US Plastic-to-fuel Market

US Plastic-to-fuel Market Outlook (2022-2032)

[342 Pages Report] With US$ 112.5 Million in the current year 2022, the US plastic-to-fuel industry is anticipated to reach a worth of around US$ 221.3 Million by the end of year 2032. During this projection period of 2022 to 2032, the market is anticipated to grow at a CAGR of roughly 7%.

The global demand for an alternate energy technology owing to dwindling natural resources, and the rising usage of plastic are among the biggest factors of the US Plastic-to-fuel Market growth. The need for composting plastic technology that decreases landfill trash and turns this waste into combustible fuel that complies with environmental regulations is driven by the rise in the production of waste plastic.

Abundant raw material availability paired with their low cost, more often free of any cost, and is drawing more participants in this industry. This is because pre-processing has expenses associated with it, and low pre-processing costs are necessary to maximise profit margin incurred through the use of plastic-to-gasoline machine.

US Plastic-to-fuel Market Historical Analysis (2015-2021) Vs. Forecast Outlook (2022-2032)

Though the US plastic-to-fuel market got established before a very long time the technology is getting improved each year that can be witnessed by the accelerating growth rate. Also as the global energy requirement is enlarging so is the technology for obtaining fuel from alternate sources.

However, the plastic-to-fuel market in US experienced a severe jolt during the outbreak of pandemic with prices of petroleum dropping down significantly. Due to the shutdown or partial closure of important petrochemical plants and refineries, conventional crude oil consumption decreased by 7% to 8% in 2020 compared to 2019. After the COVID-19 pandemic was contained, the increased use of crude oil as a fuel in the emerging economies caused by the growth of their automobile industries is projected to drive the plastic market throughout the projection period.

Considering to the country's expanding energy needs and its existing infrastructure, US plastic-to-fuel market development is anticipated to reach some new heights in the coming days. In accordance with the U.S. Energy Information Administration (USEIA) report coal, natural gas, and petroleum made up around 79% of all primary energy produced in the country in the year 2018. So over forecast period, this rising trend of energy consumption in the US is anticipated to boost the US plastic-to-fuel market key trends.

What is the Future of US Plastic-to-fuel Market?

Growing plastic trash on the land as a result of the nation's increased plastic output has created a massive US plastic-to-fuel market opportunity in contemporary times. Roughly more than 14 Million tonnes of plastic were used in containers and packaged products as per the numbers based on the US Environmental Protection Agency back in the year 2017.

For a bid to help the environment enthusiasts, gamers are being encouraged to recycle plastic as the amount of plastic trash in landfills increases which is anticipated to have fuelled the US plastic-to-fuel market key trends and opportunities.

Nikhil Kaitwade

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What are the Major Challenges Experienced by the US Plastic-to-fuel Market Players?

Pre-processing of discarded plastic is very essential in some operations adding up a substantial cost to the whole process and limiting the profit margin for the US plastic-to-fuel market players. For instance, the American Chemistry Council predicts that the capital cost of a single plastic-to-diesel machine will range from US$ 10 Million to US$ 18 Million.

Although industry participants are working on methods to minimise pre-processing of plastic fossil this requirements still limits the participant’s capability from re4ali8zing their full potential. Nevertheless, complexities associated with the conversion technology, in addition to high initial setup expense for a plastic to fuel conversion facility, are experienced as the key obstacles for the growth of the U.S. plastic-to-fuel market trends.

By the year 2026, it is predicted by the US plastic-to-fuel market statistics that the liquid fuel will hold more than 80% of the market for plastic-to-fuel. One tonne of plastic trash may be paralyzed to produce more than 100 gallons of gasoline.

Which is Most Suitable Technology for the US Plastic-to-fuel Market Players?

As per the US plastic-to-fuel market analysis report in 2022, the largest segment on the basis of technology and the source of 65.3% of worldwide revenue is pyrolysis technology. Compared to previous technologies, this method processes mixed, unclean, and filthy plastics more effectively consequently garnering more popularity than the other segments.

Additionally, a variety of fuel types, including synthetic gas, solid residue, and biofuel, may be produced with this method that has made plastic pyrolysis machine for sale very common in US market. So even during projected period, these variables are predicted to propel pyrolysis technology making it the fastest growing segment during the projected timeline as well.

On the other hand, because of the rising global need for hydrogen, this technique is also becoming more prevalent and is expected to gain some higher traction in the forecasted years than before. Fluidized bed reactors, entrained flow gasifiers, counter-current fixed bed gasifiers, co-current fixed bed gasifiers, and plasma gasifiers are a few examples of the various types or sub segments of the gasification technology segment.

Contrastingly, depolymerisation technology is very effective for complex polycarbonate structures and converts it into gasoline, something that other technologies cannot do. Such advantage of this technology segment is expected to favour the growth of the US plastic-to-fuel in near future.

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Who are the Prominent End Users of the US Plastic-to-fuel Market?

As per the US plastic-to-fuel market survey report in 2021, crude oil segment dominated the market and generated 55.1% of worldwide revenue. Well over the forecast period, this segment is expected to grow due to the widespread use of crude oil made from waste plastic in vehicles, and other required areas.

Interestingly the Hydrogen segment of the US plastic-to-fuel market is witnessing a n exponential growth through these years and has turned out to be a lucrative category for many market players. Since hydrogen fuel cells are regarded as a pollution-free source of energy and are frequently used to power automobiles and buses, their use has increased significantly over the past 10 years. During the projection period, these variables are projected to fuel the generation of hydrogen from plastics.

