Wood Chips Market: Global Industry Analysis and Forecast 2022-2029

Wood Chips Market is anticipated to reach US$ 14.67 Bn by 2029 from US$ 6.79 Bn in 2021 at a CAGR of 10.1% during a forecast period.
Wood Chips Market Overview
Wood chips are small-to-medium-sized wood pieces created by cutting and chipping large pieces of wood such as trees, logging leftovers, branches, roots, stumps, and wood trash. Depending on the kind of wood chip processing, each chipper has a different purpose. Residual forest resources, such as tree branches, treetops, unsaleable materials, or undersized trees, can also be used to make wood chips. Degrading bioreactors, orchards, and gardens are frequently constructed with woodchips.To know about the Research Methodology :- Request Free Sample Report
Wood Chips Market Dynamics
The wood chip on the energy market begins to shift substantially with the introduction of several major projects that may create new supply markets. In small plants, usually little more than 20MW in size, wood chips are utilized throughout Europe for electricity and heat generating. Also, the increase in the use of renewable energy sources such as biomass as a result of the depletion of traditional energy sources promotes the market in wood chips. Increased demand for pulp chips in wood chips is also increasing in the pulp market, with wood chips being used as a raw material to create pulp.

In addition, market growth is expected to be driven by increased usage of the product for domestic heating solutions, primarily in Europe and North America. The market is likely to benefit from rising demand for generating thermal energy from renewable and green feedstock products. Wood chips have a high energy coefficient, allowing them to meet high demand throughout the forecast period.

Restraints: The wood chips market is likely to be hampered by the requirement for sustainability-related certifications and limitations imposed on GHG emissions from wood chips when used for energy generation. In addition, the growing use of wood pellets for power production in the residential and commercial sectors may limit the growth of the wood chips market during the forecast period.
Wood Chips Market Segmentation Analysis
By Product, Softwood dominated the market in 2021, with an xx percent share, and this trend is expected to continue during the forecast period. During the forecasted period, higher demand for products like garden pulp and other applications like playground surfaces is expected to boost the segment. The high carbon content of hardwood products is expected to boost demand throughout the forecast period.

By Application, The combined Heat and Power segment is expected to grow at a faster pace during the forecast period. Demand for the product as a fuel in combined heat and power applications is expected to surge in the forecast period. Residential heating is one of the product's most common applications, however owing to the extensive use of pellets for interior heating, its development is likely to be constrained. Because of their exceptional water-absorbing capabilities and cheap product prices, wood chips are expected to become more popular as garden mulch.
Wood Chips Market Regional Insights
The Asia Pacific market is expected to account for xx% of revenue in the global market. This is linked to the growing use of wood chips for domestic heating in the region's countries. A large pipeline of biomass projects is being developed in Japan, thanks to the Feed-in-Tariff subsidy system. Japan is one of the world's major exporters of wood chips for pulp and paper, is expected to boost its usage of wood chips for energy generation in the country.

Furthermore, the North American market is expected to have the second-highest revenue share in the global market. In Europe and North America, stringent restrictions are expected to raise demand for wood chips. Wood chips have long been utilized in small-scale (20MW) facilities in Europe to generate heat and power. Locally grown wood is utilized to create heat the majority of the time in Europe.
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Global Wood Chips Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 6.79 Bn.


Forecast Period 2022 to 2029 CAGR:
10.1%
Market Size in 2029:
US $ 14.67 Bn.


 Segments Covered:
by Product
• Softwood
• Hardwood


by Application
• Combined Heat and Power (CHP)
• Household Furnishing
• Residential Heating
• Playground Surfacing
• Barbecue
• Mulch
• Bio Reactors and Fuel


by Variety Type
• Forest Chips
• Recycled Chips
• Wood Residue Chips
• Sawing Residue Chips


by Raw Material
•Pulp Wood
• Residue Wood



Wood Chips Market by Region
• North America
• Asia pacific
• Europe
• Middle East and Africa
• South America
Wood Chips Market Key Players are:
• Cogent Fibre
• Enviva Pellets
• St. Boniface Pallet
• American Wood Resources
• EVOWORLD GmbH
• Boniface Pallet Company Ltd
• Mitsui & Co., Ltd.
• Oji Holdings
• Orsted A/S
• Sojitz Corporation
• Verdo A/S
• Axpo Group
• Rentech
• Chip Chip
• Great Northern Timber
Frequently Asked Questions
1. What is the projected market size & growth rate of the Global Wood Chips Market?

Ans- Wood Chips Market was valued at USD 6.79 billion in 2021 and is projected to reach USD 14.67 billion by 2029, growing at a CAGR of 10.1% during the forecast period.

2. What are the key driving factors for the growth of the Global Wood Chips Market?

Ans- Market growth is expected to be driven by increased usage of the product for domestic heating solutions, primarily in Europe and North America. The market is likely to benefit from rising demand for generating thermal energy from renewable and green feedstock products. Wood chips have a high energy coefficient, allowing them to meet high demand throughout the forecast period.

3. Which region accounted for the largest Global Wood Chips Market share?

Ans- The Asia Pacific market is expected to account for xx% of revenue in the global market. This is linked to the growing use of wood chips for domestic heating in the region's countries. A large pipeline of biomass projects is being developed in Japan, thanks to the Feed-in-Tariff subsidy system.

4. What makes North America a Lucrative Market for Global Wood Chips Market?

Ans- the North American market is expected to have the second-highest revenue share in the global market. In North America, stringent restrictions are expected to raise demand for wood chips.

5. What are the top players operating in the Global Wood Chips Market?

Ans- The major players operating in the Wood Chips market include Cogent Fibre, EVOWORLD GmbH, Enviva Pellets, St. Boniface Ballet, American Wood Resources, and Boniface Pallet Company Ltd.