The global market size is expected to reach USD 1.8 billion by 2027, registering a CAGR of 8.2% over the forecast period, according to a new report by Grand View Research, Inc. Rising concerns about the hazardous impact of plastic waste and the pollution created as a result are handled through plastic to fuel conversion to keep the environment safe and to produce petroleum products.
The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries. The report will account for Covid19 as a key market contributor.
Plastic is converted into different forms of energy (including fuel) and heat. The rising demand for petrol or diesel in transportation and jet airways is projected to be a key driver of the market. The growing population owing to urbanization and industrialization is also expected to propel the growth of the market over the forecast period.
Rising developments in the manufacturing industry to produce a high volume of fuel by increasing the production capacity of renewable fuel plants are anticipated to impel market growth over the next few years. In March 2017, the Diamond Green Diesel facility expanded its annual renewable diesel production capacity to 275.0 million gallons using Honeywell’s UOP ecofining technology. Similar interest by other oil and gas giants such as Chevron and Enel are anticipated to drive the market.
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The growing demand for fuel in the automotive industry is anticipated to drive the market over the forecast period. Intensive R&D and technological advancements are likely to propel the market in the emerging economies. The rising volume of residential and industrial plastic waste in developing countries such as India and China is projected to drive the market.
Plastic To Fuel Market Report Highlights
Pyrolysis technology was the largest technology segment capturing around 65.3% of the market share in 2020 due to high efficiency
The crude oil segment is anticipated to dominate the market due to growing demand from transportation industry and will reach USD 968.2 million in 2027
Asia Pacific is anticipated to be the largest regional segment in 2027 accounting for 35.5% market share owing to large amount of plastic waste available and growing energy demand in the region
China is anticipated to accumulate the highest revenue by a country in 2027 and is anticipated to witness a CAGR of 8.2% from 2020 to 2027
New product launches, research and development, and technological collaborations are some of the strategic initiatives taken up by leading market players.
Governments have been dependent on landfills or incineration for plastic waste management in the past. However, the increasing demand for sustainable fuel has prompted industries to shift to the development of advanced technologies. Numerous waste management tools are employed on such waste to produce different forms of energy such as heat, electricity, fuel, and diesel, driving the overall market.
The increasing demand for recycling industry in developed markets such as Japan, Netherlands, Germany, and the U.S. should impel market growth. Companies such as Chevron and BP have introduced plastic to fuel techniques to produce and to generate their own energy using plastic waste.
The global economy is anticipated to enhance post-COVID-19 pandemic, which is why energy requirements are expected to increase exponentially in the coming years. Furthermore, increasing R&D to minimize installation costs of plastic to fuel generation plants is projected to propel market growth in these regions. Technological advancements for energy generation in order to improve the efficiency of energy yielded from waste are expected to positively influence market participants.
According to the World Bank, approximately 242.0 million tons of plastic waste is generated every year. Availability of such huge plastic waste is a key factor driving the market. Moreover, numerous countries are developing solutions to tackle plastic waste disposal other than landfill. These factors are anticipated to drive the market during the forecast period.
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The demand for clean fuel is expected to witness exponential increase every year, with rising pollution levels coupled with growing government regulations to control and curb the carbon content in fuels is expected to drive demand for hydrogen in the near future. Adoption of hydrogen-powered fuel cells has witnessed a robust growth over the past decade owing to being classified as pollution-free source of energy and is being used extensively in powering cars and buses. These factors are anticipated to drive the production of hydrogen from plastics during the forecast period.
Since the technology is under development, the market is fragmented with few companies providing commercial plastic to fuel technologies. The companies are now concentrating on offering shareholders long-term value in order to grow and survive in the market. The key players value developing robust and low-risk strategies that ensure a significant profit margin and a strong foundation for their shareholders.
Some of the prominent players in the plastic to fuel market include:
Green Envirotec Holdings LLC
Shangqiu Sihai Machinery Equipment Manufacturing Co., Ltd.
Beston (Henan) Machinery Co., Ltd.
Zhangzhou Qiyu Renewable Energy Technology Co., Ltd.
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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