by Biomass solid fuels are widely adopted in the residential sector for heating purposes owing to their low cost and eco-friendly nature. They offer a cleaner and more sustainable alternative to fossil fuels, thereby playing a vital role in mitigating climate change. Growing emphasis on adoption of renewable energy technologies and stringent environmental regulations to curb carbon emissions are key factors driving demand for biomass solid fuels.
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 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.
The market is expected to witness increased opportunities in the residential and commercial sectors as carbon reduction targets prompt more consumers to switch from fossil fuels to biomass solid fuels for heating and cooking purposes. Advancements in biomass torrefaction technology aid in improving the energy density and handling properties of biomass fuels, making them more viable alternatives.
Technological developments such as integrated gasification combined cycle (IGCC) technology enable more efficient conversion of biomass into solid, liquid, and gaseous fuels. This promotes higher utilization of biomass fuels across various end-use industries.
Market drivers
Stringent environmental regulations pertaining to carbon emissions are compelling industries and households to adopt cleaner fuel sources like biomass solid fuels. Supportive government policies and incentives promoting the use of renewable energy are also boosting market demand. Moreover, biomass solid fuels serve as a cost-effective source of energy compared to oil and liquefied petroleum gas (LPG), thus attracting more consumers.
Current Challenges in Biomass Solid Fuel Market
The Biomass Solid Fuel Market Size is facing challenges like lack of awareness among consumers, availability of cheaper substitutes and high transportation costs. Most consumers are still not aware of the environmental and economic benefits of using biomass fuels. Fossil fuels provide a cheaper alternative despite having negative impact. Transporting bulky biomass over long distances increases the price of biomass fuels. Governments need to promote this sector through subsidies and awareness campaigns to overcome these challenges.
SWOT Analysis
Strength: Biomass is a renewable source of energy. It is carbon neutral as the carbon released during combustion was absorbed during the plant growth.
Weakness: Biomass fuels have low energy density. More fuel volume is required to produce the same amount of energy as coal. Transportation and storage of biomass over long distances increases costs.
Opportunity: Increasing focus on replacing fossil fuels with renewable sources of energy provides opportunities for growth in biomass solid fuel market. New technologies are improving the energy density of biomass fuels.
Threats: Fluctuations in supply of biomass due to changes in agricultural production and weather conditions affect the biomass fuel market. Subsidies for other sources like wind and solar energy can reduce investments in biomass sector.
Geographical Regions of Biomass Solid Fuel Market
In terms of value, the biomass solid fuel market in Asia Pacific region is currently concentrated, with China dominating the market. APAC accounts for over 45% share of the global market value currently led by growing demand from countries like China, India and Indonesia.
The biomass solid fuel market is expected to witness fastest growth in the Asia Pacific region during the forecast period of 2024 to 2030. Emerging economies in Southeast Asia are showing high increase in demand for biomass fuels due to rapid industrialization, urbanization and focus on developing renewable sources of energy. Countries like Vietnam, Thailand and Philippines offer good opportunities for market growth in coming years.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
