Latest News- Wood Pellets Market: Residential is expected to lead the End-user segment during 2025-2029

The Wood Pellets Market is being driven by Stringent regulations on CO2 emissions

The Wood Pellets Market is expected to grow at a CAGR of 9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 7162.2 million. In the global energy landscape, coal has traditionally held a substantial market share for power generation. However, the shift towards cleaner fuels and renewable energy sources is gaining momentum, posing a significant challenge to coal power. China, a leading coal-producing nation, recently announced the cancellation of 103 coal power projects, representing a potential loss of 120 GW in cumulative installed capacity. This decision underscores the growing preference for renewable energy sources, such as wood pellets, which will likely assume a more prominent role in meeting the world's energy demands, particularly in power generation and heating applications. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on segments_for_ai.nslist

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Stringent regulations on CO2 emissions
• Increasing use of bioenergy
• Regulations for using bioenergy and modern heating systems

However, the market also witnesses some limitations, which are as follows:

• Installation requirement for biomass boiler and feedstock storage
• Change in energy mix
• Availability of alternative fuel/energy sources

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Market Scope in Wood Pellets Market Research Report

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Research Analysis Overview

The Wood Pellets Market encompasses various players including lumber producers, wood dealers, loggers, and paper and sawmills. Feedstock sources for wood pellets include lumber production residuals, mill residuals, agricultural residue, and wood waste. Private landowners and forest managers also contribute through the harvesting of trees and biomass. Renewable energy sector's power boilers are significant consumers, with co-firing an option for natural gas reduction. Carbon-neutral wood pellets derived from sawmill residues, Eucalyptus wood, and fire-damaged trees are gaining popularity. Transportation costs are a challenge, but the shift towards renewable energy offsets this. Wood pellets can be co-fired with fossil fuels or chlorine-free biomass, making them a viable alternative to natural gas. However, the availability and sustainability of feedstock sources remain crucial concerns. Mountain pine beetle-damaged trees and biomass from agricultural residue and sawmill waste are potential solutions.

Market Research Overview

The global forest products market encompasses various categories, including industrial roundwood, sawnwood, wood-based panels, fiber furnish, wood fuel, charcoal, and pellets. According to Technavio's market analysis, the market's growth is attributed to the rising adoption of wood pellets and pallets. These eco-friendly alternatives are gaining traction among industries due to their cost-effectiveness, reusability, and environmental sustainability. Key sectors, such as food and beverage, are increasingly utilizing wooden pallets for their natural bacteria absorption properties. Additionally, private landowners, loggers, mill residuals, and wood dealers contribute significantly to the forest products value chain.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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