Biomass Fuel (PKS) Market Size, Share, Growth, and Industry Analysis, By Type (Bulk Biomass Briquette,Biomass Pellet), By Application (Residential,Commercial,Industrial), Regional Insights and Forecast to 2035

Biomass Fuel (PKS) Market Overview

The global Biomass Fuel (PKS) Market size is projected to grow from USD 517.56 million in 2026 to USD 558.66 million in 2027, reaching USD 1090.71 million by 2035, expanding at a CAGR of 7.94% during the forecast period.

The Biomass Fuel (PKS) Market is witnessing significant transformation in 2025 as demand for renewable energy continues to accelerate. Palm Kernel Shell (PKS), a by-product of palm oil production, has become one of the fastest-growing biomass fuels worldwide. Global biomass fuel (PKS) consumption volume is estimated at more than 45 million tons in 2025, with briquettes and pellets accounting for nearly 80% of this volume. The remaining 20% is distributed among raw shells, biochar, and other specialized fuel formats. Industrial use dominates the market with approximately 54.9% of PKS utilization tied to power plants and industrial heating. The residential sector accounts for about 18%, while commercial applications represent roughly 27%. The global supply chain is heavily concentrated in Southeast Asia, particularly in Indonesia and Malaysia, which collectively produce more than 70% of global PKS volume each year. Export volumes from these two countries exceed 20 million tons annually, making them the largest contributors to international PKS trade. Japan remains the world’s largest importer of PKS, with import volumes surpassing 670,000 tons per month in early 2025, representing a 21% year-on-year increase. Other leading importers include South Korea, China, and several European nations that use PKS as a substitute for coal in power generation. With rising environmental concerns, the demand for PKS certified under green and sustainable standards has surged, now accounting for approximately 30% of global traded PKS volumes.

The USA Biomass Fuel (PKS) Market is gradually scaling up, with 2025 volumes estimated at nearly 5 million tons annually. Imports are primarily sourced from Indonesia and Malaysia, representing about 90% of U.S. supply, as domestic PKS production is negligible due to the absence of palm oil plantations. In the U.S., more than 55% of PKS utilization is tied to co-firing in coal power plants and biomass power stations. Industrial heating accounts for roughly 30%, while the remaining 15% is distributed across commercial heating and residential biomass stoves. The U.S. energy transition policies are driving stronger demand, especially in states with strict carbon emission targets such as California, New York, and Massachusetts. The U.S. has invested in pelletizing and drying technologies to handle imported PKS, with more than 12 dedicated processing facilities operational in 2025. Import tonnage is steadily rising at a rate of 10–15% per year, reflecting growing confidence in PKS as a long-term renewable fuel. The market value is estimated to surpass USD 190 million in 2025, with infrastructure improvements around port facilities in Houston, New Orleans, and Los Angeles ensuring efficient unloading and distribution.

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Key Findings

• Driver: Around 55% of global PKS demand is driven by government renewable energy mandates and co-firing requirements in power plants.
• Major Market Restraint: Logistics and transportation challenges affect about 30% of global PKS shipments, leading to cost escalation.
• Emerging Trends: Approximately 45% of new PKS imports are in pelletized form; certified green PKS accounts for 30% of volumes.
• Regional Leadership: Asia-Pacific contributes nearly 45% of global PKS consumption, with East Asia holding a 27.1% share.
• Competitive Landscape: The top five companies together control approximately 25% of the global PKS supply chain.
• Market Segmentation: Briquettes and pellets dominate with 80% market volume, leaving 20% for raw and other forms.
• Recent Development: Japanese imports hit a monthly high of 670,000 tons in March 2025, reflecting a 21% annual growth rate.

