Market Size of Pyrolysis Oil Industry
| Study Period | 2024 - 2029 |
| Market Size (2024) | USD 0.52 Billion |
| Market Size (2029) | USD 1.28 Billion |
| CAGR (2024 - 2029) | 19.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Pyrolysis Oil Market Analysis
The Pyrolysis Oil Market size is estimated at USD 0.52 billion in 2024, and is expected to reach USD 1.28 billion by 2029, growing at a CAGR of 19.71% during the forecast period (2024-2029).
The COVID-19 pandemic drastically curtailed industrial activities during 2020 and 2021 due to imposed government lockdowns and restrictions, thereby limiting the growth of the pyrolysis oil market. The chemical industry and heat and power generation sector were paralyzed owing to less raw material supply, limited working hours/labor strength, and constrained financials. This halted the adoption of pyrolysis oil, a sustainable yet unconventional fuel that dwells with storage and transportation challenges in these sectors. However, the industries have been on the recovery as well as growth tracks ever since the retraction of the pandemic in mid-2021. The recovering oil and gas, chemicals, and power sectors with increased downstream consumption due to the lifting of restrictions and the growing sustainability drive have reinstated the interests of market players in pyrolysis oil.
Over the medium term, the rising demand for eco-friendly fuel and raw material alternatives and the increasing demand for pyrolysis oil application in the generation of heat and power are the major driving factors augmenting the growth of the market studied.
On the other hand, the constraints associated with the storage, transportation, and application of pyrolysis oil are anticipated to restrain the growth of the market studied over the forecast period.
Nevertheless, the emerging applications of pyrolysis oil in biorefineries are likely to create lucrative growth opportunities for the global market soon.
Europe emerged as the largest market for pyrolysis oil. However, Asia-Pacific is expected to record the highest CAGR during the forecast period. This dominance of Europe is attributed to the bullish demand for pyrolysis oil in combustion in boilers, upgrading of transportation, and chemical production applications.
Pyrolysis Oil Industry Segmentation
Pyrolysis oil is a liquid substance obtained in the 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 depolymerization of products treated in pyrolysis.
The pyrolysis oil market is segmented by raw material, application, and geography. By raw material, the market is segmented into waste plastic, waste rubber, wood, oil sludge, and other raw materials (waste tyres, etc.). By application, the market is segmented into fuels and chemicals. The report also covers the market size and forecasts for the pyrolysis oil market in 27 countries across major regions.
The report offers market size and forecasts for pyrolysis oil in terms of revenue in USD for all the above-mentioned segments.
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Pyrolysis Oil Market Size Summary
The pyrolysis oil market is poised for significant growth over the forecast period, driven by the increasing demand for sustainable and eco-friendly fuel alternatives. The market, which experienced a slowdown due to the COVID-19 pandemic, is recovering as industrial activities resume and the focus on sustainability intensifies. Pyrolysis oil, derived from the thermal decomposition of organic materials, is gaining traction as a viable substitute for conventional fuels in various sectors, including power generation, construction, and heavy industries. Despite challenges related to storage and transportation, the market is expected to benefit from emerging applications in biorefineries and the growing need for renewable energy sources.
Europe currently leads the global pyrolysis oil market, with substantial demand in boiler combustion, transportation fuel upgrading, and chemical production. The region's strong industrial base, particularly in steel and cement, supports the adoption of pyrolysis oil. Meanwhile, Asia-Pacific is anticipated to exhibit the highest growth rate, driven by increasing industrialization and energy demands. The market's fragmented nature sees numerous players contributing to its expansion, with recent collaborations and technological advancements enhancing production capabilities. As countries strive to reduce carbon emissions and manage plastic waste, pyrolysis oil presents a promising solution, offering both environmental and economic benefits.
Pyrolysis Oil Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Rising Demand For Environment-friendly Fuel and Raw Material Alternatives
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1.1.2 Increasing Demand From Heat and Power Generation Sectors
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1.2 Restraints
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1.2.1 Problems Associated With Storage, Transportation, and Application of Pyrolysis Oil
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Value)
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2.1 Raw Material
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2.1.1 Waste Plastic
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2.1.2 Waste Rubber
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2.1.3 Wood
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2.1.4 Oil Sludge
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2.1.5 Other Raw Materials
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2.2 Application
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2.2.1 Fuels
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2.2.2 Chemicals
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2.3 Geography
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2.3.1 Asia-Pacific
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2.3.1.1 China
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2.3.1.2 India
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2.3.1.3 Japan
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2.3.1.4 Thailand
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2.3.1.5 Vietnam
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2.3.1.6 Malaysia
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2.3.1.7 Indonesia
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2.3.1.8 South Korea
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2.3.1.9 Rest of Asia-Pacific
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2.3.2 North America
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2.3.2.1 United States
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2.3.2.2 Canada
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2.3.2.3 Mexico
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2.3.3 Europe
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2.3.3.1 Germany
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2.3.3.2 France
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2.3.3.3 United Kingdom
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2.3.3.4 Italy
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2.3.3.5 NORDIC
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2.3.3.6 Spain
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2.3.3.7 Turkey
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2.3.3.8 Russia
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2.3.3.9 Rest of Europe
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Colombia
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2.3.4.4 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 South Africa
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2.3.5.3 Morocco
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2.3.5.4 Qatar
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2.3.5.5 Egypt
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2.3.5.6 United Arab Emirates
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2.3.5.7 Nigeria
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2.3.5.8 Rest of Middle East and Africa
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Pyrolysis Oil Market Size FAQs
How big is the Pyrolysis Oil Market?
The Pyrolysis Oil Market size is expected to reach USD 0.52 billion in 2024 and grow at a CAGR of 19.71% to reach USD 1.28 billion by 2029.
What is the current Pyrolysis Oil Market size?
In 2024, the Pyrolysis Oil Market size is expected to reach USD 0.52 billion.
