Market Size of Pyrolysis Oil Industry
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 0.52 Billion |
| Market Size (2029) | USD 1.28 Billion |
| CAGR (2024 - 2029) | 19.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Pyrolysis Oil Market Analysis
The Pyrolysis Oil Market size is estimated at USD 0.52 billion in 2024, and is expected to reach USD 1.28 billion by 2029, growing at a CAGR of 19.71% during the forecast period (2024-2029).
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 as well as growth tracks 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 record 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.