Biomass Fuel (PKS) Market Trends

The Biomass Fuel (PKS) Market Trends in 2025 emphasize supply chain efficiency, renewable adoption, and sustainability certification. Industrial demand remains the largest growth engine, with power generation accounting for over 54.9% of PKS usage worldwide. Utilities in Japan, South Korea, and Europe are transitioning coal-fired plants to co-fire with PKS, reducing carbon footprints by 20–30% per unit of energy. Another major trend is the increasing shift toward pelletized PKS. In 2025, nearly 45% of traded PKS is pelletized, up from 32% in 2023, as pellets offer higher energy density and lower transportation costs. This shift is also tied to improved handling in automated feeding systems used in power stations. Certification and sustainability are also shaping demand. Approximately 30% of international PKS shipments are now certified under sustainability schemes, a figure expected to grow rapidly due to strict regulations in Europe and Japan. Market trends also highlight regional diversification.

While Indonesia and Malaysia still supply more than 70% of the global PKS trade, Vietnam and Thailand have grown their export share by nearly 15% combined in 2025. This helps mitigate supply risk and provides buyers with alternatives. Technological advancements in processing are enabling moisture content reductions of up to 25%, improving calorific values and combustion efficiency. Companies investing in drying, briquetting, and pelletizing equipment are achieving fuel energy values as high as 4,000 kcal/kg, compared to 3,200 kcal/kg for untreated PKS. On the demand side, Japan’s record monthly import volume of 670,000 tons in March 2025 shows how large utilities are relying on PKS for long-term fuel security. Similarly, South Korea imported more than 500,000 tons in Q1 2025, reflecting a growing appetite. Europe follows closely, with imports exceeding 8 million tons annually, largely for co-firing applications in Germany, the Netherlands, and the UK. These trends illustrate a dynamic shift where PKS is no longer viewed as agricultural waste but as a mainstream renewable energy source. Rising demand, improved certification, and new processing technologies are creating favorable conditions for rapid adoption.

Biomass Fuel (PKS) Market Dynamics

DRIVER

"Rising demand for renewable power generation."

Global consumption of biomass fuel (PKS) is fueled by power plants aiming to reduce coal usage. In 2025, more than 54.9% of PKS demand comes from electricity generation. This transition is supported by policy mandates in over 40 countries that require biomass integration into the energy mix. Co-firing PKS with coal can cut emissions by up to 30%, making it a practical solution for utilities.

RESTRAINT

"High transportation and logistics costs."

Transportation accounts for nearly 25–30% of total PKS costs, especially for exports from Southeast Asia to Europe and North America. Shipping constraints, container shortages, and port handling charges create bottlenecks. Moisture sensitivity also raises costs, as improper handling leads to degradation of about 5–10% of stored volumes annually.

OPPORTUNITY

"Growth in certified sustainable PKS."

Sustainability certifications already account for 30% of global trade volumes. With Europe mandating renewable energy sourcing from certified feedstock, suppliers have a massive opportunity to upgrade supply chains. By 2027, certified PKS volumes are projected to exceed 60% of the market, opening new opportunities for suppliers in Southeast Asia.

CHALLENGE

"Supply concentration in Southeast Asia."

Over 70% of PKS supply originates from Indonesia and Malaysia. This heavy concentration poses risks of disruption from climate issues, policy restrictions, or export regulations. Diversifying supply through Vietnam, Thailand, and Africa is necessary, yet these regions collectively account for less than 20% of exports, leaving the market exposed to fluctuations.

Biomass Fuel (PKS) Market Segmentation

The Biomass Fuel (PKS) Market Segmentation is primarily classified by type and application.

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BY TYPE

Bulk Biomass Briquette: make up about 35% of global PKS volumes in 2025. They are widely used for industrial heating and small-scale boilers. Briquettes have a calorific value ranging from 3,200 to 3,800 kcal/kg, and their low ash content makes them suitable for cleaner combustion. Annual briquette production exceeds 15 million tons globally, with Southeast Asia supplying nearly 70%.

The Bulk Biomass Briquette segment in the Biomass Fuel (PKS) market is valued at USD 276.5 million in 2025, projected to reach USD 545.3 million by 2034, growing at a 7.91% CAGR.

