Plastic to Fuel Market is expected to reach US$ 8,804.20 Million by 2028

Introduction of Go Green Process to Provide Growth Opportunities for Plastic to Fuel Market during 2021–2028

According to our latest market study on “Plastic to Fuel Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Technology and End Product,” the plastic to fuel market is expected to grow from US$ 3,645.23 million in 2022 to US$ 8,804.20 million by 2028; it is estimated to grow at a CAGR of 15.8% from 2021 to 2028.

The global plastic to fuel market analysis is segmented into five major regions North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. In 2021, APAC led the market with a substantial revenue share, followed by North America and Europe. Plastic to fuel initiatives is starting to gain traction in the energy industry, as people become aware of the widespread environmental damage caused by single-use plastics and people's insufficient recycling habits. This is prompting researchers to look for new ways to dispose of the growing plastic output. An increase in government subsidies for green technology development and attempts to encourage such technologies through increased financing are projected to provide significant market growth possibilities. Furthermore, the government's tightening of energy-security regulations is pressuring businesses to invest in environmentally friendly research. Plastics-to-fuel is a promising option for not just reducing pollution but also bringing major economic benefits to regions. According to the American Chemistry Council, plastic-to-fuel plants in the US alone would generate over 39,000 employment and nearly US$ 9 billion in economic output, indicating that the worldwide market potential for this business is enormous.

Plastic to fuel technologies have a lot of opportunities in Asia Pacific. Several countries in Asia Pacific are major manufacturers and illicit dumpers of plastic waste. When it comes to poor plastic waste management, China is among the leading countries. Tons of plastic waste is also imported from other nations. However, China’s strict policies in the recent times toward recycling plastic has led the country to experience numerous companies to venture into plastic to fuel market. This has positioned the country the top revenue generator in APAC region. Also, coupled with China, other two countries Japan and South Korea has been at the forefront to produce fuel from plastics. This has stationed APAC region on the top of the regions in the plastic to fuel market analysis.

In Europe, the high lifestyle of people in the region coupled with the rise in tourism across countries like UK, France, Italy and Spain amongst others is increasing the plastic consumption across the country. This is adding to the rise in plastic waste generated by Europe. Also, technological integration in waste management is high across the region thereby enabling companies to segregate plastic waste from the waste generation source. Further investments in R&D on different plastic recycling technology is also influencing the plastic to fuel market growth.

The global plastic to fuel market is bifurcated on the basis of technology and end product. The market, based on technology, is segmented into pyrolysis, gasification, and depolymerization. By end product, the market is segmented into crude oil, hydrogen, and others. Based on geography, the market is segmented into North America (the US, Canada, and Mexico), Europe (France, Germany, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (China, India, South Korea, Japan, Australia, and the Rest of APAC), and Rest of World.

Impact of COVID-19 Pandemic on Plastic to Fuel Market Growth

The COVID-19 pandemic has created significant tremors on various industries, including the plastic recycling industry. The plastic recyclers experienced a drop in plastic procurement, thereby resulting in decline in recycled product volume. In addition, the regulations related to lockdown and social distancing implemented by various governments across the world had created the scarcity of labor at the plastic recycling units worldwide. This also reflected lower volume of production. Owing to the factors mentioned above, the plastic recycling industry has been impacted negatively, which has restrained the growth of the plastic to fuel market size.

To tackle the COVID-19 situation and continue the operations at the plastic to fuel production units, the plastic to fuel market players adopted a few strategies such as mergers and acquisition, upscaling funding, and expansion to untapped geographies. These strategies benefitted the market players in the second half of 2020. However, the decline in revenues during the initial period of the outbreak hindered the annual sales of market players. This ultimately have had an adverse impact on the plastic to fuel market size.

Agilyx; Klean Industries Inc.; nexus FUELS, LLC; Plastic2Oil, Inc.; Cassandra Oil AB; Bradam Group, LLC.; RESYNERGI; MK Aromatics Limited; Plastic Advanced Recycling Corp.; and OMV Aktiengesellschaft are among the major companies operating in the plastic to fuel market.

Plastic To Fuel Market - by Geography, 2021 and 2028 (%)

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