Plastic Waste Pyrolysis Oil Market

Plastic Waste Pyrolysis Oil Market Study by Fast, Slow, and Flash Pyrolysis for Fuel, Chemicals, Heat and Power, and Others from 2024 to 2034

Analysis of Plastic Waste Pyrolysis Oil Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Plastic Waste Pyrolysis Oil Market Outlook (2024 to 2034)

According to a recent industry analysis by Fact.MR, the global plastic waste pyrolysis oil market size is expected to touch US$ 269.4 million in 2024 and further expand at a CAGR of 14.1% to ascend to US$ 1 billion by the end of 2034.

Plastic pollution is a global concern with not enough plastic recycling happening. Plastic pyrolysis plants have emerged in response to the increasing plastic waste worldwide. These plants convert plastic waste into fuel through thermal degradation in the absence of oxygen. The end products of the plastic pyrolysis process are pyrolysis oil and carbon black, typically utilized in industrial applications such as fuel oil for machines, pumps, brick factories, glass factories, steel factories, and cement factories.

  • According to an OECD report, only 9% of plastic waste in the world is recycled.

Increasing focus on green technology adoption and a circular economy, along with the cost-effectiveness of oil and its high efficiency, is driving the demand for plastic waste pyrolysis oil. Companies are increasingly turning to pyrolysis oil as a substitute for natural gas due to its ready availability and competitive pricing. Moreover, the heating industry favors pyrolysis oil over traditional oil because of its high calorific value, low ash content, and low sulfur content. Chemical industries utilize pyrolysis oil as a raw material for producing organic acid and fatty acid.

Report Attributes Details
Plastic Waste Pyrolysis Oil Market Size (2023A) US$ 240.3 Million
Estimated Market Value (2024E) US$ 269.4 Million
Forecasted Market Value (2034F) US$ 1 Billion
Global Market Growth Rate (2024 to 2034) 14.1% CAGR
China Market Growth Rate (2024 to 2034) 16.8%
United States Market Value (2024E) 23.9 Million
Key Companies Profiled
  • OMV Group
  • Neste
  • Agile Process Chemicals LLP
  • Quantafuel
  • Agilyx
  • Plastic Energy
  • LyondellBasell
  • Clariter
  • Pyrum
  • Klean Industries
  • New Hope Energy
  • Cassandra Oil
  • Itero
  • Fuenix Ecogy
  • PowerHouse Energy
  • Other Players

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Which Plastic Waste Pyrolysis Oil Market Trends are Benefitting Manufacturers?

“Adoption of Pyrolysis Oil Enhancing Energy Security"

Energy derived from fossil fuels is non-renewable. Also, price fluctuations due to geopolitical vulnerability question its security as a source. All these challenges highlight the need for alternative sources of energy.

  • According to the Environmental and Energy Study Institute, around 80% of the world's energy demand is satisfied by fossil fuels.

Plastic waste pyrolysis oil can be a strategic solution. Many countries are adopting this plastic waste management strategy as a dependable source as reliance on traditional energy sources is risky. Also, it is a renewable energy source and helps countries achieve their net carbon zero emission targets and reduce their susceptibility to supply chain disruptions and geopolitical conflicts that often come with reliance on finite fossil fuels.

  • According to the Global Waste Management Outlook report published by the UNEP, global demand for plastic scrap reached 85 million metric tons in 2020.

Plastic waste pyrolysis oil market growth is projected to be driven by rising awareness among consumers about the environmental impact of waste accumulation.

"Regulations Mandating Greenhouse Gas Reduction to Promote Sustainable Energy Solutions"

The Basel Convention is the first agreement to directly address the rising plastic issue internationally, where governments agree to protect people and the planet from waste materials. Since then, environmental regulations have become increasingly strict. Government and international organizations are making efforts to reduce greenhouse gases and encouraging a shift towards sustainable energy solutions.

Pyrolysis oil, sourced from biomass and waste materials, is emerging as a crucial element in meeting these evolving environmental standards. Faced with urgent climate change challenges and a growing environmental focus, industries are compelled to adopt cleaner and more sustainable practices. Pyrolysis technology presents a distinct advantage by transforming organic and plastic waste into valuable pyrolysis oil without exacerbating environmental concerns. The inherent carbon neutrality of pyrolysis oil is an appealing choice for industries striving to meet increasingly stringent emission reduction goals.

What are the Hindrances to Market Growth?

"Wide Availability of More Cost-effective Alternative Renewable Energy Sources”

The market faces increasing challenges due to competition from alternative renewable sources. Technologies such as solar, wind, and bioenergy offer viable alternatives for meeting renewable energy needs, posing a threat to the market share and growth prospects of pyrolysis oil derived from plastic waste.

Intensifying competition necessitates continuous innovation and adaptation within the pyrolysis oil industry to remain competitive in the evolving renewable energy landscape. Market players must navigate economic factors and price volatility, which can further impact the feasibility and attractiveness of pyrolysis oil as a renewable energy option derived from plastic waste.

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Why are Plastic Waste Pyrolysis Oil Manufacturers Investing in North America?

“Imposition of Regulatory Limitations on Conventional Chemical Applications”

The North American market is estimated at a valuation of US$ 23.9 million in 2024 and is forecasted to reach US$ 136.9 million by the end of 2034.

  • According to the Energy Policy Act of 2005, the United States is offering financial support for the advancement of technology aimed at stabilizing biomass fast pyrolysis oil.
  • The United States Environmental Protection Agency is imposing limitations on conventional chemical applications, compelling petrochemical manufacturers to utilize pyrolysis oil.

