April 21, 2024

Biomass Solid Fuel Market to Witness Growth due to Increasing Demand for Clean and Sustainable Energy Alternatives

Biomass solid fuels such as wood pellets, wood chips and agriculture residues offer a sustainable and renewable source of energy which emit significantly lower levels of greenhouse gases and other emissions compared to coal and petroleum products. Biofuels have lower ash and sulfur content which reduces corrosion in boilers and pollution. Further, biomass fuels have higher combustion efficiency and energy density which make them suitable for both domestic and large-scale industrial applications in sectors such as power generation, heating and CHP.

The global biomass solid fuel market is estimated to be valued at US$ 302.29 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period from 2024 to 2030.

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. Some of the major opportunities in the market include increasing focus on co-firing biomass with coal which improves efficiency and reduces emissions, rising consumption in emerging economies of Asia and Latin America driven by energy security concerns and climate change policies. Additionally, Global expansion of the market is expected owing to supportive regulatory policies and incentives related to use of renewable energy in countries across Europe, North America, Asia and other regions.

Key players operating in the biomass solid fuel market are mainly focusing on capacity expansion plans, mergers and acquisitions to strengthen their market share. For instance, in 2023, GlaxoSmithKline announced plans to invest $250 million to expand its biomass fuel production facility in the UK. Some of the major opportunities in the market include increasing focus on research and development of advanced biomass boilers and combustion technologies to improve efficiency. Additionally, rising adoption of biomass co-firing in coal power plants along with implementation of carbon reduction policies is expected to drive the global demand.

Market drivers
One of the major drivers for the Biomass Solid Fuel Market Size is the increasing demand for clean and sustainable energy solutions across various end-use sectors. Biofuels offer a viable alternative to fossil fuels and help reduce dependence on imported oil & gas. Further, supportive government policies and incentives related to use of renewable sources of energy are promoting higher penetration of biomass fuels. For example, European Union’s renewable energy directive has set a binding target of 32% final energy consumption from renewable sources by 2030, which is positively impacting the growth of solid biomass fuels in the region.

PEST Analysis
Political: Governments across various countries are promoting the use of biomass solid fuel by offering subsidies and tax benefits. Some governments have also introduced emission norms to regulate air pollution from biomass burning.
Economic: Rising demand for cost-effective heating solutions from industrial and residential sectors is a key driver of biomass solid fuel market. Price volatility of fossil fuels also makes biomass solid fuel an economically viable alternative.
Social: There is a growing environmental consciousness among people regarding use of renewable and cleaner sources of energy. Adoption of biomass solid fuel helps reduce reliance on fossil fuels and lower carbon footprint.
Technological: New combustion technologies have improved efficiency of biomass solid fuel. Advanced pellet stoves and furnaces ensure cleaner and more controlled burning with reduced emissions. Auto-feed technologies also provide convenience in biomass fuel usage.

Geographical regions with high market concentration
The biomass solid fuel market in Europe accounts for the largest share in terms of value currently. Countries like Germany, Italy, France and UK have extensive demand from both residential and industrial sectors. Availability of feedstock and government support for biomass energy makes Europe highly lucrative.

Fastest growing region
The Asia Pacific region is poised to grow at the fastest pace during the forecast period for the biomass solid fuel market. Rapid industrialization and urbanization along with rising living standards is driving the need for heating solutions. Many countries like China, India and Japan have announced targets for renewable energy and are promoting biomass utilization.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it