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Growth in Automotive Sector Triggers Increased Demand for Hydrogen and Diesel Fuel 

Plastic has created a worldwide epidemic of increased waste disposal issues in key economies and developing countries. Thus, the implementation of stringent regulations has compelled market players in the recycled plastic and plastic waste to oil market to devise environmental-friendly strategies to convert plastic waste into useful fuel.

The automotive sector is projected to grow rapidly during the forecast period. New car launches are estimated to create increased demand for fossil fuel. Hence, manufacturers in the recycled plastic and plastic waste to oil market are adding light-absorbing photo catalysts to single-use plastics and plastic waste, to convert it into hydrogen fuel. Analysts at Transparency Market Research (TMR) predict that, manufacturers in the recycled plastic and plastic waste to oil market will capitalize on the demand for hydrogen fuel that will be increasingly used to power cars.

Manufacturers in the recycled plastic and plastic waste to oil ecosystem are teaming up with researchers to devise innovative plastic recycling methods to convert plastic into diesel fuel. As such, diesel is projected to account for an output of ~80,700 kilo gallons through recycling methods by the end of 2027, in the recycled plastic and plastic waste to oil market. Hence, companies in the recycled plastic and plastic waste to oil landscape are increasing research & development to dissolve the bonds of polyethylene plastic to create petroleum and other fuel products.recycled plastic and plastic waste to oil market infographic

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Innovation at Recycling Plants Creates Incremental Opportunities in Energy and Power Industry

Currently, Asia Pacific accounts for ~44% value share of the recycled plastic and plastic waste to oil market. Hence, companies in the recycled plastic and plastic waste to oil space in the region are increasing their production capabilities in treating plastic waste. For instance, in August 2018, India’s Union Minister of Science and Technology and Earth Sciences – Harsh Vardhan, inaugurated a demonstration plant in Dehradun, at the Indian Institute of Petroleum (IIP) of Council of Scientific and Industrial Research.

Using advanced technologies, companies in the recycled plastic and plastic waste to oil market are converting tons of plastic into useful diesel, every day. Various organizations in India are teaming up with manufacturers in the recycled plastic and plastic waste to oil landscape by volunteering to sponsor technological developments and provide technical support to companies.

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The development of eco-friendly fuel alternatives through plastic waste is creating avenues for new incremental opportunities, where the fuel can be used to power generators, furnaces, and industrial boilers. Through novel methodologies, manufacturers in the recycled plastic and plastic waste to oil market are capable of developing low-cost energy-efficient fuel. Since quality plastics are recycled and low-quality plastics end up in landfills and oceans, manufacturers are devising strategies to develop liquid fuel through the thermo-chemical depolymerization process. Thus, manufacturers are using recycling methodologies to produce new plastics, and converting old plastic into synthetic oil as energy for mobility.

Companies Facilitating Pyrolysis in Mature Markets to Gain Increased IRR

The recycled plastic and plastic waste to oil market is consolidated, with only four major players dominating the entire landscape. This creates a barrier for the entry of smaller players into the market. Other barriers that can potentially hamper market growth are the limitations and complexities of the pyrolysis process.

Companies in the recycled plastic and plastic waste to oil market are adopting environmental-friendly alternatives to repurpose plastic for the production of fuel. For instance, pyrolysis is the process of using heat in an oxygen-starved environment to convert plastic waste into synthetic oil and gas, with minimized emission of greenhouse gases. However, the operational complexities of pyrolysis are estimated to impede the growth of the recycled plastic and plastic waste to oil market. Pyrolysis doesn’t serve as a cost-effective process, as the regular maintenance of reactors and their downtime is costly. Pyrolysis reactors require a stable and consistent supply of premium-quality feedstock to function effectively.

Thus, to establish the economic viability of pyrolysis, companies in the recycled plastic and plastic waste to oil market are focusing on mature markets such as Singapore and France to gain better internal rate of return (IRR). They are facilitating the process of pyrolysis in mature markets, since these markets have a robust infrastructure of collection systems and near-time recycling targets with stringent monitoring.

recycled plastic and plastic waste to oil market segmentation

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Analysts’ Viewpoint

The recycled plastic and plastic waste to oil market is projected to grow at a healthy CAGR of ~10% during the forecast period. Companies are exploring the pyrolysis process to treat high-density polyethylene bags, useful for the production of end-use gasoline and diesel. Plastic-derived fuels are cleaner burning fuels with low sulfur content.

However, mechanical recycling requires energy-intensive washing and an efficient waste collection system. Hence, manufacturers should team up with researchers to develop new recycling processes, such as hydrothermal liquefaction, to convert polypropylene waste into fuel and other products. They should pursue new technology and feedstock solutions to extract highly-valuable oil from these plastics.

Recycled Plastic and Plastic Waste to Oil Market: Description

  • Recycled plastic and plastic waste to oil can be defined as a technology that is used to convert non-recycled plastic into synthetic crude oil and other value-added petroleum products such as diesel, gasoline, naphtha, and fuel oil.
  • This is an advanced waste conversion technology that is considered complementary to the existing plastic recycling technology.
  • Recycled plastic and plastic waste to oil technology has high potential, as landfill-bound plastics can be used as a resource to develop a valuable alternative fuel source.
  • The global recycled plastic and plastic waste to oil market is projected to expand at a high CAGR of ~10% over the forecast period.
  • As such, the global recycled plastic and plastic waste to oil market is expected to increase from ~US$ 45 Mn in 2019 to ~US$ 100 Mn by 2027.

Excess Dependency on Fossil Fuel to Drive Demand for Oil Generated from Plastic Waste

  • Globally, crude oil consumption has increased considerably due to rapid industrialization and globalization. As per BP statistics, crude oil consumption has increased from 4,607.0 MTOE in 2017 to 4,662.1 MTOE in 2018, an increase of 1.2%. Rise in population and strong growth of the global economy have led to increase in the consumption of crude oil. Moreover, infrastructure development activities are also stimulating the demand for crude oil.
  • Increase in crude oil consumption has raised the need for fossil fuel imports, due to the gap between demand and supply. For instance, in 2018, oil production in the Asia Pacific region stood at 7.6 million barrels per day, while oil consumption stood at 35.86 million barrels per day. This factor has generated the demand for fossil fuel imports.
  • Several efforts have been made by researchers for the development of a sustainable technology for the production of crude oil, in order to reduce the gap between demand and supply.
  • The ability of the plastic to fuel technology to transform non-recycled plastic into crude oil and fuel, which can be used as a feedstock in olefin crackers or as a transportation fuel, makes its adoption viable across the world. This factor is positively influencing the global recycled plastic and plastic waste to oil market.

Lack of Awareness about Plastic Waste to Oil Technology to Hamper Market

  • The plastic waste to oil technology is at a very niche stage. Most regulators do not have any experience with this technology. Hence, lack of awareness about the benefits and the functioning of this technology is a major factor that hampers the global recycled plastic and plastic waste to oil market.
  • However, surge in the demand for the development of a sustainable technology for oil production and increase in efforts to maintain fossil fuel sustainability are anticipated to propel the global recycled plastic and plastic waste to oil market during the forecast period.
  • Presently, the plastic waste to oil technology is commercially available for use in various processes, including the pyrolysis process. Some of the players actively participating in the global recycled plastic and plastic waste to oil market are Plastic2Oil Inc. (U.S.), Agilyx (U.S.), OMV Aktiengesellschaft (Austria), and MK Aromatics.

Increase in Demand for Plastic Recycling to Offer Lucrative Opportunities

  • In recent years, the global plastic waste management industry has witnessed significant growth, as plastic waste management limits the adverse effects of plastic waste on the environment. For example, around 1,000 kilograms of recycled plastic saves 685 gallons of oil, nearly 5800 kWh of electricity, and more than 30 cubic yards of landfill space.
  • Europe leads the world in terms of adoption of the plastic waste management process, due to introduction of stringent regulations and norms pertaining to plastic waste management. For instance, in 2018, Directive (EU) 2018/851 was introduced by the European Commission to reduce the adverse impact of plastic waste generation on the environment and human health.
  • In addition, several developed countries across Europe have imposed a ban on the disposal of plastic waste in landfills. In 2016, 10 member countries of the European Union banned the dumping of plastic waste in landfills. These countries recorded a significant rise in plastic recovery after imposition of the ban.
  • Similarly, several other countries across the world are using the concept of ‘Reduce, Reuse, and Recycle (3R) for plastic waste management due to the various advantages associated with it
  • However, the recycling method incurs high costs of labor required for the separation process, and it causes water contamination that reduces process sustainability. Researchers have shifted their attention toward the energy recovery method to meet the high demand for energy, considering the drawbacks of the recycling method.
  • Thus, stringent government regulations on the disposal of plastics and improvement in the waste collection method are anticipated to create growth opportunities for the global recycled plastic and plastic waste to oil market during the forecast period.

Recent Developments, Expansions, Acquisitions, and New Contracts

  • In June 2019, PLASTIC ENERGY signed a Memorandum of Understanding (MoU) with PETRONAS Chemicals Group (PCG) to conduct a feasibility study to establish a facility for converting plastic waste into TACOIL. This strategic collaboration is aimed at enhancing the company’s penetration into the global recycled plastic and plastic waste to oil market.
  • In April 2019, PLASTIC ENERGY signed a Memorandum of Understanding (MoU) with the province of West Java (Indonesia) to build five chemical recycling plants. The move is aimed to enable the company to expand its presence in the recycled plastic and plastic waste to oil.

Asia Pacific Prominent Recycled Plastic and Plastic Waste to Oil Market

  • Asia Pacific dominated the global recycled plastic and plastic waste to oil market in 2018. The recycled plastic and plastic waste to oil market in the region is expected to expand at a substantial rate during the forecast period, due to rise in the focus on reducing the adverse impacts of climate change, and stringent regulations pertaining to plastic waste management.
  • North America accounted for the second-largest share of the global recycled plastic and plastic waste to oil market in 2018. Increase in investments in demonstration projects to convert plastic waste into synthetic oil in the region is fueling the demand for the plastic to oil conversion technology.

Recycled Plastic and Plastic Waste to Oil Market is Highly Competitive

  • The global recycled plastic and plastic waste to oil market is highly competitive, with several multinational players dominating the global recycled plastic and plastic waste to oil market.
  • Some of the key players operating in the global recycled plastic and plastic waste to oil market are
    • Vadaxx Energy
    • Nexus Fuels
    • Plastic2Oil
    • Agilyx
    • MK Aromatics Limited
    • Northwood Exploration Israel Limited
    • RES POLYFLOW
    • Plastic Advanced Recycling Corporation
    • OMV Aktiengesellschaft
    • Niutech
    • Agile Process Chemicals LLP
    • PLASTIC ENERGY

Recycled Plastic and Plastic Waste to Oil Market – Scope of the Report

A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global recycled plastic and plastic waste to oil market, to accurately gauge its growth potential. The study presents detailed information of the important growth factors, restraints, and key trends pertaining to the global recycled plastic and plastic waste to oil market, in order to identify the growth avenues for stakeholders in the value chain of the market. The report also provides insightful information on how the global recycled plastic and plastic waste to oil market would expand during the forecast period, i.e. 2019–2027.

The report offers intricate dynamics about different aspects of the global recycled plastic and plastic waste to oil market, which helps companies operating in the market in making strategic business decisions. TMR’s study also elaborates significant changes that are highly anticipated to configure the growth of the global recycled plastic and plastic waste to oil market during the forecast period. It also includes a key indicator assessment that highlights the growth prospects of the global recycled plastic and plastic waste to oil market, and estimates statistics related to the market in terms of volume (kilo gallons) and value (US$ Mn).

This study covers detailed segmentation of the global recycled plastic and plastic waste to oil market, along with key information and a competitive outlook. The report provides the company profiles of key players that are currently operating in the global recycled plastic and plastic waste to oil market, wherein, various developments, expansions, and winning strategies practiced and implemented by these leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Global Recycled Plastic and Plastic Waste to Oil Market

The report provides detailed information of the global recycled plastic and plastic waste to oil market on the basis of comprehensive research on various factors that are playing a key role in fueling the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and looking for innovative ways to create a unique benchmark in the global recycled plastic and plastic waste to oil market, so as to help them design successful strategies and make target-driven decisions.

  • How are key market players successfully earning revenue in the competitive global recycled plastic and plastic waste to oil market?
  • What would be the Y-o-Y growth rate of the global recycled plastic and plastic waste to oil market from 2019 and 2027?
  • What are the winning imperatives of market leaders operating in the global recycled plastic and plastic waste to oil market?
  • Which plastic type segment of the global recycled plastic and plastic waste to oil market is expected to have maximum growth potential during the forecast period?

Research Methodology –Recycled Plastic and Plastic Waste to Oil Market

The research methodology adopted by analysts for compiling the global recycled plastic and plastic waste to oil market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global recycled plastic and plastic waste to oil market.

During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales & marketing managers. On the basis of data obtained through interviews with genuine resources, analysts have focused on the changing scenario of the global recycled plastic and plastic waste to oil market.

For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to attain the required understanding of the global recycled plastic and plastic waste to oil market.

Global Recycled Plastic and Plastic Waste to Oil Market – Segmentation

TMR’s research study segments the global recycled plastic and plastic waste to oil market in terms of fuel, plastic, and region. This report presents extensive market dynamics and progressive trends associated with different segments, and explains how they are influencing the growth of the global recycled plastic and plastic waste to oil market.

Fuel

Gasoline

Diesel

Fuel Oil

Others

Plastic

LDPE

HDPE

PP

PS

Others

Region

North America

Europe

Asia Pacific

Rest of World

Latin America

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Recycled Plastics Plastic Waste Oil Market

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