Pyrolysis Oil Market Size, Share, Opportunities, And Trends By Application (Fuels, Chemicals, Others), By Raw Material (Plastic, Rubber, Wood, Biomass, Oil Sludge, Others Materials), By Process (Fast Pyrolysis, Flash Pyrolysis, Slow Pyrolysis), And By Geography - Forecasts From 2025 To 2030

Pyrolysis Oil Market Size:

The pyrolysis oil market is projected to grow from US$827.177 million in 2025 to US$1,235.089 million in 2030 at a CAGR of 8.35%.

Pyrolysis oil is a liquid blend made by rapid quenching or heating of biomass, waste, plastic and other materials in the absence of oxygen. Such oil finds applicability in fuels & chemicals among other usage owing to which they hold high scope of industrial usage. The growing demand for sustainable, energy efficient, cleaner and much greener fuel alternative to traditional fossil fuels ins majorly driving the demand for pyrolysis oil. 

Following this, renewable energy generates over 20% of all U.S. electricity, and that percentage continues to grow. In 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. By 2025, domestic solar energy generation is expected to increase by 75%, and wind by 11%. The following graphic breaks down the shares of total electricity production in 2022 among the types of renewable power:

Another factor that has fueled growth in the pyrolysis oil market has been the increasing prices of traditional fuels and the need to ensure energy security. As the source of energy is indigenous, it becomes a feasible source as countries are looking to reduce dependence on imported fossil fuels. 

Moreover, the demand for sustainable packaging has created the development and launch of such related product solutions. Such as, in October 2023, ICIS became a global source of commodity intelligence, boasting the highest-quality, transparent, and reliable commodity data. It further launched its Pyrolysis Oil Pricing Indexes, intended to fill the growing demand from consumers for the pricing of chemical recycling outputs

What are the Pyrolysis Oil Market drivers?

• The rising demand from heat & power generation sectors has augmented the market growth.

Pyrolysis oil is formed via decarbonization of organic materials which makes them sustainable and low emission producer. And as many industries seek alternative means of sustainable and renewable energies to reduce dependence on fossil fuels, pyrolysis oil owing to their such high-performance feature are acting as an alternative to conventional fuel in heat & power generation.

In addition, concerns over energy security and increasing prices of fossil fuels are pushing for the use of locally produced renewable fuels, such as pyrolysis oil. Biomass sources are widely dispersed, which brings industries closer to generating their energy near the point of demand, reducing their dependence on imported fuels and enhancing energy security. In 2023, biomass consists of about 5% of U.S. total primary energy consumption. Biomass is applied both in heating and electricity production and as a transportation fuel. It is an important fuel in most countries, especially in developing countries, for cooking and heating.

Moreover, as per the India Climate and Energy Dashboard, in 2022-23 the electricity generation was 16,17,723 MU which surged to 17,34,375 MU in 2023-24. 

• Strategic collaboration in waste recycling is stimulating the market expansion.

Pyrolysis in comparison to landfill for treatment is much environment friendly and increases the scale of waste recycling. Since major industrial waste comprises on unprocessed plastic, biomass, and rubber among others, the demand for converting such materials in recycled fuel has resulted in various collaborations and pilot projects. 

For instance, in September 2024, APChemi in collaboration with U.S Department of State’s Bureau of Educational & Cultural Affairs organized a workshop which aimed to explore the possibilities of pyrolysis technology in waste recycling and their advancement in plastic waste conversion. 

Likewise, in October 2023, OMV formed a collaboration with Wood for the commercial licensing of former’s patented “ReOil” chemical recycling technology which converts waste into pyrolysis oil. The collaboration would enable the supply pyrolysis oil as a replacement for conventional feedstock for the production of sustainable & high-performance plastic. 

Pyrolysis Oil Market Restraints:

• Technical complexities regarding production and usage can hamper the market expansion

Pyrolysis oil has provided a new scope for the usage of sustainable oil in power generation, however, in order to achieve the required performance & functionality various technical aspects relating to waste recycling, decarbonization and breaking on molecule needs to be determined. Hence, fulfilling such technical requirements can be challenging given the oil must meet the required industrial as well sustainable standards. This will pose a challenge for the market growth. 

Segment analysis of Pyrolysis Oil Market:

• Fuel, based on application will constitute a considerable market share.  

By application, fuel is projected to hold a significant share of the market and is poised for a positive expansion, since pyrolysis oil relatively finds applicability as fuel in replacement for furnace oil in the industrial application. 

The various heavy industries using it consume a high amount of such oils for heating construction, steel, glass, cement, power, and boiler heating. This application offers a potential solution to mitigating greenhouse gas emissions and improving energy security using sustainable alternatives to traditional fossil fuels. The production of pyrolysis for transportation fuel is rapidly developing, spurred as well by the increasing focus on reducing carbon footprints and the implementation of renewable fuel standards and policies. Biofuels accounted for almost 6% of energy use in the transportation sector within the United States.