Top 5 Major Dominant Countries in the Bulk Biomass Briquette Segment

• China dominates with a USD 68.2 million share in 2025, expected to grow to USD 134.5 million by 2034, reflecting a 7.95% CAGR.
• India holds a USD 54.6 million market in 2025, expanding to USD 107.2 million by 2034, achieving a 7.92% CAGR.
• Indonesia controls USD 41.3 million in 2025, projected to rise to USD 81.5 million by 2034, marking a 7.94% CAGR.
• Japan contributes USD 36.8 million in 2025, expected to advance to USD 72.5 million by 2034, with a 7.90% CAGR.
• Germany secures USD 30.5 million in 2025, increasing to USD 59.9 million by 2034, maintaining a 7.89% CAGR.

Biomass Pellet: dominate the segment with around 45% share of global PKS usage. Pelletized PKS achieves energy densities up to 4,000 kcal/kg and occupies less storage volume, reducing logistics costs by nearly 20% compared to raw shells. More than 20 million tons of pellets are traded internationally every year, particularly to Japan and Europe.

The Biomass Pellet segment in the Biomass Fuel (PKS) market is valued at USD 231.7 million in 2025, projected to reach USD 465.1 million by 2034, with a 7.97% CAGR.

Top 5 Major Dominant Countries in the Biomass Pellet Segment

• United States leads with USD 58.6 million in 2025, expanding to USD 117.2 million by 2034, sustaining a 7.96% CAGR.
• United Kingdom captures USD 46.9 million in 2025, projected to grow to USD 94.1 million by 2034, with a 7.95% CAGR.
• South Korea holds USD 42.8 million in 2025, forecasted to rise to USD 85.9 million by 2034, reaching a 7.97% CAGR.
• Malaysia records USD 39.2 million in 2025, increasing to USD 78.9 million by 2034, showing a 7.98% CAGR.
• France accounts for USD 35.7 million in 2025, rising to USD 71.8 million by 2034, with a 7.96% CAGR

BY APPLICATION

Residential: use accounts for 18% of PKS consumption, mostly in pellet stoves and small boilers. Around 8 million households globally are estimated to use PKS-based fuel.

The Residential application of Biomass Fuel (PKS) is valued at USD 156.4 million in 2025, reaching USD 310.8 million by 2034, growing at a 7.92% CAGR.

Top 5 Major Dominant Countries in the Residential Application

• Germany holds USD 38.5 million in 2025, projected at USD 76.4 million by 2034, maintaining a 7.91% CAGR.
• France contributes USD 31.2 million in 2025, increasing to USD 61.8 million by 2034, reflecting a 7.93% CAGR.
• United States secures USD 29.6 million in 2025, expected to reach USD 58.7 million by 2034, achieving a 7.94% CAGR.
• Italy records USD 28.1 million in 2025, forecasted to hit USD 55.9 million by 2034, showing a 7.92% CAGR.
• United Kingdom accounts for USD 29.0 million in 2025, projected at USD 57.8 million by 2034, with a 7.91% CAGR.

Commercial: segment holds about 27% market share, with hotels, institutions, and district heating plants adopting PKS fuel. Demand exceeds 10 million tons annually, with Europe and Japan leading consumption.

The Commercial application is valued at USD 168.2 million in 2025, reaching USD 334.7 million by 2034, expanding at a 7.93% CAGR.

Top 5 Major Dominant Countries in the Commercial Application

• China leads with USD 41.5 million in 2025, projected to expand to USD 82.5 million by 2034, sustaining a 7.92% CAGR.
• India secures USD 37.2 million in 2025, expected to hit USD 74.0 million by 2034, maintaining a 7.94% CAGR.
• United States holds USD 33.6 million in 2025, forecasted at USD 66.9 million by 2034, with a 7.93% CAGR.
• Japan contributes USD 29.4 million in 2025, growing to USD 58.6 million by 2034, showing a 7.91% CAGR.
• South Korea secures USD 26.5 million in 2025, projected to rise to USD 52.8 million by 2034, achieving a 7.92% CAGR.

Industrial: applications dominate with 54.9% share, mainly for power plants and large heating facilities. Annual industrial usage exceeds 25 million tons globally, making it the backbone of PKS demand.

The Industrial application of Biomass Fuel (PKS) is valued at USD 183.6 million in 2025, projected to hit USD 364.9 million by 2034, with a 7.95% CAGR.

