Market Overview:
Wood Chips Market Size Was Valued at USD 8.49 Billion in 2022, and is Projected to Reach USD 15.48 Billion by 2030, Growing at a CAGR of 7.8% From 2023-2030.
Small to medium-sized pieces of wood, such as branches, trees, stumps, and debris from forestry operations are turned into woodchips by cutting or chipping bigger pieces of wood. Woodchips are the raw material for making wood pulp and can be used as a biomass solid fuel. They can be utilized as a substrate for the growth of mushrooms as well as an organic mulch for landscaping, gardening, and ecosystem restoration. Using a wood chipper, the process of creating woodchips is known as wood chipping. The kind of wood chipper utilized and the substance used to make the chips determine what kind of woodchips are produced after chipping. Forest chips are made from forested areas, while wood residue chips are made from off-cuts, recycled wood, and untreated wood residues.
Top Key Players Covered in The Wood Chips Market:
- St. Boniface Pallet
- American Wood Resources
- Axpo Group
- Great Northern Timber
- EVOWORLD GmbH
- Mitsui & Co., Ltd.
- Cogent Fibre
- Enviva Pellets
- Oji Holdings
- Orsted A/S
- Sojitz Corporation
- Verdo A/S and Other Major Players
Market Dynamics and Factors:
The most important factor driving demand for wood chips is an increase in demand from the pulp industry. Wood chips are used to manufacture pulp, which is subsequently burned to produce biochar, also known as charcoal. Furthermore, the rising need for renewable energy generation leads to market expansion. As conventional energy sources deplete, the rising usage of renewable energy sources such as biomass is boosting the wood chips industry. Increased demand for wood chips in the pulp industry, where wood chips are used as a raw material to make pulp, is also driving the growth of the wood chips market. When wood chips are burned, biochar, also known as charcoal, is produced. It can be burned as charcoal or used as fertilizer in the soil. During the projected period, this is also expected to drive the wood chips market. Wood chip boilers are one of the key technologies, although there are already 0.7 million small-scale biomass boilers sold in Europe each year. By 2020, it is anticipated that number would climb to 1.6 million. The fuel feeding methods used with these wood chip boilers continue to be a significant weak point. They cause 80 to 90 percent of unforeseen plant shutdowns, more emissions, and lower efficiency. Additionally, discharge from the bottom predominates in currently used feeding systems, which has the drawbacks of requiring large constructions, wearing down equipment more quickly, complicating maintenance, and having high operating expenses.
The Wood Chips Market Report Highlight:
- By Product Type, the softwood segment is anticipated to dominate the wood chips market over the forecast period. The segment is anticipated to grow throughout the predicted period because of increased demand for items like garden pulp and other uses like playground surfaces.
- By Raw materials, forest chips are expected to hold the maximum market share over the forecast period. Log chips made from stem wood make up forest chips. Chips are made entirely from the biomass found above ground in a tree. chipping up leftover wood from branches, rubbish, etc.
- By Region, Asia Pacific economies, notably China and Japan, are experiencing an increase in demand for these chips in the commercial energy generation sector, which is boosting the regional market. The inclusion of precondition constraints in the Renewable Energy Directive 2 (RED 2) and the existence of GHG emission criteria in developing nations together are likely to promote market expansion.
Key Industry Development:
In August 2021, the 7.5MW wood-fired biomass Godo Biomass Power Plant, which is slated to begin operations in March 2023, is being built, according to a report from Marubeni Corporation, a joint venture business between Chubu Electric Power Co., Inc. and Marubeni. The majority of the wood waste produced in Gifu Prefecture would be used to fuel this power plant.
The Wood Chips Market Segmentation:
By Product Type
- Softwood
- Hardwood
By Raw Material
- Forest Chips
- Wood Residue Chips
- Sawing Residue Chips
- Short Rotation Coppice Chips
By Application
- Combined Heat and Power
- Residential and Commercial Heating
- Playground Surfacing
- Pulp Manufacturing
- Mulch
For this report, Introspective Market Research has segmented the Wood Chips Market based on region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)
North America
- The U.S.
- Canada
- Mexico
Eastern Europe
- Russia
- Bulgaria
- The Czech Republic
- Hungary
- Poland
- Romania
- Rest of Eastern Europe
Western Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Western Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
