An Incisive, In-depth Analysis on the Us Plastic To Fuel Market
This study offers a comprehensive, 360 degree analysis on the Us Plastic To Fuel market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Us Plastic To Fuel market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Plastic-to-fuel technology is expected to be a game changer in the energy market. There are three revenue models in the U.S. plastic-to-fuel market:
1. Revenue from sale of processors
2. Revenue from sale of fuels produced using waste plastic processors
3. Revenues from royalties earned by sharing proprietary technology.
Drivers & Trends
The global need for an alternative fuel technology due to depleting natural resources, and increasing use of plastic are among the key drivers of the market. Increasing waste plastic generation necessitates for a recycling technology, which reduces landfill waste in addition to converting waste into combustible fuel meeting environmental standards. Abundant raw material availability coupled with their low cost (sometimes zero cost) attracts more players in this market. However, complexities in the conversion technology as well as high initial setup cost for plastic to fuel conversion facility are witnessed as key constraints for the growth of the U.S. plastic-to-fuel.
U.S. Plastic-to-fuel Market Segmentation by End Product
The U.S. plastic-to-fuel market is poised to reach a valuation of US$ 98.26 million in 2020 from US$ 42.78 million in 2015. The market is expected to witness a CAGR of about 6.79% through 2016 to 2020. The fuels produced using conversion technologies are further sub-segmented as crude oil and diesel, wherein crude oil is anticipated to account for leading market share in 2015. Plastic-to-fuel conversion technologies primarily include pyrolysis, depolymerisation and gasification. Key players in plastic-to-fuel market utilize pyrolysis technology to convert waste plastic into fuel. However, all the players are have incorporated certain modifications in the process, which they have patented as a proprietary technology. In some of the processes, pre-processing of waste plastic is necessary, however, market players are developing technologies in order to reduce pre-processing. This is due to the fact that pre-processing incurs costs and in order to increase the profit margin, pre-processing costs needs to be minimum.
U.S. Plastic-to-fuel Market Segmentation by Revenue Generating Model
The U.S. plastic-to-fuel market has been segmented in to three revenue generating models, wherein the market revenues can be generated through sale of processors, sale of fuels and royalties earned by companies with proprietary technologies. The revenue generated through sale of processors accounted for the leading share in 2020.
U.S. Plastic-to-fuel Market: Key Players
The U.S. plastic-to-fuel market is dominated by major players, such as Plastic2Oil, Agilyx Corporation, Vadxx Energy, Green Envirotec Holdings LLC and RES polyflow. This players in the market are joining hands with waste plastic feedstock providers such as industries generating waste plastic, local municipalities, etc. Most of the companies have expansion plans in coming years, which is likely to increase the revenues generated in the U.S. plastic to fuel market.
U.S. Plastic-to-fuel Market: Government Grants
As far as the government grants for recycling technologies is concerned, Pyrolysis, which is widely used to convert waste plastic into fuel is not eligible for recycling grants offered by state governments. This is due to the fact that the technology is not categorized under recycling technology and is called conversion technology. However, it can still fetch government grants for green job creation and credits incentives for starting a unit in rural area.
U.S. Plastic-to-Fuel Market, Incremental $ Opportunity (US$ Mn), 2015–2020
Source: FMI, 2015
The FMI report examines plastic-to-fuel market in the United States. The primary objective of this report is to illustrate the latest trends, drivers and restraints in the plastic-to-fuel business with an attempt to provide insights into the future prospects of the market.
The report analyses U.S. Plastic-to-fuel market on the basis of following segments:
Revenue generation model
The U.S. Plastic–to-fuel market is presently witnessing three modes of revenue generation - sale of processors, sale of fuel recovered from waste plastic, and royalties earned for using proprietary technology.
The report starts with an overview of the energy market in the United States, wherein total oil consumption, domestic production of conventional fuels and imports has been analysed. The section provides a brief introduction of Plastic-to-fuel business in the U.S. including feedstock availability, technology and product output.
The next section follows with FMI’s analysis of key market trends, drivers, and restraints which are influencing the plastic-to-fuel market in the U.S. Impact analysis of key growth drivers and restraints based on weighted average model included in the report better equips and arms the client with crystal clear decision making insights.
Further sections of report include in-depth analysis of the U.S. plastic-to-fuel market on the basis of different revenue models. The first part of analysis represents the U.S. plastic-to-fuel market on basis of fuels produced, that is, the revenue generated through sale of fuels (crude oil and diesel). The second part includes estimates of processors sales through 2015 to 2020; the third part communicates the revenue generated through royalties earned through sharing of proprietary technology in plastic-to-fuel business.
Report also includes detailed technology overview of conversion technologies used in the U.S., wherein Pyrolysis, Depolymerisation and Gasification are explained. However, Pyrolysis emerges as the most widely preferred technology of converting waste plastic into oil. This section also speaks about various grants applicable to plastic-to-fuel business provided by governments of respective states in the U.S.
All the above sections evaluate the present scenario and the growth prospect of U.S. plastic-to-fuel market for the period 2015-2020. The report considers 2015 as a base year and provides data for the trailing 12 months.
To calculate the market size, the report considers production capacities of key players, prices of crude oil & diesel along with inputs from key executives of industry. The forecast for the market has assessed both value and volume across the United States Plastic-to-fuel market. When forecasting the U.S. plastic-to-fuel market, the starting point is sizing the current market, which forms the basis for the forecast and how market is expected to develop in future. Given the characteristics of the market, we triangulated the outcome of three different analysis on supplier side, demand side and economy. However forecasting the market in terms of various revenue models and outputs is more of quantifying expectations and identify opportunities rather than rationalizing them after the forecast has been completed.
In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the U.S. Plastic-to-fuel market.
As previously highlighted, the U.S. plastic to fuel market is split into a number of categories. All the plastic-to-fuel segments in terms of revenue model and end product are analysed in terms of Basis Point (BPS) to understand individual segments’ relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the U.S. plastic-to-fuel market.
Also, another key feature of this report is the analysis of all plastic-to-fuel market segments forecast in terms of incremental $ opportunity. This is traditionally overlooked while forecasting the market. However, incremental $ opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the U.S. plastic-to-fuel market.
In the final section of the report, the U.S. plastic-to-fuel market’s competitive landscape is included to provide report audiences with a dashboard view of service providers currently dominating the market. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key service providers. Report audiences can gain in depth vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in the United States Plastic-to-fuel marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their business strategies and expansion plans, in the United States market. Key competitors covered are Plastic2Oil, Vadxx Energy, Agilyx Corporation, and Green Envotech Holdings LLC.