Top 5 Major Dominant Countries in the Industrial Application

• Indonesia dominates with USD 45.2 million in 2025, forecasted to reach USD 89.7 million by 2034, at a 7.94% CAGR.
• Malaysia secures USD 39.8 million in 2025, projected at USD 79.0 million by 2034, with a 7.93% CAGR.
• Japan records USD 35.1 million in 2025, expected to hit USD 69.5 million by 2034, marking a 7.92% CAGR.
• China holds USD 32.6 million in 2025, projected to increase to USD 64.4 million by 2034, reflecting a 7.95% CAGR.
• South Korea contributes USD 30.9 million in 2025, reaching USD 61.3 million by 2034, sustaining a 7.94% CAGR.

Biomass Fuel (PKS) Market Regional Outlook

The Biomass Fuel (PKS) Market Outlook varies significantly by region. North America is growing steadily with imports rising by over 10% annually. Europe remains a critical demand hub, accounting for more than 30% of global imports. Asia-Pacific leads in both supply and consumption, contributing nearly 45% of market share. The Middle East & Africa represent emerging opportunities, with biomass adoption rates growing at 12–15% annually as nations diversify their energy mix.

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NORTH AMERICA

represents approximately 12% of global PKS demand in 2025. The U.S. consumes more than 5 million tons annually, while Canada contributes another 1.2 million tons. Imports from Southeast Asia dominate, accounting for nearly 90% of North American supply. PKS is used for co-firing in power plants, where it substitutes 15–20% of coal volumes. Biomass adoption in district heating facilities in Canada adds to demand, particularly in provinces like Ontario and Quebec. Port infrastructure upgrades in Houston and Vancouver are enabling higher import capacity, with annual growth in PKS shipments at 12%.

The North America Biomass Fuel (PKS) market is valued at USD 121.4 million in 2025, projected to reach USD 241.7 million by 2034, expanding at a 7.93% CAGR.

North America - Major Dominant Countries in the Biomass Fuel (PKS) Market

• United States leads with USD 72.9 million in 2025, expected to hit USD 145.2 million by 2034, with a 7.92% CAGR.
• Canada secures USD 24.7 million in 2025, increasing to USD 49.3 million by 2034, sustaining a 7.94% CAGR.
• Mexico records USD 12.6 million in 2025, reaching USD 25.1 million by 2034, maintaining a 7.93% CAGR.
• Cuba holds USD 6.4 million in 2025, growing to USD 12.8 million by 2034, with a 7.92% CAGR.
• Costa Rica contributes USD 4.8 million in 2025, expected to expand to USD 9.5 million by 2034, achieving a 7.93% CAGR.

EUROPE

is one of the largest importers, accounting for over 30% of global PKS trade. Annual imports surpass 8 million tons, with Germany, the Netherlands, and the UK as primary buyers. PKS fuels nearly 1,500 MW of installed co-firing capacity in Europe. Regulations requiring renewable sourcing ensure that 60% of PKS used in Europe is already certified. Demand in Europe is forecast to rise as coal plants are converted to biomass facilities, driving incremental annual imports by more than 500,000 tons.

The Europe Biomass Fuel (PKS) market is valued at USD 148.9 million in 2025, projected at USD 296.6 million by 2034, expanding at a 7.94% CAGR.

Europe - Major Dominant Countries in the Biomass Fuel (PKS) Market

• Germany dominates with USD 45.6 million in 2025, expected to reach USD 90.8 million by 2034, with a 7.92% CAGR.
• France secures USD 36.3 million in 2025, forecasted to rise to USD 72.3 million by 2034, reflecting a 7.93% CAGR.
• United Kingdom contributes USD 30.5 million in 2025, expanding to USD 60.7 million by 2034, at a 7.91% CAGR.
• Italy records USD 26.8 million in 2025, projected to hit USD 53.4 million by 2034, with a 7.94% CAGR.
• Spain holds USD 22.1 million in 2025, increasing to USD 44.2 million by 2034, maintaining a 7.95% CAGR.

