The pyrolysis oil market is projected to grow from US$827.177 million in 2025 to US$1.23 billion in 2030 at a CAGR of 8.35%.
Pyrolysis oil is a liquid blend made by rapid quenching or heating of biomass, waste, plastic and other materials in the absence of oxygen. Such oil finds applicability in fuels & chemicals among other usage owing to which they hold high scope of industrial usage. The growing demand for sustainable, energy efficient, cleaner and much greener fuel alternative to traditional fossil fuels ins majorly driving the demand for pyrolysis oil.
Following this, renewable energy generates over 20% of all U.S. electricity, and that percentage continues to grow. In 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. By 2025, domestic solar energy generation is expected to increase by 75%, and wind by 11%. The following graphic breaks down the shares of total electricity production in 2022 among the types of renewable power:
Another factor that has fueled growth in the pyrolysis oil market has been the increasing prices of traditional fuels and the need to ensure energy security. As the source of energy is indigenous, it becomes a feasible source as countries are looking to reduce dependence on imported fossil fuels.
Moreover, the demand forsustainable packaginghas created the development and launch of such related product solutions. Such as, in October 2023, ICIS became a global source of commodity intelligence, boasting the highest-quality, transparent, and reliable commodity data. It further launched its Pyrolysis Oil Pricing Indexes, intended to fill the growing demand from consumers for the pricing of chemical recycling outputs
Pyrolysis oil is formed via decarbonization of organic materials which makes them sustainable and low emission producer. And as many industries seek alternative means of sustainable and renewable energies to reduce dependence on fossil fuels, pyrolysis oil owing to their such high-performance feature are acting as an alternative to conventional fuel in heat & power generation.
In addition, concerns over energy security and increasing prices of fossil fuels are pushing for the use of locally produced renewable fuels, such as pyrolysis oil. Biomass sources are widely dispersed, which brings industries closer to generating their energy near the point of demand, reducing their dependence on imported fuels and enhancing energy security. In 2023, biomass consists of about 5% of U.S. total primary energy consumption. Biomass is applied both in heating and electricity production and as a transportation fuel. It is an important fuel in most countries, especially in developing countries, for cooking and heating.
Moreover, as per the India Climate and Energy Dashboard, in 2022-23 the electricity generation was 1,617,723 MU which surged to 1,734,375 MU in 2023-24.
Geographically, the pyrolysis oil market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific.
During the forecast period, the North American region is anticipated to show significant growth fueled by the growing demand for sustainable fuel for industrial application, investment in waste recycling and expansion of new applications in major regional economies namely the United States and Canada.
Likewise, cooperation among relevant stakeholders' technology providers, waste management companies and energy producers are key in supporting the market growth of pyrolysis oil from plastic waste. For instance, Nexas Circular and LyondellBasell collaborated in February 2023 for the supply of 24,000 tons of recycled feedstock per year. The source for this will be Nexus Circular's new recycling facility, which is expected to be developed beginning this year.
Further, pyrolysis oil is primarily utilized in the United States for purposes like boiler combustion, engine and turbine fueling, transportation fuel upgrading, and as a renewable feedstock for materials and chemicals. The overall supply of renewable diesel has also grown as a result; for example, it went from 1,735,591 gallons in 2021 to 2,746,992 gallons in 2023.
Pyrolysis oil is a liquid blend made by rapid quenching or heating of biomass, waste, plastic and other materials in the absence of oxygen. Such oil finds applicability in fuels & chemicals among other usage owing to which they hold high scope of industrial usage. The growing demand for sustainable, energy efficient, cleaner and much greener fuel alternative to traditional fossil fuels ins majorly driving the demand for pyrolysis oil.
Following this, renewable energy generates over 20% of all U.S. electricity, and that percentage continues to grow. In 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. By 2025, domestic solar energy generation is expected to increase by 75%, and wind by 11%. The following graphic breaks down the shares of total electricity production in 2022 among the types of renewable power:
Another factor that has fueled growth in the pyrolysis oil market has been the increasing prices of traditional fuels and the need to ensure energy security. As the source of energy is indigenous, it becomes a feasible source as countries are looking to reduce dependence on imported fossil fuels.
