Wood Chips Market Segmentation by Forest Type (Temperate, Tropical, and Boreal Forest); by Raw Material (Pulp Wood, and Residue Wood); by Product Type (Softwood, Hardwood, and Others); by Variety (Forest, Recycled, Wood-Residue); by Application (Pulp Manufacturing, Combined Heat & Power, Household Furnishing, Residential Heating, and Others); by End-Use Industry (Building & Construction, Energy & Power, Paper & Pulp, and Others)-Global Demand Analysis & Opportunity Outlook 2019-2028

Global Wood Chips Market Highlights Over 2019 - 2028

The global wood chips market is estimated to garner a revenue of USD 15500 Million by the end of 2028, by growing at a CAGR of 5.1% over the forecast period, i.e., 2021 – 2028. Moreover, in the year 2019, the market registered a revenue of USD 12000 Million. The growth of the market can primarily be attributed to the growing demand for energy worldwide, and therefore the need for different energy sources, such as wood chips. According to the statistics by the International Energy Agency (IEA), the total final consumption (TFC) of energy across industries, transport, and residential sectors increased from 100763501.0 TJ, 97400377.0 TJ, and 79732329.0 TJ respectively in the year 2009 to 120978863.0 TJ, 120972204.0 TJ, and 87779996.0 TJ respectively. Wood chips are widely used as a fuel source for wood fire cooking as well as for generating electricity. These chips are also used in industries for the production of energy as these chips possess the characteristics of being a uniform fuel and also can be fed directly to the boiler.

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Besides this, the growing demand for wood pulp in the paper industry is also expected to contribute to market growth. The wood chips are mostly derived from residual wood and hence, it helps in preventing the need to cut new trees for different end-use purposes. Additionally, burnt wood chips, which transform into biochar, are widely used as fertilizers in the agricultural industry. Moreover, in recent years, wood pellets have been known to be one of the fastest-growing bioenergy sectors around the globe. According to the statistics by the World Bioenergy Association (WBA), the production of wood pellets around the globe increased from 18.1 Million tonnes in the year 2012 to 38.9 Million tonnes in the year 2019. 

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Global Wood Chips Market Regional Synopsis

Regionally, the global wood chips market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the Asia Pacific region is anticipated to garner the largest revenue of USD 5500 Million by the end of 2028, up from a revenue of USD 3900 Million in the year 2019. The growth of the market in the region can primarily be attributed to the growing demand for energy in the region, especially in the industrial sector, which according to the IEA, grew from 54010228.0 TJ in the year 2009 to 69684429.0 TJ in the year 2019. Additionally, the increasing availability of raw materials required for the production of wood chips is also projected to drive market growth in the coming years. Moreover, the market in the region is segmented by country into China, Vietnam, Japan, Thailand, Indonesia, Malaysia, Australia, and the Rest of Asia Pacific. Out of these, the market in China is projected to display the largest revenue of USD 3500 Million by the end of 2028, up from a revenue of USD 2300 Million in the year 2019. Moreover, the market in Thailand is projected to grow with the highest CAGR of 7% during the forecast period.

Growth Drivers and Challenges Impacting the Growth of the Global Wood Chips Market

Growth Drivers

• Growing Need for Different Energy Generation Sources

• Increasing Use of Wood Chips as Wood Pulp in the Pulp and Paper Industry

Challenges

• Availability of Low-Cost Substitutes

Global Wood Chips Market Segmentation Synopsis

The global wood chips market is segmented by forest type into temperate forest, tropical forest, and boreal forest. Out of these, the temperate forest segment is anticipated to garner the largest revenue of USD 5800 Million by the end of 2028, up from a revenue of USD 4500 Million in the year 2019. By raw material, the market is segmented into pulp wood and residue wood. Out of these, the residue wood segment is projected to grow with the highest CAGR during the forecast period. By product type, the market is segmented into softwood, hardwood, and others. Out of these, the softwood segment is projected to display the largest revenue of USD 8600 Million by the end of 2028. Moreover, by variety, the market is segmented into forest chips, recycled chips, wood-residue chips, and sawing residue chips. Out of these, the forest chips segment is projected to garner the largest revenue of USD 5050 Million by the end of 2028, up from a revenue of USD 4000 Million in the year 2019. By application w.r.t. tree species, the pulp manufacturing segment is projected to display the largest revenue of USD 4100 Million by the end of 2028, and the Poplar species is projected to be used widely during the forecast period. The market is also segmented by end-use industry into building & construction, energy & power, paper & pulp, and others. Out of these, the paper & pulp segment is expected to attain the largest revenue of USD 4700 Million by the end of 2028, up from a revenue of USD 3500 Million in the year 2019.

Key Companies Dominating the Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global wood chips market that are included in our report are American Wood Resources, LLC, Cogent Forest Products Inc., Wood Chips Supply Ltd., Swiss Timber International, New Forests, Midway Limited, Mitsui & Co., Ltd., Marubeni Corporation, and others.

Latest Developments in the Global Wood Chips Market:

• July 19^th, 2021: New Forests announced that it has acquired from Fruit Growers Supply Company the Hilt-Siskiyou Forest, which is a mixed-conifer forest of 156000 acres along the California and Oregon border.

• August 19^th, 2021: Marubeni Corporation announced that Gifu Seino Green Power LLC, which is a joint venture company between Chubu Electric Power Co., Inc. and Marubeni, had started the construction on the 7.5MW wood-fired biomass Godo Biomass Power Plant which is scheduled for operations in March 2023. This power plant would be fueled mainly with unused thinned wood produced in Gifu Prefecture.

Key Reasons to Buy Our Report

• The report covers a detailed analysis comprising market share attained by each market segment and its sub-segments.

• It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis, and challenges that impact market growth.

• The report includes detailed company profiles of the major players dominating the market.

• We use effective research methodologies to calculate the market numbers and provide value-added assessments for overall growth.

• We provide customized reports as per the client's requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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