June 25, 2024
U.S. Plastic-to-Fuel Market

U.S. Plastic-To-Fuel Market To Be Driven By Increasing Plastic Waste Generation

The plastic-to-fuel manufacturing process converts non-recyclable plastic waste into useable fuels such as gasoline, diesel and jet fuels through different technologies like pyrolysis, gasification, depolymerization etc. Plastic-to-fuel offers solutions for effective plastic waste management while also providing alternate energy sources. Pyrolysis is one of the most used technology that involves heating plastic in the absence of oxygen to produce synthetic crude oil, pyrolysis oil or pyrolysis gas. The synthetic crude or pyrolysis oil can then be further refined to produce different types of liquid fuels.

The global U.S. Plastic-to-Fuel Market is estimated to be valued at US$ 128.21 Bn in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the U.S. plastic-to-fuel market is technological advancements in plastic pyrolysis. Continuous research and development is being undertaken to improve the efficiency and yield of the pyrolysis process. Advancements include development of new catalysts that can convert more plastic waste into high quality fuels. Companies are also focusing on developing modular and mobile plastic pyrolysis plants that offer flexibility and can be located near plastic waste sources. Such technological enhancements are expected to boost plastic-to-fuel production capacity and enable effective plastic waste management.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the plastic-to-fuel market requires high capital investments for establishing plastic waste processing facilities and R&D.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many plastic waste converters and fuel producers in the market.

Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials such as plastic waste are abundantly available from multiple sources.

Threat of new substitutes: The threat of substitutes is low as there are limited alternatives to plastics that can be reused for fuel production.

Competitive rivalry: The competitive rivalry is high due to many established players competing on factors like technology, efficiency, and production capacity.

Key Takeaways

The Global U.S. Plastic-to-Fuel Market Demand is expected to witness high growth. The market is driven by the increasing need to reduce plastic waste through effective recycling and reuse methods. Rapid urbanization and growth in per-capita plastic consumption have significantly boosted plastic waste volumes.

Regional analysis: The Western and South Central regions are expected to dominate the U.S. plastic-to-fuel market owing to the presence of major plastic reprocessors and fuel producers. California and Texas are anticipated to lead other states in terms of plastic waste conversion facilities and capacity additions over the forecast period.

Key players: Key players operating in the U.S. Plastic-to-Fuel market are Eli Lilly & Company, Boehringer Ingelheim GmbH, Vistin Pharma AS, Janssen Pharmaceutica NV, Sanofi, Astellas Pharma Inc., AstraZeneca plc., Merck & Co., Inc., Novartis AG., Novo Nordisk A/S, Teva Pharmaceuticals Pvt Ltd., and Sun Pharmaceutical Industries Ltd. These players are focusing on expanding their plastic waste management infrastructure and production of different fuel types like diesel, gasoline, and naphtha through proprietary pyrolysis and gasification technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it