wood pellets in North America and major European countries, owing to the growing initiatives to increase dependency on renewable energy sources for reducing carbon emission is the major factor behind the growth of the segment.
Wood Pellet Market Share: By Region
In terms of regions, Europe is estimated to be the largest market during the forecast period, with France, Germany, Russia, and the United Kingdom being the major countries with promising growth opportunities. The growth of the region’s market is mainly driven by the growing initiatives towards replacement of coal-fired power plants with pellet-based power plants, along with the growing focus on renewable energy sources in the region to reduce carbon emissions.