Pyrolysis Oil Market

Global Pyrolysis Oil Market Size (2024 to 2029)

The Global Pyrolysis Oil Market is expected to grow at a CAGR of 4.3% during the forecast period 2024 to 2029. The market value was at USD 3.23 billion in 2023, and the value is expected to reach USD 4.16 billion by the end of 2029.

MARKET OVERVIEW

Pyrolysis oil, also known as bio-crude or bio-oil, is a man-made fuel that scientists are studying as a possible replacement for petroleum. It's made by heating dried plants without oxygen at very high temperatures and then cooling it down. This oil contains a lot of oxygen, making it different from regular fuels and causing some challenges, like being less stable, corrosive, and not mixing well with fossil fuels. The process of "upgrading" helps to remove some of the oxygen from the oil. Pyrolysis is a well-known method for breaking down organic materials at high temperatures without oxygen to create oil and other substances. Materials like leftover wood, yard waste, agricultural leftovers, and certain energy crops can be used to make this kind of fuel. Pyrolysis oil is being researched as a more eco-friendly and renewable option to power various industries. However, there are still some difficulties to overcome due to its unique properties. It's gaining popularity in industries like power generation, transportation, and chemicals, where it can be used as fuel in boilers, furnaces, and turbines. Pyrolysis oil is also used as a replacement for petroleum-based materials in chemical production to reduce environmental impact. The quality of pyrolysis oil can vary depending on the source material and the specific pyrolysis process used, which can affect its suitability for different applications.

MARKET DRIVERS

As the world's population increases, so does the production and use of plastic, causing a huge environmental problem. More than 1.3 billion metric tons of plastic are made each year, and about 100 million tons are used worldwide, which is harmful to the environment. To tackle this issue, pyrolysis is a method to manage plastic waste by turning it into useful products like pyrolysis oil. Pyrolysis involves heating plastic without oxygen to break it down and create liquid oil. This oil can be used as fuel for heat or electricity or further processed to make other materials. Producing pyrolysis oil helps recycle plastic waste, reducing the amount of plastic ending up in landfills or harming the environment. The demand for renewable energy and pyrolysis oil is increasing due to concerns about the environment, the need for sustainable fuel sources, and economic benefits. Pyrolysis oil is made from natural sources like wood, agricultural waste, or plastic, using a process that breaks them down to create a liquid fuel. It has high energy content and can be used directly or upgraded to a better fuel like diesel or gasoline. This renewable energy source helps reduce greenhouse gas emissions, improves air quality, and is used for electricity, heat, transportation, and industry. Governments around the world are supporting renewable energy by implementing policies like incentives and subsidies for bioenergy projects, including pyrolysis oil production. These actions encourage the use of pyrolysis oil as a renewable energy source and drive pyrolysis oil market demand.

MARKET RESTRAINTS

Pyrolysis oil is not as developed as regular fossil fuel. This is because there is not enough infrastructure for producing, storing, and distributing pyrolysis oil. This lack of infrastructure makes it difficult to supply enough pyrolysis oil to meet the demand of users. Therefore, the lack of proper infrastructure and availability is likely to hinder the pyrolysis oil market growth. To grow the market, it's important to build strong supply chains and distribution networks. Pyrolysis oil can vary in quality depending on what materials are used and the process used to make it. This inconsistency makes it hard to have a reliable supply of pyrolysis oil and for users to use it as fuel. It can also be acidic, which can cause damage to fuel systems. Researchers are working on improving the quality of pyrolysis oil to make it a better fuel option. The competition for pyrolysis oil comes from fossil fuels like coal, oil, and natural gas, which have well-established supply chains and are often cheaper. Pyrolysis oil has some disadvantages compared to fossil fuels, such as its inconsistent quality, higher costs to produce, and limited availability. To compete with fossil fuels, efforts are being made to make pyrolysis oil production more efficient and cost-effective and to find new uses and technologies for it.

MARKET OPPORTUNITIES

Pyrolysis oil is a promising alternative to petroleum, with many advantages. It can power diesel engines and turbines, making it suitable for use in the automotive industry. Unlike petroleum, pyrolysis oil is synthetic, so there is no need to worry about running out of it, making it a dependable option for many industries. In the automotive industry, where most cars rely on petroleum, pyrolysis oil offers an eco-friendly alternative. While electric vehicles are gaining popularity in some areas, they can be costly and not easily available in developing countries. In addition, pyrolysis oil can be used in industrial boilers, making it even more in demand. Overall, pyrolysis oil has a variety of applications in fuels, chemicals, heat, and power generation, making it a versatile and promising option for many industries. The growing prevalence of this oil from many industries is set to create growth opportunities for the market to grow in the coming years. 

Impact of COVID-19 on the Global Pyrolysis Oil Market

The COVID-19 pandemic had a big impact on the pyrolysis oil market in 2020 and 2021. The government lockdowns and restrictions slowed down industrial activities, especially in the chemical heat, and power generation sectors. This led to a decrease in the use of pyrolysis oil as a sustainable fuel because of limited raw material supply, reduced working hours, and financial constraints. However, as the pandemic started to ease in mid-2021, industries began to recover. The oil and gas, chemicals, and power sectors improved, and restrictions were lifted, allowing for increased consumption of pyrolysis oil. The growing focus on sustainability also renewed the interest of market players in using pyrolysis oil as an alternative fuel.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Pyrolysis Oil Market By Feedstock

The most popular product in the pyrolysis oil market worldwide is Plastic-based Pyrolysis Oil. It has become increasingly popular due to the growing concerns over plastic waste management and its environmental impact. The strict regulations and increased awareness of plastic waste have led to the use of pyrolysis technology to transform waste plastic into valuable products such as pyrolysis oil. In the meantime, the sector experiencing the most rapid growth in the global pyrolysis oil market is the Tire-based Pyrolysis Oil. This is due to the mounting concerns over tire waste and its environmental consequences. With pyrolysis technology, waste tires can be converted into useful products such as pyrolysis oil, carbon black, and steel wire. The demand for tire-based pyrolysis oil has been driven by the increasing emphasis on sustainable waste management practices and the utilization of waste tire resources.

Global Pyrolysis Oil Market By Process

The most commonly used method in the pyrolysis oil market is fast pyrolysis. This process involves rapidly heating biomass to high temperatures (usually between 400 to 600 degrees Celsius) without oxygen. Compared to slow pyrolysis and flash pyrolysis, fast pyrolysis generates a higher yield of liquid pyrolysis oil, also known as bio-oil. This liquid fuel source is renewable and can be utilized in various industries, such as power generation, transportation fuels, and chemical production. Due to its versatility and relatively high yield, fast pyrolysis is a popular choice in the pyrolysis oil market.

Global Pyrolysis Oil Market By Application

The pyrolysis oil market is mainly dominated by the Heat and Power Generation application, which has an established infrastructure and a growing focus on renewable energy sources. The heat generated by this application can be used for various industrial processes, heating applications, and power generation. On the other hand, the fastest-growing application in the pyrolysis oil market is the Transportation Fuel application. It offers a way to convert waste materials and biomass into liquid fuels that can be used as transportation fuels, such as bio-oil or bio-crude. The rapid growth of this application is being driven by the implementation of renewable fuel standards and policies, as well as the emphasis on reducing carbon footprint. This application addresses the need for sustainable alternatives to fossil fuels and presents an opportunity to reduce greenhouse gas emissions while enhancing energy security.

REGIONAL ANALYSIS

The North America region dominates the pyrolysis oil market size due to the rapid adoption of new infrastructure, advanced technology, and a strong focus on sustainability initiatives.. Environmental regulations and government support for renewable energy sources further increase the demand for pyrolysis oil in North America. Meanwhile, the Asia Pacific is likely to hit the largest CAGR of the pyrolysis oil market during the forecast period owing to rapid industrialization, increasing energy demand, and a focus on sustainable development. China, India, Japan, and South Korea have all seen significant growth in their industrial sectors, leading to increased waste generation.

KEY PLAYERS IN THE GLOBAL PYROLYSIS OIL MARKET

Ensyn Corporation (Canada), Anellotech Inc. (US), BTG Bioliquids BV (Netherlands), Neste Corporation (Finland), Agilyx Corporation (US), Renewable Energy Group, Inc. (US), Plastic Energy Ltd. (United Kingdom), Plastic Advanced Recycling Corporation (US), Pyrowave Inc. (Canada), BTG-BTL (Netherlands), Repsol S.A. (Spain), BASF SE (Germany), Exxon Mobil Corporation (US), Chevron Corporation (US) are some of the notable companies in the global Pyrolysis Oil Market.

DETAILED SEGMENTATION OF THE GLOBAL PYROLYSIS OIL MARKET INCLUDED IN THIS REPORT

This research report on the global pyrolysis oil market has been segmented and sub-segmented based on feedstock, process, application, and region.

By Feedstock

• Plastic
• Rubber
• Biomass

By Process

• Fast pyrolysis
• Flash pyrolysis
• Slow Pyrolysis

By Application

• Heat and power generation
• Automotive fuel
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa