Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Tire Pyrolysis Oil Market size was valued at USD 370.19 million in 2024 and is likely to cross USD 742.52 million by 2037, expanding at more than 5.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of tire pyrolysis oil is estimated at USD 387.5 million.
The major factor driving the market expansion is the growing concern regarding the environment owing to rising emissions from fossil fuels. According to the NASA gov Scientists’ 2023 analysis data, fossil fuel emissions increased by 1.1 percent in 2023 in contrast to 2022, indicating a total rise of about 36.8 billion metric tons of carbon dioxide in 2023. Therefore, the demand for alternative sustainable fuel is growing that is further encouraging a surge in the tire pyrolysis oil market over the coming years.
Tire Pyrolysis Oil Sector: Growth Drivers and Challenges
Growth Drivers
- Growing government initiatives to promote sustainability - Governments throughout the world have implemented regulations that reduce carbon emissions and encourage the adoption of environmentally friendly and alternative energy. For instance, the European Commission recently approved an assortment of measures to modify the EU's climate, energy, transport, and taxation strategies to ensure that net greenhouse gas emissions decrease by the year 2030 by close to 55% in contrast to the year 1990.
This has created a massive potential in the market. The tire pyrolysis oil market is growing in response to supportive government policies and incentives, including tax cuts and subsidies for production and consumption. - Rising tire pollution to boost the need for recycling - Globally, close to 74% of about 740000 tires end up in landfills annually. These waste tire accumulations constitute a fire threat as well as have the potential to create harmful tire smoke.
Additionally, waste tire accumulations breed mosquitos, reptiles, and other vermin, all of which pose health hazards including the mosquito-transmitted West Nile Virus. Hence, the need to recycle waste tires is growing. - Surging cost of fossil fuel - Various factors are affecting the price of fossil among which the major one is the rising depletion of natural sources. This is because the energy demand is soaring across the world and hence to satisfy this demand exploration and production activities have surged.
Further, the growing Russia-Ukraine war and other border disputes are additional factors boosting the price of fossil fuel. Hence, more dependence is surging on renewable energy. As a result, the demand for tire pyrolysis oil market is set to experience growth over the forecast period.
Challenges
- Require large initial spending - The expensive initial investment is anticipated to slow the growth of the market. The tire pyrolysis oil plant requires an initial substantial investment in equipment and technology. This may prove prohibitively expensive for many potential tire pyrolysis oil market participants.
In addition, the availability of waste tires may be inconsistent and volatile, thus impacting the ongoing availability of raw materials. These reasons may hinder global tire pyrolysis oil market adoption and expansion. - Lack of efficiency in production
- Growing competition from alternatives - Pyrolysis oil contrasts with established fossil fuels including coal, oil, and natural gas, which are easily accessible and have well-developed supply systems.
Additionally, these fossil fuels tend to be inexpensive than pyrolysis oil, rendering it difficult for bio-oil to acquire market dominance. As a result, the market for tire pyrolysis oil is predicted to be restrained from growing.
Tire Pyrolysis Oil Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.4% |
|
Base Year Market Size (2024) |
USD 140.62 billion |
|
Forecast Year Market Size (2037) |
USD 355.72 billion |
|
Regional Scope |
|
Tire Pyrolysis Oil Segmentation
Raw Material (Waste Plastics, Waste Rubber, Wood, Oil Sludge)
Waste plastics segment is estimated to dominate tire pyrolysis oil market share of over 40% by 2037. This growth of the segment can be impelled by the growing production of plastic. According to UNEP, manufacturing of primary plastic across the globe is foreseen to account for 1,100 million tonnes by 2050.
Moreover, around 36 percent of all plastics produced are utilized in packaging, for example, single-use plastic goods for food and beverage containers, with roughly 85 percent winding up in landfills or as unregulated trash. Hence, the need to manage plastic waste is becoming necessary. This is further estimated to boost the demand for the pyrolysis process for recycling. This guarantees a steady supply of raw materials to generate tire pyrolysis oil.
In addition, plastic materials have an elevated energy content, which renders them a desirable feedstock for pyrolysis. This implies that the oil generated through plastic pyrolysis is far more energy-dense than traditional feedstocks, resulting in a viable source of fuel and chemicals.
End-Use (Fuel, Chemicals)
The fuel segment in tire pyrolysis oil market is predicted to have remarkable growth in the revenue over the forecast period. This rise in the segment can be encouraged by the growing demand for diesel cars. However, with the growing concern regarding pollution the registration of diesel vehicles fell. For instance, as per ACEA, throughout the first quarter of 2020, the total amount of diesel automobiles registered in the European Union dropped by 32.6% to 738,392. Consequently, the tire pyrolysis oil demand is growing.
However, plastic and tire oils are unable to be used directly in vehicles. Nevertheless, plastic oil and tire oil are capable of being processed into diesel oil by employing the pyrolysis oil refining method and distillation facility. Furthermore, this oil also serves its benefits in other applications including ships, trucks, generators, and more.
Our in-depth analysis of the global market includes the following segments:
|
Raw Material |
|
|
Process |
|
|
End-Use |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportTire Pyrolysis Oil Industry - Regional Synopsis
North American Market Statistics
North America industry is set to hold largest revenue share of 35% by 2037. This growth of the market is poised to be dominated by growing production for vehicles. In 2022, North America produced approximately 13 million motor cars. Moreover, the use of tire pyrolysis oil is additionally set to rise in industrial heaters.
Furthermore, the market in the US for tire pyrolysis oil is poised to gather significant revenue in the market over the year to come. This could be on account of the increasing number of tire pyrolysis oil plants.
Additionally, the market for tire pyrolysis oil in Canada is also rising owing to the expanding production of cement.
APAC Market Analysis
The Asia Pacific tire pyrolysis oil market will have significant growth in the revenue over the forecast period. This market growth is set to be dominated by a growing population. As per UNFPA, it is estimated that close to 60% of the individuals in the world are living in the Asia Pacific region. Additionally, this anticipates over 4.3 billion people. Hence, the energy demand is predicted to grow in this region over the coming years.
Additionally, the growth of the market in China is to be influenced by the rising urban population.
Moreover, the Indian tire pyrolysis oil market is also projected to rise on account of the growing manufacturing of steel for varied purposes.
Furthermore, surging initiatives launched by organizations for recycling waste in Japan are evaluated to expand the market revenue in this nation.
Companies Dominating the Tire Pyrolysis Oil Landscape
- Neste
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- BASF SE
- Green Fuel Nordic Oy
- BTG Biomass Technology Group
- Mk Aromatics Limited
- New Energy Kft.
- New Hope Energy
- Nexus Circular
- Trident Fuels (Pty) Ltd
- Plastic Advanced Recycling Corp.
The tire pyrolysis oil market consists of several major players. Owing to these key players their innovative production process is set to influence the market. Some of them are included as:
In the News
- Neste succeeded in finishing its first process trial with an environmentally demanding raw material, liquefied discarded tires, in support of its efforts to promote chemical recycling. Neste handled high-quality raw materials to create novel polymers and chemicals.
- BASF SE intends to invest over USD 17 million in Pyrum Innovations AG, an innovative business specializing in waste tire pyrolysis located in Dillingen/Saar, Germany. BASF's investment will assist with the development of Pyrum's pyrolysis plant in Dillingen in addition to the technology's future rollout.
Author Credits: Rajrani Baghel
- Report ID: 6233
- Published Date: Jan 03, 2025
- Report Format: PDF, PPT
