Pyrolysis Oil Market Expected to Reach $480.9 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Pyrolysis Oil Market," The pyrolysis oil market was valued at $318.5 million in 2021, and is estimated to reach $480.9 million by 2031, growing at a CAGR of 4.3% from 2022 to 2031.

Pyrolysis is the term used to describe the chemical breakdown of organic (carbon-based) materials when heat is applied. Any organic substance can be subjected to this thermochemical process. Materials are subjected to an extremely high temperature during this treatment, and in the absence of oxygen, they undergo a chemical and physical separation into several molecules. As the temperature rises, the rate of pyrolysis accelerates. A chemical change occurs in the substance that is subjected to pyrolysis. Pyrolysis is a term that has Greek roots and means "fire separating."

Generally, the substances which are subjected to pyrolysis undergo a chemical decomposition process and are broken down into multiple product compounds. New chemicals are created during the heat breakdown process. Receiving goods with a different, frequently superior character than the original residue is made possible by this. In small-scale operations, the temperature may be significantly lower than in industrial applications, where it is frequently 430 °C or even higher.

Organic compounds are frequently transformed by pyrolysis into solid residue that also contains minor amounts of liquid, gas, and ash. On the other side, carbonization, or intense pyrolysis, produces carbon as the byproduct. In contrast to other high-temperature processes like hydrolysis and combustion, pyrolysis doesn't require the use of oxygen, water, or any other reagents in its reactions. However, it is not always possible to create an atmosphere free of oxygen, therefore any pyrolysis system will always experience a limited amount of oxidation.

Pyrolysis is also regarded as the first stage in other connected processes like combustion and gasification. An organic compound can be pyrolyzed to yield a variety of volatile byproducts as well as a solid residue that is substantially carbon loaded. For example, Pyrolysis is a process that results in the charring of wood (or the incomplete combustion of wood) that produces charcoal. The well-known products made with the help of pyrolysis are coke (which may be used as an industrial fuel and a heat shield), created by heating coal, and a type of charcoal known as biochar, which is made by heating wood. Condensable liquids (referred to as tar) and non-condensable gases are produced during the pyrolysis process.

Some of the applications of pyrolysis are listed below.

• The heat-enabled caramelization of sugar is one application of the pyrolysis process.
• The use of destructive distillation in pyrolysis is significant. Unprocessed material (organic goods) is heated to high temperatures in generally inert environments to speed up the breakdown of the material into smaller molecules. With the help of this technology, coal can be used to extract coke and coal ash.
• Pyrolysis is a process used in several common culinary methods, including grilling, frying, toasting, and roasting.
• Methanol, activated carbon, charcoal, and other chemicals are produced from wood in large quantities for use in the chemical industry. • Synthetic gas created by the conversion of waste materials via the pyrolysis process can be used in gas or steam turbines to generate energy.
• Pyrolytic waste can be converted into a mixture of soil, glass, ceramics, stone, and other materials that can be utilized as building materials or to fill landfill cover liners.

There is an increase in the understanding of the harmful effects of using fossil fuels among end users. A lot of research and development is being done in emerging nations to find substitutes for conventional fossil fuels. The energy sector has been expanding quickly recently, and stakeholders are looking for sustainable and energy-efficient solutions due to growing environmental concerns and the speedy depletion of fossil fuel resources. The rise in the need for environment-friendly fuel, in turn, surges the growth of the pyrolysis oil market.

Furthermore, the pyrolysis oil industry is projected to expand at a faster rate due to a rise in energy costs and an increase in petroleum product prices in several nations. In addition, fast industrialization and expansion of infrastructure projects on a global scale are projected to boost market value. The surge in worries about energy security in developing nations is also anticipated to support the expansion of the market.

Energy security has become a major concern across the globe. Several countries across the globe are focusing more on ensuring that it should have access to an adequate and clean source of fuel. Increasing focus on energy security as there has been a significantly increased demand for energy in the past few years. The increase in demand for energy is due to robust economic growth and an increase in population.

Currently, the biggest obstacle to the pyrolysis of plastic waste is the shortage of feedstock with variable quality, inefficient sorting that is expensive, the absence of markets due to a lack of standardized products, and ambiguous legislation regarding plastic waste management. Tight collaboration between feedstock suppliers and converters is one potential remedy for ensuring a constant supply of feedstock in both quantity and quality. Pyrolysis oil is extremely caustic and acidic. As a result, it is challenging to store and transport, and it can harm boilers, engines, and processing machinery in refineries. It is difficult to upgrade pyrolysis oil to get rid of the high acid content in an economical way. 

The Statistical Review of World Energy 2021 by BP estimates that in 2020, the world's daily consumption of crude oil was 91.3 million barrels. Asia-Pacific accounted for 37.5% of this total global consumption of crude oil. The population increase and rapid economic growth have increased crude oil demand. The demand for crude oil in the Asia-Pacific region is largely boosted by an increase in infrastructure-building operations. The rise in crude oil consumption has increased the requirement for fossil fuel imports due to a mismatch between supply and demand. For instance, in 2020, the Asia-Pacific region produced 7.4 million barrels of oil per day while using 34.2 million barrels daily. As a result, there is a demand for imported fossil fuels.

The pyrolysis oils market is segmented into feedstock, process, fuel, and region. On the basis of feedstock, the market is divided into plastic, rubber, biomass, and others. On the basis of process, it is categorized into fast pyrolysis, slow pyrolysis, and flash pyrolysis. On the basis of fuel, it is fragmented into diesel, gasoline, fuel oil, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of feedstock, the pyrolysis oils market is categorized into plastic, rubber, biomass, and others. The rubber segment is projected to be the fastest-growing segment and the plastic segment has garnered the highest revenue share.

On the basis of process, it is categorized into fast pyrolysis, slow pyrolysis, and flash pyrolysis. Fast pyrolysis is projected as the fastest-growing segment and slow pyrolysis has garnered the highest share in the pyrolysis oil market.

On the basis of the end-use, the pyrolysis oil market is categorized into heat and power, automotive fuel, and others. Automotive fuel is projected as the fastest-growing segment. Region-wise Asia-Pacific is projected to be the fastest-growing region.

The major players operating in the global pyrolysis oils market are Plastic Advanced Recycling Corp., Trident Fuels (Pty) Ltd, Niutech, Quantafuel ASA, Ensyn, Twence, Green Fuel Nordic Oy, Alterra Energy, New Hope Energy, Bioenergy AE Côte-Nord. Other players operating in the market are Pyro-Oil Nig. Ltd., SetraKlean Industries Inc., BTG Biomass Technology Group, Agile Process Chemicals LLP, and OMV Aktiengesellschaft.

Key findings of the study:

• On the basis of feedstock, the rubber segment is expected to grow at a CAGR of 4.7%, in terms of revenue during the forecast period.
• On the basis of the process, the slow pyrolysis segment is expected to grow at a CAGR of 4.2%, in terms of revenue during the forecast period.
• On the basis of end-use, the automotive fuel segment is expected to grow at a CAGR of 4.6%, in terms of revenue during the forecast period.
• Region-wise, Asia-Pacific garnered the highest share in 2021 in terms of revenue and is expected to maintain its dominance during the forecast period.