North America Wood Pellet Market Size (2024 - 2029)

The North American wood pellet market is poised for growth, driven by increased investment in renewable energy and supportive government policies. Despite challenges such as reduced demand and supply disruptions during the Covid-19 pandemic, the market is expected to expand, particularly in the heating application sector. The demand for carbon-neutral and sustainable fuels presents opportunities, especially as wood pellets may substitute coal-based power generation. The United States leads the market, with government initiatives further propelling its development. However, competition from other renewable energy sources like solar and wind may pose challenges to the market's expansion.

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Market Size of North America Wood Pellet Industry

North America Wood Pellet Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.80 %
Market Concentration Medium

Major Players

North America Wood Pellet Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Wood Pellet Market Analysis

The North American wood pellet market is expected to grow at a CAGR of more than 7.8% from 2022-2027. During the Covid-19 pandemic, due to lockdown and cross-border restrictions led to reduced demand for wood pellets. Further, it also affected the supply of raw materials in North America, resulting negative impact on the supply side of the wood pellet market. The market is expected to grow in a couple of years, such as the rise in the investment in renewable energy solutions in all major countries in North America. Moreover, the government's supportive policies are expected to drive the market during the forecast period. However, higher investment in alternative renewable energy sources such as solar PV and the wind is anticipated to hinder the market's growth during the forecast period.

  • The heating application is expected to dominate the wood pellet market in North America during the forecast period.
  • High demand for carbon neutral and sustainable fuel and wood pellets could replace coal-based power generation. Further, there is a rise in the wood pallet-based power plant in the region, which is expected to provide a significant opportunity for the wood pallets market during the forecast period.
  • The United States has dominated the wood pellet market. The government's supportive policies for the research and development of wood pellets are expected to drive the market in the country.

North America Wood Pellet Industry Segmentation

The Scope of the North America wood pellet market includes:-

Feedstock Type
Heating
Power Generation
Geography
United States
Canada
Rest of North America
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North America Wood Pellet Market Size Summary

The North American wood pellet market is poised for significant growth, driven by increasing investments in renewable energy solutions and supportive government policies across major countries in the region. Despite challenges during the Covid-19 pandemic, such as reduced demand and supply chain disruptions, the market is expected to recover and expand. The heating application sector is anticipated to dominate the market, with wood pellets serving as a carbon-neutral and sustainable alternative to coal-based power generation. The rise of wood pellet-based power plants presents substantial opportunities for market growth. The United States, in particular, leads the market, benefiting from government support for research and development in wood pellet technology.

North America is a key player in the global wood pellet industry, both in production and exports. The region has seen a notable increase in production capacity, particularly in the United States, which is the world's leading exporter of wood pellets. This growth is supported by investments in manufacturing facilities and favorable government policies. The market is moderately fragmented, with key players like Enviva Partners LP, AS Graanul Invest, and Drax Group PLC actively contributing to its development. Initiatives such as environmentally friendly transportation and new production plants further bolster the market's expansion prospects. As awareness of sustainable energy sources grows, the wood pellet market in North America is expected to experience robust growth in the coming years.

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North America Wood Pellet Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD million, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Feedstock Type

      1. 2.1.1 Heating

      2. 2.1.2 Power Generation

    2. 2.2 Geography

      1. 2.2.1 United States

      2. 2.2.2 Canada

      3. 2.2.3 Rest of North America

North America Wood Pellet Market Size FAQs

The North America Wood Pellet Market is projected to register a CAGR of greater than 7.80% during the forecast period (2024-2029)

Enviva Partners LP, AS Graanul Invest, Drax Group PLC, Fram Renewable Fuels LLC and Lignetics Inc. are the major companies operating in the North America Wood Pellet Market.

North America Wood Pellet Report Snapshots

North America Wood Pellet Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)