Owing to the aforementioned factors, the market for plastic waste pyrolysis oil in North America is projected to expand at a CAGR of 15.2% during the forecast period.

Country-wise Insights

What is the Demand Outlook for Plastic Waste Pyrolysis Oil in China?

“Government Initiatives to Address Plastic Pollution Driving Investments in Pyrolysis Process”

The market in China is set to reach US$ 44.5 million in 2024 and is forecasted to reach US$ 207.7 million by 2034-end. In China, the market is exhibiting significant growth driven by escalating concerns over plastic pollution and the imperative for sustainable waste management solutions. Government initiatives aimed at tackling environmental challenges have spurred investments in pyrolysis technology and infrastructure across the country.

With China's commitment to transitioning towards cleaner energy sources, there is a rising demand for pyrolysis oil as a renewable energy option derived from plastic waste. However, challenges such as regulatory uncertainties and environmental concerns surrounding the pyrolysis process persist, shaping the market landscape. Despite these obstacles, the market holds substantial growth potential given the scale of plastic waste generation in China.

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Category-wise Insights

What is the Reason behind Increased Adoption of Slow Pyrolysis?

“Slow Pyrolysis Enabling Enhanced Control over Heat Transfer and Flow Rates”

The slow pyrolysis segment is poised to reach a valuation of US$ 158.4 million in 2024 and is forecasted to touch US$ 668.8 million by 2034-end. This segment accounts for a dominant plastic waste pyrolysis oil market share.

Performed at low temperatures, with prolonged residence times and slow heating rates, the slow pyrolysis technique offers manufacturers greater control over heat transfer and flow rates, resulting in high-quality oil. Longer heating durations directly correlate with increased oil yields, leading manufacturers to favor the slow pyrolysis method for its advantageous production rates.

Which End Use Brings in Higher Revenue for Market Players?

“High Calorific Value of Plastic Waste Pyrolysis Oil Driving Use in Heavy Industries”

The fuel segment is estimated at US$ 121.5 million in 2024 and is projected to reach US$ 485.8 million by 2034-end. Pyrolysis oil's high calorific value makes it a prevalent choice as an industrial fuel, often replacing diesel and furnace oil. Heavy industries like steel and cement manufacturing require oil for heating purposes, and pyrolysis oil can produce heat by direct combustion.

  • According to the International Energy Agency, by 2030, global cement production is projected to increase to 4,260 million tonnes.
  • As per the World Steel Association, the global crude steel production in 2023 reached 135.7 million tonnes.

End-use industries require oil for manufacturing processes, and pyrolysis oil is the preferred choice of these industries due to its advantages. Also, governments worldwide are encouraging manufacturers by providing subsidies and funding.

Competition Landscape

Key players in the plastic waste pyrolysis oil market are OMV Group, Neste, Agile Process Chemicals LLP, Quantafuel, Agilyx, Plastic Energy, LyondellBasell, Clariter, Pyrum, Klean Industries, New Hope Energy, and Cassandra Oil. Companies are prioritizing the development of advanced recycling technologies that promise higher yields and lower impurities.

  • Enval Limited stands out in the market by leveraging its advanced pyrolysis technology. Enval specializes in recycling flexible laminated packaging materials, which are traditionally difficult to process due to their intricate composition.
  • On January 15, 2024, OMV collaborated with tech fortunes and start-ups by acquiring a 6.5% stake in Canadian, privately-owned Eavor Technologies Inc. to establish the low-carbon business.
  • New Hope Energy entered a strategic partnership with the United States Advanced Recycling Project in May 2022, with production slated to commence in 2025. The collaboration seeks to establish advanced recycling facilities in Texas, dedicated to converting plastic waste into recycled feedstock.

Fact.MR has provided detailed information about the price points of key manufacturers of plastic waste pyrolysis oil positioned across regions, sales growth, production capacity, and speculative technological expansion, in its recently published report.

Segmentation of Plastic Waste Pyrolysis Oil Market Research

  • By Feedstock :

    • Low-Density Polyethylene
    • High-Density Polyethylene
    • Polypropylene
    • Others
  • By Process :

    • Fast Pyrolysis
    • Flash Pyrolysis
    • Slow Pyrolysis
  • By End Use :

    • Fuel
      • Direct Fuel
      • Fuel Blending
    • Chemicals
      • Petrochemical Feedstock
      • Specialty Chemicals
    • Heat & Power
      • Industrial Heating
      • Power Generation
    • Others
  • By Region :

    • North America
    • Latin America
    • East Asia
    • South Asia & Pacific
    • Western Europe
    • Eastern Europe
    • Middle East & Africa

- FAQs -

What was the size of the plastic waste pyrolysis oil market in 2023?

The global plastic waste pyrolysis oil market reached US$ 240.3 million in 2023.

What are the projected sales for plastic waste pyrolysis oil by the end of 2034?

Sales of plastic waste pyrolysis oil are projected to touch US$ 1 billion by the end of 2034.

At what rate is the market in North America projected to grow?

The market in North America is projected to expand at a CAGR of 15.2% through 2034.

Which end-use segment is projected to expand at a significant pace?

The industrial heating segment is forecasted to expand at a CAGR of 14.1% from 2024 to 2034.

Who are the leading players operating in the plastic waste pyrolysis oil market?

Prominent players in the market are OMV Group, Neste, Agile Process Chemicals LLP, Quantafuel, and Agilyx.

What has been forecasted for the market in China?

The market in China has been projected to expand at a CAGR of 16.8% through 2034.

- Also of Interest -

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Polyethylene Furanoate (PEF) Market

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Plastic Waste Pyrolysis Oil Market

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