Pyrolysis Oil Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|CAGR:||> 4 %|
*Disclaimer: Major Players sorted in no particular order
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Pyrolysis Oil Market Analysis
The global pyrolysis oil market is estimated to reach over USD 350 million by the end of this year. It is projected to register a CAGR of over 4% during the forecasted period.
The COVID-19 pandemic drastically curtailed industrial activities during 2020 and 2021 due to imposed government lockdowns and restrictions, thereby limiting the growth of the pyrolysis oil market. The chemical industry and heat and power generation sector were paralyzed owing to less raw material supply, limited working hours/labor strength, and constrained financials. This halted the adoption of pyrolysis oil, a sustainable yet unconventional fuel that dwells with storage and transportation challenges in these sectors. However, the industries have been on the recovery track ever since the retraction of the pandemic in mid-2021. The recovering oil and gas, chemicals, and power sectors with increased downstream consumption due to the lifting of restrictions and the growing sustainability drive have reinstated the interests of market players in pyrolysis oil.
- Over the medium term, the rising demand for eco-friendly fuel and raw material alternatives and the increasing demand for pyrolysis oil application in the generation of heat and power are the major driving factors augmenting the growth of the market studied.
- On the other hand, the constraints associated with the storage, transportation, and application of pyrolysis oil are anticipated to restrain the growth of the market studied over the forecast period.
- Nevertheless, the emerging applications of pyrolysis oil in biorefineries are likely to create lucrative growth opportunities for the global market soon.
- Europe emerged as the largest market for pyrolysis oil. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period. This dominance of Europe is attributed to the bullish demand for pyrolysis oil in combustion in boilers, upgrading of transportation, and chemical production applications.
Pyrolysis Oil Industry Segmentation
Pyrolysis oil is a liquid substance obtained in the pyrolysis process and subsequent cooling, which is a synthetic fuel manufactured as a substitute for petroleum. The product, also known as biocrude or bio-oil, is a complex blend of molecules generally comprising more than 200 different compounds resulting from the depolymerization of products treated in pyrolysis.
The pyrolysis oil market is segmented by raw material, application, and geography. By raw material, the market is segmented into waste plastic, waste rubber, wood, oil sludge, and other raw materials. By application, the market is segmented into fuels and chemicals. The report also covers the market size and forecasts for the pyrolysis oil market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done based on revenue in USD million.
|By Raw Material|
|Other Raw Materials|
Pyrolysis Oil Market Trends
This section covers the major market trends shaping the Pyrolysis Oil Market according to our research experts:
Increasing Demand for Fuel Application
- Pyrolysis oil has one of its major applications as fuel in various sectors. Pyrolysis oil has a fuel value of 50-70% of that of petroleum-based fuels and can be used as boiler fuel or upgraded to renewable transportation fuels.
- Pyrolysis oil is widely used as industrial fuel to substitute furnace oil. Pyrolysis oil is mainly used in heavy industries such as construction heating, steel factory, glass factory, cement factory, power factories, boiler factories, and hotel heating.
- Pyrolysis oil can be potentially used to heat boilers (as a combustion fuel), which can be used to produce electricity in the future. Further, refined or upgraded pyrolysis oil-based products can also be used in gas turbine generators and diesel generators. Currently, various nations are considering using gas turbine generators in place of coal-fired plants to produce electricity with fewer carbon emissions. Moreover, pyrolysis oil can be used as combustion fuel in various industries such as cement, steel, glass, brick plants, and others.
- In addition to direct combustion, pyrolysis oil can be used as a feedstock for refining diesel fuel. It can be refined into diesel by a distillation machine. Once the pyrolysis oil is refined into diesel by a pyrolysis oil distillation machine, the obtained diesel can be used in some machinery, such as trucks, tractors, ships, and diesel generators.
- Owing to the large volume consumption of fuel from various industrial applications such as power, industrial boilers, diesel engines, and power generators like gas turbines, the potential demand for pyrolysis oil-based fuels is likely to increase in the forecast period.
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Europe to Dominate the Market
- Europe dominated the worldwide market with a significant market share and is projected to maintain its dominance during the forecast period. In Europe, pyrolysis oil is majorly used for applications such as combustion in boilers, fueling in engines and turbines, upgrading to transportation fuels, and as a renewable feedstock for chemicals and materials. The major industries in the region that leverage pyrolysis oil applications are the steel industry, the cement industry, and transportation.
- France is the third largest crude steel producer among the European Union countries. It produced about 13.9 million tons of crude steel in the year 2021, around 20% more than in the year 2020.
- The German government is putting together various new incentives and regulations to cut carbon emissions quickly. Moreover, Germany is increasingly dependent on imports to meet its demand for oil and gas. The country’s import rate was 63.7% in 2021. Similarly, the country is one of the largest importers of natural gas. Imports meet 95% of their gas requirements. In order to reduce the imports in the country, the German government is offering incentives and other benefits to biofuel production in the country.
- In the United Kingdom, the government has begun guidance for Biofuels and other fuel substitutes (i.e., Excise Notice 179e) from 1 April 2022, as part of which the government is promoting the usage of various biofuels, which is likely to create demand for pyrolysis oil in the country.
- The potential of pyrolysis oil production in reducing plastic waste management issues as well as in fulfilling the demand for energy used for heating applications is likely to offer a huge opportunity for the market in the country. For instance, in August 2022, Italian Company Maire Tecnimont SpA announced that its subsidiary NextChem had been awarded a Front-End Engineering Design (FEED) contract for an advanced mechanical recycling plant of municipal plastic waste in Europe to establish a recycling plant for polyolefins by the pyrolysis process, with a waste processing capacity of 75,000 tons per year.
- All aforementioned factors are likely to fuel the growth of the pyrolysis oil market in Europe over the forecast period.
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Pyrolysis Oil Industry Overview
The global pyrolysis oil market is fragmented, with top players holding insignificant shares to affect market demand individually. Some of the major players in the market (in no particular order) include Twence, Green Fuel Nordic Oy, Bioenergy AE Cote-Nord, New Hope Energy, and Pyrocell.
Pyrolysis Oil Market Leaders
Green Fuel Nordic Oy
Bioenergy AE Cote-Nord
New Hope Energy
*Disclaimer: Major Players sorted in no particular order
Pyrolysis Oil Market News
- May 2022: ArcelorMittal Mining Canada and BioÉnergie AE Côte-Nord Canada signed a 3-year agreement wherein 16 million liters of pyrolytic oil per year will be supplied to the ArcelorMittal pellet plant. ArcelorMittal Mining Canada is a steel and mining company among the top five producers of iron ore products globally.
- May 2022: New Hope Energy and TotalEnergies announced an agreement to build an advanced recycling plant in Texas to transform end-of-life plastic waste into a recycled feedstock that TotalEnergies will partly purchase and convert into virgin-quality polymers to use for food-grade packaging.
Pyrolysis Oil Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Rising Demand For Environment-friendly Fuel and Raw Material Alternatives
4.1.2 Increasing Demand From Heat and Power Generation Sectors
4.2.1 Problems Associated With Storage, Transportation, and Application of Pyrolysis Oil
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1 By Raw Material
5.1.1 Waste Plastic
5.1.2 Waste Rubber
5.1.4 Oil Sludge
5.1.5 Other Raw Materials
5.2 By Application
5.3 By Geography
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.2 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Alterra Energy
6.4.2 Bioenergy Ae Cote-Nord
6.4.4 Green Fuel Nordic Oy
6.4.5 Mk Aromatics Limited
6.4.6 New Energy Kft.
6.4.7 New Hope Energy
6.4.8 Nexus Circular
6.4.9 Plastic Advanced Recycling Corp.
6.4.10 Plastic Energy
6.4.11 Pyrocell (setra)
6.4.12 Quantafuel ASA
6.4.13 Trident Fuels Pty Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Applications in Biorefineries
Pyrolysis Oil Market Research FAQs
What is the study period of this market?
The Pyrolysis Oil Market is studied from 2018 - 2028.
What is the growth rate of Pyrolysis Oil Market?
The Pyrolysis Oil Market is growing at a CAGR of >4% over the next 5 years.
Which region has highest growth rate in Pyrolysis Oil Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Pyrolysis Oil Market?
Europe holds highest share in 2021.
Who are the key players in Pyrolysis Oil Market?
Twence, Green Fuel Nordic Oy, Bioenergy AE Cote-Nord, New Hope Energy, Pyrocell are the major companies operating in Pyrolysis Oil Market.
Pyrolysis Oil Industry Report
Statistics for the 2023 Pyrolysis Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Pyrolysis Oil analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.