ALBANY, NY - The production of wood pellets has seen a spike in recent years, thanks to their attributes such as high energy density and ease of production/supply. These qualities of wood pellets have gained significance in the backdrop of tighter emission control norms. Based on these trends, it is expected that the global wood pellets market will rise at a remarkable 14.1% CAGR between 2015 and 2023, by which year the market is expected to touch a value of US$20 billion.
Governments and environmental regulation agencies have stressed on the use of wood pellets as a means to cut back on the high degree of dependence on fossil fuel, especially coal.
Transparency Market Research has released a new market research report titled Wood Pellets Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023. According to the report, the global wood pellets market was valued at $6.26 billion in 2014 ,and is anticipated to reach $20 million by 2023, expanding at a CAGR of 14.1% between 2015 and 2023.
Wood pellets production has increased substantially in the past few years, owing to the stringent emission norms in Europe and North America. High energy density and easy availability are some of the advantages of wood pellets that facilitate their international trade. Efforts to increase the use of renewable technologies for both heat and power generation are expected to provide a major boost to the wood pellets market. Government support in countries such as the U.K., Sweden, China, and South Korea is expected to foster additional growth in the wood pellets market.
Efforts by wood pellets manufacturing companies and public institutions to remove existing growth barriers are expected to be scaled up in the near future. This would induce substantial growth in the wood pellets market in certain regions such as Europe. Furthermore, targets set by the European member states to reduce carbon emissions and build a low carbon economy are anticipated to augment the wood pellets market in Europe. Use of wood pellets as an energy source can provide numerous energy, economic, employment, and environmental benefits.