Pyrolysis Oil Market Analysis

The market for pyrolysis oil is expected to grow as evident from its over 4.0% CAGR during a forecast period of 2021-2027. Pyrolysis oil is sometimes called bio-oil or bio-crude oil. It is a synthetic oil currently under investigation as a petroleum alternative. Since it’s being investigated as a substitute for petroleum, it serves similar trends and growth as petroleum. However, since pyrolysis oil is synthetic, its supply chain and growth trends may differ. Use of pyrolysis oil has increased since its used to operate boilers and furnaces. These uses predict an increase in the demand for pyrolysis oil, so there's likely to be stimulation in the overall market for pyrolysis oil. Pyrolysis oil is also a better substitute for petroleum, and industry analysts predict it will help decrease carbon emissions by 90%. As a result, it may replace many fuels we are currently using, like natural gas and light fuel oils. Global Pyrolysis Oil market was valued at around USD 274.79 million and is projected to grow at a CAGR of over 4.07% during the forecast period to generate revenue of USD 410.32 million in 2027. The global Pyrolysis Oil market is likely to offer cumulative growth opportunity equivalent USD 2.55 billion in the next few years.  

Interesting Facts about Pyrolysis Oil Industry

• Based on the raw materials used pyrolysis oil plant can cost anywhere between USD 75,000 to USD 100,000
• Over 5 million tons of used tires are treated using pyrolysis technology worldwide
• Pyrolysis is very beneficial to reduce landfill
• Pyrolysis oil has potential to take place as an alternative fuel
• Pyrolysis oil is costlier as compare to tradition oil

Huge Growth Potential as an Alternative for Petroleum

The opportunities for pyrolysis oil are lucrative and many. Since it’s a substitute for petroleum, pyrolysis oil may be used in diesel engines and turbines. This fact means that pyrolysis oil can be used in the automobile industry. Pyrolysis oil is also synthetic, which means industries are likely to not run out of it. This oil can thus be used in every industry that requires petroleum. Focusing on the automobile industry, most cars use some form of petroleum to move around. Economies like Europe and America are looking for more eco-friendly petroleum alternatives to run their cars. Many automobile manufacturers have developed electric vehicles to combat cars that require fuel. However, these are expensive and not accessible to developing countries. Industrial boilers also use pyrolysis oil which means that the increase in demand for industrial boilers will drive the demand for pyrolysis oil. Fuels, Chemicals, Heat and Power are most dominant application markets for pyrolysis oil.

Exceptional Properties of Pyrolysis Oil Makes it a Lucrative Industry

Pyrolysis oil has different oxygen levels. It is non-corrosive and non-volatile due to the presence of oxygen. It also provides thermal stability. Due to these exceptional properties, it can be used as a substitute for petroleum. It can take the place of heavy oil, natural gas, and coal. These reasons are why it's likely to have its largest market in North America. Pyrolysis oil also has a variety of different fractions which humans may use to receive products such as pyrolytic lignin and pyrolytic sugars.

Waste Tires to Lead the Industry

Waste Plastic, Waste Tire, Waste Rubber and Oil Sludge are some of the important raw materials used for pyrolysis treatment. Among all, waste tires are most dominating category across the world. Over 1.5 billion tires are manufactures in the world every year. This in turn resulted into huge availability of used and waste tires around the globe. Over 5 million tons of used tires are treated across the globe every year using pyrolysis treatment. Fast Pyrolysis and Flash Pyrolysis are two major types of processes used in this treatment. Fast pyrolysis is most widely used process for pyrolysis of waste materials.

Investment in R&D is Very Less

The restraints in the Pyrolytic Oil market is the amount of research and development which is still to be done regarding its function. It took human beings’ years and years to understand the fractionation of crude oil and create processes to do so efficiently. With pyrolysis oil, there is still more room for growth and efficiency. Hence, the restraints include a lack of knowledge and information present regarding pyrolysis oil. Furthermore, there are also problems faced by developing countries with the supply chain of pyrolysis oil as the demand for this product increases. There are also other factors to consider, like the cost of the raw materials to derive pyrolysis oil. Divya International, Recor, Trident Fuels Pty Ltd, Ecomation Oy, Biogreen (ETIA Group), BTG Biomass Technology Group, Chevron Phillips Chemical Company, Kingtiger (Shanghai) Environmental Technology Co. Ltd, Klean Fuels (Klean Industries Inc.) and Pyro-Oil Nig. Ltd are some of the major players operating in pyrolysis oil industry however, their investment in R&D is very less.

Frequently asked questions about global Pyrolysis Oil industry