Tire Pyrolysis Oil Market - By Raw Material (Waste Plastic, Waste Rubber, Wood, Oil Sludge) By Process (Fast pyrolysis, Flash pyrolysis, Slow Pyrolysis), By End-Use (Chemicals, Fuel) & Forecast, 2023 – 2032

Tire Pyrolysis Oil Market Size

Tire Pyrolysis Oil Market was valued at around USD 328.6 million in 2022 and is projected to grow at a CAGR of over 5.4% between 2023 and 2032. Tire pyrolysis oil (TPO), a tire pyrolysis byproduct, is witnessing growth as a fossil fuels’ sustainable alternative.
 

The TPO market is likely to witness significant growth, driven by factors like TPO production deals with the environmental concerns by offering an environmentally friendly solution to the tire waste disposal issues, thereby reducing burden on landfills and pollution. Additionally, it provides economic advantages to businesses and consumers as a cost-effective option to traditional fuels like petroleum-based oils. Likewise, TPO's adaptability and flexibility make it appropriate for various applications, including carbon black production, power generation, and chemical production.
 

Furthermore, constant developments in tire pyrolysis technology are enhancing the quality and efficiency of TPO, making it an increasingly attractive option. however, the growing demand for sustainable solutions driven by the environmental sustainability awareness further emphasizes the importance of TPO as a cleaner and more responsible fuel source.
 

Older pyrolysis techniques might lead to lower TPO amounts and the introduction of contaminants, which can affect the product's quality and marketability. In addition, the intricacy of pyrolysis reactions poses difficulties for maximizing production efficiency, resulting in increased expenses and diminished competitiveness in relation to conventional fuel generation techniques.
 

Innovation in pyrolysis technology is essential to overcoming these constraints. Higher yields, better quality, and lower prices may be achieved in TPO production by creating more sophisticated and efficient procedures. It becomes a more alluring substitute for fossil fuels as a result.
 

COVID-19 Impact

The COVID-19 pandemic cast a shadow over the tire pyrolysis oil (TPO) market, disrupting supply chains, reducing tire waste generation, and damping global economic growth. Supply chain disruptions hindered the supply of raw materials, machinery & equipment, and finished tire pyrolysis oil products. The pandemic-induced economic slowdown and decline in transportation led to a reduction in tire waste, limiting the feedstock supply for TPO production. Besides, the global economic downturn reduced TPO demand as businesses and consumers reduced spending. These factors combined to pose significant challenges for the TPO market, resulting in reduced production, lower demand, and overall market contraction.
 

Tire Pyrolysis Oil Market Trends

Environmental concerns: The rising environmental impact of tire waste disposal awareness is driving the demand for TPO as a sustainable alternative. TPO production helps divert tires from landfills, reducing pollution and conserving land resources.
 

Escalating fuel costs: The traditional fuels’, like petroleum-based oils, rising prices are making TPO a more cost-effective alternative for the consumers as well as manufacturers seeking affordable alternatives.
 

Versatility and adaptability: TPO's adaptability across various applications, including fuel for carbon black production, power generation, and chemical manufacturing, expands its market potential.
 

Tire Pyrolysis Oil Market Analysis

Based on raw material, the market is segmented as waste plastic, waste rubber, wood, oil sludge, and other materials. Waste Plastic held a majority market value of USD 122.4 million in 2022. The increased availability of raw materials, particularly used tyre waste, is driving expansion in the TPO sector. The amount of tyres that are thrown away is increasing along with the global auto industry, which offers a ready supply of tyres for the creation of tyre pressure oil. Because there are more raw materials available, TPO production is more affordable than using traditional fuels, which makes it a more alluring option. TPO raw material supply is also being improved by developments in tyre collecting and recycling methods, guaranteeing a dependable and sustainable supply chain.
 

Based on process, the tire pyrolysis oil market is segmented as a fast pyrolysis, flash pyrolysis, slow pyrolysis. Fast pyrolysis segment held a dominant market share of around 60% in 2022 and is expected to grow at a lucrative pace till 2032. Greater yields: When compared to slower and flash pyrolysis techniques, fast pyrolysis operations generally yield more TPO. Better product affordability and reduced TPO production costs are the results of this increased efficiency.

