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Base Year: 2024
Companies covered: 14
Tables & Figures: 145
Countries covered: 18
Pages: 220
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Plastic Waste Pyrolysis Oil Market
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Plastic Waste Pyrolysis Oil Market Size
The global plastic waste pyrolysis oil market was valued at USD 673.5 million in 2024, with expectations to reach USD 1.1 billion by 2034, growing at a CAGR of 5.5%.
The global plastic waste pyrolysis oils industry is expanding because of an increase in the global focus on waste management and alternative fuel sources. The market is performing strongly under the increased demand for transport fuels, industrial heating oil, and petrochemical feedstock. The increasing implementation of the circular economy by government and industry is raising the use of plastic pyrolysis oil as a substitute to fossil fuels. Moreover, this solution becomes more economically attractive due to improvements in emission reductions and yield efficiencies in pyrolysis processes.
Increased modernization and industrialization together with the rapid increase in the use of plastic for packaging, automobiles and construction is one of the main factors for a region's growth. This has in turn, led to an increased demand for municipal solid waste (MSW) disposal services and a large share of this waste is made up of non-recyclable plastic. Countries around the world are becoming more stringent with regulation related to plastic disposal while promoting waste to energy technology. Further, the expansion of the market is also aided by the increasing government spending on pyrolysis facilities and growing concern for the environment.
While industries look for reductions in the emissions of fuels, the pyrolysis fuel oil derived from plastic waste is coming out as a major player in solving both the energy and waste management problems.
For instance, according to OECD report, 91% of the world’s plastic waste is not recycled, only 9% of plastic waste gets recycled, 19% was incinerated, almost 50% went to sanitary landfills, and the remaining 22% was mismanaged thus signposting the clear directions that governments need to take in terms of more efficient recycling policies and better waste management systems.
Plastic Waste Pyrolysis Oil Market Trends
The market for plastic waste pyrolysis oil is expanding rapidly as both industries and governments look for more efficient ways to handle plastic waste while minimizing their use of traditional fossil fuels. Along with that, the growing popularity of advanced chemical recycling methods that improve pyrolysis efficiencies and the quality of oil production is another factor which will impact the market in the upcoming years. The increasing willingness to accept the use of plastic pyrolysis oil in other oil refineries is making plastic pyrolysis more feasible, which is positive for its use as a substitute fuel. On the backdrop of initiatives geared towards the bio-based and circular economy, lifting the commercial prospects of pyrolysis oil is being advanced by business efforts aimed at increasing the value of the feedstock and the transforming oil into petrochemical products.
There are still further steps which would need to be taken that concern policies. The European Green Deal and the US Renewable Fuel Standard (RFS) together provide a strong encouragement to invest in the transformation of waste to energy, plastic pyrolysis included. These single use plastic policies are strict modification for disposal, reduction of landfills, and extended producer responsibility (EPR) policy generates demand for developing advanced recycling technologies. This is all beneficial towards stakeholders developing technology within refining, infrastructure building, and waste management partnering.
For example, demonstrating the immense scope for tire pyrolysis oil manufacturing, more than 77 million tires, equalling to 1.41 million tons, were sent to ground rubber markets in the United States alone in 2022. The industry has seen remarkable advancements in 2023, where Klean Industries has been developing major tire pyrolysis projects in Melbourne and Sydney, Australia, while Pyrum Innovations has achieved a successful activation of their new reactor in Dillingen/Saar.
Plastic Waste Pyrolysis Oil Market Analysis
The plastic waste pyrolysis oils industry by feedstock is segmented into low density polyethylene (LDPE), high density polyethylene (HDPE), polypropylene (PP), others. The low-density polyethylene (LDPE) accounted for 35.1% of the market share in 2024 and is expected to grow with the CAGR of 5.6% in 2034.
Low-Density Polyethylene (LDPE) has a dominant share in the market due to its extensive use in flexible packaging such as plastic bags and films. Its lower melting point along with higher yield efficiency makes it an ideal feedstock for pyrolysis, thus, increasing the conversion rate to fuel considerably. Moreover, LDPE waste is plentiful and frequently non-mechanically recyclable which creates an added need for chemical recycling. With the increasing government regulations on landfills and the adoption of waste-to-energy systems, LDPE waste is becoming more and more useful and its pyrolysis oil is turning out to be a vital substitute for conventional fuels in industrial and transportation uses.
Other than this, High-Density Polyethylene (HDPE) and Polypropylene (PP) have also emerged as highly valuable materials in the plastic pyrolysis oil market acquiring around 29.9% and 24.8% of market respectively. The high energy content of HDPE makes it an efficient feedstock for pyrolysis, and, is abundant in containers, pipes, and bottles. On the other hand, PP also aids in the market due its higher calorific and fuel-grade value, and is used in automotive components, packaging and textiles. However, these materials require enhanced processing for effective conversion. The industry is currently working towards improved breakdown efficiency of HDPE and PP as they are expected to contribute increasingly to the expanding market with the passing of time.
