Pyrolysis Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Pyrolysis oil refers to a liquid substance obtained in the pyrolysis process and subsequent cooling, a synthetic fuel manufactured as a substitute for petroleum. The Pyrolysis Oil Market is Segmented by Raw Material (Waste Plastic, Waste Tire, Waste Rubber, Biomass, and Oil Sludge), Application (Fuel, Chemicals, Heat, and Power), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa). The report offers market size and forecasts for Pyrolysis Oil in Volume (kilo tons) for the above-mentioned segments.

Market Snapshot

pyrolysis oil market
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >4 %
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Market Overview

The market for pyrolysis oil is expected to register a CAGR of over 4% during the forecast period.

Due to COVID-19, the economies of several countries have been badly affected, and several industries' growth and production have declined. Due to the lockdown restrictions, the manufacturing sector is the most affected worldwide, impacting the market.

  • Major factors driving the market are increasing demand for pyrolysis oil for generating heat and power and the rising demand from the fuel segment.
  • On the flip side, problems associated with the storage and transportation of pyrolysis oil and unfavorable conditions arising due to the COVID-19 outbreak are the significant restraints expected to hinder the market's growth.
  • By application, the heat and power segment is expected to dominate the market due to increased usage in boilers, gas turbines, and diesel engines.
  • The North American region dominated the pyrolysis oil market worldwide, with the most substantial consumption from countries like the United States and Canada.

Scope of the Report

The Pyrolysis Oil Market is Segmented by Raw Material (Waste Plastic, Waste Tire, Waste Rubber, Biomass, and Oil Sludge), Applications (Fuel, Chemicals, Heat, and Power), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Raw Material
Waste Plastic
Waste Tire
Waste Rubber
Biomass
Oil Sludge
Application
Fuels
Chemicals
Heat
Power
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from the Heat and Power Segment

  • Pyrolysis oil is a synthetic fuel manufactured as a substitute for petroleum. It is also known as biocrude or bio-oil.
  • The usage of pyrolysis oil in gas turbines and diesel engines to generate heat and power is likely to provide lucrative opportunities for the growth of the pyrolysis oil market during the forecast period.
  • In the United States, five plants are producing renewable diesel, with a combined capacity of over 590 million gallons per year. Production is expected to grow in the near term, with 2 billion gallons of capacity at six plants currently under construction and expansion at three existing plants. This will increase the consumption of pyrolysis oil in the region.
  • The European Union (EU) had set the goal of ensuring that 20% of its gross final energy consumption came from renewable sources by 2020, increasing to 32% by 2030. The EU met its 2020 target, with renewable energy consumption increasing from 19.7% of gross final energy consumption in 2019 to 21.3% in 2020. The increase provided lucrative opportunities for pyrolysis oil in the region.
  • The application of pyrolysis oil in the boiler is expected to grow during the forecast period as the usage of pyrolysis oil can reduce carbon emissions by 90%. As a result, it can replace natural gas and heavy and light fuel oils, thus increasing the demand for pyrolysis oil.
  • The market for pyrolysis oil is likely to grow rapidly over the forecast period due to all the factors mentioned above.
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North America to Dominate the Market

  • North America is expected to dominate the market for pyrolysis oil during the forecast period. In countries like the United States and Canada, due to the growth of the industrial diesel engines and industrial boilers industry, the demand for pyrolysis oil is increasing.
  • The United States was one of the leading biofuel producers globally in 2020. The production amounted to 1,347 petajoules, thereby increasing pyrolysis oil production. It can be used as an alternative to fossil fuel, which is likely to increase the demand for pyrolysis oil.
  • Pyrolysis oil contains a large number of different components used to derive new products. Pyrolysis oil can be fractionated into product streams like pyrolytic lignin, pyrolytic sugars, and watery phase containing smaller organic compounds. Hence, the demand for pyrolysis oil is expected to increase in the region.
  • The United States combined heat and power market is expected to register a CAGR of above 7% during the forecast period, which is likely to increase the demand for pyrolysis oil and stimulate its market during the forecast period.
  • The factors mentioned above and government support contribute to the increasing demand for pyrolysis oil during the forecast period.
pyrolysis oil market report

Competitive Landscape

The pyrolysis oil market is consolidated, with the top players accounting for a major market share. Some of the major companies in the market include BTG Biomass Technology Group, Divya International, Chevron Phillips Chemical Company, Biogreen (ETIA Group), and Klean Fuels (Klean Industries Inc.).

Recent Developments

In January 2021, Chevron Phillips Chemical signed a long-term supply agreement with Nexus Fuels LLC (Nexus) as its primary supplier of pyrolysis oil.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Generating Heat and Power

      2. 4.1.2 Rising Demand for Energy-efficient and Eco-friendly Fuel Alternatives

    2. 4.2 Restraints

      1. 4.2.1 Problems Associated to Storage and Transportation of Pyrolysis Oil

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Raw Material

      1. 5.1.1 Waste Plastic

      2. 5.1.2 Waste Tire

      3. 5.1.3 Waste Rubber

      4. 5.1.4 Biomass

      5. 5.1.5 Oil Sludge

    2. 5.2 Application

      1. 5.2.1 Fuels

      2. 5.2.2 Chemicals

      3. 5.2.3 Heat

      4. 5.2.4 Power

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share** (%)/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Biogreen (ETIA Group)

      2. 6.4.2 BTG Biomass Technology Group

      3. 6.4.3 Chevron Phillips Chemical Company

      4. 6.4.4 Divya International

      5. 6.4.5 Ecomation Oy

      6. 6.4.6 Kingtiger (Shanghai) Environmental Technology Co. Ltd

      7. 6.4.7 Klean Fuels (Klean Industries Inc.)

      8. 6.4.8 Niutech Environment Technology Corporation

      9. 6.4.9 Recor

      10. 6.4.10 Trident Fuels Pty Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Growing Application in Biorefineries

**Subject to Availability

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Frequently Asked Questions

The Pyrolysis Oil Market market is studied from 2017 - 2027.

The Pyrolysis Oil Market is growing at a CAGR of >4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

BTG Biomass Technology Group , Divya International , Biogreen (ETIA Group) , Chevron Phillips Chemical Company, Klean Fuels (Klean Industries Inc.) are the major companies operating in Pyrolysis Oil Market.

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