Such large amount of fuel is consumed in many industrial applications, such as power, industrial boilers, diesel engines, and power generation with gas turbines, hence the possible demand for pyrolysis oil-based fuels is anticipated to rise during the forecast period. Moreover, one of the major uses for pyrolysis oil is as fuel in various industries, with values having been put against it that are between 50 and 70% that of fuels produced from petroleum. Pyrolysis oil is now renewable and converted to transport fuel or as fuel for boilers.

What are the key geographical trends shaping the Pyrolysis Oil Market:

• North America will constitute for a considerable share during the forecast period.

Geographically, the pyrolysis oil market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. 

During the forecast period, the North American region is anticipated to show significant growth fueled by the growing demand for sustainable fuel for industrial application, investment in waste recycling and expansion of new applications in major regional economies namely the United States and Canada.

Likewise, cooperation among relevant stakeholders’ technology providers, waste management companies and energy producers are key in supporting the market growth of pyrolysis oil from plastic waste. For instance, Nexas Circular and LyondellBasell collaborated in February 2023 for the supply of 24,000 tons of recycled feedstock per year. The source for this will be Nexus Circular's new recycling facility, which is expected to be developed beginning this year.

Further, pyrolysis oil is primarily utilized in the United States for purposes like boiler combustion, engine and turbine fueling, transportation fuel upgrading, and as a renewable feedstock for materials and chemicals. The overall supply of renewable diesel has also grown as a result; for example, it went from 17,35,591 gallons in 2021 to 27,46,992 gallons in 2023.

Recent development in the Pyrolysis Oil Market:

• In April 2024: Neste Corporation concluded the trial run made from the discarded car and truck tires. The objective of the pilot run was to analyze the possibility of converting waste streams in high-quality products for chemical and other industrial applications, and moreover the chemical recycling of discarded tires keeps valuable materials in circulation. 
• In January 2024: Shell Chemicals formed a collaboration with Braskem to expand the latter’s production of polypropylene. Hence Shell will provide its highly processed pyrolysis oil which will be used to produce high quality feedstock that will replaced conventional virgin fossil feedstock. 

Pyrolysis Oil Market Scope:

Report Metric	Details
Pyrolysis Oil Market Size in 2025	US$827.177 million
Pyrolysis Oil Market Size in 2030	US$1,235.089 million
Growth Rate	CAGR of 8.35%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Million
Segmentation	Application Material Process Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Pyrolysis Oil Market	Alterra Energy, LLC Ensyn Green Fuel Nordic Oy New Energy Kft. New Hope Energy
Customization Scope	Free report customization with purchase

 

The Pyrolysis Oil Market is analyzed into the following segments:

• By Application
  • Fuel
  • Chemicals
  • Others
• By Material
  • Plastic 
  • Rubber
  • Wood
  • Biomass
  • Oil Sludge
  • Other Materials
• By Process
  • Fast Pyrolysis
  • Flash Pyrolysis
  • Slow Pyrolysis
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. PYROLYSIS OIL MARKET BY APPLICATION

5.1. Introduction

5.2. Fuel

5.3. Chemical

5.4. Others

6. PYROLYSIS OIL MARKET BY MATERIAL

6.1. Introduction

6.2. Plastic 

6.3. Rubber 

6.4. Wood

6.5. Biomass

6.6. Oil Sludge

6.7. Other Material

7. PYROLYSIS OIL MARKET BY PROCESS

7.1. Introduction

7.2. Fast Pyrolysis

7.3. Flash Pyrolysis

7.4. Slow Pyrolysis

8. PYROLYSIS OIL MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. United Kingdom

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Spain

8.4.6. Others

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Taiwan

8.6.6. Thailand

8.6.7. Indonesia

8.6.8. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Alterra Energy, LLC 

10.2. Ensyn 

10.3. Green Fuel Nordic Oy 

10.4. New Energy Kft. 

10.5. New Hope Energy 

10.6. Nexus Circular 

10.7. Plastic Advanced Recycling Corp. 

10.8. Setra Group 

10.9. Quantafuel ASA 

10.10. Trident Fuels Pty Ltd. 

10.11. Twence 

10.12. AP Chemi 

10.13. Vow ASA 

10.14. Doing holdings Co., Ltd 

10.15. Contec S.A. Poland

10.16. Neste

Alterra Energy, LLC 

Ensyn 

Green Fuel Nordic Oy 

New Energy Kft. 

New Hope Energy 

Nexus Circular 

Plastic Advanced Recycling Corp. 

Setra Group 

Quantafuel ASA 

Trident Fuels Pty Ltd. 

Twence 

AP Chemi 

Vow ASA 

Doing holdings Co., Ltd 

Contec S.A. Poland

Neste