Tire Pyrolysis Oil Market Trends

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.