For instance, in November 2023, LyondellBasell announced the development of a recycling plant in Germany, utilizing proprietary MoReTec technology to convert mixed plastic waste into pyrolysis oil.
The plastic waste pyrolysis oil market is segmented into fast, flash and slow by process. Slow process holds the market size of USD 370.1 million in 2024 and expected to grow at a faster rate of 5.5% CAGR.
The slow pyrolysis process leads the market in the production of pyrolysis oil from plastic waste because of its dominance in oil yield, stability, and ability to efficiently deal with mixed plastic wastes. Compared to fast or flash pyrolysis, this process works at low temperatures (between 300-500°C) and elongated residence times which results in better thermal decomposition and increased production of liquid fuels. Moreover, considering energy expenditure, slow pyrolysis appears to be the least expensive option for commercial businesses.
Due to rising global initiatives for energy sustainability, slow pyrolysis is the most common technique in the transformation of plastic waste into fuel. Industries resort to this method since it produces more refined and less viscous pyrolysis oil, which is further convertible into transport fuels and/or petrochemicals.
The plastic waste pyrolysis oil market by end use is segmented into fuel, chemical, heat & power, others. The fuel segment accounted for 55.4% of the market share in 2024.
The fuel market holds the largest share of the plastic waste pyrolysis oil industry as customers are interested in more affordable options when compared to traditional fossil fuels. Industry burners, diesel generators, and maritime engines make great use of pyrolysis oil due to its high calorific value as well as its compatibility with petroleum-based fuels. A heightened usage within the industry comes from the need of lower carbon fuel alternatives to meet fast changing emission requirements. The global energy crisis together with higher prices of crude oil makes plastic pyrolysis oil a great option in terms of waste reduction as well as energy security.
The chemical segment has shown increasing interest as businesses turn to pyrolysis oil as an input for the production of new plastics and petrochemicals thereby aiding the circular economy. It is also used in industrial furnaces and power stations as a renewable means of energy to replace traditional fossil fuels, making it a advantageous feedstock for virgin petrochemicals. The oil is already bound to undergo some advanced refining processes, as the heat and power segment transforms it into a shipped good. Government policies focused on promoting waste to energy solutions should only help the increase in demand for of plastic pyrolysis oil.
In the plastic waste pyrolysis oil market Asia Pacific dominated the market by accounting USD 237.3 million in 2024 and is expected to grow at a CAGR of 5.7% in 2034.
Fueled by industrialization, urban migration, and extensive use of plastics, the region of Asia Pacific dominates the market. China, India, and Japan are vital countries because of their massive plastic waste production and increasing use of waste-to-energy conversion techniques. China, the world’s leading producer and consumer of plastics, is developing pyrolysis plants to tackle its plastic waste challenge. Also, the overfull landfill sites are pushing India to adopt chemical recycling and pyrolysis fuels. Established as a leader in recycling, Japan is also trying to minimize the plastic waste through circular economy programs. Moreover, strong government measures, increasing fuel demand, and large investments to reduce waste have Asia-Pacific further entrenched in the lead of the market.
According to the China National Resources Recycling Association, China generated an estimated 60 million tonnes of plastic waste, recycling only 16 million tonnes. In some shape or form, only an estimated 17% of plastic used in China is, on average, recycled. This gives companies a chance to expand their reach in this type of country where they can boom their growth by developing and building their waste plastic pyrolysis oil facilities.
Plastic Waste Pyrolysis Oil Market Share
In the plastic waste pyrolysis oils market, Agilyx, Nexus Circular, Niutech Environment Technology Corporation, Klean Industries are the top 5 companies which holds a large share due to their broad product portfolio and established market position. These companies benefit from their global presence and brand name in the market.
In March 2023, Agilyx partnered with INEOS Styrolution, a leading styrenics supplier with a strong portfolio of styrene monomer, polystyrene, ABS standard, and specialty products. The partnership aims to establish a TruStyrenyx chemical recycling facility, which is capable of processing 100 tons of plastic per day in Channahon, Illinois. TruStyrenyx, a collaboration between Agilyx and Technip Energies, offers a comprehensive solution for chemically recycling polystyrene back into high-purity styrene monomer, which can then be used to manufacture new food-grade plastic products or packaging.
In February 2022, Agilyx entered a partnership agreement with Virgin Group. The partnership aimed to reuse plastic waste to produce synthetic crude oil that will then be refined into a lower carbon fuel. Virgin Group aims to provide lower carbon fuel solutions to the global market and expects Virgin Atlantic & other Virgin companies to be the early adopters as part of the Group’s transitional plans of achieving net zero by 2050.
Plastic Waste Pyrolysis Oil Market Companies
Some of the eminent market participants operating in the plastic waste pyrolysis oil industry include:
Plastic Waste Pyrolysis Oil Industry News
The plastic waste pyrolysis oil market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:
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Market, By Feedstock
Market, By Process
Market, By End Use
The above information is provided for the following regions and countries: