The biomass solid fuel market involves products derived from various organic materials such as wood residues, agricultural residues, and waste from forest residue and by-products of harvest and processing. Biomass solid fuels including wood pellets are considered as carbon-neutral and renewable source of energy. They are a sustainable alternative to fossil fuels like coal and help reduce dependence on imported oil. This is driving the need for biomass solid fuels across various end-use industries such as residential sector, power & heat generation, and commercial & institutional.
The global biomass solid fuel market size is estimated to reach USD 302.29 billion by 2024 from US$ 223.1 billion in 2019, exhibiting a CAGR of 7.6% during the forecast period.
Key Takeaways
Key players operating in the biomass solid fuel market are Sanofi, Pfizer, GlaxoSmithKline, Merck, AstraZeneca, Johnson & Johnson, F. Hoffmann-La Roche, Novartis, Cipla, Gilead Sciences. These players are focusing on expanding their production facilities and capacities to cater to the growing demand for biomass solid fuels.
There is a significant potential for biomass solid fuel production from agricultural and forest residues across many countries. Government incentives and policies promoting the use of renewable energy sources present key opportunities in the market. Additionally, renewable portfolio standards and clean energy directives by various nations will further drive the adoption of biomass solid fuels.
The major players are exploring opportunities in developing economies through partnerships, acquisitions, and by setting up production facilities. For instance, Danish firms like DONG Energy are investing in large scale wood pellet manufacturing facilities in the US to export pellets to European markets.
Market drivers: Increasing investments in renewable power generation coupled with supportive regulatory policies driving the switch from fossil fuels to green alternatives is a key market driver. Also, biomass solid fuels help reduce reliance on energy imports.
Market restraints: High capital investment requirement for establishing biomass pellet manufacturing plants, coupled with transportation and logistical challenges of handling bulky biomass materials can negatively impact market growth. Seasonal fluctuations in biomass availability is another restraint.
Segment Analysis
The Biomass Solid Fuel Market Size is dominated by wood pellets sub segment due to increasing focus on cleaner forms of biomass. Wood pellets account for over 35% of total biomass solid fuel market share owing to easy availability and processing of wood for pellets. Agriculture residue pellets such as wheat straw, rice husk and bagasse pellets are also gaining popularity among industries and power generators as these address dual challenges of farm waste management and renewable energy production.
Global Analysis
The APAC region accounts for the largest share in the global biomass solid fuel market currently. China, India and Japan collectively contribute over 50% of biomass solid fuel demand led by strong policy push for renewable and decarbonization of power and industrial sectors. Europe is the second largest market driven by well established biomass power policies in countries like UK, Germany and Italy. North America market is majorly concentrated in U.S and Canada and is expected to witness higher rate of growth during forecast period due to power utilities gradually replacing coal with biomass fuels. Growth will also be significant in other developing regions of Latin America and Middle East & Africa.
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