Moreover, the demand forsustainable packaginghas created the development and launch of such related product solutions. Such as, in October 2023, ICIS became a global source of commodity intelligence, boasting the highest-quality, transparent, and reliable commodity data. It further launched its Pyrolysis Oil Pricing Indexes, intended to fill the growing demand from consumers for the pricing of chemical recycling outputs
Pyrolysis Oil Market Drivers
The rising demand from heat & power generation sectors has augmented the market growth.Pyrolysis oil is formed via decarbonization of organic materials which makes them sustainable and low emission producer. And as many industries seek alternative means of sustainable and renewable energies to reduce dependence on fossil fuels, pyrolysis oil owing to their such high-performance feature are acting as an alternative to conventional fuel in heat & power generation.
In addition, concerns over energy security and increasing prices of fossil fuels are pushing for the use of locally produced renewable fuels, such as pyrolysis oil. Biomass sources are widely dispersed, which brings industries closer to generating their energy near the point of demand, reducing their dependence on imported fuels and enhancing energy security. In 2023, biomass consists of about 5% of U.S. total primary energy consumption. Biomass is applied both in heating and electricity production and as a transportation fuel. It is an important fuel in most countries, especially in developing countries, for cooking and heating.
Moreover, as per the India Climate and Energy Dashboard, in 2022-23 the electricity generation was 1,617,723 MU which surged to 1,734,375 MU in 2023-24.
Pyrolysis Oil Market geographical outlook
North America will constitute for a considerable share during the forecast period.Geographically, the pyrolysis oil market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific.
During the forecast period, the North American region is anticipated to show significant growth fueled by the growing demand for sustainable fuel for industrial application, investment in waste recycling and expansion of new applications in major regional economies namely the United States and Canada.
Likewise, cooperation among relevant stakeholders' technology providers, waste management companies and energy producers are key in supporting the market growth of pyrolysis oil from plastic waste. For instance, Nexas Circular and LyondellBasell collaborated in February 2023 for the supply of 24,000 tons of recycled feedstock per year. The source for this will be Nexus Circular's new recycling facility, which is expected to be developed beginning this year.
Further, pyrolysis oil is primarily utilized in the United States for purposes like boiler combustion, engine and turbine fueling, transportation fuel upgrading, and as a renewable feedstock for materials and chemicals. The overall supply of renewable diesel has also grown as a result; for example, it went from 1,735,591 gallons in 2021 to 2,746,992 gallons in 2023.
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The Pyrolysis Oil Market is analyzed into the following segments:
By Application
- Fuel
- Chemicals
- Others
By Material
- Plastic
- Rubber
- Wood
- Biomass
- Oil Sludge
- Other Materials
By Process
- Fast Pyrolysis
- Flash Pyrolysis
- Slow Pyrolysis
By Geography
- North America
- South America
- Europe
- Middle East and Africa
- Asia-Pacific
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. PYROLYSIS OIL MARKET BY APPLICATION
6. PYROLYSIS OIL MARKET BY MATERIAL
7. PYROLYSIS OIL MARKET BY PROCESS
8. PYROLYSIS OIL MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- Alterra Energy, LLC
- Ensyn
- Green Fuel Nordic Oy
- New Energy Kft.
- New Hope Energy
- Nexus Circular
- Plastic Advanced Recycling Corp.
- Setra Group
- Quantafuel ASA
- Trident Fuels Pty Ltd.
- Twence
- AP Chemi
- Vow ASA
- Doing holdings Co., Ltd
- Contec S.A. Poland
- Neste
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 149 |
| Published | December 2024 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 827.18 Million |
| Forecasted Market Value ( USD | $ 1230 Million |
| Compound Annual Growth Rate | 8.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 16 |