Comparative View of Adjacent US Plastic-to-fuel Market

US Plastic-to-fuel Market:

US Plastic Recycling Market:

Plastic Additives Market:

The main processes for converting plastic into fuel are pyrolysis, depolymerisation, and gasification. Pyrolysis technique is used by major participants in the plastic-to-fuel sector to turn waste plastic into gasoline that has acquired an ever growing demand in the present market.

Furthermore, the garbage gathered from urban areas is quite likely to contain food, organic materials, or other sorts of chemicals, which drives up the price of processing. Additionally, the needs of the end user, the choice of depolymerisation technique, and the kind and quality of feedstock all play a significant role in the commercial feasibility of plastic-to-fuel business. Such patterns might impede the market's expansion for plastics as fuel.

Recent Developments in the US Plastic-to-fuel Market

In the year 2019, the Municipal Solid Waste (MSW) category contributed to about US$& 85 Million in the total plastics-to-fuel market share providing a major impetus for the US plastic-to-fuel market growth.

What is the performance of US Plastic-to-fuel Market in Other Countries?

These nations produce a remarkably large amount of plastic garbage that provides a major advantage for these countries. There is a plentiful supply of waste plastic that can be used to produce fuel turning these countries into a major competitors for the US plastic-to-fuel market share.

Meanwhile in United Sates, as stated by the federal, local, and state administrations, the project "plastic-to-fuel" does not fit within the classification of recycling and is thus not eligible for recycling clearance. The market for plastic-to-fuel is predicted to expand more slowly as a result of this aspect.

How Strong is the Competitive Landscape for the US Plastic-to-fuel Market?

By acquiring roughly about 40% of the market share in terms of revenue in the year 2019, Vadxx led the U.S. plastic-to-fuel market share in terms of total sales of fuels, followed by Agilyx and RES Polyflow, in that order.

The market for plastic-to-fuel in the US is predicted to have a profitable development potential due to rising demand for plastic-to-fuel machine. Gasoline is the petroleum fuel that Americans use the most, according to the U.S. Energy Information Administration that is estimated to be around 392 million gallons per day, finished motor gasoline use in the year 2018 and accounted for nearly 45% of all U.S. petroleum consumption.

The country's cosmetics business is also expected to grow as a result of rising cosmetic product sales, which might present an emerging trend in the US plastic-to-fuel market as cosmetics are produced in large quantities using petroleum-based materials. Consequently, expansion of the cosmetics sector in the United States is anticipated to substantially support the sales of plastic pyrolysis machine.

The polythene fuel market expansion in United States is anticipated to be accelerated by plastic-to-fuel companies' increased attention on boosting the capacity and processing capacities of the machine that turns plastic into oil primarily used for turning waste plastic into oil. Innovations that use plastic as fuel are opportunistic and reflect well on fuel safe plastic makers.

Nevertheless, the current situation of turning trash into fuel is less lucrative than that of producing conventional gasoline making it very challenging for the US plastic-to-fuel market participants. Economies of scale are the main issue that present a major hindrance for plastic gas market in US. Most producers have noticed that the quality of the feedstock has a significant impact on the quality of the fuel making it a major determinant for the US plastic-to-fuel market future trends.

In order to overcome the mechanical obstacle and reduce the pre-processing costs associated with the sorting of plastic, several studies are being carried out by private as well as national and international organization. It is anticipated that this current market trend of investing in R&D for finding better solution of the snowballing problem might encourage US plastic-to-fuel market expansion further.

US plastic-to-fuel market future trends is also anticipated to be aided by the growing practise of providing technology to third parties in order to increase their market share and penetration. For example, in the month of January of 2015, Green Envirotec Holdings and the Cenco Leasing Co., which is based in Texas, signed a contract under which the former awarded the latter an exclusive licence to commercialize its unique technology of turning used tyres and plastics into hydrocarbons.

Currently the US plastic-to-fuel market is highly fragmented with few businesses offering commercial plastic to fuel solutions since this technology of developing machine that turns plastic into fuel is still under progress. To expand and endure in the market, businesses are now focusing on providing long-term value to their shareholders. The major plastic-to-fuel companies in United States place a high importance on creating solid, low-risk plans that guarantee a sizable profit margin and a solid basis for their stockholders.

In the upcoming years, the established as well as new US plastic-to-fuel market players should profit from favourable regulatory conditions mixed with government assistance in the form of tax advantages and financial incentives. The usage of non-renewable energy sources is raising environmental concerns, which might limit the sales of blow moulded fuel tank and its industrial expansion in US.

Recent Developments in the US Plastic-to-fuel Market

In the year 2019, the Municipal Solid Waste (MSW) category contributed to about US$ 85 Million in the total plastics-to-fuel market share providing a major impetus for the US plastic-to-fuel market growth.

Key Players Profiled in the US Plastic-to-fuel Market Report

• Plastic2Oil
• Agilyx Corporation
• Vadxx Energy
• Green Envirotec Holdings LLC
• RES polyflow

Key Segments

By Revenue Generation Model:

• Fuel
• Processors
• Royalties

By Technology:

• Pyrolysis
• Depolymerisation
• Gasification

By End Products:

• Crude Oil
• Sulphur
• Hydrogen
• Diesel
• Others

By Region:

• North America
• Latin America
• Asia Pacific
• MEA
• Europe