Superior quality: TPO produced by fast pyrolysis is more pure and of higher grade than TPO made by conventional pyrolysis techniques. Because of its improved quality, quick pyrolysis TPO is now a more alluring choice for a greater number of uses, including as the production of carbon black, fuel for power plants, and chemicals.
 

Versatility: A range of tyre feedstocks, including entire tyres, shredded tyres and tyre crumbs, can be used to create fast pyrolysis TPO. Because of its adaptability, quick pyrolysis TPO is a better choice for areas with little infrastructure for collecting and recycling tyre waste.
 

U.S. dominated the North American region with majority market share and a revenue of USD 80.5 million in 2022 and is anticipated to expand at a significant pace from 2023-2032. This growth can be attributed to several factor. The United States has put in place a robust regulatory system to deal with the problem of disposing of tyre trash. The adoption of TPO production and other environmentally friendly substitutes is encouraged by this framework. Consequently, TPO infrastructure and technology investments are advocated for tyre waste management companies and industries.
 

In addition to the legal framework, the US government provides incentives and support to encourage the use of TPO technology. There are several initiatives intended to promote the creation and uptake of TPO technology, such subsidies, tax advantages, and funding for R&D.
 

In addition, when it comes to innovations in tyre pyrolysis, the US is in the forefront of the field. The country's academic institutions and the private sector are always working to enhance and expand TPO production techniques.
 

Tire Pyrolysis Oil Market Share

Major players operating in the tire pyrolysis oil industry include:

• Alterra Energy
• Bioenergy Ae Cote-Nord
• Bridgestone Corporation
• Ensyn
• Green Fuel Nordic Oy
• Mk Aromatics Limited
• New Energy Kft.
• New Hope Energy
• Nexus Circular
• Plastic Advanced Recycling Corp.
• Plastic Energy
• Pyrocell (setra)
• Quantafuel ASA
• Shenyang Dongxing Chemical Industry Co., Ltd
• Shenyang East-West Renewable Energy Equipment Co., Ltd
• Trident Fuels Pty Ltd

Shenyang Dongxing Chemical Industry Co., Ltd, and Shenyang East-West Renewable Energy Equipment Co., Ltd have emerged as prominent players in the Asia-Pacific tire pyrolysis oil business due to a combination of critical factors. Their strong market presence and influence can be attributed to their extensive product portfolios and innovative solutions, addressing the diverse needs of the chemical and automotive sectors in the region. Moreover, their commitment to quality and safety standards aligns with the growing demand for Tire Pyrolysis Oil in Asia-Pacific. These industry giants have also fostered key partnerships and collaborations with local stakeholders, bolstering their market reach and distribution networks. Additionally, their investment in R&D drives continuous technological advancements, which resonate with the region's pursuit of modern, safe, and sustainable building and transportation solutions. As a result, Saint-Gobain and ACG have successfully positioned themselves as leading players in the market.
 

Tire Pyrolysis Oil Industry News

• In June 2023, Bridgestone Corporation, a Japanese tire producer, has started producing tire-derived oil and recovered carbon black through the discarded tires pyrolysis using test units located at Bridgestone Innovation Park in Kodaira City, Tokyo.
   
• In April 2022, SK Energy, SK Networks, and Daeho Industries, a manufacturer and distributor of retread tires and tread rubber for heavy vehicles, collaborated to push forward with the pyrolysis industry by recycling discarded tires.
   
• In February 2021, Michelin, a French tire producer, commenced building its first tire pyrolysis facility in partnership with Enviro.
   

Tire pyrolysis oil market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Kilotons from 2018 to 2032, for the following segments:

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Market, By Raw Material

• Waste Plastic
• Waste Rubber
• Wood
• Oil Sludge
• Other Raw Material

Market, By Process

• Fast pyrolysis
• Flash pyrolysis
• Slow Pyrolysis

Market, By End-Use

• Chemicals
• Fuel
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE