Tire Derived Fuel Market: Introduction
The global tire derived fuel market is expected to witness steady but slow growth in the near future. The global tire derived fuel market is witnessing brighter prospects, due to growing demand for energy efficiency and conventional fuel usage.
Tire derived fuel or TDF is a product of various kinds of scrap tire material. Such scrap usually includes uniforms pieces of junk tires, which meet the expectation of end-industries. These can be in the form of pulp, cement kilns, paper mills, and electric utilities. These tires help end-use industries lower costs, improve boiler efficiency, and reduce air emissions. According to recent estimates by the Environmental Protection Agency, or the EPA, the TDF raises equivalent amount of output to oil. It also produces nearly 20% to 50% more energy as compared to coal. Moreover, it can double the output of energy produced from wood.
The global tire derived fuel market stood at US$ 373.06 Mn in 2020. The market is expected to clock a steady CAGR of 2.9% during 2021-2031. Among various end-use applications in the market, cement manufacturing is expected to register the highest demand during the forecast period.
Currently, cement manufacturing companies consume as much as over 300,000 tons of coal per facility per year. The raw produce in the tire derived fuel market is expected to supplement this consumption in the near future. Among various regions, Asia Pacific is expected to lead demand for TDF in the near future. In Asia, Japan accounted for more than 30% market share, while producing over 1 million scrap tyres, in 2020. Rise in demand for tire derived fuel in the region and increase in environmental regulations are major positives for the tire derived fuel market in the near future.
Environmental Concerns to Drive Growth
TDF produces considerably low emissions, when produced at a well-controlled facility. Additionally, it reduces dependence on fuels and is reasonably priced for a wide-scale commercial application. In 2003, EU regulators mandated companies to find new ways to reduce landfill reserves of scrap tires. Limited capacity of landfills and environmental pollution caused due to scrap tires are expected to keep the regulators vigilant in the near future. Furthermore, TDF has the same heating value to that of coal, usually around 13,000 to 15,000 BTUs or British Thermal Units. Long fuel residence time and high temperatures are expected to drive considerably higher demand in the tire derived fuel market in the near future.
Low Recovery Rate to Pose a Challenge to Market Growth
Asia Pacific is witnessing major growth in the automobile industry. Increase in population, introduction of various automobiles, and rise in disposable income are expected to drive the industry in the near future. However, the region also witnesses low-recovery rates of scrap tires, limiting its application. While government regulations are becoming increasingly stringent, these are still not on par with their counterparts in Europe and North America. However, growing awareness about scrap tyre waste in landfills and strong demand in the auto industry across developed regions due to trends such as automated car are expected to result in significant opportunities in the near future. The tire derived fuel market in Asia Pacific is expected to witness a growing opportunities owing to advanced manufacturing techniques already available in countries such as Japan.
Tire Derived Fuel Market: Key Players
Key players operating in the global tire derived fuel market include Liberty Tire Recycling, Ragn-Sells Group, Lakin Tire West Inc., ResourceCo Pty Ltd., Emanuel Tire, and Renelux Cyprus Ltd.
Global Tire Derived Fuel Market: Segmentation
Tire Derived Fuel Market by Type
Tire Derived Fuel Market by End-user
Tire Derived Fuel Market by Region
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