The wood heating market - Spain (2023)

1.2 The global market

In ****, global sales in the wood heating sector amounted to $**.** billion. Steady growth can be observed in subsequent years: in ****, sales reached $**.** billion, and in ****, $**.** billion. from **** onwards, sales are expected to continue rising: $**.** billion in ****, $**.** billion in ****, $**.** billion in ****, $**.** billion in **** and, finally, $**.** billion in ****. These forecasts follow an average annual growth rate of *.**% over the period.

Global wood heating market forecast World, ****-****, billions of dollars Source: ****

1.3 The European market

Biomass, the material derived from plants and animals, now accounts for a significant proportion of energy production in many countries. Northern and Eastern European countries are the main users of this energy. For example, it accounted for **% of the energy available in Latvia in ****. [***] In ****, the main final consumers of wood energy are Germany and Poland. France ranks *th.

Main countries producing energy from biomass Europe, ****, millions of MSEs Source: ****

however, on a European Union scale, biomass is still a minority energy source, suffering from competition from fossil fuels and other renewable energy sources (***). [***]

Nevertheless, European wood-energy consumption has been rising steadily over the past ** years , reaching a peak of *,*** TOE in **** (***).

Development of energy production and energy from biomass Europe, ****-****, million TOE Source: ****

1.4 The domestic market

Total biomass heating consumption in Spain has seen various fluctuations between **** and ****. After a slight increase of *.**% from **** to ****, it fell by *.*% in ****, then rose again by *.**% in ****. A significant rise of **.**% was observed in ****, followed by a marginal increase of *.**% in ****. In ****, consumption fell slightly by *.**%, then rose by *.**% in ****. In ****, a drop of *.**% was recorded, but consumption rebounded with an increase of *.**% in ****.

Spanish firewood consumption Spain, ****-****, thousands of tonnes of oil equivalent Source: ****

1.5 Imports and exports

To study Spanish foreign trade in wood-burning products, we'll use the United Nations classification of international trade. We will study the following codes:

HS ******: Wood pellets, agglomerates. HS ****: Stoves, ranges, grills, cookers (***), barbecues, braziers, gas stoves, plate warmers and similar non-electric appliances for domestic use, and parts thereof, of iron or steel. Cooking appliances and plate warmers.

HS ******:

Between **** and ****, Spanish foreign trade in firewood for stoves saw notable fluctuations. Exports increased by ***% from **.** million euros in **** to **.** million in ****. Imports also increased, but at a slower rate of ***%, from **.** million euros to **.** million euros. As a result, the overall trade balance grew by ***%, from a surplus of *.** million euros in **** to a surplus of **.** million euros in ****, despite a period of deficit in **** and ****.

Evolution of Spanish foreign trade HS code: ****** Spain and the World, ****-****, millions of dollars Source: ****

In ****, **.**% of Spanish firewood exports went to France, **.**% to Italy and **.**% to Portugal, the * main customer countries for Spanish wood.

Main destinations for Spanish firewood exports Spain and the World, ****, % (***) Source: ****

At the same time, Portugal appears to be the only country present on the Spanish firewood market. It alone accounted for **.**% of Spanish imports in ****.

Main origins of Spanish ...

1.6 Spain's changing energy mix

The Spanish government has set targets for changing the country's energy mix by ****. Compared to ****, fossil fuels are set to decrease by **% to **.*** million tonnes of oil equivalent. Nuclear power generation is set to fall by **% to *.* million tonnes of oil equivalent. Other forms of energy, which accounted for *,*** million tonnes of oil equivalent in ****, are scheduled to be phased out completely. By contrast, the share of renewable energies is set to almost double, from **,*** to **,*** million tonnes of oil equivalent, an increase of ***%.

Spanish primary energy mix Spain, ****-****, million tonnes of oil equivalent Source: ****

These changes to the energy mix also involve energy savings. In the residential sector, the aim is to reduce energy consumption by **%. In the tertiary sector, the target reduction is **%. The transport sector is where the greatest effort is required, with a reduction of **%. For industry, the target is to reduce energy consumption by **%. Lastly, the agricultural sector is expected to achieve energy savings of *%.

Energy savings forecast by sector in Spain Spain, ****, % of total energy consumption Source: ****

In the residential sector, these energy savings translate into a reduction of *.*** million tonnes of oil equivalent through improved energy efficiency in buildings, and a reduction of ...

2.1 State of the Spanish housing stock and government rehabilitation objectives :

In ****, Spain had a total housing stock of **,***,*** homes and offices. Of these, buildings with more than ** apartments account for **.**% of the total Spanish housing stock. Buildings with between * and * apartments account for **.**% of the total, and two-family homes for *.**%. Finally, office buildings are in the minority, with a share of *.**%.

Breakdown of housing types in Spain Spain, ****, in thousands Source: ****

In terms of housing type, multi-family dwellings make up **.**% of the Spanish housing stock, while single-family dwellings account for **.**%.

Breakdown of buildings/houses Spain, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

In ****, following a decision by the European Commission, the end of central heating has been put into effect, with the aim of saving up to **% of energy in EU countries. [***]

2.2 Spanish climate and heating equipment

The map below shows Spain's climate zones. They have been defined by the CTE, the technical building code that governs Spanish insulation standards. The blue zones correspond to cold, mountain climates, while the zones tending towards red represent warmer climates. Heating demand is therefore determined by this climatic reality, and will be higher in areas requiring better insulation.

Source: ****

Nationwide:

In ****, **.*% of Spanish homes were equipped with a heating system.

Main dwellings equipped with a heating system in Spain Spain, ****, % of total Source: ****

The air-conditioning equipment rate is also interesting for the heat pump market. Thanks to their versatility, these systems can be used for both heating and cooling. Demand for air conditioning is therefore potential demand for heat pumps. In ****, **.*% of Spaniards did not have an air-conditioning system.

Main dwellings with air conditioning in Spain Spain, ****, % Source: ****

At regional level:

The map below shows the percentage of Spanish main dwellings equipped with a heating system. In Spain, the Autonomous Communities best equipped with heating systems are the Comunidad Foral de Navarra (***). Generally speaking, there is a geographical disparity in home heating equipment in Spain: the northern and central regions are better equipped overall than those in the south and on ...

2.3 Strong demand for residential firewood

In ****, the use of wood fuel was mainly in the residential sector, with **% of biomass used in this sector.

Use of wood fuel in Spain Spain, ****, % of total Source: ****

In ****, biomass still accounted for **% of Spain's energy mix dedicated to heating.

Contribution of biomass to Spain's heating energy mix Spain, ****, % of total Source: ****

With the covid ** pandemic and the war in Ukraine, Spaniards' interest in wood fuel has increased, particularly as pellets are a cheaper source of energy than oil or gas, and more environmentally friendly. The following graph also shows that the increase in interest in this resource has been on a European scale.

Increase in interest in wood-burning stoves and heating systems Europe, ****-****, % (***) Source: ****

This rise in interest can be explained by the fact that, in ****, heating accounted for a significant proportion of the energy budget of Spaniards.

Share of heating costs in Spaniards' energy budget Spain, ****, %

While heating with a stove offers significant energy savings - up to **%, according to CIC.

3.1 Value chain

The graph below shows the value chain in the Spanish wood-burning sector:

The stages in this value chain include the following:

Firewood:

Wood procurement: The wood heating value chain begins with wood procurement. This can include sustainable logging, collection of dead wood, purchase of wood from suppliers and forest management to ensure a continuous supply of firewood. Transformation and production: The raw wood is then transformed into firewood by specialized companies. This may involve cutting the wood into logs, drying the wood to reduce moisture content, and eventually turning the wood into wood pellets or briquettes for more convenient use. Distribution and sales: Wood heating products, such as logs, wood pellets or wood briquettes, are distributed and sold by specialist retailers, fuel suppliers or resellers. They can be sold in bags or in bulk, depending on consumer needs.

Stove production:

Sourcing raw materials: Manufacturers of wood-burning stoves source the materials needed to build the stoves. This can include steel, cast-iron, glass, ceramic components, thermal insulation, cladding and accessories. Manufacturing, assembly, cladding and quality control: Materials are processed and assembled to make wood-burning stoves. Parts are cut, formed, welded, bent and assembled according to design specifications. Wood-burning stoves are then subjected to ...

3.2 Production

Between **** and ****, the firewood sector has expanded considerably. While there were ** plants in ****, this number has risen by ***% to ** plants in ****.

Number of firewood production plants in Spain Spain, ****-****, number Source: ****

Production is concentrated mainly in Castilla y León, Catalonia and Galicia, which account for **%, **% and **% of national output respectively.

Firewood production by Autonomous Community Spain, ****, % of total Source: ****

3.3 Distribution

The number of companies in the "Wholesale of solid, liquid and gaseous fuels and similar products" sector fluctuated slightly between **** and ****. In ****, there were **** companies, this number increased by *.*% in **** to **** companies. However, in **** it fell by *.*% to **** companies. In ****, it increased by *.*% with a total of **** companies, before decreasing by *.*% in **** to **** companies. In ****, the number of companies rose slightly by *.*% to ****. Overall, between **** and ****, the sector saw a *.*% decrease in the number of companies.

Trend in the number of companies in CNAE code ****: "Wholesale of solid, liquid and gaseous fuels and similar products" Spain, ****-****, number of companies Source: ****

In ****, the number of employees rose by *.*% on ****, to **,*** thousand. In ****, it fell by **.*% to *,*** thousand. In ****, an increase of *.*% was recorded to reach *,*** thousand. In ****, a decrease of **% was observed, bringing the number of employees down to *,*** thousand. However, in ****, a significant increase of **.*% was noted, bringing the number of employees to **,*** thousand, ** more than in ****.

Evolution of the number of employees in CNAE code ****: "Wholesale of solid, liquid and gaseous fuels and similar products" Spain, ****-****, thousands of employees Source: ****

Sales in the sector, after falling by **.*% in **** compared with ****, fell by a further **.*% in ****. In ****, the sector ...

4.1 Offer typology

Below is a table showing some of the stoves available from LEROY-MERLIN, Spain's market leader.

Source: ****

4.2 Prices

The price of a pallet bag of firewood pellets has seen various fluctuations between **** and ****. In ****, the price was ***.** euros per tonne, rising slightly to ***.** euros in **** and ***.** euros in ****. It then fell in **** to ***.** euros before dropping further to ***.** euros in ****. In ****, the price was ***.** euros, rising to ***.** euros in **** and peaking at ***.** euros in ****. In ****, the price fell slightly to ***.** euros and then to ***.** euros in ****. However, in ****, the price rose significantly, reaching ***.** euros in the first quarter and ***.** euros in the second. This represents an increase of almost **% between **** and the second quarter of ****.

Price trend for a pallet bag of firewood pellets Spain, ****-****, €/tonnes Source: ****

5.1 Regulations

EcoDesign regulation:

This standard affects the entire design and manufacturing process for wood and pellet stoves, as it sets new parameters for the level of gas emissions, in addition to current values for efficiency, CO emissions and unburned particulates. This is an important step in the combustion appliance market, marking the start of a new generation of wood-burning stoves and fireplaces.

This change aims to benefit the atmosphere and the earth's ecosystem, while improving the usability and efficiency of stoves by making them more energy-efficient. A sustainable design produced with the most advanced techniques on the market and emitting a minimal percentage of noxious gases.

What are the EcoDesign **** regulations? :

EcoDesign regulations aim to limit levels of carbon monoxide (***), while maintaining the maximum efficiency of local heating appliances. By reducing the percentage of these polluting gases in the atmosphere, the greenhouse effect is reduced.

All wood and pellet stoves manufactured, marketed and installed must bear the EcoDesign label, as well as a design guaranteeing minimal production of these gases. Otherwise, the heating activity of these solid-burning appliances will be considered environmentally disrespectful, and their purchase will be illegal.

New stoves feature combustion chambers that have been improved in terms of sealing ...

6.1 Segmentation

• J.Corradi
• Stuv
• Thermor
• Tradesa
• Ev confort
• Ducasa
• Haverland
• ACV
• Wolf
• Baxi
• Junkers
• Kaysun