Wood Pellet Market Size to Reach USD 17.95 Billion by 2030, Growing at 7.13% CAGR | Rising Demand for bio-based energy sources

A recently released report by Mordor Intelligence analyzes the "Wood Pellet Market," highlighting key developments, market growth, and expected trends through 2030.

Wood Pellet Market is projected to grow steadily over the next five years, reflecting increasing global adoption of sustainable and renewable energy solutions. Valued at USD 12.72 billion in 2025, the market is expected to reach USD 17.95 billion by 2030, registering a compound annual growth rate (CAGR) of 7.13%.

Rising demand for eco-friendly heating systems, government incentives supporting renewable energy, and the shift toward biomass-based power generation are major factors fueling this growth. As both developed and emerging economies prioritize carbon reduction strategies, wood pellets are gaining traction as a reliable, cost-effective, and low-emission energy source across residential, commercial, and industrial applications.

Explore the full report for in-depth insights and market forecasts: https://www.mordorintelligence.com/industry-reports/wood-pellet-market?utm_source=openpr

Key Trends in the Wood Pellet Market

One of the most notable trends shaping the Wood Pellet Market Growth is the rising demand for renewable and bio-based energy sources. With governments worldwide setting ambitious decarbonization targets, wood pellets are increasingly being positioned as a sustainable fuel alternative for power generation and domestic heating.

Another important trend is the expansion of biomass-based power plants, particularly across Europe and Asia-Pacific. These regions are actively promoting bioenergy projects, and wood pellets play a central role due to their high calorific value and lower greenhouse gas emissions compared to coal.

The rising emphasis on waste-to-energy practices is also fueling market adoption. Manufacturers are leveraging sawdust, wood chips, and other by-products from the lumber and furniture industries to produce pellets, creating a circular economy model while reducing raw material waste.

Additionally, technological improvements in pellet production and handling equipment are enhancing efficiency and storage capabilities. This development is making pellets more accessible for small-scale consumers, such as households, as well as large-scale industrial users.

Stay ahead of the curve with global and localized reports-now available with detailed coverage of the Japanese market: https://www.mordorintelligence.com/ja/industry-reports/wood-pellet-market?utm_source=openpr

Market Segmentation of the Wood Pellet Market

By Application

Power Generation: A leading segment, driven by policies aimed at reducing coal dependency and encouraging renewable energy usage.

Residential Heating: Growing demand for heating systems that are affordable, sustainable, and easy to operate is expanding pellet consumption in households.

Commercial Heating: Hotels, hospitals, and public institutions are adopting wood pellets for cost savings and eco-friendly energy solutions.

Combined Heat and Power (CHP): Increasing deployment of biomass-based CHP plants boosts demand for wood pellets in industrial sectors.

Explore More on Competitive Landscape and Details: https://www.mordorintelligence.com/industry-reports/wood-pellet-market/companies?utm_source=openpr

Key Players in the Wood Pellet Market

The competitive landscape of the Wood Pellet Market Share is characterized by established global players and regional producers focusing on expanding their production capacities and export reach. Companies are investing in advanced processing technologies and building long-term supply contracts to secure market presence.

Major players in the industry include:

>Enviva Inc.
>Drax Group plc
>Lignetics
>Pinnacle Renewable Energy
>German Pellets GmbH
>Energex Pellet Fuel Inc.
>Stora Enso

These companies are actively engaged in partnerships, acquisitions, and sustainability initiatives to enhance their market positioning. Their strategies often involve scaling production facilities and ensuring a consistent supply chain to meet growing international demand, especially from European and Asian markets.

Explore details on Energy and Power Industry Research: https://www.mordorintelligence.com/market-analysis/energy-power?utm_source=openpr

Conclusion

The Wood Pellet Market is steadily advancing as a vital contributor to global renewable energy goals. Increasing environmental awareness, combined with supportive government regulations, is driving widespread adoption across residential, commercial, and industrial sectors. With Europe maintaining its position as the largest consumer and Asia-Pacific emerging as the fastest-growing market, opportunities are abundant for both established and new players.

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For any inquiries or to access the full report, please contact:
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https://www.mordorintelligence.com

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This release was published on openPR.