ASIA-PACIFIC

dominates the Biomass Fuel (PKS) Market, holding 45% of global consumption. Japan leads the region, importing 670,000 tons per month, with total annual volumes exceeding 8 million tons. South Korea follows with over 500,000 tons imported in Q1 2025. China’s PKS demand is rising, with annual usage approaching 6 million tons, largely for industrial boilers. Southeast Asia remains the key supply hub, with Indonesia and Malaysia exporting over 20 million tons annually. Vietnam and Thailand are emerging exporters, contributing a combined 15% share in 2025.

The Asia Biomass Fuel (PKS) market is valued at USD 176.5 million in 2025, projected to hit USD 352.6 million by 2034, sustaining a 7.94% CAGR.

Asia - Major Dominant Countries in the Biomass Fuel (PKS) Market

• China dominates with USD 64.3 million in 2025, projected to reach USD 128.5 million by 2034, growing at a 7.95% CAGR.
• India secures USD 51.9 million in 2025, forecasted at USD 103.9 million by 2034, marking a 7.94% CAGR.
• Indonesia records USD 33.7 million in 2025, projected to expand to USD 67.4 million by 2034, sustaining a 7.93% CAGR.
• Japan contributes USD 28.6 million in 2025, expected to hit USD 57.4 million by 2034, maintaining a 7.92% CAGR.
• South Korea holds USD 24.0 million in 2025, rising to USD 48.0 million by 2034, showing a 7.94% CAGR.

MIDDLE EAST & AFRICA

region accounts for nearly 8% of global PKS demand. Countries such as the UAE and Saudi Arabia are investing in biomass power plants with combined capacity exceeding 400 MW by 2025. Annual consumption in this region is close to 3.5 million tons, with imports sourced from Southeast Asia. African nations like Nigeria and Ghana are exploring domestic PKS utilization, generating approximately 1 million tons annually as by-products of palm oil. These volumes are increasingly used for both domestic power generation and exports to Europe.

The Middle East & Africa Biomass Fuel (PKS) market is valued at USD 61.4 million in 2025, projected at USD 119.6 million by 2034, growing at a 7.91% CAGR.

Middle East and Africa - Major Dominant Countries in the Biomass Fuel (PKS) Market

• South Africa leads with USD 18.7 million in 2025, expected to expand to USD 36.3 million by 2034, with a 7.92% CAGR.
• Nigeria records USD 12.9 million in 2025, projected to hit USD 25.1 million by 2034, achieving a 7.93% CAGR.
• United Arab Emirates secures USD 10.6 million in 2025, forecasted at USD 20.8 million by 2034, reflecting a 7.91% CAGR.
• Saudi Arabia holds USD 9.4 million in 2025, projected at USD 18.4 million by 2034, marking a 7.92% CAGR.
• Egypt contributes USD 7.9 million in 2025, expected to reach USD 15.6 million by 2034, with a 7.90% CAGR.

List of Top Biomass Fuel (PKS) Companies

• Biomass Fuel Co. Ltd.
• NISSIN BIO ENERGY SDN. BHD.
• Erex
• New Energy Development Co. Ltd.
• OVOL New Energy Sdn. Bhd.
• ITOCHU Malaysia Sdn. Bhd.
• DSNG
• Masdar
• Hyogo Pulp Co. Ltd.

Top Two Companies with Highest Market Share:

• DSNG Holds more than 12% of global PKS exports with annual supply capacity exceeding 5 million tons.
• NISSIN BIO ENERGY SDN. BHD. Accounts for 10% of global share, with production capacity over 4 million tons annually.

Investment Analysis and Opportunities

Investments in the Biomass Fuel (PKS) Market are rising sharply in 2025 as global energy transition targets accelerate. The market represents over 45 million tons annually, equivalent to nearly 6% of global biomass fuel trade. Infrastructure investments in pelletizing, drying, and transportation facilities are critical to scaling supply. In Southeast Asia, producers are investing in modern processing plants capable of handling more than 1 million tons per year each. Such plants reduce moisture content from 30% to under 12%, improving calorific value to nearly 4,000 kcal/kg. These upgrades attract foreign buyers, particularly from Japan and Europe, ensuring long-term supply contracts worth billions in trade value.

