The 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 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The U.S Plastic-to-Fuel Market involves conversion of plastic waste into fuels like petrol, diesel and other hydrocarbon fuels. The process involves the breaking down of plastic molecules through thermal decomposition in high temperatures. The plastic waste is heated in the absence of oxygen which breaks down the long hydrocarbon polymer chains into shorter hydrocarbon molecules like alkanes and alkenes. These molecules can directly be used as fuels or further refined into petrol, diesel and other fuels using conventional petroleum refining processes. The market is poised to grow owing to increasing plastic waste generation, stringent plastic waste management regulations and rising demand for alternative fuels.
Market key trends:-
One of the key trends in the U.S Plastic-to-Fuel Market is the growing implementation of advanced thermal and catalytic plastic conversion technologies. Earlier technologies like simple pyrolysis produced low quality fuels and had low conversion efficiencies. However, emergence of advanced technologies like catalytic hydrothermal gasification and pyrolysis are enabling higher conversion rates and production of cleaner synthetic fuels from plastic waste. These technologies are able to convert over 90% of the plastic waste into condensable hydrocarbon fuels. They are also capable of processing mixed plastic waste feeds without any sorting or cleaning requirements. Implementation of such advanced technologies is expected to boost plastic waste conversion and synthetic fuel production capacities. Increased private investments in plastic to fuel facilities is another major trend in the market. With growing concerns around plastic pollution and waste management, companies are actively investing in commercial scale plastic to fuel plants across the U.S.
- Threat of new entrants: The threat of new entrants in the U.S. plastic-to-fuel market is low as it requires a large initial capital investment for setting up plastic-to-fuel facilities, and market is dominated by few major players.
- Bargaining power of buyers: The bargaining power of buyers is moderate as they can choose from limited suppliers. However, buyers don’t have many alternatives for recycling plastic waste into fuels.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate as major suppliers have established relationship with key buyers. Although few large suppliers exist, buyers can switch to alternatives if needed.
- Threat of new substitutes: The threat of substitutes is low as there are limited alternatives for recycling plastic waste and converting it into reusable fuels.
- Competitive rivalry: Competition in the market is high among major players.
The U.S. Plastic-To-Fuel Market Demand is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing plastic waste leading to environmental pollution. The U.S. generates over 32 million tons of plastic waste annually, most of which ends up in landfills. Plastic-to-fuel technology provides an eco-friendly way for recycling plastic waste.
Regional analysis: – The West region dominated the U.S. plastic-to-fuel market in 2020 and is expected to continue its dominance over the forecast period. States like California generate huge volumes of plastic waste every year. Several plastic-to-fuel plants are located in the region to cater to the growing need for sustainable plastic waste management solutions.
Key players operating in the U.S. plastic-to-fuel market are Plastic2Oil, Agilyx Corporation, Vadxx Energy, and Green Envirotec Holdings. Plastic2Oil is one of the leading players with a patented technology to producedrop-in fuels from waste plastics. Agilyx Corporation focuses on developing chemical recycling technologies.