Global Pyrolysis Oil Market – Industry Trends and Forecast to 2029

Global Pyrolysis Oil Market, By Fuel (Diesel, Gasoline, Fuel Oil, Others), Feedstock (Plastic, LDPE, HDPE, PP, Rubber, Biomass, Lignocellulosic Biomass, Bagasse), Process (Fast Pyrolysis, Flash Pyrolysis), Raw Material (Waste Plastic, Waste Tire, Waste Rubber, Oil Sludge), Application (Fuels, Chemicals, Heat and Power) – Industry Trends and Forecast to 2029

Market Analysis and Size

There has been rising environmental concerns and rapid depletion of fossil fuel supplies due to which the energy sector is progressively shifting toward a more sustainable and efficient path. Pyrolysis oil has the potential to be a viable alternative to diesel in compression ignition engines. This could further boost demand for the pyrolysis oil market. In addition to this, the market players are focused on alternative fuel resources in order to lessen reliance on a single energy source and use a variety of renewable energy sources. These factors will further fuel the consumption and adoption of pyrolysis oil globally, thus aiding the market growth even during the forecast period.

Global Pyrolysis Oil Market was valued at USD 315.69 million in 2021 and is expected to reach USD 448.95 million by 2029, registering a CAGR of 4.50% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Report Scope and Market Segmentation

Market Definition

Pyrolysis oil refers to a liquid substance obtained in 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 depolymerisation of products treated in pyrolysis. This is one of the prominent sources of bio-chemicals and renewable compounds catering various industries.  

Pyrolysis oil Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• High Demand for Heat and Power Application

During the forecast period, the use of pyrolysis oil in gas turbines and diesel engines to create heat and electricity is expected to provide attractive chances for the pyrolysis oil market to develop. Five plants in the United States produce renewable diesel, with a total capacity of over 590 million gallons per year. With 2 billion gallons of capacity under development at six plants and expansion at three existing plants, production is likely to increase in the near future. The use of pyrolysis oil in boilers is likely to increase over the projection period, as pyrolysis oil may reduce carbon emissions by 90 percent. As a result, it can be used to replace natural gas as well as heavy and light fuel oils, resulting in an increase in pyrolysis oil demand.

• Surge in Adoption of Environment-friendly Fuels Alternatives

There is a growing understanding of the negative consequences of fossil fuel use. In developing countries, a lot of research and development is going on to identify alternatives to traditional fossil fuels. The energy sector has been quickly developing in recent years because of increased environmental concerns and the rapid depletion of fossil fuel sources, and stakeholders are looking for sustainable and energy-efficient solutions. The increased demand for sustainable fuel further boosts demand for the pyrolysis oil market.

Furthermore, the rise in energy expenditure and surge in prices of petroleum products in many countries will further propel the growth rate of pyrolysis oil market. Additionally, the increase in infrastructure development activities globally and rapid industrialization will also drive market value growth. The increasing energy security concerns in developing economies are also projected to bolster the market's growth.

Opportunities

• Inclination towards Renewable Energy Source and Energy Security

Furthermore, the growing inclination towards utilizing renewable energy sources and research and development activities to develop alternative fuels extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, the increase in focus on enhancing energy security will further expand the future growth of the pyrolysis oil market.

Restraints/Challenges

• Complexity in Storage and Transportation

The problems associated to storage and transportation of pyrolysis oil will create hindrances for the growth of the pyrolysis oil market.

• Negative Impact of COVID-19

With the unfavorable conditions arising due to the COVID-19 outbreak such as rising number of restrictions around the globe due to pandemic, there has been a hit in the demand and supply. This has led to emergence of various challenges for the pyrolysis oil market growth rate.

This pyrolysis oil market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the pyrolysis oil market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Pyrolysis Oil Market

The recent outbreak of coronavirus had a negative impact on the pyrolysis oil market, as it affected the global economic condition along with the power generation and automotive fuel industry. With the government regulation of social distancing, constraint in the movement and complete shut downs led to the delayed operations, shutdown of several units in industries dependent on pyrolysis oil, and small business dependent on pyrolysis oil as the source for their manufacturing product. As a result of these variables, waste-derived pyrolysis oil has a low consumption rate. Further reductions in the usage of automotive fuel for automobiles hampered the business of waste-derived pyrolysis oils, which are mixed fuels used in motor vehicle energy generation.

However, when the economy improves and the performance of industries, power generation, and the automobile fuel sector improves, waste-derived pyrolysis oils demand is predicted to return to its previous level post-pandemic.

Recent Development

• In October 2020, Borealis AG was acquired by OMV Aktiengesellschaft, which now owns 39 percent of the company. OMV Aktiengesellschaft now has a 75 percent stake in Borealis AG as a result of this acquisition. The overall value of the transaction was estimated to be roughly US$ 4.68 billion. OMV has spent years gaining scale in exploration and production, refining, and petrochemicals, and this move is the culmination of that effort.

Global Pyrolysis Oil Market Scope

The pyrolysis oil market is segmented on the basis of fuel, feedstock, process, raw material and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Fuel

• Diesel
• Gasoline
• Fuel Oil
• Others

 Feedstock

• Plastic
• LDPE
• HDPE
• PP
• Rubber
• Biomass
• Lignocellulosic Biomass
• Bagasse

 Process

• Fast Pyrolysis
• Flash Pyrolysis

Raw Material

• Waste Plastic
• Waste Tire
• Waste Rubber
• Oil Sludge

Application

• Fuels
• Chemicals
• Heat and Power

Pyrolysis Oil Market Regional Analysis/Insights

The pyrolysis oil market is analyzed and market size insights and trends are provided by country, fuel, feedstock, process, raw material and application as referenced above.

The countries covered in the pyrolysis oil market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the growth of the industrial diesel engines and industrial boilers industry, use as an alternative for fossil fuel, use for deviating new products and government support within the region.

On the other hand, Asia-Pacific is estimated to show lucrative growth over the forecast period of 2022-2029, due to the favorable government policies and regulations to promote the development of renewable energy technologies in the region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Pyrolysis Oil Market Share Analysis

The pyrolysis oil market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to pyrolysis oil market.

Some of the major players operating in the pyrolysis oil market are

• Agile Process Chemicals LLP (India)
• Klean Industries (Canada)
• BTG Biomass Technology Group (Netherlands)
• Trident Limited, India (India)
• Pyro-Oil Nig. Ltd. (Nigeria)
• Setra Systems (U.S.)
• Agilyx, Inc (U.S.)
• Alterra Mountain Company (U.S.)
• P2O® Technology (U.S.)
• Nexus Circular (U.S.)
• Plastic Advanced Recycling Corp. (U.S.)
• Brightmark LLC (U.S.)
• OMV Aktiengesellschaft (Austria)
• Niutech Environment Technology Corporation (China)
• ETIA Group (France)
• Chevron Phillips Chemical Company LLC (U.S.)
• Divya International (India)
• Ecomation Oy (Finland)
• Kingtiger(shanghai) Environmental Technology Co., Ltd. (China)
• ReCor Medical, Inc. (U.S.)