Wood Chipper Market Size, Share, and Industry Analysis, By Product Type (Disc Type, Drum Type, and Screw Type), By Fuel Type (Diesel Engine, Petrol Engine, and Electric Driven), By End Use (Paper & Pulp, Forestry & Biomass, Timber Factories & Sawmills, and Others), and Regional Forecast, 2025-2032

The global wood chipper market is gaining momentum due to the growing demand for efficient wood processing and waste management solutions. These machines are essential for reducing wood waste into chips or sawdust, which are widely used across various industries such as paper production, biomass energy, and timber processing.

With advancements in technology and the rising emphasis on sustainable forestry practices, the market is poised for significant growth during the forecast period of 2024–2032.

Wood Chipper Machine Market Driver

Rising Demand for Biomass Energy to Accelerate Market Growth

The shift toward renewable energy sources is a major driver of the market. The chips are widely used as biomass fuel, and the global push for sustainable energy solutions is propelling the demand for high-performance wood chippers.

• In 2023, bioenergy accounted for around 55% of the global renewable energy and over 6% of the global energy supply, indicating a growing market for wood chippers in forestry and biomass applications. The Net Zero Emissions by 2050 (NZE) Scenario sees a rapid increase in the use of bioenergy to displace fossil fuels by 2030.

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According to Fortune Business Insights, the global bioenergy market size was valued at USD 344.90 billion in 2019 and is projected to reach USD 978.67 billion by 2032, exhibiting a CAGR of 8.34% over 2020-2032.

Wood Chipper Market Restraint

High Initial Investment and Maintenance to Hinder Market Growth 

Wood chippers often require a substantial upfront investment and ongoing maintenance, which can deter small-scale industries and sawmills from adopting advanced models. However, the growing availability of financing options is making it easier for these businesses to invest in such equipment. Additionally, the introduction of modular machines allows for more flexible purchasing and maintenance solutions, gradually alleviating the financial burden and encouraging adoption among smaller operators in the industry.

Wood Chipper Market Opportunity

Technological Innovations of Wood Chipper to Create New Opportunities

The advent of electric-driven chippers with energy-efficient designs and IoT-enabled features presents lucrative opportunities for manufacturers and users alike. These advanced machines cater to urban landscaping and smaller industrial applications, where noise and emissions are primary concerns. By reducing environmental impact and enhancing operational efficiency, they offer a sustainable solution that meets the growing demand for eco-friendly equipment in densely populated areas.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players

Analysis by Product Type

Based on product type, the market is subdivided into disc type, drum type, and screw type.

The disc type segment dominates the global market due to its efficiency in producing uniform wood chips, particularly for pulp and paper manufacturing. The segment is followed by drum type, which is preferred in heavy-duty applications, including forestry and biomass production, for its ability to handle larger logs. The screw type segment is niche segment catering to precise chip production in timber and specialized industries. 

Analysis by Fuel Type

Based on fuel type, the market is subdivided into diesel engine, petrol engine, and electric driven.

The diesel engine segment leads the market due to its reliability in remote operations and large-scale adoption in forestry applications. While petrol engine is popular for small to medium-scale operations, especially in landscaping and agricultural uses.

The electric driven segment is witnessing rapid growth owing to its eco-friendliness and increasing adoption in urban settings.

Analysis by End Use

Based on end use, the market is divided into paper & pulp, forestry & biomass, timber factories & sawmills, and others.

The paper & pulp segment is the leading segment due to the rising demand for processed wood in packaging and printing industries. The forestry & biomass segment is experiencing robust growth driven by the global emphasis on sustainable energy solutions.

The timber factories & sawmills segment depicts stable growth as wood chippers are integral for waste management and material preparation. The others segment includes landscaping and agricultural uses, which are growing with urbanization and small-scale farming practices.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific holds the largest market share in the wood chipper industry, driven by the expanding forestry sector and high demand for paper and biomass energy in countries such as China and India. Rapid urbanization and industrial growth in these nations have increased the need for efficient wood waste management solutions. Additionally, government initiatives promoting sustainable practices are further boosting the adoption of wood chippers in the region.

North America and Europe are significant markets, driven by technological advancements and stringent environmental regulations. The adoption of electric and hybrid wood chippers is particularly notable in these regions.

Key Players Covered

The global wood chipper market is fragmented, with the presence of several key players.

The report includes the profiles of the following key players:

• Terex (U.S.)
• Timberwolf (U.K.)
• Morbark (U.S.)
• Bandit Industries (U.S.)
• Forst Wood Chippers (U.K.)
• Vermeer (U.S.)
• J.P. Carlton (U.S.)
• Bruks Siwertell Group (Sweden)
• Zenoah (Japan)
• Weifang Fred Machinery (China)

Key Industry Developments

• In April 2024, Timberwolf launched the TW 280FTR hybrid tracked wood chipper. This innovative machine combined a powerful diesel engine with electric drive technology, enhancing fuel efficiency and reducing emissions. The TW 280FTR was designed for versatility in various landscaping and forestry applications, offering improved performance and ease of use for operators.
• In September 2023, Bruks Siwertell launched the Bruks 1006.3 RT, a new mobile wood chipper model. This truck-mounted machine was designed for high-capacity chipping and optimized biofuel chip production, featuring advanced technology and compliance with EU Stage V emissions standards. The launch highlighted its efficiency and environmental benefits for various applications.