In 2020, the global plastic to fuel market size was more than USD 131 million. The global plastic to fuel market is forecast to grow at a compound annual growth rate (CAGR) of more than 25% during the forecast period from 2021-2027. The demand for waste-based energy generation in light of a clean environment has prompted market growth. Governments in different regions have started generating energy from plastic waste mainly due to the increasing amount of household and industrial waste.
Plastic-to-fuel technology converts waste plastics, non-recycled, used plastics into a range of products, such as oil, fuel, and other petroleum-based products. In addition to automotive and industrial applications, the products find applications in food & beverage and agriculture applications. Various technologies exist for this process, including pyrolysis, gasification, and depolymerization.
Factors Affecting the Market
The coming years should be positive for the market as favorable regulatory conditions combine with government financial incentives.
A growing environmental concern regarding the use of nonrenewable energy sources will inhibit the market growth.
As the demand for recycling increases in developed markets like Japan, Netherlands, Germany, and the U.S., the market should grow. Some companies, such as Chevron and BP, have introduced plastic-to-fuel techniques to generate energy using plastic waste.
Global economic growth will continue to increase after COVID-19, which is why energy consumption will continue to move exponentially upward. Additionally, minimizing installation costs of plastic to fuel generation plants through R&D will be a primary driver of market growth in these regions. The efficiency of waste energy generation is forecast to improve as a result of technological advances.
The World Bank estimates that approximately 242.0 million tons of plastic waste occur every year. There are a lot of plastic wastes available, and this fact drives the market. In addition, several countries are finding alternatives to landfills for disposing of plastic waste. These factors will drive the market during the forecast period.
Regional Overview of the Market
In terms of revenue, Asia Pacific dominated the market. The primary demand for plastic-to-fuel will likely be from China, India, and Japan. This market will grow over the coming years because of rising industrial and urbanization. A favorable government policy environment is forecast to drive market growth in the forecast period due to the development of renewable energy technologies.
European markets are the second largest in the market. Many countries with high plastic recycling rates, such as Germany, Austria, Wales, and Switzerland, are leading the development of efficient plastic to fuel technologies. In addition, policymakers in the EU and globally are creating a conducive regulatory environment to help the plastic-to-fuel industry grow significantly in the near future.
Population growth, especially in China and India, contributes to this increase in energy consumption. With a growing population, basic fuel needs like electricity, transportation, and cooking fuel are becoming more difficult to find. These countries generate a lot of plastic waste. There is an abundance of plastic waste that has the potential for fuel creation. These factors will drive market growth going forward.
The leading prominent companies in the plastic to fuel market are:
Zhangzhou Qiyu Renewable Energy Technology Co., Ltd.
Shangqiu Sihai Machinery Equipment Manufacturing Co., Ltd.
Green Envirotec Holdings LLC
Beston (Henan) Machinery Co., Ltd.
Other Prominent Players
Aim of the Report
The global plastic to fuel market segmentation focuses on End-Fuel, Technology, and Region.
Segmentation based on End-Fuel
Segmentation based on Technology
Segmentation based on Region
Rest of Western Europe
Rest of Eastern Europe
Australia & New Zealand
Rest of Asia Pacific
Middle East & Africa (MEA)
Rest of MEA
Rest of South America