Opportunities in certified PKS fuel are particularly strong. In 2025, certified PKS represents 30% of global trade, but with rising EU regulations, this could double by 2027. Suppliers who invest in certification processes stand to capture premium pricing, as certified volumes often trade at 15–20% higher value than non-certified products. In North America, infrastructure investments at major ports such as Houston and Los Angeles are expanding capacity to handle more than 10 million tons annually. Canada is also investing in district heating projects that consume over 1.2 million tons annually of PKS fuel. Emerging markets like Africa are also seeing investments. Nigeria and Ghana together produce over 1 million tons of PKS annually, and new export terminals are under development to facilitate shipments to Europe and Asia.

New Product Development

New product development in the Biomass Fuel (PKS) Industry focuses on improving energy efficiency, sustainability, and handling convenience. One major development is the commercialization of high-density PKS pellets. These pellets achieve calorific values of 4,200 kcal/kg, an increase of nearly 20% compared to traditional untreated PKS. Another innovation is in blended briquettes, where PKS is mixed with agricultural residues such as rice husk or coconut shells. These blends improve combustion efficiency by 15% and reduce ash content by 10–12%, making them suitable for both industrial and residential boilers. Moisture reduction technology has also advanced, with new dryers reducing PKS moisture to 8–10%, compared to earlier averages of 20–25%. This significantly enhances storage stability, reducing degradation losses by 5–8% annually.

In logistics, compacted PKS cubes are being developed for easier containerization. This innovation increases container load efficiency by 25%, lowering transportation costs. Sustainable product innovation is also notable, with certified green PKS becoming mainstream. By integrating blockchain tracking, suppliers now guarantee end-to-end traceability of shipments. This appeals to European buyers where nearly 60% of imports must be certified. These new product developments are expanding PKS applications beyond power plants into bio-chemicals, gasification, and even as feedstock for activated carbon production.

Five Recent Developments

• In 2023, Japan’s imports of PKS exceeded 7 million tons annually, marking a record for renewable biomass sourcing.
• In 2024, Indonesia expanded PKS export capacity by 3 million tons with new pelletizing plants.
• In 2024, Europe mandated that at least 60% of PKS imports be certified sustainable.
• In early 2025, Japan imported a record 670,000 tons in March, a 21% increase year on year.
• In 2025, Vietnam and Thailand expanded their combined export share to 15%, diversifying away from Indonesia and Malaysia.

Report Coverage of Biomass Fuel (PKS) Market

The Biomass Fuel (PKS) Market Report provides comprehensive coverage of production, consumption, trade, and market structure. It evaluates the market across supply, demand, applications, and regional performance. With over 45 million tons consumed annually, the market is segmented into briquettes, pellets, and raw shells, with applications across residential, commercial, and industrial sectors. Regional coverage highlights Asia-Pacific as the supply leader, contributing more than 70% of production and 45% of consumption. North America represents a growing consumer base, while Europe remains the largest certified PKS importer. The Middle East & Africa are emerging as production and consumption markets, generating over 3.5 million tons annually. The competitive landscape includes global leaders such as DSNG and NISSIN BIO ENERGY, with combined market share exceeding 22%.

Smaller players and regional producers collectively account for the remaining 78%, highlighting a fragmented structure. This report covers recent developments, technological innovations, and investment opportunities. It analyzes processing improvements like moisture reduction, pelletizing, and certification, which enhance calorific value and compliance. Key data points include global consumption distribution (54.9% industrial, 27% commercial, 18% residential) and type share (**45% pellets, , 35% briquettes, 20% raw shells). With rising demand for certified PKS and diversification of supply chains, the report provides businesses with actionable insights into future opportunities and challenges.

Biomass Fuel (PKS) Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 517.56 Million in 2026
Market Size Value By	USD 1090.71 Million by 2035
Growth Rate	CAGR of 7.94% from 2026-2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : Bulk Biomass Briquette Biomass Pellet By Application : Residential Commercial Industrial
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